PACIFIC RESOURCES LIMITED — Capital/Financing Update 2005

Sep 19, 2005

Lodestone Exploration Limited

ABN 20 075 877 075 www.lodestonex.com

20 SEPTEMBER 2005

KEY CORPORATE INFORMATION

ASX CODE: LOD

DIRECTORS:

John T Shaw (Chairman) John L McCawley (Executive Director) Martin C Ackland Gregory AJ Baynton

ISSUED CAPITAL:

34,967,404 Ordinary Shares (excluding current conditional placement)

SUBSTANTIAL SHAREHOLDERS:

John Lachlan McCawley	14.6%
Maria Julienne Barron	7.1%
Foxcorp Holdings Ltd	5.7%
Top 20 Shareholders hold:	53.8%

CORPORATE STRATEGY:

Lodestone Exploration is an Australian gold and base metals exploration company focusing on richly endowed mining districts in Central Oueensland. These include the historic Mount Morgan, Mount Chalmers, and Cracow gold/copper districts where Lodestone tenements and optioned tenements are being explored with modern techniques. The Company also holds 100% of the Limestone Creek gold project 20 kms west of the historic Maytown goldfield in North Queensland.

ASX ANNOUNCEMENT

SUMMARY:

STRENGHTENING OF FINANCIAL RESOURCES

KEY HIGHLIGHTS

Placement to Sophisticated Investors

• o Lodestone Exploration Limited has closed a conditional placement of 4,864,618 new ordinary shares with sophisticated investors at 6.5 cents per share to raise approximately \$316,000 before costs associated with the issue.
• The placement is conditional on shareholder $\circ$ approval to be sought at Lodestone's Annual General Meeting on 27 October 2005 (the settlement date).
• The placement of new shares represents an $\circ$ additional 14% of the Company's existing issued capital, raising \$316,200.17.
• The net proceeds of the issue provide funding $\circ$ for further exploration at the Company's 100%-owned or optioned projects at Mount Morgan, nearby Mount Chalmers, Cracow South and Limestone Creek, and additional working capital.
• More than 70% of the funds will be applied to $\circ$ further exploration activities at these projects.
• The placement is in addition to the Share $\circ$ Purchase Plan currently being offered to qualifying shareholders.
• $\circ$ The placement was managed by ABN AMRO Morgans Limited, manager of the Company's 2003 Initial Public Offering (IPO).

ABN 20 075 877 075 www.lodestonex.com

The Manager Company Announcements Office Australian Stock Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000

Dear Sir/Madam.

20 September 2005

LODESTONE STRENGTHENS FINANCIAL RESOURCES

$-2-$

Lodestone Exploration Limited (ASX: LOD) is pleased to advise that it has strengthened its financial resources and share register with the completion of a placement to 'sophisticated investor' clients of ABN AMRO Morgans Limited.

The Company has closed a conditional placement of 4,864,618 new ordinary shares with sophisticated investors at 6.5 cents per share to raise approximately \$316,000 before costs associated with the issue.

In accordance with ASX Listing Rule 7.1.5 the placement is conditional on shareholder approval to be sought at Lodestone's Annual General Meeting on 27 October 2005, with settlement occurring on that day, assuming approval is granted.

The conditional placement was made to domestic investors, all of whom are clients of ABN AMRO Morgans Limited, the manager of the current placement and the Company's 2003 IPO.

The placement of new shares represents an additional 14% of the Company's existing issued capital, raising \$316,200.17.

The net proceeds of the issue provide funding for further exploration at the Company's 100%owned or optioned projects at Mount Morgan, nearby Mount Chalmers, Cracow South and Limestone Creek and additional working capital, in addition to the proceeds of the Share Purchase Plan currently being offered to qualifying shareholders. More than 70% of the placement proceeds will be applied to exploration activities at these projects.

As advised on 16 September, the Company's Share Purchase Plan was extended by two weeks to allow eligible shareholders to invest alongside the investors in the current placement. The Share Purchase Plan will now close on 30 September.

For further details in relation to the placement or Share Purchase Plan, please contact the Company Secretary, Leni Stanley, on (07) 3221 6022.

Yours faithfully,

John Meadley

John McCawley Executive Director

About Lodestone Exploration Limited (ASX:LOD) - Lodestone is an Australian gold and base metals exploration company focusing on richly endowed mining districts in Central Queensland. These include the historic Mount Morgan, Mount Chalmers, and Cracow districts where Lodestone tenements and optioned tenements are being explored with modern

techniques. The Company also holds 100% of the Limestone Creek gold project in an area highly prospective for gold 20
kms west of the historic Maytown goldfield in North Queensland.