PACIFIC RESOURCES LIMITED — AGM Information 2003

Oct 19, 2003

Lodestone Exploration Limited

Exploring the Mount Morgan metals district with advanced technologies

Annual General Meeting 2003

Overview

• Mount Morgan was historically Queensland's premier Gold mine, producing more than 9.5 million Oz
• Traditionally, these types of deposits occur in clusters
• ← Lodestone is seeking similar deposits in the local area using advanced technologies under the wide spread cover rock in the target areas

Presentation Overview

• Strategy & Objectives
• Milestones / Exploration Work To Date
• Results & Implications
• Future Programs

Mt Morgan - The Target

• "....find another Mount Morgan VHMS deposit"
• 9.5 million Oz gold produced
• Average 5 g/t Au
• 360,000 tonnes Cu
• 1.6 million Oz Silver
• Gross Value
  • $>$ A$6.4billion

World class gold-copper deposit

"Australia's premier VHMS deposit"

Depesituum	ATICHTIC CZE	Million Oz Au______________________________________
Kalgoorlie	4.3	54
Telfer	1.3	26
MountMorgan	5.0	9.5
Boddington	.4	8.6
St Ives	3.7

Lodestone's Strategy

ASTONE

• During the past year your Board has maintained its focus on the Company's exploration strategy within the Mount Morgan area, with our four objectives continuing to be:
• Discovering major gold and/or gold-copper deposits similar to ۰ Mount Morgan
• Generating drill targets by using advanced exploration tools and concepts
• Enhancing our strategic tenement holding in the Mount Morgan region
• Maintaining, where possible, a tight capital structure intended to $\bullet$ maximise shareholder wealth in the event of exploration success

VHMS Deposit

Mt Morgan Cross-Section

Mt Morgan Regional Geology

a sa mga mga mga mga mga mga mga mga mga mg

Prior exploration restricted by overlying cover rocks and the prior limitations of exploration technology.

2003 Milestones

In line with strategic objectives, Lodestone achieved some significant milestones during the year:

Capital base was broadened and strengthened

$\bullet$ successful $2.5 million raising introduced 450 new shareholders to the register

• Undertook a comprehensive assessment of it's tenements

● completed TEMPEST airborne geophysical survey, ground gravity and ground electromagnetic surveys

• Two drilling programs were completed

six readily accessible electromagnetic targets were drilled

The results assisted in the understanding of the local geology and provided valuable data for the development of future programs

Three additional tenements were acquired in Central Queensland covers some 240 square kilometres, and offers prospective geological targets INDESTONE

2003 Program Summary

PHASE 1 DRILLING PROGRAM

• 7 drillholes for 944.4 metres on 4 priority EM targets
• No significant mineralisation
• Results advanced our understanding of local geology and provided data for development of ongoing programs

PHASE II PROGRAM

• 15 line km ground EM to define Tempest targets
• 4 drillholes for 623 metres on 3 priority EM targets
• Prospective basement rocks intersected in 2 drillholes...at +190m depth
• Ground gravity survey over $\sim$ 175 km2

TARGET GENERATION

• Engagement of consultants to progress new target generation
• New tenement applications over 240 square km covering Mt Morgan and Mt Leyshon/Kidston type targets to the W, N and E of Mt Morgan

BHP BILLITON ALLIANCE

Access to specialist technology and expertise from a strategic alliance with BHP Billiton on the Mount Morgan project ACITIESTONE

Future Work Planned

ADrill test Hamilton Ck November 2003

Interpret gravity results November 2003

Ground geophysics Ulam Early 2004

ODrill test Ulam target Early 2004

In Drill test gravity targets Early 2004

Continue target generation Ongoing

Hamilton Creek Target

• Magnetic signature similar to Mt Morgan. Classic for intrusion-related mineralisation
• Discrete magnetic low
• Within interpreted prospective rock sequence
• Covered by transported creek alluvium (~20m) in broad valley
• Anomalous Copper & Gold in soils on flank of adjacent hill to NW

Image: colour TMI magnetics Lodestone tenements in red outline

Ulam Target - EPM 13743

• Classic magnetic signature intrusion-related gold
• Discrete magnetic low with magnetically active rim (?alteration)
• Historic gold production from Queenslander Gold Mine
• Covered by transported creek alluvium $(\sim 20m)$ with historic alluvial gold production

Image: colour TMI wetlook magnetics Lodestone tenements in red outline Thin line is outcrop extent Yellow squares: old gold workings

Budget Tracking

• Two year planned program
  • (March 2003 to March 2005)
• Exploration spend is on-track with forecast budget

	TABLE(TO SVATILE)	*Actual todate (9/2003)	Year 2(10.3/2005)	ThomasPlanned
Exploration Program	994	524	669	1,663
Corporate Overheads	293	157	292	585
Cost of Public Offer	290	290		290
Total Expenditure	1,577	971	961	2,538

* $ amount for first six months spent since listing in March 2003