JINDALEE LITHIUM LIMITED — Capital/Financing Update 2003

Oct 19, 2003

GOLDEN STATE RESOURCES LIMITED

New Newcrest-Golden State Resources-Jindalee Resources Gold Exploration Joint Venture at Leonora, WA

Golden State Resources Ltd and Newcrest Operations Ltd, partners in the Mertondale Joint Venture at Leonora, have entered a new exploration joint venture on Jindalee Resources Ltd's adjacent Iron Tank Well Project.

The Iron Tank Well tenements adjoin the southern boundary of the Golden State - Newcrest Mertondale Joint Venture tenements where Golden State is being carried by Newcrest at 20% equity via a "non recourse" loan (repayable only from production) up to Decision to Mine. The Iron Tank Well tenements add 49 km² of area and potentially 8 km of strike to Golden State's Leonora tenement holding. Golden State's Leonora Project now comprises 338 km² of tenements approved or under application.

Drilling on the Golden State - Newcrest Mertondale JV tenements indicates that the Crawford Trend mineralisation targeted by Golden State - Newcrest passes onto the new Iron Tank Well tenements. The Crawford Trend is an intensely altered (sericite-fuchsite-silica-carbonatesulphide) shear zone that is defined by anomalous drilling intersections for 20 km on the Leonora Project from Crawford to the north through the Gambier Lass Prospect.

An RC drill hole (CARC012) previously completed on the tenement boundary between Golden State's Mertondale JV and the Iron Tank Well Project intersected 22 metres of 1.01 g/t gold, with several intermittent intervals of one metre of 3 g/t gold.

Aeromagnetic interpretation shows a conspicuous anomaly, possibly associated with the alteration that accompanies gold mineralisation in the Crawford Trend, coincident with the interpreted path of the Crawford Trend onto the new Iron Tank Well tenements.

It is proposed to investigate this new target area with deep RC drilling at an early stage.

Terms of the Iron Tank Well Joint Venture:

Newcrest, the operator, and Golden State, as an 80:20 joint venture, may earn a collective 70% equity in the Iron Tank Well Project (E37/692 and P37/6417) by expending \$1 million on exploration within four years. Following the JV partners (Newcrest and Golden State) earning a collective 70% equity. Jindalee may:

• 1. contribute at 30%;
• 1. dilute while not contributing:
• 1. be carried at 20%, via a "non recourse" loan (repayable only from production) up to a Decision to Mine
• 1. be "free" carried at 10% to Decision to Mine ; or
• 1. take a royalty of 0.5% of the net smelter return.

Golden State and Newcrest will reimburse \$10,000 of Jindalee's previous expenses. Either or both may withdraw from the Joint Venture at any time after expending \$70,000 on exploration.

www.goldenstate.com.au

ABN 39 063 074 635

Level 9 190 St Georges Tce Perth Western Australia 6001 Postal: PO Box 616 West Perth WA 6872 Ph: 08 9486 4633 Fox: 08 9486 4634 Email: asr@aoldenstate.com.av

Yours sincerely,

Richard Sciano Executive Director

20 October 2003

Attached:

Leonora Project Regional Interpretation

Leonora Project Summary Plan

Exploration results and mineral resources quoted in this announcement are based on information compiled by Mr JT Hasleby of Hasleby Consulting Pty Ltd, a Member of the Australasian Institute of Mining and Metallurgy and a consultant to the Company, who consents in writing to the inclusion of the information contained in the form and context in which it appears. Mr Hasleby is a competent person as required by ASX Listing Rule 5.10 and Clause 10 of the JORC Code (1999), with over twenty years experience in the activities reported.