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OXIANA RESOURCES NL 2002-06-27 ASX-SIGNAL-G

HOMEX - Melbourne

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SEPON PROJECT 80% OXIANA, 20% RIO TINTO

Drilling results confirm Khanong deposit extensions. Resource remains
open.

Results received for a further 31 holes (KHN 246 KHN 275, KHN 295)
from the Khanong copper deposit Bankable Feasibility Study (BFS)
drilling programme have confirmed extensions to mineralisation in the
south and west. The orebody still remains open in several directions
(Figure 1).

The majority of holes (26 of 31) reported significant copper
mineralisation. Better results are as follows:

HOLE NO EASTING NORTHING INTERCEPT DEPTH FROM METCODE

KHN246 608000 1875500 7m @ 1.6% Cu Surface LCC
KHN252 608300 1875500 25m @ 3.4% Cu 36 metres CC, CuO
Including 8m @ 8.9% Cu 49 metres CC, CuO
KHN254 608200 1875400 10m @ 2.1% Cu 47 metres CC, CuO
KHN255 607200 1875650 15m @ 1.6% Cu 34 metres CuO
KHN259 608650 1875850 17m @ 1% Cu 26 metres PR
KHN261 608450 1875600 14m @ 1.6% Cu 47 metres CC, PR
KHN263 608350 1875600 8m @ 1.2% Cu 50 metres CC
KHN264 608200 1875600 14m @ 2.6% Cu 71 metres PR
KHN267 608000 1875600 12m @ 1.2% Cu 2 metres LCC
KHN270 608100 1875398 4m @ 3.6% Cu 62 metres LCC
KHN272 608000 1875498 8m @ 1.3% Cu Surface LCC
KHN273 607700 1875400 22m @ 4.8% Cu 21 metres LCC, CuO
Including 7m @ 8.9% Cu 31 metres CC
KHN274 607600 1875400 18m @ 1.4% Cu 2 metres LCC, CC
and 10m @ 2.7% Cu 25 metres CC
KHN295 607802 1875752 29m @ 5% Cu 56 metres CuO

Note: sample interval is 1 metre; intercepts are weighted averages
calculated using a 0.5% copper cut-off grade; maximum internal waste
is 2 metres; metcode CC = chalcocite, CuO = copper oxide, PR =
primary; LCC = Limonite + chalcocite; all holes are vertical.

Significant gold results were also reported in holes KHN260 (11m @
2.3g/t Au) and KHN263 (10m @1.2g/t Au) from the oxide gold cap which
overlies part of the Khanong copper deposit.

Following receipt of the final batch of BFS copper drilling assays a
revised resource estimate will be completed.

O L Hegarty
Managing Director