3 November 2005

The Manager Companies Company Announcements Australian Stock Exchange 20 Bridge St Sydney NSW 2000

Dear Sir

DRILLING UPDATE MASSIVE SULPHIDES INTERSECTED AT QUE RIVER

Resource Finance & Investments Limited (ASX:RFI) is pleased to provide an update on its drilling activity as a follow-up to the announcement dated 20 October to ASX.

HIGHLIGHTS

Two diamond core drill rigs are in operation; one at the Que River S-lens Cu-Ag-Zn Mineral Resource and the second commenced at the Mt Charter Gold project on the 24th October.
First diamond core hole completed into the S-Lens intersected the massive sulphide target zone as planned with a downhole intercept of approximately 16.5m of semi massive to massive sulphide mineralisation. While pyrite is the dominant sulphide in this zone. visible chalconvrite (copper sulphide) and sphalerite (zinc-sulphide) mineralisation has been noted in one interval and assay results are pending. A previous intersection 50m vertically below the recently completed hole assaved 2% copper over a 3m horizontal width.
The first diamond core hole at Mt Charter has intersected a 50m interval of brecciated, bariteveined altered dacite with similar geological characteristics to nearby mineralised historic holes such as MAC23 with a 58m intersection grading 1.8 g/t Au and 32g/t Ag. Assay results are pending.
Drilling at both prospects continues with logging and sampling of the drill core in progress with first assay results expected before the end of the month.

MT CHARTER GOLD PROJECT

The Mt Charter gold project is a large scale gold-silver mineralised system that has never been systematically evaluated as a gold project. RFI is undertaking a first pass diamond core drill programme to follow-up on several high tenor gold in soil anomalies generated by its recent soil sampling programme as summarised in Figure 1.

The first Mt Charter diamond drill hole, MCD020 (shown as P1 in Figure 2) has been completed to a final depth of 100m. It is testing a zone of coincident high-grade soil sample results and anomalous rock chip samples including 50m of continuous rock chip sampling grading 2.1 g/t Au and 70g/t Ag. In this area gold mineralisation is associated with a barite veined and brecciated sericite-pyrite alteration zone such as intersected in nearby historic drillhole MAC025 with a 58m interval from surface grading 1.8 g/t Au and 27g/t Ag.

MCD020 intersected strongly weathered barite veined breccia from surface to 30m downhole before transitioning into silicified sericite-pyrite altered dacite lava with barite veining, which extended to a depth of 50m downhole. The remainder of the hole comprised weakly altered dacite. A photograph of the drill core recovered from the top of the hole is presented in figure 3.

S-LENS Cu-Aq-Zn MINERAL RESOURCE

Drill testing for possible southerly extensions to the S-Lens Mineral Resource, as indicated by previous intersections such as 5.8m horizontal width grading 3.2% Cu and 27 g/t Ag as well as infill drilling to confirm grade and thickness within the current resource envelope, commenced on the 18 October. A summary of historic drilling and the current first stage drill programme is presented in Figure 4.

Diamond drillhole QRD1223 was completed on 26 October for a total depth 80m. This hole tested a shallow southern portion of the S-lens massive sulphide zone within the Inferred Mineral Resource envelope (refer ASX Release 20 October for Mineral Resource details). An interval of approximately 16.5m of semi-massive to massive pyritic sulphides was intercepted from 23.2m downhole depth (refer figure 5). A zone containing visible chalcopyrite (copper sulphide) and sphalerite (zinc sulphide) mineralisation has been logged in the core from the massive sulphide intercept and assay results are awaited confirm the base metal and precious metal grades. The QRD1223 massive sulphide intersection lies approximately 50m vertically above the intersection in historic hole QR045 (3m horizontal width grading 2% Cu - refer Figure 4 for location). Figure 6 shows the drilling rig commissioned for this programme completing the first hole.

COMMENTARY

Following its successful ASX listing the Company has moved rapidly to initiate drill-testing of its two most advanced prospects; the large gold system at Mt Charter and the S-Lens Cu-Ag-Zn Mineral Resource at Que River. Drilling productivity is building up with both rigs now on their second holes.

Geological logging of the drill core and sampling is in progress and the Company is hopeful of receiving initial assay results before the end of the month. The geological indications for each of the first two holes are encouraging and further releases will be made as the programme proceeds.

Yours sincerely

Mike Rosenstreich Managing Director

Attachments - Figures 1 to 6

Disclaimer: This announcement does not include reference to all available information on the Mt Charter or S-Lens Projects and should not be used in isolation as a basis to invest in RFI. Any potential investors should refer to RFI's other ASX releases and statutory reports and consult their professional advisors before considering an investment in the Company. The information within this report that relates to exploration results is based on information compiled by Mr Mike Rosenstreich and Mr Mark Derriman who are full time employees of the Company and are Members of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as Competent Persons as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and consent to the inclusion of this information in the form and context in which it appears in this report.

Figure 1: Summary Plan of Mt Charter Project illustrating proposed holes for first pass drill programme, recent gold in soil results and historic drilling and rock-chip results.(P1 is the site for MCD020 & P2 is in progress)

Figure 2: Portable skid mounted diamond core drilling rig in operation at Mt Charter

ABN 39 109 933 995 Suite 5 2 Richardson Street, West Perth, Western Australia Tel: +61 8 9322 8044 Fax: +61 8 9481 2846

Figure 3: MCD020 drill core from the top 9.2metres - showing strong weathering, brecciated silica-barite veins and gossan textures after pyrite.

Figure 4: Summary long section for S-Lens project highlighting Mineral Resource envelope, QRD1223, proposed drill holes and historic drill intercepts and mine voids.