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    HOMEX - Perth

    We are pleased to announce:

    1 the Ore Reserve for the Waugh Gold Deposit at Sipa's 100%-owned
    Paraburdoo Gold Project (PGP) and the schedule for bringing the
    Deposit into production

    2 that five targets in the PGP within 5 kilometres of the Mount
    Olympus treatment plant, are now ready for Reverse Circulation and
    Rotary Air Blast drilling

    3 current drilling targets on the Newcrest-operated Limerick Hill
    Joint Venture.

    1. Mining Solutions Consultancy Pty Ltd of South Perth, Western
    Australia, have estimated the Reserve tabled below, which fits within
    an open pit design optimised at a gold price of A$560 and a cut-off
    grade of 0.9 g/t. Cash costs for Waugh production are estimated at
    A$250 per ounce - well within the lowest Cost Quartile of Australian


    (G/T) (,000S)

    Proved Sipa 303,500 8.28 80.8
    Limerick Hill JV 14,500 6.71 3.1

    Probable Sipa 95,500 6.30 19.3
    Limerick Hill JV 1,500 2.36 0.1

    Total Sipa 399.000 7.80 100.1
    Limerick Hill JV 16,000 6.30 3.2
    Total 415,000 7.75 103.3

    Waugh is situated about three kilometres east of Sipa's PGP 600,000
    tonne per annum Mount Olympus CIL gold treatment plant, within a 400
    metre long Sole Risk Excision from the surrounding Limerick Hill
    Joint Venture. The excision is limited at depth to the 400 metre RL,
    which is about 100 metres down dip of the Waugh outcropping lode.
    Newcrest Operations Limited may earn a 70% interest from Sipa in
    Limerick Hill by spending $3.5 million on exploration.

    Tender documents for the development and mining of Waugh are
    presently being evaluated by five mining contractors and it is
    anticipated that the Mining Contract should be awarded by late July
    and that mining should commence in mid August. The first ore should
    be delivered to the plant very shortly afterwards. Mining will take
    approximately twelve months.

    High grade ore will be blended with Mount Olympus stockpiles, which
    currently stand at:

    * Medium Grade about 290,000 tonnes grading 1.98 g/t; and

    * Low Grade about 780,000 tonnes grading 1,21 g/t

    to give a milling life of about 2 (1/2) years and gold production
    of about 150,000 ounces.

    It is anticipated that, based on A$15/tonne operating costs, the
    Medium Grade Stockpile should produce gold at A$260/ounce and the Low
    Grade Stockpile at A$420/ounce.

    2 Sipa has a clear aim at Paraburdoo of finding more ore to extend
    the life of the Project cash flow and to that end we are actively
    exploring the 20 square kilometres of Sipa's 100%-owned mining
    leases, which are Surrounded by the Limerick Hill Joint Venture, as
    shown on the map titled Geology, Gold Deposits and Prospects

    Four prospects are ready for Reverse Circulation drilling which
    should commence within two weeks:

    * Diligence Dome South - an ironstone gossan (similar to the Waugh
    Deposit outcrops) on the southern limb of the Diligence Dome
    alteration zone, with surface values of up to 2 g/t gold.

    * Dinosaur - a complex of several styles of mineralisation (including
    ironstone gossan and oxidised sulphidic, altered sedimentary rocks
    with surface values up to 10 g/t gold) within an 800 metre long
    gold-in-soil anomaly located in the structural corridor that hosts
    Zeus, Mount Olympus and Marcus to the west.

    * Marcus - a 1.25 kilometre long series of small ridges, running west
    from the Mount Olympus - West Olympus orebodies, which are typified
    by oxidised sulphidic sandstones cut by oxidised sulphidic quartz
    veins, like the Zeus deposit. There is a consistent gold-in-soil
    anomaly along the ridge and surface values up to 59 g/t Au have been
    returned. Holes drilled by previous operators appear not to have
    fully tested the mineralised position.

    * Dragonfly - three areas of outcropping oxidised sulphidic and
    quartz-veined sandstone similar in appearance to the Zeus deposit,
    which outcrop through shallow cover in a zone about one kilometre
    long with surface values up to 7 g/t gold.

    In addition to the Reverse Circulation testing of the four prospects
    described above, an extensive Rotary Air Blast drilling programme, is
    planned for the projection of the mineralised corridor extending
    under thin sand cover to the west of Marcus. There is about two
    kilometres of that corridor (which hosts Dinosaur, Zeus, Mount
    Olympus, West Olympus and Marcus) between the west end of Marcus and
    the western boundary of the Paraburdoo Gold Project Mining Leases. It
    has not been drilled before.

    Mapping, soil and rock sampling and drilling to 'sterilise' areas
    where the waste dumps from the Waugh Mine are proposed to be sited
    has just been completed:

    Two significant intersections were returned from north of the
    proposed open pit:

    WAC 315 - 13 metres @ 4.9 g/t from 116 metres downhole
    WAC 319 - 4 metres @ 1.7 g/t from 229 metres downhole

    Both intersections are below the 400metre RL and are within the
    Limerick Hill Joint Venture. The WAC 315 intersection was typical
    Waugh oxide mineralisation, whilst the WAC 319 intersection was the
    first sulphide zone mineralisation encountered at Waugh, and
    comprises massive pyrite with quartz. WAC 315 encountered the
    mineralisation at about 250metres down dip of surface near the
    360metre RL, whilst the WAC 319 intersection was 200metres further
    down dip at about 245metre RL. The Waugh mineralised system thus
    appears to be totally oxidised to between 200metres to 220metres
    vertically below surface and to about 400metres down dip of surface.

    Further gold mineralisation was discovered 500metres west of the
    Waugh gold deposit, at the Connie's Find Prospect within the Limerick
    Hill Joint Venture. Gossanous pebbly sandstone (the hanging wall to
    mineralisation at Waugh) with sheeted quartz and oxidised sulphide
    veining crops out over an area of 50m by 30m, Twelve rock ship
    samples returned 0.8 - 34 g/t gold (average 5g/t AU) and 1100 - 6400
    ppm arsertic (average 2000 ppm As). The geology and geochemistry at
    Connie's Find are very similar to that at Mount Olympus, three
    kilometres to the southwest.

    Three shallow drill holes sited about 50metres north of WAC 315
    tested iron-rich veining which assayed to 4 g/t Au associated with
    laterally extensive hangingwall (to Waugh) alteration characterised
    by bleaching and sheeted quartz and oxidised sulphide veining.
    Anomalous intervals of up to 23metres @ 0.2 g/t Au were returned.

    3 Newcrest are presently drilling Reverse Circulation holes in the
    Limerick Hill Joint Venture in the vicinity of Waugh:

    * to test at depth for repetitions of the Waugh high grade shoot
    below the 400metre RL

    * to test the, structure hosting Waugh for about one kilometre east
    to the Diligence Prospect where shallow holes have returned results
    up to 4metres @ 20.7 g/t from 5metres depth

    * to test the Connie's Find Prospect

    * in addition, holes are planned for the Diligence Nose North and
    South Prospects.

    The potential for the definition of further significant gold
    mineralisation in the Waugh area is highlighted by the recent
    discovery of:

    * potentially ore grade and width gold mineralisation at 100metres to
    230metres depth in the recent drillholes WAC 315 and WAC 319

    * further high grade surface gold mineralisation at Connie's Find

    * extensive alteration in the hangingwall to the Waugh Gold Deposit

    M Doepel M AusIMM

    The information in this report is based on information compiled by a
    person (M Doepel) who is a Corporate Member of the Australasian
    Institute of Mining and Metallurgy and who has more than five years
    experience in the field of activity being reported on. This report
    accurately reflects the information compiled by that member.

    Information on the Waugh Gold Deposit Reserve Statement conforms to
    the requirement of the Australasian Code for the Reporting of Mineral
    Resources and Ore Reserves (the JORC Code, 1999). The statement was
    prepared by Mr T Dincer of Mining Solutions consultancy Pty Ltd who
    is a Competent Person as defined by the JORC Code.

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