Celsius Resources Limited — Capital/Financing Update 2004

Jul 5, 2004

6 July 2004

Company Announcements Office Australian Stock Exchange Ltd 20 Bond Street SYDNEY NSW 2000

JRCES

By e-lodgement

DRILLING CONFIRMS CARNILYA EXTENSION

The Board is please to advise that underground diamond drilling at View Resources Carnilya Hill nickel mine has intersected high grade nickel sulphides along the western plunge extension to the current resource.

• The current drilling confirms the continuation of the Carnilya Hill mineralisation beyond $\geq$ the limits defined by historic drilling;
• Key intersections of 3.1m @ 8.25% and 2.25m @ 4.38%;
• Drilling is continuing to delineate the mineralised area up to 60 metres down plunge from 斗 the current resource boundary.

Diagram 1 Carnilya Hill Longitudinal Section

The drilling has intersected economic sulphides up to 40 metres down plunge on several mineralised contacts. In addition, drill hole CUV-04-040 has intersected visible massive and disseminated nickel sulphides 60 metres down plunge from the previous interpreted resource boundary. Assays are pending for this hole.

The following intersections have been recorded with completed assays.

Hole iD	Hole Co-ordinates			Hole		Downhole			Comments
	(Mine Grid)			Orientation		Intersection
	North	East	RL	Đio	Azimuth	From	Tо	Intersection
						(m)	(m)
CUV-04-037	563603	391210	105	-57	299	75.87	78.97	3.1m @ $8.25\%$ Ni	Intermediate Surface
CHV-04-033	563603	391210	105	-52	312	64.65	67.65	3m @ 1.17%Ni	Intermediate surface
CUV-04-033	563603	391210	105	-52	312	91.45	93.7	$2.25m \omega 4.38\%$ Ni	Footwall surface

Table 1: Intersection Details

Intervals calculated at >1% lower Ni cutoff, downhole intersections, true width not known, Diamond drill core LTK 48. All samples from cut half core, analysis completed by KAL - 4 acid digest ICP analysis,

Laboratory and View Resources standards and blanks utilised.

The western extents of the Carnilya Hill ore body were identified by View Resources as a key exploration target due to the lack of closure to the body from previous drilling, the potential for significant resource increase along the trend and the proximity to current mine development.

Diagram 1 shows the location of the current drilling in relation to the overall mine layout. The cross section (Diagram 2) shows the nature of the mineralised contact repetitions being intersected by the latest drilling and by previous drill hole CAN 6-3.

The contacts are represented on Diagram 2 as:

• 1. Hangingwall Surface: Overturned basalt/ultramafic contact hosting the lower levels of the current Carnilya Hill resource.
• $2.$ Intermediate Surface. Thrust plane contact hosting high tenor sulphides.
• 1. Footwall Surface. Thrust offset continuation of the Hangingwall Surface

Diagram 2: Carnilya Hill 391180mE Cross Section

Potential for Significant Resource Upgrade

The general geology identified by the drilling is consistent with much of the Carnilya Hill body that has vielded over 47,000 tonnes of nickel metal during the mine life. The latest drilling confirms the continuation of the Carnilya Hill mineralisation beyond the limits defined by historic drilling.

The intersections are close to active decline and ventilation systems and would only require incremental extension to the mine development to access the area.

Drilling is continuing to delineate the mineralised area up to 60 metres down plunge from the current resource boundary. The development of a hangingwall drill drive is being evaluated to facilitate further drilling along the mineralised trend.

Yours faithfully

Sunt.

Derek Lenartowicz Managing Director

Note: In accordance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the geological information in this announcement has been compiled by View Resources Limited Managing Director, Derek Lenartowicz (mining engineer) and the Company's Chief Geologist, Geoff Chapman who is a member of the Australian Institute of Mining and Metallurgy.