KINGSTON RESOURCES LIMITED — Capital/Financing Update 2003

Dec 23, 2003

ABN 44 009 148 529

Registered Office

Level 1 Westcentre 1260 Hav Street West Perth Western Australia 6005 AUSTRALIA

Mailing Address Private Box 1288 West Perth Western Australia 6872 AUSTRALIA

Telephone Facsimile Email Visit us at

$(+618)$ 9415 2212 $(+618)$ 9415 2221 info@svnergvlimited.com.au www.synergylimited.com.au

Australian Stock Exchange Limited

SYNERGY
EQUITIES GROUP LIMITED

Company Announcements Office

Electronic Lodgement System

24 December 2003

Dear Sir / Madam

ISSUE OF OPTIONS PURSUANT TO EMPLOYEE OPTION INCENTIVE SCHEME

SYNERGY EQUITIES GROUP LIMITED ("SYNERGY" or "the Company")

The Company is pleased to announce the issue of options to its Directors pursuant to its Employee Option Incentive Scheme as approved by Shareholders at the Company's 2003 Annual General Meeting.

Attached to this announcement is an Appendix 3B in relation to the issue of options and Appendices 3Y in relation to the holdings of each of the Directors.

Yours faithfully SYNERGY EQUITIES GROUP LIMITED

Ronald Moir MANAGING DIRECTOR

ELS034.2004

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement. application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

SYNERGY EQUITIES GROUP LIMITED

ABN

44 009 148 529

We (the entity) give ASX the following information.

Part $1 -$ All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbf{1}$ ⁺Class of ⁺securities issued or to be issued

Unlisted options

60,000,000

• $\overline{2}$ Number of ⁺securities issued or to be issued (if known) or maximum number which may be issued
• 3 Principal terms of the *securities (eg. if options, exercise price and expiry date; if partly paid *securities, the amount outstanding and due dates for payment; if *convertible securities, the conversion price and dates for conversion)

Exercise price $-2.5$ cents Expiry date $-23$ December 2008

⁺ See chapter 19 for defined terms.

Do the securities rank equally in all respects from the date of allotment with an existing class of quoted *securities? If the additional securities do not rank equally, please state: the date from which they do the extent to which they ۰ participate for the next dividend, (in the case of a trust, distribution) or interest payment the extent to which they do not rank equally, other than in relation to the next dividend.	No
Issue price or consideration	Nil
Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)		Employee Option Incentive Scheme
Dates of entering *securities into uncertificated holdings or despatch of certificates	24 December 2003
	Number	+ Class
Number and class of all securities quoted on ASX (including the securities in clause	472,186,795 164,630,737	Fully paid ordinary shares 30 June 2004 options
	distribution or interest payment 2 if applicable)

⁺ See chapter 19 for defined terms.

• $\overline{9}$ Number and "class of all *securities not quoted on ASX (including the securities in clause 2 if applicable)
• $10^°$ Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

Number	+ Class
60,000,000	Unlisted employee option incentive scheme options

The Company has not yet established a Dividend policy

Part 2 - Bonus issue or pro rata issue

11	Is security holder approval required?
12	Is the issue renounceable or non-renounceable?
13	Ratio in which the "securities will be offered
14	Class of securities to which the offer relates
15	*Record date to determine entitlements
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?
17	Policy for deciding entitlements in relation to fractions
18	Names of countries in which the entity has *security holders who will not be sent new issue documents
	Note: Security holders must be told how their entitlements are to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for receipt of acceptances or renunciations

$+$ See chapter 19 for defined terms.

20	Names of any underwriters
21	Amount of any underwriting fee or commission
22.	Names of any brokers to the issue
23	Fee or commission payable to the broker to the issue
24	Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of + security holders
25	If the issue is contingent on
	*security holders' approval, the date of the meeting
26	Date entitlement and acceptance
	form and prospectus or Product Disclosure Statement will be sent to persons entitled
27.	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders.
28	Date rights trading will begin (if applicable)
29.	Date rights trading will end (if applicable)
30	How do + security holders sell their entitlements in full through a broker?
31	How do *security holders sell part of their entitlements through a broker and accept for the balance?

⁺ See chapter 19 for defined terms.

32 How do *security holders dispose of their entitlements (except by sale through a broker)?

33 *Despatch date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

$34$ Type of securities (tick one)

$(a)$ Securities described in Part 1

$(b)$

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the *securities are *equity securities, the names of the 20 largest holders of the additional "securities, and the number and percentage of additional "securities held by those holders If the *securities are *equity securities, a distribution schedule of the additional 36 *securities setting out the number of holders in the categories $1 - 1,000$ 1,001 - 5,000 $5,001 - 10,000$ 10,001 - 100.000 100,001 and over 37 A copy of any trust deed for the additional *securities

$+$ See chapter 19 for defined terms.

Entities that have ticked box 34(b)

• 38 Number of securities for which *quotation is sought
• 39 Class of *securities for which quotation is sought
• 40 Do the *securities rank equally in all respects from the date of allotment with an existing *class of quoted *securities?

If the additional securities do not rank equally, please state:

• the date from which they do
• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

42 Number and "class of all "securities quoted on ASX (including the securities in clause 38)

Number	+ Class

$+$ See chapter 19 for defined terms.

Quotation agreement

• $\mathbf{1}$ *Ouotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the 'securities to be quoted complies with the law and is not for an $\bullet$ illegal purpose.
• There is no reason why those *securities should not be granted *quotation.
• An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warraaty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that noone has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the "securities be quoted.
• We warrant that if confirmation is required under section 1017F of the $\bullet$ Corporations Act in relation to the *securities to be quoted, it has been provided at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to $\bullet$ be quoted under section 1019B of the Corporations Act at the time that we request that the *securities be quoted.
• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• We give ASX the information and documents required by this form. If any information or $\overline{4}$ document not available now, will give it to ASX before 'quotation of the 'securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

...................................... Managing Director

Print name: Ronald Moir

---

$+$ See chapter 19 for defined terms.

Appendix 3Y

ns for business

Rule 3.19A.2

Change of Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public. Introduced 30/9/2001.

Name of entity	Synergy Equities Group Limited
ABN	44 009 148 529

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Ronald Moir
Date of last notice	17 November 2003

Part 1 - Change of director's relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Direct or indirect interest	Direct interest
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.	Not applicable
Date of change	24 December 2003
No. of securities held prior to change	11,000,000 (1) 7,000,000 (2)
Class	Fully paid ordinary shares (1) 30 June 2004 options (2) Unlisted employee option incentive scheme options (3)
Number acquired	Nil (1) Nil (2) 30,000,000 (3)
Number disposed	Nil (1) Nil (2) Nil (3)
Value / Consideration Note: If consideration is non-cash, provide details and estimated valuation	Nil (3)
No. of securities held after change	11,000,000 fully paid ordinary shares (1) 7,000,000 30 June 2004 options (2) 30,000,000 unlisted employee option incentive (3) scheme options
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	Allotment from Company

⁺ See chapter 19 for defined terms.

Part 2 - Change of director's interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

Detail of contract	Not applicable
Nature of interest
Name of registered holder (if issued securities)
Date of change
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
Interest acquired
Interest disposed
Value / Consideration Note: If consideration is non-cash, provide details and an estimated valuation
Interest after change

⁺ See chapter 19 for defined terms.

Appendix 3Y

Rule 3.19A.2

Change of Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public. Introduced 30/9/2001.

Name of entity	Synergy Equities Group Limited
ABN	44 009 148 529

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Mark Popham
Date of last notice	19 December 2003

Part 1 - Change of director's relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Direct or indirect interest	Indirect interest
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.	Held as joint trustee of the Popham Superannuation Fund
Date of change	24 December 2003
No. of securities held prior to change	(1) 3,345,593 (2) 500,000
Class	Fully paid ordinary shares (1) 30 June 2004 options (2) Unlisted employee option incentive scheme options (3)
Number acquired	Nil (1) Nil (2) (3) 20,000,000
Number disposed	(1) Nil Nil (2) Nil (3)
Value / Consideration Note: If consideration is non-cash, provide details and estimated valuation	Nil (3)
No. of securities held after change	3,395,593 fully paid ordinary shares (1) 500,000 30 June 2004 options (2) 20,000,000 unlisted employee option incentive (3) scheme options
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	Allotment from Company

⁺ See chapter 19 for defined terms.

Part 2 - Change of director's interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

Detail of contract	Not applicable
Nature of interest
Name of registered holder (if issued securities)
Date of change
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
Interest acquired
Interest disposed
Value / Consideration Note: If consideration is non-cash, provide details and an estimated valuation
Interest after change

⁺ See chapter 19 for defined terms.

Appendix 3Y

ns for business

Rule 3.19A.2

Change of Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public. Introduced 30/9/2001.

Name of entity	Synergy Equities Group Limited
ABN	44 009 148 529

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Jeremy Thew
Date of last notice	19 February 2002

Part 1 - Change of director's relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Direct or indirect interest	Direct interest
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.	Not applicable
Date of change	24 December 2003
No. of securities held prior to change	1,000,000 (1)
Class	Fully paid ordinary shares (1) Unlisted employee option incentive scheme options (3)
Number acquired	Nil (1) 10,000,000 (3)
Number disposed	Nil (1) Nil (3)
Value / Consideration Note: If consideration is non-cash, provide details and estimated valuation	Nil (3)
No. of securities held after change	1,000,000 fully paid ordinary shares (1) 10,000,000 unlisted employee option incentive (3) scheme options
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in bay-back	Allotment from Company

⁺ See chapter 19 for defined terms.

Part 2 - Change of director's interests in contracts
Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

Detail of contract	Not applicable
Nature of interest
Name of registered holder (if issued securities)
Date of change
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed
Interest acquired
Interest disposed
Value / Consideration Note: If consideration is non-cash, provide details and an estimated valuation
Interest after change

⁺ See chapter 19 for defined terms.