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

Feb 5, 2004

SUPPLEMENTARY BIDDER'S STATEMENT AND OFFER

By: Lake Resources N.L. ABN 49 079 471 980

To: Purchase All of Your Shares In: DiamonEx Limited ABN 26 091 951 978

This Supplementary Bidder's Statement was lodged with the Australian Securities and Investments Commission on 6 February 2004 under section 643 of the Corporations Act and should be read in conjunction with the original "Bidder's Statement and Offer By: Lake Resources N.L. ABN 49 079 471 980 To: Purchase All of Your Shares In DiamonEx Limited ABN 26 091 951 978", dated 24 December 2003 and the "Supplementary Bidder's Statement and Offer by Lake Resources N.L. ABN 49 079 471 980 To Purchase All of Your Shares in Diamonex Limited ABN 26 091 951 978" dated 9 January, 2004.

THIS DOCUMENT IS IMPORTANT AND REOUIRES YOUR IMMEDIATE ATTENTION

Pursuant to section 643 of the Corporations Act 2001, this Supplementary Bidder's Statement and Offer updates the original Bidder's Statement and Offer dated 24 December 2003 and the Supplementary bidder's Statement and Offer dated 9 January 2004 with respect to:

• new circumstances that have arisen since the above documents were lodged; and
• would have been required by section 636 of the Corporations Act 2001 to be included in the bidder's statement if they had arisen before the bidders' statement was lodged.

The original Bidder's Statement and Offer dated 24 December 2003 and the Supplementary Bidder's Statement and Offer dated 9 January 2004 remain unaltered in all other respects. If you are in any doubt as to how to act, you should consult your financial or legal advisor immediately.

Lake Resources N.L. wishes to advise that in the TARGET'S STATEMENT IN RELATION TO THE OFFER BY LAKE RESOURCES NL dated 2 February 2004, two material matters were disclosed by DiamonEx Limited:

• 1. In order to facilitate the further exploration and potential development of the Martins Drift Project, the Company has issued on 27 January 2004 a further 2,500,000 shares at an issue price of 10 cents per share together with one free attaching option exercisable at 20 cents on or before July 2006 for each 2 shares issued. This issue raised \$250,000. This capital raising was approved by the shareholders at the general meeting of the Company held on 27 January 2004.
• 1. On 30 January 2004 DiamonEx lodged a prospectus for the purposes of raising up to \$4 million by way of the issue of additional shares at 20 cents per share. Once the prospectus is no longer subject to the exposure period imposed by the Corporations Act it will be distributed to existing shareholders together with potential shareholders. If the issue is successful, it is the Company's intention to seek listing of the Company's shares on the Australian Stock Exchange Limited.

In respect of these matters. Lake Resources N.L. wishes to advise that:

• 1. The 2,500,000 DiamonEx Limited shares issued on 27 January 2004 do not form part of the bid class securities, the subject of The Offer, and that the issue of these shares has no effect on The Offer.
• 1. In the event that Lake Resources N.L. gains control of DiamonEx Limited on or before 16^th February 2004, the Closing Date of The Offer, the intentions of Lake Resources N.L. as set out in the Offer remain unchanged. Lake Resources N.L. will review the status of the prospectus in the light of circumstances and market conditions at that time.

The directors of Lake Resources N.L. have, under a unanimous resolution passed by all of the directors of Lake Resources N.L., approved this advice.

A copy of this document was lodged with ASIC on the 6^th day of February 2004.

ASIC takes no responsibility for the contents of this notice.

Signed for and on behalf of Lake Resources N.L.

5 Gillt: Ken Foots

P. J. Gilchrist. Director/Secretary, 6/02/2004

K Foots Chairman 6/02/2004