STOCK EXCHANGE ANNOUNCEMENT

Pima Mining NL - Retirement of Directors

9 September 2002

The Board of Pima Mining NL announces the retirement of Ric Horn, Rod Whyte and Richard Tiley from their positions as directors of the company.

Pima Chairman, Mr David Karpin said that the retirement of the three directors represented a restructuring of the Board, consistent with the Company’s move towards commercial development of its SAMAG Magnesium Project.

Farewelling the three directors, Mr Karpin said “no-one should underestimate the contribution made by Messrs Horn, Whyte and Tiley. Mr Whyte and Mr Tiley became directors in 1991 and 1992 respectively and have played a significant role in the financial and operational activities of the Company since their appointment. Mr Horn joined the Company as Managing Director in 1996 and effectively introduced the SAMAG Project to Pima.”

Mr Karpin continued “now that the company has successfully completed its Bankable Feasibility Study and is moving towards its financing stage, all three directors felt that this was an appropriate time to step aside. All three leave with our very best wishes for their retirement and future endeavours”.

For further information contact:

Gordon Galt
Managing Director
Pima Mining NL
(02) 9252 1505