RE announcement yesterday.

Major Discovery at Fosterville

Document date: Tue 16 Jul 2002 Published: Tue 16 Jul 2002 16:21:19
Document No: 192405 Document part: A
Market Flag: Y
Classification: Progress Report
PERSEVERANCE CORPORATION LIMITED 2002-07-16 ASX-SIGNAL-G

HOMEX - Melbourne

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Perseverance Corporation Limited Directors today announced one of the
most significant gold discoveries in Australia in recent years at the
Company's 100% owned Fosterville property. The Company reported a
high grade sulphide resource of 4.7 million tonnes grading 5.8 Au g/t
containing 875000 oz of gold within the central zone of the
Fosterville lease. The Fosterville property is situated 20 km to the
east of Bendigo in Central Victoria. Central Victoria is one of the
largest gold districts in the world.

Mr John Quinn, the Company's Executive Chairman, commented, "The Deep
Sulphide program had been an outstanding success. It has demonstrated
that Fosterville contains a major mineral system in which
Perseverance has defined a significant gold resource that remains
open down plunge and along strike of each of the three shoots drilled
to date. The high grade resource occurs within coherent zones with
substantial thickness and strike lengths." He noted that the Deep
Sulphide program had partially tested only 2 km of the known
mineralised fault zones at Fosterville to a depth of 500 metres
beneath surface. He said that Perseverance has 20 strike kms of
mineralised fault systems within the Fosterville lease and that gold
deposits in Central Victoria were known to extend, in some places, to
beyond 1500 metres beneath surface. "The Company has already
identified 11 other sulphide occurrences at Fosterville that require
detailed testing. Based upon the current understanding of gold
occurrence at Fosterville, it is reasonable to expect to identify
more targets both under thin cover and at depth beneath known
mineralised shoots. Perseverance is only just scratching the surface
at Fosterville and the Company has a very exciting future in a
re-discovered goldfield demonstrating genuine multi-million oz.
potential."

The Company also announced that it would be immediately proceeding
with the next stage of its program to drill out the known ore zones
and commence prefeasibility studies for a mine development targeted
for 2003. It would also be seeking to extend the resource base by
exploratory drilling further targets along strike and at depth
beneath the three shoots identified to date.

For more information contact:

John Quinn Chris Roberts
EXECUTIVE CHAIRMAN DIRECTOR EXPLORATION
(03) 5439 7244 (03) 5439 7244
0412 381081 0407 364394

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