IRON BEAR RESOURCES LTD — Capital/Financing Update 2004

May 31, 2004

INTERNATIONAL GOLDFIELDS LIMITED International Goldfields Limited ABN 71 095 047 920 Ground Roon 18 Oxford Closs Leederville Pecth Weders Australia 6007 -
Telephone +618 9388 0744 Facsimile +618 9382 1411 .
PO Box 144 West Penth Western Australia 6872 www.internationskrakfields.com

31^st May 2004

Optionholder Name Optionholder Address

Register Holder No. No. Options Held Shares to be allocated Amount Pavable

Dear Shareholder

OPTION EXPIRY

Notice is hereby given that the final date for exercising the company's 25 cent, $30^th$ June 2004 listed options is 5.00 WST on $30^th$ June 2004. The exercise price is \$0.25 per option. Optionholders will be issued with one new fully paid ordinary share in International Goldfields Ltd for each option exercised.

Options not exercised by 5.00pm 30^th June 2004 will expire. Quotation of the options will cease at the close of trading on 24^th June 2004. Failure to exercise the Option will result in the forfeiture of any rights the Optionholder may have in relation to the Ordinary shares.

To convert your Options to Ordinary Shares (Exercise of Options) please complete the option exercise form attached and forward with your payment to:

International Goldfields Ltd PO Box 144 West Perth WA 6872

or deliver to

18 Oxford Close Leederville WA 6007

Cheques and or bank drafts should be make payable to International Goldfields Ltd. Receipt for payment will not be forwarded.

During the three months preceding the date of this notice the highest sale price and the lowest sale price of Ordinary Shares in International Goldfields Ltd was \$0.435 on the 19 April 2004 and \$0.325 on 17 May 2004 respectively. The latest available market sale price on the Australian Stock Exchange Ltd before the date of this notice was \$0.36 on 28 May 2004.

The company has on Wednesday 5 May 2004 executed a Mandate to appoint Bell Potter Securities Limited to act as Underwriter for the tranche of 8,571,426 listed IGL options expiring on 30 June 2004 (IGLOA) with an exercise price of 25 cents each. Bell Potter will be paid an underwriting fee of 5% of the amount underwritten.

For enquiries regarding the Market in the Options, and what you may do, please contact:

Michael Thomson Senior Advisor - Equities and Derivatives Bell Potter Securities Ltd

Direct Tel: $(+618)$ 9326 7607 Mobile: 0418 948 365

If you wish to clarify any taxation consequences relating to the exercise of options, please consult your solicitor, accountant or professional adviser.

Yours faithfully

AWP SAGE EXECUTIVE CHAIRMAN