GOLDARC RESOURCES LIMITED — Capital/Financing Update 2004

Apr 7, 2004

Cluff Resources Pacific NL

ABN 72 002 261 565

8 April, 2004

The Manager (Companies), Australian Stock Exchange, Sydney.

Dear Sir.

CLUFF TAKES 100% INTEREST IN QUEENSLAND SAPPHIRE PROJECT

The Company is pleased to announce the acquisition of an 100% interest and control of its previously 50%-owned Queensland Sapphire Joint Venture.

The \$250,000 buyout of the 50% share previously owned by Junior Mining Pty Ltd gives full operatorship to the Company. The purchase includes over 80 hectares of mining leases and mining lease applications over sapphire bearing ground, the dry processing plant used in the previous operations, together with a scraper, small trucks and other associated processing equipment.

Strengthening the Company's decision is the recent finalisation of more than four years of negotiations to establish and implement an Indigenous Land Use Agreement over the Queensland Sapphire Gemfields. The agreement means that many sapphire mining lease applications throughout the gemfields which have been stalled for years are now being granted. It is expected that the field will spring to life after several years' inactivity, as private operators, as well as Cluff, are able to access new ground.

The previous Cluff/Junior Mining Joint Venture produced 1,440,232 carats of rough sapphire over a period of 2 years. This production came from within 26 hectares of leases which had been intermittently mined by underground and open cut methods in an irregular and undocumented manner over the past hundred years, meaning that most ground processed by the previous Joint Venture being remnants of old workings. Whenever virgin (unmined) ground was extracted, the grade was relatively consistent at about twelve grams of corundum per cubic metre over thicknesses greater than one metre, and with better quality stone.

An inferred resource of corundum has not yet been calculated for the 54 hectares of unmined areas included in the purchase, as access for prospecting is not allowed until the Indigenous Land Right Agreement has been implemented. These unmined areas are expected on average to carry similar grades and wash thicknesses to the above. The public road between the towns of Sapphire and Rubyvale, which separates the Company's mined and unmined areas (see attached diagram), was worked for sapphire and corundum during the 1980's, reputedly carrying good grades. The restoration included the present bitumen road, and was paid for from the sale proceeds as a condition of mining.

Registered Office 1/30 Leighton Place Hornsby NSW 2077 Australia

Postal Address Locked Bag 3355 Hornsby NSW 2077 Australia

Tele-Communications Tel (612)9482 4655 Fax (612) 9482 4987 Internet www.cluff.com.au

Production and sale of rough sapphire and corundum is planned as soon as practicable, once test pitting has confirmed the extent of the resource. Profits from this production are intended to exceed the administrative costs of the Company, enabling funds raised from shareholders in the future to be applied directly to exploration and development projects.

For further information contact:

Scott Enderby on Phone (02) 9482 4655 Fax: (02) 9482 4987 Email: Cluft@bigpond.com or Peter Kennewell on Phone: $(02)$ 9482 4655

Yours faithfully,

Piler

Peter Kennewell. Managing Director