STOCK EXCHANGE ANNOUNCEMENT

Shareholder Share Purchase Scheme Letter and Application Form

5 April 2002

Dear Shareholder

You will recall that I wrote to you in February with details of Pima’s Shareholder Share Purchase Scheme (SSPS), and a proposal to offer shares under the SSPS, subject to shareholder approval at a General Meeting held on 19 March 2002.

You may not be aware, but at the General Meeting on 19 March, the offer of shares under the SSPS was approved. I am therefore writing to you to provide details of the application process under the SSPS and to provide specific detail about share price, purchase limits, etc.

The price of shares under this offer is a maximum discount of 10% to the average closing market price for the 5 days prior to the announcement of the offer. The offer is announced today. The average closing market price for the 5 days prior to today’s date is slightly below 19 cents and accordingly, Directors have set the price of the shares under the SSPS as 17 cents each. This price represents a 8.6% discount to the average closing market price for the 5 days up to and including 4 April 2002.

Other conditions of the SSPS are as follows:

Applications for shares can be for any amount between the minimum application of $500 and the maximum allowable of $3,000;

Completed application forms along with full payment must be received by 5.00pm on Tuesday 23 April 2002;

Issue price is 17 cents per share.

Participation in the SSPS is at your own discretion, but your entitlement to participate in the SSPS is non-renounceable. This means that your right to participate in the SSPS cannot be transferred to anyone else.

As previously stated, applications to participate in the SSPS close on 23 April 2002. If you wish to take up some or all of your entitlement under the SSPS, you should complete the attached application form, enclose your payment and submit to our share registry, Computershare, to arrive no later than 5.00pm on 23 April 2002. For your convenience, a reply paid envelope is enclosed.

If you have any queries about the SSPS, or any of the enclosed documents, please contact our Company Secretary, Neil Hooper on (02) 9252 1505.

Yours faithfully,

Patrick Elliott

Chairman

• (19 kb) - Shareholder Share Purchase Scheme Application Form

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.