EQUATORIAL RESOURCES LIMITED — Interim / Quarterly Report 2003

Jul 30, 2003

31 July 2003

The Manager Companies Australian Stock Exchange Limited

Dear Sirs.

ACTIVITY REPORT - QUARTER ENDED 30 JUNE 2003

Biotechnology Projects

Gingerol Project

Significant achievements on the Gingerol project during the Quarter were:

• Formal contract signed giving ZingoTX Pty Ltd, a subsidiary company, the exclusive world-wide license to exploit potential new drugs for pain and inflammation:
• EQiTX makes first capital injection of \$315,000 to ZingoTX Pty Ltd; $\blacksquare$
• Commencement of the first stage of product development to refine and select $\blacksquare$ lead compounds; and
• $\blacksquare$ Granting of the patent protecting the Gingerol technology in the United States, consolidating the Company's commercial position in the world's biggest market. The patent has now also been granted in Australia.

It is anticipated that completion of Milestone 1 of the Gingerol Project will be achieved in November 2003.

Vaccine Technology

Subsequent to the end of the Quarter, EQiTX was granted exclusive rights by the Cooperative Research Centre for Vaccine Technology to finalise negotiations to commercialise a family of patents to develop human therapeutic and prophylactic vaccines. Both parties believe that the negotiations and agreements will be completed within 3 months.

The patent applications protect the use of the technology in a range of human therapeutic areas such as allergy, arthritis, inflammation, cancer and infectious diseases. Experiments in predictive animal models show the technology is safe and effective in a variety of applications.

EQITX plans to establish a new subsidiary company to ultimately hold 100 per cent of the rights to exploit the technology in the area of human medicine with both parties holding equity in the new, unlisted biopharmaceutical company.

It is expected that the new company will focus on the development of selected applications of the technology and consider the establishment of alliances with third parties to develop other applications. A unique trait of the enabling technology is that vaccines can be administered through the nose, making the technology attractive to human vaccine companies.

EOfTX Limited Level 3, IBM Building 1060 Hay Street, West Perth-Western Australia, 6005

Phone (+61 8) 9480 0490

Fax: (+61-8) 9480-0452

Freath: Info@editx.com www.editx.com

ABN: 50 009 188 694

Corporate

During the Quarter, the company issued 7,040,000 shares, raising a total of \$1,408,000, allowing EQiTX to meet the requirements of the ASX for reinstatement to official quotation following the change of direction approved by shareholders during the March quarter. Reinstatement to official quotation was achieved on Friday 11 April 2003.

Subsequent to the end of the quarter, the Company was pleased to announce the appointment of Dr Kevin Fahey, an eminent commercial scientist and former senior executive of Pfizer, and Brian Nathanson, who has been acting as the company's Corporate Consultant since December 2001 to the Board.

Mokhtikovskoye Oil Field - Technical Services Agreement

In accordance with the auditor's recommendation, the Board has resolved to write down the carrying value of the receivable due from the Joint Stock Company Siboil (the Technical Services Agreement operator) to zero. This will be reflected in the Company's Annual Accounts to be published in due course.

However, negotiations are continuing with a US based consultant to assume responsibility for any possible recovery action. EQiTX will not incur any further costs, but will receive a benefit if any recovery action is successful.

BY ORDER OF THE BOARD
Stephen J Brown Company Secretary
For further information about EQiTX Limited visit www.eqitx.com or contact:
Dr Noel Chambers CEO EQiTX Limited T: 61 8 9480 0490 E: nchambers@eqitx.com		Peter Harris Professional Public Relations T: 61 8 9388 0944 E: pharris@pprwa.com.au	in san