ARIKA RESOURCES LIMITED — Capital/Financing Update 2008

Feb 26, 2008

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ASX/media announcement Portland adopts innovative financing with NAB

27February 2008, Sydney, Australia : Portland Orthopaedics Limited ( ASX:PLD) has finalised an innovative $1.25 million financing package with The National Australia Bank (nab).

The cornerstone of the financing is an innovative asset leasing package whereby Portland’s surgical instrument sets will qualify as a leasible asset. Instead of paying up-front cash for new instrument sets, the financing will allow Portland to pay for the sets over three years.

This financing will allow more Portland products with more surgeons in Australia and the US promoting revenue growth and preserving cash holdings. Portland’s instrument sets will be self-financing and cash flow positive for all periods.

This is the first time nab has financed such instrument purchases this way and is a result of a long-standing mutually beneficial relationship between Portland and nab.

Portland chairman Mr John Lee said, “The cost of instruments and inventory is high in the orthopaedics business and can strain cash resources. John Brassil and his team have worked with nab to find an innovative way to keep up with surgeon and procedure growth while minimising the up-front cash required to service that growth.”

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Enquiries: John Lee Chairman Portland Orthopaedics 0419407191

John Brassil CEO Portland Orthopaedics 02 9700 1533

About Portland Orthopaedics: Listed on the ASX in December 2005, Portland (ASX:PLD) is a developer and manufacturer of specialist hip replacements. With a focus on modular and clinically differentiated prostheses, Portland has developed a unique, high technology Hip Replacement range aimed at increasing implant longevity. Based in Sydney, Australia, Portland employs 30 people in the design and development of its products. Portland has regulatory approval to sell a range of primary and revision hip replacement products in the US, Europe, Australia and New Zealand. Its core technologies are patented and future applications are primarily aimed at hip and knee prostheses.