STOCK EXCHANGE ANNOUNCEMENT

Pima Mining NL and Star Mining Corporation NL sign Share Sale Agreement for Pima's Non-Magnesium Exploration Assets

28 June 2002

Further to the announcement on 14 March 2002, the Directors of Pima Mining NL (“Pima”) and Star Mining Corporation NL (“Star) are now pleased to announce that they have signed a share sale agreement, covering all of Pima’s non-magnesium exploration assets.

The proposed consideration to Pima for the sale is 5 million Star shares (following a 1:100 share consolidation by Star) and 15 million, 5-year options to acquire shares in Star at an exercise price of 30 cents per share. The sale price is effectively at current book value. Prior to completing the sale, Pima’s Directors require shareholder approval to distribute the Star shares and options, on a pro rata basis to all Pima shareholders. This distribution will be by means of a capital reduction.

Star has completed its due diligence programme. Completion of the transaction is however contingent on Star shareholders approving the issue of the new shares and options, along with Pima shareholders approving the distribution of the Star shares and options. Both parties expect shareholder meetings to take place in July 2002.

Pima has previously announced its intention to dispose of its non-magnesium exploration assets, so that all the Company’s efforts can be directed towards the SAMAG Project.

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.