IONIC RARE EARTHS LIMITED — Capital/Financing Update 2002

Nov 18, 2002

TELEPHONE: (08) 9486 8598

FACSIMILE: (08) 9486 8597

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COMPANY ANNOUNCEMENTS PLATFORM (ASX) TO: FAX NO: 1300 300 021 Ezenet Limited FROM: DATE: 19 November 2002 TOTAL PAGES: 8 (INCLUDING COVER PAGE) SUBJECT: COMPANY UPDATE

The attached company update is being mailed to shareholders today.

William M Day Company Secretary

GROUND FLOOR, ZURICH HOUSE 66 KINGS PARK ROAD, WEST PERTH WA 6005

EMAIL: linton@ezenet.com.au
EZENET LIMITED ACN 083 646 477

Ezenet Limited ACN 083 646 477 ABN 84 083 646 477 Ground Floor Zurich House 66 Kings Park Road West Perth WA 6005

Telephone: +618 9486 8598 Facsimile: +618 9486 8597 Email: linton@ezenet.com.au Web: www.ezenet.com.au

Message from the Managing Director Linton Chapman

Dear Shareholder

In what has been Ezenet Limited's most exciting year to date, 2002 has seen the Company make some important strategic changes and major advances.

Following the development of the first all digital multi-channel movie system, the Company negotiated with Roadshow Film Distributors Pty Ltd the first licence in Australia for the supply of all digital late release feature movies. A new three-year licence covering major Hollywood studios is currently being renegotiated on more favorable terms, and will ensure the Company will have a continual supply of high quality movies.

For the past 12 months, the Company's key focus has been the marketing of its system to the hospitality and mining sectors. Since signing the first contract in April to establish the new system, the Company has installed, or has signed contracts to install, the Ezenet system into 4,242 rooms at 42 hotels, motels and mining camps around Australia, which will generate gross annual revenue of approximately \$460,000 with further contracts expected to be signed shortly.

The Ezenet system is rapidly gaining acceptance as the best 'free to guest' entertainment system available, and the number of rooms contracted to date represents a small proportion of the available market.

Recently the Company was appointed the preferred supplier in the in-house movie category for the next two years with Flag Choice Hotels, and attended their national conference last month. The reaction of participants to the Ezenet system at this conference was positive, and the Company expects it will win a substantial share of the hotels and motels in this group.

After lengthy negotiations with the Accor Asia Pacific Hotel Group the Company is currently signing contracts to install the system in 18 Mercure Inn hotels and is also confident of obtaining further hotels in this group.

In addition to the revenue obtained from the supply of in-house movies the Ezenet digital player allows for the showing of advertisements with the movies. To obtain the optimum advertising revenue from national advertisers the Company needs to obtain a critical mass in the number of rooms (television sets) taking the service. The company's business plan envisages this critical mass will be achieved in the second quarter of the 2003 year.

The Company is currently negotiating with several key Gold Coast hotels and resorts in Queensland for the provision of a dedicated tourist channel and 24-hour digital radio channel on their television sets using the Ezenet digital player which will provide further advertising revenue opportunities.

Two weeks ago the Company employed an experienced sales representative in Brisbane.

The Company has set up the required infrastructure including computer equipment in its West Perth office to handle the logistics of encoding and distribution of the movie cartridges each month.

For the company to realise its business plan it will require capital to be expended on the installation of the digital players in hotels, motels, mining camps and resorts as outlined in the company's 2002 annual report to shareholders.

Your board of directors are presently examining the available alternate methods by which this capital will be raised and you will be informed as soon as the final decision is taken.

I would like to thank all shareholders for your ongoing support and encourage you to read through this update and familiarise yourself with Ezenet's operations and objectives. The Company's web site has been upgraded and I encourage you to keep up to date with developments in the company by visiting www.ezenet.com.au.

Sincerely

mar

Linton Chapman Managing Director

November 2002

$P. 4$

Strategic Focus

Ezenet Multi Channel Digital Player

The Ezenet digital system is the first state of the art digital multi channel movie player designed to enable hotels and motels to transmit the latest movie releases in true digital quality.

The Ezenet system comes complete with a digital player and a compact digital cartridge that connects directly to the in-house system and transmits via the in-house antenna. The system replaces the old video tape-based systems, offering superior digital technology that reduces the amount of maintenance and downtime featured in older systems.

In addition, the Ezenet system offers superior quality viewing and significant timesavings for the hotel/motel, with a built-in modem allowing remote diagnostic checks

Created as a 'turn key' system, the Ezenet system gives any establishment the latest digital movies on multi channels at the turn of a single key. The cartridge also contains preprogrammed advertisements, which run prior to each movie, enabling advertisers to promote products and services to a targeted and exclusive audience.

Marketing

Since co-developing the multi-channel movie system, Ezenet has focused on the marketing of this innovative system to the hospitality and mining sectors.

Flag Choice

In September this year, Ezenet became the preferred supplier of in-house digital movie services to international hospitality chain, Flag Choice Hotels. Flag Choice represents a total market of 17,800 rooms and 350 properties located throughout Australia and New Zealand.

The Company has commenced installing into properties throughout Australia and is already operating in six Flag Choice hotels totalling 397 rooms. In addition, the Ezenet system was enthusiastically embraced at the recent national Flag Choice Conference and the Company is confident of continuing success and additional contracts with this group.

An excellent response was also received when the Ezenet system was showcased for the New Zealand market and the Company is pursuing a range of opportunities in that country.

Accor Asia Pacific

Ezenet is also currently installing its free to guest system into the Mercure Inn group of hotels operated by Accor Asia Pacific in Australia.

The initial roll out is for 18 hotels comprising 1,512 rooms, and Ezenet Is currently in the process of securing several additional contracts with other branded properties within the Accor Asia Pacific group.

This appointment by Accor Asia Pacific is seen as a key marketing in-road, which will provide a strong springboard from which the company will further develop its digital movie business in hotels and motels.

Mining Camps

Ezenet has recently signed its first contracts and is continuing to negotiate with the leading service provider to some of Australia's largest mining camps.

This market has been traditionally serviced by tape-based systems, however this sizeable market has welcomed the ease and quality of the Ezenet system.

The Company is currently negotiating to supply in excess of 6,000 rooms at mining sites across Australia.

Advertising

As room numbers continue to grow within the traditional hotel and motel markets, so too do the exciting opportunities for major advertising.

With increasing reach across the hospitality industry, Ezenet is also focused on using its network of hotel and motel rooms as an attractive, targeted audience for potential advertisers. The Company believes this captive target audience of affluent travellers and the high-income earning population of mining camps will be of major interest to a variety of product and service providers.

Digital Tourist Channel

In addition to Ezenet's core focus on exploring marketing and advertising opportunities for the digital system, the Company is also investigating the use of the digital player to create a dedicated tourist channel for hotels on the Gold Coast in Queensland.

The Company is currently evaluating the use of the multi channel digital player to provide a dedicated television channel providing tourist-based information and promotion for guests in hotels throughout Australia's holiday capital.

Allied with the tourist information channel the Company is also negotiating with several five star hotel chains regarding the creation of a 24-hour digital radio channel featuring music and promotion of local attractions to be available in each room.

Initial reactions have been extremely positive and there has been a high degree of interest from potential advertisers, such as theme park operators, regarding the development of this project. There are also significant opportunities for cross promotion with a range of product and service providers in the region.

Although still in the early development stage, the Company believes this venture has the potential to generate substantial advertising revenue. With tourism now on the increase, the Company is poised to maximise shareholder value by exploiting a range of entertainmentbased opportunities specifically designed for this key group of consumers.

TELEPHONE: (08) 9486 8598

FACSIMILE: (08) 9486 8597

(INCLUDING COVER PAGE)

FACSIMILE

COMPANY ANNOUNCEMENTS PLATFORM (ASX) TO:

1300 300 021 FAX NO:

Ezenet Limited FROM:

21 October 2002 DATE:

1 TOTAL PAGES:

MECURE INN GROUP SUBJECT:

The company announces that it has been selected as the service provider for free to guest digital movies for the Mercure Inn group of hotels operated by Accor Asia Pacific in Australia, subject to completion of contracts acceptable to the legal department of Accor Asia Pacific.

The initial roll out is for 18 hotels comprising 1,512 rooms.

It is considered that this appointment by Accor Asia Pacific provides a strong springboard from which the company will further develop its digital movie business in hotels and motels.

William M Day Company Secretary

GROUND FLOOR, ZURICH HOUSE 66 KINGS PARK ROAD, WEST PERTH WA 6005

EMAIL: linton@ezengt.com.au BZENET LIMITED ACN 083 646 477

医心动脉

PRESS RELEASE PRESS RELEASE PRESS RELEASE PRESS RELEASE

27 September 2002

Ezenet Wins Landmark Deal with International Hotel Chain

Perth-based entertainment technology developer Ezenet Limited today announced it has become the preferred supplier of in-house digital movie services to international hospitality chain, Flag Choice Hotels.

Flag Choice represents a total market of 17,800 rooms and 350 properties located throughout Australia and New Zealand.

Ezenet's key focus is the marketing of the first all digital multi-channel movie system for the hospitality sector. The innovative system is a first, and replaces the old video tape-based systems, offering superior digital technology that reduces the amount of maintenance and downtime featured in older systems.

The Ezenet movie player is designed to connect to the existing antenna system of hotels and motels, allowing digital quality movies to be simultaneously played on two channels with each player having an individualised key, providing added security.

Ezenet Managing Director Linton Chapman said: "Being the only preferred supplier for the provision of in-house digital movie services to the Flag Choice Group provides a significant opportunity for Ezenet within Australia and New Zealand."

"The Ezenet system offers superior quality viewing and significant time savings for the hotel/motel and a built-in modem allows it to be diagnostically checked from anywhere in Australia," he said.

For further information about the Ezenet system visit www.ezenet.com.au or for information about Flag Choice Hotels visit www.flagchoice.com

Linton Chapman Managing Director Ezenet Limited

Office: (08) 9486 8598 Mobile: 0407 720 554 Email: linton@ezenet.com.au