STOCK EXCHANGE ANNOUNCEMENT

Update on bid to Federal Government for Infrastructure Support

Thursday 28 March 2002

An article in one of today’s newspapers may cause some confusion as to the status of Pima’s bid to the Federal Government for an infrastructure support package for Pima’s SAMAG Project in South Australia.

Pima is continuing to negotiate an appropriate infrastructure package with the Federal Government and remains confident of a positive outcome.

A total package of $130 million has been requested, with the South Australian State Government already committed to providing $25 million of the total.

Negotiations with the Federal Government have pursued a number of different mechanisms for infrastructure support. One of these, the Strategic Investment Coordination Scheme, has recently been ruled out as a means of support. Nevertheless, other mechanisms remain open and Pima executives are continuing to pursue these.

The SAMAG Project is on schedule, with completion of the Bankable Feasibility Study expected within the next couple of weeks. Financial Close is expected later in the year.

For further information

In accordance with Australian Stock Exchange listing requirements, the geological information in this report has been based on information provided by geologists who are corporate members of the Australian Institute of Mining and Metallurgy or Australian Institute of Geoscientists and who have had in excess of 5 years experience in their field of activity.