GRANGE RESOURCES LIMITED. — Capital/Financing Update 2003

May 28, 2003

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

STOCK EXCHANGE ANNOUNCEMENT

REDEMPTION OF CONVERTIBLE REDEEMABLE

PREFERENCE SHARES

29 May 2003

Grange Resources Limited ("Grange" or 'the Company") advises that further to its recent announcement regarding the redemption of 46,339,663 convertible redeemable preference shares ("Preference Shares"), the Company has today dispatched the attached Notice of Redemption of Convertible Redeemable Preference Shares to all holders of Preference Shares.

In accordance with the terms of the Preference Shares set out in Article 2A6 of the Company's Constitution, the Company has exercised its right to redeem all Preference Shares not converted at the expiry of the Conversion Period, being 30 April 2003. The principal terms of the Preference Share redemption are:

• the Redemption Amount is equivalent to the issue price of the Preference Shares and being 0.001 cents per Preference Share;
• the Redemption Date will be the $14^th$ day immediately following the date of the $\mathbb{Z}^{n-1}$ Redemption Notice:
• payment of the Redemption Amount will take place within three business days of the $\mathcal{L}^{\pm}$ Redemption Date; and
• the redemption and cancellation of the Preference Shares will occur upon payment of $\mathbf{r}$ the Redemption Amount by the Company.

The Redemption Amount will be satisfied by payment of bank cheques to all holders of Preference Shares. The total consideration pavable by the Company for the redemption of all Preference Shares on issue equates to \$463.40 and is based upon the number of Preference Shares not converted at the expiry of the Conversion Period and multiplied by the Redemption Amount.

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 Alec Pismiris on (+618) 9321 1118.

ALEC PISMIRIS

Company Secretary inangeW.compliancesA.SXVASX-Aantooneements9939-dec

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

GRANGE RESOURCES LIMITED

ACN 009 132 405

Notice of Redemption of Convertible Redeemable Preference Shares

To: ("the Holder")

Grange Resources Limited ("Company") hereby notifies the Holder of the redemption of all of the Company's convertible redeemable preference shares ("Preference Shares") held by the Holder, such redemption having effect 14 days from the date of this notice and upon payment by the Company of the redemption amount set out below ("Redemption Date").

The amount payable by the Company to the Holder in accordance with the constitution of the Company and the terms and conditions on which the Preference Shares were issued is 0.001 cents per Preference Share, for a total redemption amount of \$ to be satisfied by payment of a bank cheque ("Redemption Amount") by Grange sent to the Holder's address reflected on Grange's securities register within 3 days of the Redemption Date. Upon payment of the Redemption Amount by Grange the Preference Shares will be redeemed and cancelled.

Dated this 29^th day of May 2003

Executed by Grange Resources Limited 009 132 405 in accordance with section 127 of the Corporations Act by or in the presence of:

Signature of Director

Signature of Secretary

Adam Rankine-Wilson Name of Director in full

Alec Christopher Pismiris Name of Secretary in full