GRANGE RESOURCES LIMITED. — Share Issue/Capital Change 2005

May 3, 2005

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).

• $\mathbf{1}$ *Class of *securities issued or to Options - Unlisted be issued Number of "securities issued or to be Series A - 1.500.000 $\overline{2}$ issued (if known) or maximum number Series B - 1,500,000 which may be issued Series C - 1,000,000 3 Principal terms of the *securities (eg, if Series A Options exercisable at \$1.25 and expiring options, exercise price and expiry date; on 30 June 2007
• if partly paid *securities, the amount outstanding and due dates for payment; if *convertible securities, the conversion price and dates for conversion)

Series B Options exercisable at \$1.50 and expiring on 30 June 2008 Series C Options exercisable at \$2.50 and expiring on 30 June 2011

$\div$ 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?	Not Applicable
	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 a trust, payment the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
5	Issue price or consideration	Options issued for nil consideration.
6	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	approved by shareholders.	Options issued pursuant to the Grange Resources Limited Directors' and Officers' Option Plan and
7	Dates of entering "securities into uncertificated holdings or despatch of certificates	2 May 2005
		Number	+ Class
8	Number and tolass of all tsecurities ASX quoted including) the on securities in clause 2 if applicable)	75,749,259	Ordinary Fully Paid Shares
		Number	$+C$ lass
9	Number and + class of all + securities not quoted on ASX (including the	4,285,715	Options exercisable at 50 cents and expiring 28 November 2007
	securities in clause 2 if applicable)	3,500,000	Options exercisable at 50 cents and expiring 30 June 2007
		1,500,000	Options exercisable at \$1.25 and expiring on 30 June 2007
		1,500,000	Options exercisable at \$1.50
		1,000,000	and expiring on 30 June 2008 Options exercisable at \$2.50 and expiring on 30 June 2011
10	Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	Not Applicable

⁺ See chapter 19 for defined terms.

Part 2 - Bonus issue or pro rata issue
11	Is security holder approval required?
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

⁺ 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 tο 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 entitlements their (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) 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	securities which Number for οf +quotation is sought	Not Applicable
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 ۰ 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

$\div$ See chapter 19 for defined terms.

41 Reason for request for quotation now

Example: 1a 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 ⁺securities quoted on ASX (including the securities in clause 38)

Number	+ Class

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

Quotation agreement

• ⁺Quotation of our additional ⁺securities is in ASX's absolute discretion. ASX may quote the $\ddagger$ *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.
• $\overline{3}$ 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.
• We give ASX the information and documents required by this form. If any information or document not $\ddot{4}$ 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: 4 May 2005

Alec Pismiris Company Secretary

Doc sig(angeloompliance/asxf2045

$\div$ See chapter 19 for defined terms.