GRANGE RESOURCES LIMITED. — Capital/Financing Update 2003

Oct 9, 2003

STOCK EXCHANGE ANNOUNCEMENT

A.C.N. 009 132 405

RANGE

RESOURCES LIMITED

PLACEMENT TO THE GOLDEN ARROW FUND II

10 October 2003

The Directors of Grange Resources Limited ("Grange" or "the Company") are pleased to announce the Company has arranged a placement of a maximum of 4,285,715 fully paid ordinary shares at an issue price of \$0.35 each with a one for one free attaching unlisted option (exercisable at 50 cents each on or before 28 November 2006) to raise up to \$1.50 million before expenses of the issue. The placement, to The Golden Arrow Fund II will take place in two tranches comprised as follows:

Tranche One: The first tranche will involve the issue of 1,428,572 fully paid ordinary shares and 1,428,572 free attaching unlisted options to raise \$0.50 million and will be completed on or before 16 October 2003.

Tranche Two: The second tranche will involve the issue of a maximum of 2,857,143 fully paid ordinary shares and 2,857,143 free attaching unlisted options to raise an additional \$1.0 million on or before 28 November 2003. The second tranche is subject to The Golden Arrow Fund II completing due diligence investigations to its satisfaction.

The placement is being handled by Paterson Ord Minnett Limited, the lead manager appointed to the issue by Grange.

Whilst the placement strengthens Grange's financial position, Directors recognise the value in forming a strategic alliance with a cornerstone investor such as The Golden Arrow Fund II.

The Golden Arrow Fund II

The Golden Arrow Fund II is a Perth based managed fund specialising in small to medium sized emerging resource companies. The Golden Arrow Fund II fills a niche in the capital markets, providing equity for small and medium sized companies with mainly gold and base metal projects. The Golden Arrow Fund II takes strategic position in companies that it believes have a strong potential for future growth.

The placement does not require shareholder approval, however Directors intend to seek approval for the issue of 4,285,715 fully paid ordinary shares and 4,285,715 options at the Company's Annual General Meeting scheduled to be held in the second half of November 2003. Notice of Meeting materials will be despatched to shareholders shortly.

A.C.N. 009 132 405

GRANGE

RESOURCES LIMITED

An Appendix 3B is attached advising of the proposed issue of securities and its purpose.

For more information visit the Grange website at www.grangeresources.com.au, or alternatively contact Alec Pismiris on $(08)$ 9321 1118.

ALEC PISMIRIS Company Secretary

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002.

NAME OF ENTITY

Grange Resources Limited

ABN

80 009 132 405
----------------

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

	+ Class of + securities issued or to be issued	(a) Ordinary Fully Paid Shares Options (b)
2	Number of "securities issued or to be issued (if known) or maximum number which may be issued	(a) $4,285,715$ (b) $4,285,715$
3	Principal terms of the securities (eg, if options, exercise price and expiry date; if partly paid securities, the amount outstanding and due dates for payment; if tronvertible securities, the conversion price and dates for conversion)	(a) Not Applicable expiring 28 November 2006 and exercisable at 50 (b) cents

⁺ See chapter 19 for defined terms.

4	Do the securities rank equally in all respects from the date of allotment with an existing class of quoted *securities? If the additional securities do not rank equally, please state: the date from which they do the extent to which they participate for the next dividend, (in the case of distribution) or interest trust. a payment the extent to which they do not rank	Yes
	equally, other than in relation to the next dividend, distribution or interest payment
5	Issue price or consideration	35 cents per Ordinary Fully Paid Share
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	To provide additional funding to achieve Grange's strategy of identifying new investment opportunities in the Australian resources sector with the potential to deliver long-term growth and cashflow.
7	Dates of entering *securities into uncertificated holdings or despatch of certificates	To be advised.
я	Number and + class of all + securities quoted on ASX (including the securities in clause 2 if applicable)	Number 70,269,113	+ Class Ordinary Fully Paid Shares
		Number	$\overline{\text{ }^{\ddagger}$ Class
9	Number and class of all securities not quoted on ASX (including the securities in clause 2 if applicable)	5,075,000 4,285,715	Options expiring 30 June 2007 exercisable at 12 cents Options expiring 28 November 2006 exercisable at 50 cents
10 10	Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	Nil

$+$ See chapter 19 for defined terms.

	A IAANA AL W
11	Is security holder approval required?	Not Applicable
12	Is the issue renounceable or non- renounceable?
13	Ratio in which the "securities will be offered
14	+ Class of *securities to which the offer relates
15	*Record date to determine entitlements
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?
17	Policy for deciding entitlements in relation to fractions
18	Names of countries in which the entity has *security holders who will not be sent new issue documents Note: Security holders must be told how their
	entitlements are to be dealt with. Cross reference: rule 7.7.
19	Closing date for receipt of acceptances or renunciations
20	Names of any underwriters
21	Amount of any underwriting fee or commission
22	Names of any brokers to the issue
23	Fee or commission payable to the broker to the issue
24	Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of "security holders

Part 2 - Bonus issue or pro rata issue

$\div$ See chapter 19 for defined terms.

25	If the issue is contingent on *security holders' approval, the date of the meeting
26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled
27	If the entity has issued options, and the entitle option holders terms to. participate on exercise, the date on which notices will be sent to option holders
28	Date rights trading will begin (if applicable)
29	rights trading will (if Date end applicable)
30	How do *security holders sell their entitlements in full through a broker?
31	How do *security holders sell part of their entitlements through a broker and accept for the balance?
32	How do *security holders dispose of their entitlements (except by sale through a broker)?
33	+Despatch date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities (tick one)

X

$(a)$

Securities described in Part 1 (a)

$(b)$

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share
securities when restriction ends, securities issued on expiry or conversion of conve

⁺ See chapter 19 for defined terms.

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

(If the additional securities do not form a new class, go to 43)

Tick to indicate you are providing the information or documents

35	If the securities are equity securities, the names of the 20 largest holders of the additional securities, and the number and percentage of additional securities held by those holders
36	If the securities are equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories $1 - 1.000$ $1,001 - 5,000$ $5,001 - 10,000$ 10,001 - 100,000 100,001 and over
-37	A copy of any trust deed for the additional *securities

(now go to $43$ )

Entities that have ticked box 34(b)

38	which Number οf securities for *quotation is sought
39	Class of *securities for which quotation is sought
40	Do the "securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: the date from which they do the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment the extent to which they do not rank ۰ equally, other than in relation to the next dividend, distribution or interest payment

⁺ See chapter 19 for defined terms.

41 Reason for request for quotation now

Example: 18 the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

42 Number and *class of all *securitie quoted on ASX (including the securitie in clause 38)

	Number	+ Class
эs
55

All entities

Fees

43 Payment method (tick one)

Cheque attached
Electronic payment made Note: Payment may be made electronically if Appendix 3B is given to ASX electronically at the same time.
Periodic payment as agreed with the home branch has been arranged Note: Arrangements can be made for employee incentive schemes that involve frequent issues of securities.

г

Quotation agreement

• $\ddagger$ ⁺Quotation of our additional ⁺securities is in ASX's absolute discretion. ASX may quote the ⁺securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the ⁺securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those ⁺securities should not be granted ⁺quotation.
• An offer of the *securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

⁺ See chapter 19 for defined terms.

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any ⁺securities to be quoted and that no-one has any right to return any ⁺securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the ⁺securities be quoted.
• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the ⁺securities to be quoted, it has been provided at the time that we request that the ⁺securities be quoted.
• If we are a trust, we warrant that no person has the right to return the ⁺securities to be quoted under section 1019B of the Corporations Act at the time that we request that the ⁺securities be quoted.
• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before ⁺quotation of the ⁺securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Dated: 10 October 2003

Alec Pismiris Company Secretary

⁺ See chapter 19 for defined terms.