GRANGE RESOURCES LIMITED. — Capital/Financing Update 2003

Jun 9, 2003

FRANGE RESOURCES LIMITED A.C.N. 009 132 405

STOCK EXCHANGE ANNOUNCEMENT

WEMBLEY GOLD PROJECT - FARMIN AGREEMENT

10.June 2003.

Grange Resources Limited ("Grange") is pleased to announce that Horseshoe Gold Mine Pty Ltd ("Horseshoe") a wholly owned subsidiary of Grange has recently reached agreement with Gleneagle Gold Limited ("Gleneagle") on the terms of an option agreement and subsequent joint venture arrangement on the Wembley Gold Project. The Wembley Gold Project comprises mining lease M52/801 and mining lease application MLA52/587. The Durack gold deposit of 557,000 tonnes grading 2.18g/t gold (39,000 contained ounces) is located within mining lease M52/801.

Gleneagle has prepared a prospectus with a view to seeking admission to the Official List of the Australian Stock Exchange Limited and aims to be listed in July 2003. Gleneagle has also secured an option with Perilya Limited over the Fortnum Gold Project tenements and plant located approximately 60 km north west of the Wembley fenements.

The principle terms of the agreement are summarised below:

S/MA - Entergraes@inapg@complianceMSX/ASX-Annonnements0979-dec

• 1. Horseshoe has granted Gleneagle an exclusive option to farmin to the tenements in consideration of the issue of 200,000 ordinary Gleneagle Shares to Horseshoe.
• 1. Gleneagle can exercise the Option at any time up to and including the date, which is 30 days after Gleneagle is admitted to the Official List of the Australian Stock Exchange Limited or 30 September 2003, whichever is the earlier.
• 1. Upon the exercise of the Option, Gleneagle can earn an 80% interest in the tenements by spending \$500,000 on exploration within 4 years with minimum expenditure levels of \$150,000 during years 1 and 2 of the 4-year earn in period. Gleneagle can elect to withdraw from the agreement after expenditure of \$150,000.
• 1. Horseshoe's 20% interest will be free carried to a decision to mine. Within 60 days after a decision to mine has been made by Gleneagle, Horseshoe can elect to contribute pro-rata to expenditure, sell its 20% interest or convert its 20% interest to a rovalty of \$20.00 per recovered ounce for the first 40,000 ounces of production and a 3% gross revenue royalty on any production thereafter.

P.O. Box 7025, Cloisters Square, Perth 6850 Level 13, The Forrest Centre, 221 St. George's Terrace, Perth, Western Australia 6000 Telephone +61 8 9321 1118 Facsimile +61 8 9321 1523 Email info@grnl.com.au www.grangeresources.com.au

A.C.N. 009 132 405

GRANGE

RESOURCES LIMITED

For further information in relation to this announcement or the Company, visit the Grange Resources Limited website at www.grangeresources.com.au or alternatively contact Mr Alex Nutter (Technical Director) or Mr Alec Pismiris on (+618) 9321 1118.

ALEC PISMIRIS Company Secretary

SNAA - Entergosses/Grange/Compliance/AS/GASX Announcements/0979 doc