CONNECTED MINERALS LIMITED — Interim / Quarterly Report 2003

Jul 30, 2003

Quarterly Report For the period to 30 JUNE 2003

HIGHLIGHTS

• Meetings held with the Anangu Pitjantiatiara Land Council to $\blacksquare$ obtain approval for the Claude Hills exploration programme
• F PIRSA release assay results for DAV-13, which returned 5m $@$ 0.86% copper, including 1m $@$ 1.3% copper
• DAV-13 intersected disseminated and vein hosted copper sulphide $\blacksquare$ at Mt Davies, providing the first direct evidence for sulphide mineralisation in the area.
• Twenty-one (21) discrete magnetic anomalies, that maybe related $\blacksquare$ to nickel sulphide mineralisation, identified on the Company's tenements
• Negotiations with a company to complete a feasibility study in to $\blacksquare$ the development of the Wingellina laterite project well advanced.

Date: 31 July 2003

CLAUDE HILLS - South Australia

Preparations are well advanced for the commencement of exploration at Claude Hill pending final approval from the Aboriginal Traditional Owners. Meetings were held with the Anangu Pitjantjatjara Land Council to discuss the proposed Exploration Works programme for Claude Hills. The proposed work consists of a combination of geochemistry, high resolution aeromagnetic surveys, ground geophysics and drilling. The proposed exploration methods have been successfully trialed over layered intrusions with known copper-nickel sulphide mineralisation that have similar geology and regolith to Claude Hills.

Voisey's Bay provides the best exploration model in the search for magmatic nickelcopper sulphides at Claude Hills. According this model magmatic sulphide deposits are most likely to occur in feeder dykes in the basement or along the basal contact. the best target areas occurring within the Company's Claude Hills tenement.

Primary Industry and Resources South Australia (PIRSA) has released assays from drillhole DAV-13, drilled as part of the state's Targeted Exploration Initiative (TEISA). The hole returned 5m $@$ 0.86% copper including 1m $@$ 1.3% copper from a zone of disseminated copper sulphides with minor bornite veins. PIRSA reported that the elevated copper appeared to be associated with veins within a microgabbro dyke cutting the magnetite/pyroxene layered intrusives. The hole was drilled to test a usual magnetic feature on Rio Tinto's tenement at Mt Davies.

The intersection is significant as it provides the first direct evidence for copper sulphide mineralisation in the Claude Hill-Mt Davies area. Nickel sulphides in layered are almost invariably associated with copper, and copper is one of the best path finder elements in the search for nickel deposits in mafic rocks.

The Company has identified twenty-one (21) discrete magnetic anomalies on imaged aeromagnetic combined with mapped geology and Landsat imagery. The magnetic responses are similar to those shown by other nickel sulphide deposits. One anomaly is coincident to an electromagnetic (EM) response in an area over flown by a Rio Tinto helicopter borne survey.

The Geological Survey Branch of PIRSA has expressed interest in mapping areas identified by Acclaim as having potential to host nickel sulphide deposits. The Company has agreed to joint clearances of work areas.

WINGELLINA - Western Australia

The Company is in advanced negotiations with a potential partner with the technical and financial resources to develop the very large Wingellina Nickel resource. Wingellina has resources totaling 227 million tonnes grading 1% nickel and 0.07% cobalt and 30.1% Fe at a cutoff of 0.5% nickel. This resource, which contains 2.3 million tonnes of nickel, includes a higher-grade resource of 86 million tonnes grading 1.2% nickel and 0.8% cobalt. Wingellina, which is open along strike, has potential to host additional high-grade mineralisation.

CORPORATE

Mr Craig Willis has replaced Mr Greg Wheeler as a Director of the company. Mr Willis has significant experience in both public and private company management. The change is in line with the renewed focus on nickel sulphide exploration on the Claude Hills tenement.

The board thanks Greg for his contribution during his time as a Director.

Donald Thomson Technical Director 31July 2003

TECHNICAL INFORMATION

The technical information contained in this report is based on information compiled by Mr D Thomson a Member of the Australian Institute of Mining and Metallurgy and who has more than five years experience in this field of activity being reported on. This report accurately reflects the information compiled by that member.

Map showing PIRSA intersection in relation to Acclaims tenement holdings.