GALE PACIFIC LIMITED — Share Issue/Capital Change 2003

Mar 25, 2003

25 March 2003

The Australian Stock Exchange Limited, Company Announcements Office,

Dear Sirs.

Notification of right to exercise options - listing rule 3.10.7, and Lapse of options

In accordance with listing rule 3.10.7, the company gives notice that due to the company's ordinary shares having traded on the ASX at prices equal to or above \$1.60 for a consecutive period of 30 trading days, the holders of options granted by the company on 13 November 2000 under its executive option plan have the right to exercise 228,235 of those options.

Each such option:

• entitles the holder to subscribe for and be issued with 1 fully paid ordinary share in the company at a price of \$1.00 per share; and
• may be exercised at any time up to and including the expiry date, being 1 December 2004.

The company also gives notice that on 28 February 2003, 100,000 options to subscribe for 100,000 fully paid ordinary shares in the company issued to an employee under the company's executive option plan lapsed as a result of the employee resigning from the company.

Yours faithfully

ROD HOUSE Company Secretary.