STOCK EXCHANGE ANNOUNCEMENT

Pima appoints David Karpin as Chairman

7 May 2002

The Directors of Pima Mining NL (ASX Code: PAL) , are pleased to advise that Mr David Karpin has joined as Chairman of the Board.

Mr Pat Elliott, who has stepped down as Chairman to become Deputy Chairman said Mr Karpin's strong strategic attributes and extensive experience in managing the construction and operation of large projects makes him an ideal person to head Pima, as it moves to build and operate and develop the SAMAG magnesium project and business.

"The Board is extremely happy that a man of David’s calibre and expertise has accepted this challenge as the Company prepares to enter the project financing stage, with the results of the Bankable Feasibility Study due to be released in the next couple of weeks," he said.

Commenting on what attracted him to the Company, Mr Karpin said Pima's vision of taking a large share of the World's developing magnesium market is realistically achievable.

"The SAMAG Project is based on sound fundamentals: – Proven process technology, world class resources and economic power.

"To make these factors work and capitalise on the burgeoning opportunity, the key is to have the right management and operational team in place. The prime motivation for me joining is to be a part of the effort that ensures this vision is realised," Mr Karpin said.

Mr Karpin’s career includes 22 years with RTZ-CRA, which culminated in his role as Group Executive – Economic Resources with CRA Ltd from 1992 to 1996, where he was responsible for finance, corporate strategy, accounting, taxation, legal, economics, secretarial and headquarters administration.

His other roles with CRA included Managing Director of Argyle Diamonds. Commercial Director of Hamersley Iron and Executive Manager – Commercial with Bougainville Copper Limited.

Mr Karpin is a Director of the international gold miner Placer Dome Inc, and Chairman of Melbourne Health and the Mount Eliza Business School. His other directorships include Racing Victoria Ltd and Warrnambool Cheese & Butter Factory Ltd.

Mr Karpin has a strong interest in education and training issues and was Chairman of the Australian Government’s Industry Task Force on Leadership and Management Skills in the mid 1990s. He is an Adjunct Professor of Management at both The Australian National University and the University of Queensland.

He is a Member of Council of the Curtin University of Technology, Perth and also holds an Honorary Doctorate of Laws, awarded by the University of Newcastle.

In 1997, he was made a Member of the Order of Australia.

About Pima:

Pima, through its wholly owned subsidiary, SAMAG, is proposing to develop an initial 65,000 tonne per annum magnesium metal and alloy plant at Port Pirie, South Australia. The company holds an exclusive, worldwide licence from the Dow Chemical Company of the United States for production and other related technologies, including significant R&D.

The entire output has been contracted to ThyssenKrupp Metallurgie GmbH (TKMet) a member of the German industrial group, ThyssenKrupp (TK). The TK Automotive division is one of the world’s ten biggest auto sector suppliers with a global network of 110 production sites. The agreement with TKMet provides a guaranteed base price sufficient to fully service project debt finance requirements and costs.

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.