--- flx --- announcement

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    Moving ahead......

    Felix Resources Limited ACN 000 754 174 ABN 75 000 754 174
    Postal: PO BOX 10470 Brisbane Adelaide Street QLD 4000 Delivery: 260 Queen Street Brisbane QLD 4000 Australia
    T (61-7) 3229 4277 F (61-7) 3211 7328 E [email protected] W www.felixresources.com.au
    31 March 2004
    Australian Stock Exchange
    Company Announcements
    Level 4
    20 Bridge Street
    Sydney NSW 2000
    Felix Resources Limited announced today that it has entered into an option to purchase New
    Hope Corporation Limited’s 70 per cent share of the Minerva coal development project. Nissho
    Iwai Australia Limited holds the other 30 per cent.
    Minerva is a greenfields coal deposit located 40km south of Emerald in Queensland’s Bowen Basin.
    The project is prospective for early development as a 2.5 million tonne per annum open-cut mine
    supplying unwashed high-volatile, high-energy PCI and thermal coal to the export market.
    Indicative total development costs of around $60m equate to a capital intensity of $25 per annual
    tonne of capacity, which is low by industry standards. Open-cut mine life is forecast at thirteen
    years with potential to expand production and extend the life of the operation via underground
    The current intention is to follow-up the detailed assessments already undertaken by Felix and
    complete a final feasibility study as soon as practicable. Subject to the foregoing, initial production
    at 500,000 tonnes per annum is contemplated to commence before mid-2005.
    “Minerva looks an attractive project, well-suited to the skills and capabilities of Felix Resources; it
    would be a fine complement to the existing Yarrabee operation and significantly enhance the
    financial and operating profile of this company”, said Jon Parker, Felix Resources Limited’s
    Managing Director.
    The purchase agreement calls for Felix Resources to pay $1.75m on settlement with a further
    $1.75m after twelve months. There is a provision for royalty payments to New Hope Corporation
    Limited, triggered when production commences.
    Contact details for further information
    Mr Jon Parker Mr Mark McCauley
    Managing Director CFO & Company Secretary
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