IRON BEAR RESOURCES LTD — Capital/Financing Update 2004

May 4, 2004

INTERNATIONAL GOLDFIELDS LIMITED

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

5 May 2004

Company Announcements Office Australian Stock Exchange Limited Level 4 Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Via: E Lodgement

Dear Sir/Madam

2004 \$0.25 OPTIONS UNDERWRITTEN BY BELL POTTER

The Company is pleased to announce that we have today executed an Underwriting Agreement with Bell Potter Securities Limited to act as Underwriter for the tranche of 8,571,426 listed IGL options expiring on 30 June 2004 with an exercise price of 25 cents each.

The Underwriting Agreement gives the Company great confidence going into the future as it guarantees a further \$2.1 million funding which will aid in the development of the Baldock deposit whilst still retaining significant funds to fast track our other exploration programs at Mount Ida and Evanston.

Yours faithfully,

Tony Sage Executive Chairman