IRON BEAR RESOURCES LTD — Capital/Financing Update 2004

Oct 4, 2004

INTERNATIONAL GOLDFIELDS LIMITED

International Goldfields Limited ABN 71 095 047 920 Ground Plaar 18 Oxford Close Leedervike Persh Western Australia 6007 Telephone +618 9388 0744 Facsimile +618 9382 141 PO Box 144 West Perth Western Australia 6872 www.internationalgoidheids.com

Company Announcements Office Australian Stock Exchange Limited Via: E Lodgement

IGL HOLDS THE LARGEST GOLD/COPPER EXPLORATION CONCESSION IN ROMANIA WITH A LICENCE RENEWAL FOR THREE MORE YEARS

International Goldfields Ltd (ASX:IGL) is pleased to announce that the National Agency for Mineral Resources of Romania has renewed its exploration licence at the Sacu gold/copper project located in the southeast of the "golden quadrilateral" region of western Romania. This latest extension is due to expire on May 31 2007. The property represents the largest concession granted to any company in Romania covering approximately 250 sq km of a renowned and highly prospective province.

The project was originally generated by BHP in the 1990s as part of their worldwide search for large porphyry hosted copper-gold deposits. The exploration concession was acquired by IGL in 2002, although BHP still maintains a clawback provision on the project with generous terms to IGL.

A recently constructed new road cutting on the southeast corner of the Gladna magnetic anomaly has exposed leached and bleached andesite, microdiorite and schist within the project area, IGL has been able to conduct preliminary channel sampling across this zone. The sampling, conducted by SGS Analabs, returned one assay of 0.2 g/t gold with associated copper up to $0.01\%$ copper.

A comprehensive drilling programme is scheduled to commence in mid October. The exploration programme will have a particular focus on the high magnetic zone, the structural corridor and the de-magnetised zone (see attached plans). The initial drill programme will consist of a total of 1,600m of RC drilling; the programme is expected to take 3 weeks to complete.

The "golden quadrilateral" represents one of the more highly mineralised provinces in the Carpathian Arc, and is proximal to some of the world's largest emerging precious metal and porphyry copper deposits. The IGL project area is characterised by a complex and well-preserved tectonic and magmatic history, readily comparable with major prospective arc-related terranes internationally.

A number of companies have projects in this region, including Gabriel Resources, European Goldfields, Eurogold, European Nickel and Carpathian Gold. In August 2004 gold producer Newmont Mining took a strategic 10.8% stake in Gabriel Resources which in turn created a great deal of interest in the region.

Yours faithfully

Tony Sage Executive Chairman

AEROMAGNETIC IMAGE GLADNA PROSPECT - DETAIL

AEROMAGNETIC IMAGE GLADNA PROSPECT - REGIONAL