LAKE RESOURCES N.L. — M&A Activity 2004

Feb 16, 2004

17 February 2004

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

Dear Sir/Madam,

OFFER BY LAKE RESOURCES N.L. TO PURCHASE ALL OF THE SHARES IN DIAMONEX LIMITED

Please be advised that at the end of the offer period on 16^th February 2004, Lake Resources N.L. was entitled to 5,465,000 (20.15 per cent) of the issued 27,125,000 ordinary shares in DiamonEx Limited.

Yours sincerely, LAKE RESOURCES NL

Julit

P.J. Gilchrist Diector/Secretary