LAKE RESOURCES N.L. — Interim / Quarterly Report 2003

Oct 5, 2003

Lake Resources N L. Quarterly Report. July - September 2003

Lake Resources NL

QUARTERLY REPORT $for$ JULY-SEPTEMBER 2003

SUMMARY

Exploration

Sweden: Lake Resources is exploring for Broken Hill-Type (BHT) silver-lead-zinc deposits in the Moskosel area in northern Sweden. Following the withdrawal of BHP Billiton from the Moskosel Joint Venture in July, Lake reduced its Moskosel landholding. Key target areas where mineralised rocks have been identified in outcrop and in previous exploration drillholes have been retained.

Pakistan: A field program is planned for the next quarter on Lake Resources' three Exploration Licences in the Chagai district where the targets are porphyry copper gold and epithermal gold deposits.

Argentina: Interpretation of satellite images progressed over a large area (approximately 18,000 sq km) in northern Argentina where Lake Resources is targeting porphyry copper-gold and epithermal gold-silver deposits

Investments

During Q3/2003, Lake Resources converted its equity interest (1 million shares and 2 million options) in Tethyan Copper Company Limited (TCC) to 1 million shares in ASX-listed Mincor Resources N L. TCC has an alliance with BHP Billiton for exploration and mine development at the Reko Dig Copper Project in the Chagai District in Pakistan. In September, Mincor shareholders approved a proposal for an in specie distribution of Mincor's TCC securities, conditional on ASX approval for listing of TCC. The TCC listing is to be accompanied by a capital raising of \$12 million through the issue of 40 million shares at \$0.30 under a Prospectus dated 25 September 2003. The last sale of Mincor shares on ASX on 30^th September was at \$0.81.

DiamonEx Limited is an unlisted Australian company in which Lake Resources has an equity interest. In Botswana, DiamonEx is exploring for diamonds in the Martin's Drift and Molopo areas. The Company holds Prospecting Licences over a number of diamondiferous kimberlite pipes including a resource of 13 million tonnes at a grade of 22 carats/hundred tonnes (at 1 mm cutoff) in the Martins's Drift area. Results of soil sampling in the Martins' Drift project area completed during the previous quarter, identified a number of kimberlite indicator mineral anomalies that warrant follow-up investigations.

Oroplata Limited is an unlisted Australian company in which Lake Resources has a 13.5% interest. Oroplata is earning a 49% interest in the Cerro Negro epithermal gold project in Argentina. During Q3/2003, MIM's 51% interest in the project was offered for sale by tender. Oroplata has a first right of refusal on any sale of the MIM interest.

SWEDEN

Lake Resources is exploring for Broken Hill-type (BHT) silver-lead-zinc deposits and iron oxide related copper-gold (IOCG) deposits in the Norrbotten District in northern Sweden and the Bergslagen District in southern Sweden (see Fig. 1).

Lake Resources N L, Quarterly Report, July - September 2003

Norrbotten Project

Lake Resources holds three exploration tenements in the Norrbotten District in northern Sweden (see Fig. 1 and Table below). Exploration targets are Broken Hill-type (BHT) silver-lead-zinc deposits. During the second half of 2002. Lake explored the Moskosel area in joint venture with BHP Billiton (BHPB). Following the withdrawal of BHPB from the Moskosel Joint Venture in July 2003. Lake reduced its Moskosel landholding by relinguishing the 477 sq km Moskosel Nr 2 exploration permit. Key target areas have been retained including:

• The Kvänberget area, where outcrops of biotite and quartz-gahnite lithologies with sphalerite +/galena are present. Previous drilling intersected a zinc-anomalous psammopelitic sequence up to 150 m thick that can be traced in the airborne magnetics and by rock float for more than 12 km.
• The Varijstrask area where surface till geochemical sampling has confirmed a discrete geochemical anomaly. The magnitude of the anomaly is difficult to reconcile with the thin vein stockwork intersections intersected in the few holes previously drilled in the area.

Lake Resources is seeking another joint venture partner to continue exploration of the Moskosel area. No work was undertaken on the Tjämotis area.

Norrbotten Tenements

Tenement	Number		Area (sq km) Lake Interest Grant Date		Expiry Date
Tiämotis Nr 3	nr 35/2002	32.	100%	11/04/2002	10/04/2005
Moskosel Nr 1	nr 71/2002.	42	100%	31/07/2002	30/07/2005
Moskosel Nr 3	nr 132/2002 .	14	100%	2/12/2002	1/12/2005

Bergslagen Project

Lake Resources is exploring for Broken Hill-type (BHT) silver-lead-zinc deposits and iron oxide related copper-gold (IOCG) deposits in the Bergslagen District in southern Sweden (see Fig. 1). Following the expiry of three exploration permits during the previous quarter, only one permit has been retained.

Bergslagen Tenements

Tenement	Number	Area (sq km) Lake Interest Grant Date			Expiry Date
Simas Nr 2	nr 31/2002		100% *	28/03/2002	27/03/2005

No work was undertaken on the Simas area during Q3/2003

PAKISTAN

Chagai Project

Lake Resources is exploring for epithermal gold and porphyry copper-gold deposits in the Chagai Arc in northwest Balochistan (see Fig. 2). The region hosts a number of significant deposits, including the Saindak copper-gold mine, at present being recommissioned, and the BHP Billiton-TCC Reko Dig Copper Project. Lake's current tenements comprise three Exploration Licences (ELs) with a total area of 242 sq km.

Chagai Tenements

Tenement	Number	Area (sq km)	Lake Interest	Grant Date	Expiry Date
Amalaf	EL (1)/1059-69	63	100%	20/03/2000	19/03/2006
Dasht-i-Gauran	EL (3)/1048-58	-59.	100%	20/03/2000	19/03/2006
Koh-i-Sultan	EL (4)/1037-47	121	100%	20/03/2000	19/03/2006

A field program is planned for the next quarter.

NEW PROJECTS

Argentina: During the previous quarter Lake Resources initiated a regional exploration project in northern Argentina, targeting porphyry copper-gold and epithermal gold-silver deposits. During the current quarter, interpretation of satellite images progressed over a large area (approximately 18,000 sq km). The study has identified a large number of targets that will be priority rated for follow-up field investigations commencing in the next quarter

Lake Resources N L, Quarterly Report, July - September 2003

INVESTMENTS

Tethvan Copper Company Ltd (TCC): In January 2001, Lake Resources acquired an equity interest of 1 million fully paid ordinary shares at A\$0.10 per share and 2 million options exercisable at A\$0.15 per share in the Tethyan Copper Company Limited, a specialist, Asian-focused copper company.

TCC was formed by ASX-listed Mincor Resources NL (Mincor) to house its alliance with BHP Billiton Limited to develop copper resources discovered by BHP Billiton at the Reko Dig Project in the Chagai District in Pakistan. Lake Resources is also exploring for copper and gold in this region.

The Reko Dig Project is centred on a volcanic complex that hosts a number of porphyry copper-gold deposits—an older central porphyry surrounded by younger porphyries. A supergene copper deposit (H4 Project) is developed over the central porphyry. During 2001, a scoping study (±30% accuracy) on the H4 Project confirmed the potential economic viability of the project

During Q3/2003, Mincor reported the discovery of 2 new mineralised porphyry systems at Reko Dig. Mincor also reported a 26% increase in contained nickel resources at its North Mitel deposit in western Australia and announced a 1.5 cent fully franked dividend on the strength of a A\$9.1 million net annual profit.

In August 2003. Mincor Resources announced its intention to restructure its interest in TCC via an 'in specie' distribution of Mincor's securities in TCC to Mincor's shareholders, conditional on ASX approval for listing of TCC. The TCC listing is to be accompanied by a capital raising of \$12 million through the issue of 40 million shares at \$0.30 under a Prospectus dated 25 September 2003. The demerger was approved by Mincor's shareholders at a General Meeting of the Company on 19 September 2003.

In September 2003, pursuant to its Put and Call Option Agreement with Mincor Resources, Lake Resources exchanged its interest in TCC for 1 million fully paid ordinary shares in Mincor Resources. The last sale of Mincor shares on ASX on 30^th September was at \$0.81.

For further information, refer to the Mincor Resources NL website at http://www.mincor.com.au.

DiamonEx Limited is an unlisted Brisbane-based company in which Lake Resources has an equity interest of 2 million shares. Following a capital raising of A\$0.5 million in late 2002, the issued capital of DiamonEx comprises 24.6 million shares and 19.3 million options.

DiamonEx is exploring for diamonds in the Martin's Drift and Molopo areas in Botswana. At its Molopo Project, the Company holds two Prospecting Licences covering an area of 1 500 sq km. Within the PLs, previous exploration has identified more than 50 kimberlitic intrusives, of which eight are known to contain microdiamonds.

At Martin's Drift, DiamonEx holds exploration tenements with a total area of approximately 700 sq km. The tenements cover a number of diamondiferous kimberlite pipes, including a resource of 13 million tonnes at a grade of 22 carats/hundred tonnes (at 1 mm cutoff). Results of soil sampling completed during the previous quarter, over an area of 150 sq km, identified a number of kimberlite indicator mineral anomalies that warrant follow-up investigations.

DiamonEx is exploring the options of a listing and associated capital raising on the Botswana Stock Exchange to fund a mining feasibility study on the Martin's Drift diamond resource and further exploration of the Martin's Drift and Molopo project areas.

For further information, refer to the DiamonEx Limited website at http://www.diamonex.com.au.

Oroplata Limited is an unlisted Australian company in which Lake Resources has a 13.5% interest. Oroplata is earning a 49% interest in the Cerro Negro epithermal gold project in Argentina. A number of epithermal vein systems have been identified by previous explorers at Cerro Negro but only one system, the "Vein Zone", has been tested in any detail, with an Inferred Mineral Resource of 6 million tonnes @ $3.2$ g/t gold.

Lake Resources N L, Quarterly Report, July - September 2003

During Q3/2003, MIM's 51% interest in the project was offered for sale by tender. Oroplata has a first right of refusal on any sale of the MIM interest.

J. Gillece

J.G. Clavarino M AusIMM, MMICA Exploration Director

Contact Information

• Office Address

Level 2, 183 North Quay, Brisbane, Queensland, Australia, 4000

• Postal Address

GPO Box 1239, Brisbane, Queensland, Australia, 4001

• Telephone

Peter Gilchrist (61) (7) 3221 5950 Jim Clavarino (61) (7) 3220 0282

$• Fax$

(61) (7) 3221 9338

• E-mail

lakeresources@lakeresources.com.au gilchristp@lakeresources.com.au clavarinoj@lakeresources.com.au

• Web site

www.lakeresources.com.au