IONIC RARE EARTHS LIMITED — Capital/Financing Update 2004

Mar 7, 2004

Ezenet Limited ACN 083 646 477 ABN 84 083 646 477 Unit $3$ 73 Trov Terrace JOLIMONT WA 6014

Telephone: +618 9388 2000 Facsimile: +618 9388 2999 Email: linton@ezenet.com.au

STOCK EXCHANGE RELEASE

For immediate release

Dated 3 March 2004

EZENET LIMITED ("Ezenet") - PURCHASE OF VIDEOJOCK TECHNOLOGY

Ezenet is pleased to announce that it has exercised its option to purchase the VideoJock product package which includes the VideoJock Equipment and the VideoJock Software which carries with it world-wide ownership and rights on the following terms:-

• (a) the purchase price is nine hundred thousand dollars (\$900,000.00);
• (b) the purchase price is payable in the following manner:
• one hundred and fifty thousand dollars (\$150,000.00) satisfied by the issue $(i)$ of seven hundred and fifty thousand (750,000) fully paid ordinary shares in Ezenet:
• $(ii)$ seven hundred and fifty thousand dollars (\$750,000.00) by ten (10) equal calendar monthly installments;
• the issue of one million (1,000,000) options exercisable at fifteen cents $(iii)$ (\$0.15¢) on or before 30 June 2007,
• (c) one (1) of the two (2) principals of the Vendor will be appointed to the Board of Ezenet.

Completion will take place upon identification of all of the property the subject of the purchase, technology verification and the completion of transfer documentation.

The VideoJock technology is pivotal to the optimum operation of the installation and supply of digital movies to the accommodation industry. Ezenet already held the Australian and New Zealand rights to the VideoJock technology. The purchase brings with it three (3) further important benefits to Ezenet:-

• (a) the ability to develop the VideoJock technology to maximize the opportunities in the Australian and New Zealand market;
• (b) the ability to expand the operations utilising the VideoJock technology outside the immediate geographic area of Australasia;
• (c) brings with it substantial cost savings which form part of the distribution

arrangements.

SIMON WATSON Company Secretary