LAKE RESOURCES N.L. — M&A Activity 2003

Dec 16, 2003

17 December 2003

Company Announcements Office Australian Stock Exchange Limited 4th Floor, 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam.

OFFER DOCUMENT - DIAMONEX LIMITED

The board of Lake Resources N.L. agreed to issue an offer document to the shareholders of DiamonEx Limited to purchase all the shares of the company it does not own. The Document will be registered with the Australian Securities and Investments Commission in the week commencing 22 December 2003.

Lake Resources N.L. currently holds two million shares in DiamonEx Limited. DiamonEx has 24.6 million shares on issue plus 19.3 million options.

DiamonEx's principal asset is two Prospecting Licences over and adjacent to the Martin's Drift kimberlite deposit in Botswana. According to DiamonEx's Annual Report for the year ended 30^th June 2003, the Martin's Drift deposit has an indicated resource of some 3 million carats of diamonds. The resource comprises some 13.3 million tonnes at a production resource grade of 22.82 carats per hundred tonnes within 5 pipes.

Yours sincerely. LAKE RESOURCES NL

Ken Foots

Ken Foots Chairman