GRANGE RESOURCES LIMITED. — Capital/Financing Update 2005

Mar 22, 2005

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

STOCK EXCHANGE ANNOUNCEMENT

NON-RENOUNCEABLE RIGHTS ISSUE

APPENDIX 3B

23 March 2005

Further to the Company's announcement on 11 March 2005 in respect to a nonrenounceable rights issue, please find attached an Appendix 3B.

The Prospectus for the non-renounceable rights issue will be released immediately following this announcement.

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

S:\AA - Enterprises:Grange\Compliance\ASX\ASX_Aanouacements\$965.doc

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, 1/1/2003.

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).

$\mathbf{1}$ *Class of *securities issued or to be issued

Fully paid ordinary shares

• Number of "securities issued or to $\overline{2}$ be issued (if known) or maximum number which may be issued
• Principal terms of the "securities 3 (eg, if options, exercise price and expiry date; if partly paid securities, the amount outstanding and due dates for payment; if convertible securities, the conversion price and dates for conversion)

10,821,322

Fully paid ordinary shares in the capital of the Company

Do the "securities rank equally in $\overline{4}$ 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
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
• 1. Issue price or consideration
• 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)

Dates of entering 'securities into $\overline{\tau}$ uncertificated holdings or despatch of certificates

\$1.25

$\ddot{\phantom{0}}$

The funds will be used for the following activities:

• the proposed acquisition of the freehold farming property covering a total area of approximately 2,200 hectares and is inclusive of the three mining leases covering approximately 1,700 hectares which comprise the Southdown Magnetite Project in accordance with the terms of the Option Agreement;
• deposits required in accordance with the Malaysian Port Heads of Agreement for the proposed acquisition of up to a maximum of 60 hectares of land in the Malaysian port of Kemaman as the site for a pellet plant to process magnetite from the Southdown Magnetite Project;
• the costs associated with identifying and securing funding for the construction phase of the Southdown Magnetite Project which includes the mine and export facilities and the Kemaman pellet project and port facilities; and
• the provision of additional working capital for the Company to fund the identification and assessment of new investment opportunities.

9 May 2005

8 Number and *class of all *securities quoted on ASX (including the securities in clause 2 if applicable)

Number	* Class
86,570,581	Fully paid ordinary shares

9 Number and ⁺class of all ⁺securities not quoted on ASX (including the securities in clause 2 if applicable)

Number	Class
4,285,715	Exercisable at \$0.50 28/11/06		expiring
3,500,000	Exercisable at \$0.50 30/6/07		expiring

10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

entitlements are to be dealt with.

Part 2 - Bonus issue or pro rata issue

$11$ Is security holder approval $No$ required? $12$ Is the issue renounceable or non-Non-renounceable renounceable? 13 Ratio in which the "securities will 1 fully paid ordinary share for every 7 fully paid be offered ordinary shares held. $14$ *Class of *securities to which the Fully paid ordinary shares offer relates Record date to determine 15 5 April 2005 entitlements 16 Will holdings on different registers Not applicable (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in Entitlements will be rounded down to the nearest relation to fractions whole number 18 Names of countries in which the Austria, Belgium, Canada, Germany, Hong Kong, entity has "security holders who Israel, Malaysia, The Netherlands, Philippines, will not be sent new issue United States of America. The Prospectus for the documents offer will be sent to Shareholders in these Note: Security holders must be told how their jurisdictions on or about 11 April 20054 for

information purposes only.

19	Closing date for receipt of acceptances or renunciations	2 May 2005
20	Names of any underwriters	Patersons Securities Limited ABN 69 008 896 311
21	Amount of any underwriting fee or commission	Underwriting fee of \$541,066 and management fee of \$135,267 payable to Patersons Securities
22	Names of any brokers to the issue	Patersons Securities Limited, BBY Limited are acting as Joint Lead Managers to the issue.
23	Fee or commission payable to the broker to the issue	An underwriting fee of \$541,066 and management fee of \$135,267 is payable to Patersons Securities Limited
		A management fee of \$152,175 is payable to BBY Limited
24	Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of *security holders	Not applicable
25	If the issue is contingent on security holders' approval, the date of the meeting	Not applicable
26	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled	11 April 2005
27	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders	23 March 2005
28	Date rights trading will begin (if applicable)	Not Applicable
29	Date rights trading will end (if applicable)	Not Applicable
30	How do security holders sell their entitlements in full through a broker?	Not Applicable
31	How do "security holders sell part of their entitlements through a broker and accept for the balance?	Not Applicable

32 How do "security holders dispose of their entitlements (except by sale through a broker)?

Not Applicable

33 ^*Despatch date

9 May 2005

Part 3 - Ouotation of securities

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

34 Type of securities (tick one) Securities described in Part 1 $(a)$ IJ $(b)$ 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 convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 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
• 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

35

36

A copy of any trust deed for the additional "securities"

Entities that have ticked box 34(b)

• 38 Number of securities for which ^*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:

• $\bullet$ 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 $\bullet$ rank equally, other than in relation to the next dividend, distribution or interest payment
• $41$ Reason for request for quotation now

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

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

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

Number	$\overline{C}$ lass

Ouotation agreement

• $^{+}$ Ouotation of our additional $^{+}$ securities is in ASX's absolute discretion. ASX may $\mathbf{I}$ 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 to 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

• 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.
• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, we will give it to ASX before ⁺quotation of the ⁺securities begins. We acknowledge that ASX is relaying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Date: 23 March 2005 . . . . . . . . . . . . . . . . . . . . Company Secretary

Print name: ALEC PISMIRIS