ARIKA RESOURCES LIMITED — Capital/Financing Update 2008

Jun 23, 2008

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24 June 2008

ASX Announcement

Portland Orthopaedic: Non-renounceable Rights Issue

Background

Portland Orthopaedics Limited ( Company ) (ASX: PLD) announces a nonrenounceable rights issue on the basis of one new share for every one ordinary share held at 7.00pm on 3 July 2008 ( Record Date ) at a price of 2.5 cents per New Share. The maximum amount that could be raised is $4.1 million.

The Offer will be made without a prospectus in accordance with section 708AA of the Corporations Act 2001 . Shareholders with a registered address in Australia or New Zealand that are on the register at 7.00pm on the Record Date ( Eligible Shareholders ) will be entitled to participate in the Offer. Shareholders that are not registered in Australia or New Zealand will not be entitled to participate in the Offer. The purpose of the Offer, and the intended use of the funds raised by the Offer, is to provide funding for future expenditure on working capital.

Irrevocable Commitments

The three largest shareholders are considering the opportunity to provide their irrevocable commitment of support for the offer. As such commitments are made, Portland will update the market.

Other Portland shareholders have given an irrevocable commitment to subscribe for a minimum of their full entitlements under the Rights Issue, including:

• the Chairman of Portland Mr John Lee and his associates;

• the Chief Executive Officer and Managing Director of Portland, Mr John Brassil and his associates, and members of his family;

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• the Chief Technology Officer, Director, Founder and fourth largest shareholder, Mr Ron Sekel and immediate members of his family; and

• the Chief Financial Officer and Company Secretary of Portland , James Wynn and his associates.

Timetable

The rights issue is expected to be conducted in accordance with the following indicative timetable:

Announcement to ASX	24 June 2008
Existing shares quoted on an ex-entitlements	27 June 2008
basis
Record date	3 July 2008
Despatch of Offer Document and Entitlement and	no later than 7 July 2008
Acceptance Form to shareholders
Closing Date	25 July 2008
Securities quoted on a deferred settlement basis	28 July 2008
by ASX
Issue and allotment	31 July 2008
Despatch of holding statements and deferred	5 August 2008
settlement trading ends
Expected commencement of normal trading in	6 August 2008
New Shares

This timetable is indicative only and is subject to change.

Portland will prepare and send an Offer Document and personalised Entitlement and Acceptance Form to Eligible Shareholders by 7[th] July 2008. For your information, a copy of the Offer Document for the Rights Issue will be made available on Portland’s website http://www.pldortho.com, when released on 25[th] June 2008.

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Ineligible Shareholders

Shareholders who have a registered address outside of Australia and New Zealand will not receive the offer to participate and will not be offered additional securities or interests as a part of the Offer.

Option Holders

If holders of options (including securities listed under the PLDO code) wish to participate in the Offer they must exercise their options by the Record Date (7:00pm on 3 July 2008).

For further information please contact:

James A Wynn Company Secretary Portland (02) 9700 1533

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