PACIFIC RESOURCES LIMITED — Investor Presentation 2004

Nov 9, 2004

Lodestone Exploration Limited

Exploring the Mount Morgan mineral province with advanced technologies

10 November 2004

Introduction

Mount Morgan Mine

• Mount Morgan was historically Queensland's premier Gold mine, producing 9.5 million ounces of gold
• Traditionally, these types of deposits (VMS-style) occur in clusters

Lodestone Exploration

• Lodestone Exploration Limited (ASX:LOD) IPO in March 2003, raising $2.5 million
• Since listing: $\bullet$
  • Lodestone has been actively exploring for similar deposits in the local Mount Morgan region using advanced technologies under challenging, wide-spread cover rock in the target areas
  • Lodestone has significantly increased exploration permit areas since IPO, now covering $\sim$ 1,700 sq.km in Central Queensland (from 600 sq.km at IPO).
  • Drilling is currently underway at Mount Morgan, with results of program expected in late November 2004

Corporate & Financial Summary

Capital Structure

Market capitalisation:

Tight capital base:

Shares on Issue: Listed Options:

Major Shareholders:

Cash:

very tight... high leverage for a discovery

$3.1 million

40% of shares in escrow

30.9 million shares 6.25 million @ $$0.20$ (expire $7/12/04$ )

Directors - 20%

$724,000 at 30 September 2004

Key Personnel

Board & Management

John Shaw John McCawley Greg Baynton Martin Ackland

Mark Dugmore Leni Stanley

Chairman Executive Director Non-executive Director Non-executive Director

General Manager CFO/Company Secretary

Key Technical Personnel

Dr Douglas Haynes Dr Gary Arnold Trent Pezzot & Syd Visser

Consulting Geologist Consulting Geologist Consulting Geophysicists

Portfolio - Multiple Projects

• Mt Morgan Area
  • VMS/epithermal copper/gold targets:
    • Mount Victoria target (epithermal) •1105' gravity anomaly (VMS) • 'Midas' and 'Morganite' (epithermal)
• ► Quadrio (farm-in)
  • VMS/epithermal copper/gold
• Cracow South Project ← High grade epithermal gold
• Limestone Creek Project Sediment-hosted gold
• Bajool Project Intrusion-related gold (eg Kidston, Mt Leyshon) ITTESTONE

Mt Victoria Prospect

• A preferred target identified by Dr Gary Arnold as a mineralised structure extending from Mt. Morgan mine to Mt Victoria (1.5km from Mount Morgan pit).
• $\bullet$ Newcrest previously intersected 30m averaging 0.26g/t gold (including 6m $\varnothing$ 0.58 g/t gold). Upper intersection of 2m averaging 9.49 g/t gold. No follow-up drilling conducted.

• Strong gold anomalies in rocks, soils & stream sediments surround area.
• Dr Arnold believes that an extensive system could exist under cover rocks, and has recommended a three-hole drilling program to determine the extent of the structure.
• Drilling is currently underway, with results expected to be released in late November 2004.

"1105" Gravity Anomaly Cluster

Inset Image: regional color gravity

• Gravity target(s) identified by Trent Pezzot (SJ Geophysics) following 2004 ground gravity survey over >100 sq.km south of Mt Morgan (inset)
• SJ Geophysics involved in discovery of 'blind' Tambo Grande VMS deposits (refer Appendix)
• ATTESTONE three gravity targets defined at Mount Morgan under flat, shallow (~50m) cover
  • Drilling main target ("1105") during November 2004, with possible follow-up drilling of surrounding targets based on initial success.

Quadrio Gold Project

• Quadrio/Mt Chalmers recommended by Dr Gary Arnold (farm-in opportunity)
• Mt Chalmers was another C.Q. Au-rich VMS orebody 250,000 ounces gold equivalent produced
• Similar VMS orebodies possible nearby
• Past drilling tested only 10% of prospective area
• Main target is 'blind' mineralisation close to prospective stratigraphy AUDESTONE

Cracow South Project

• Cracow opportunity identified by Dr Douglas Haynes - tenements applied for by Lodestone
• Magnetic signature similar to Cracow deposit setting
• 30km south of Cracow Gold Mine (Sedimentary/Newcrest)
• Covered by younger rocks therefore escaping effective previous exploration
• Potential for high-grade gold deposits

targets

III MASTONE

• Cracow Mine
• Detail aeromagnetic survey to be flown in this month to locate drill

Image: Colour TMI wetlook magnetics Lodestone tenements in pink outline Blue/Yellow squares: old gold workings

Limestone Creek Project

• Located NW of Cairns - permitting process well underway
• Sediment-hosted gold target in Chillagoe Formation
• Surface gold grades $<$ 1.3 g/t
• No exploration since mid-1990's
• Gold occurs widely in rock chip samples and stream sediment

■Area is undrilled

ACIDESTONE

LIMESTONE CREEK GEOLOGY

Bajool Project

• Project identified/recommended by Dr Douglas Haynes - area immediately east of Mt Morgan
• Intrusion-related gold targets
  • eg. Kidston, Mt Leyshon
• A number of magnetic targets similar to Kidston/Mt Leyshon with associated gold anomalism
• One area with strongly anomalous Cu & Zn adjacent to covered target
• Targets are under recent shallow alluvium
• Lodestone will seek to JV this project

ATITISTONE

Current Work Plan -12 Months

• Mt Morgan Project

• Currently drilling Mt Victoria Gold Prospect, then "1105" gravity target this month
• Investigate northern targets ("Midas" and "Morganite") located 3 km north of Mount Morgan pit, recommended separately by Haynes, Arnold and Hopwood
• Fly detailed aeromagnetic survey over "Midas" & "Morganite" this month

• Quadrio Joint Venture

• Surface stream, soil & rockchip geochemical sampling for gold Refine 9 drillhole targets for drill testing; 1,200m - early 2005

Cracow South Project

Fly detailed aeromagnetic survey

Detailed aeromagnetic interpretation and target selection

Drill targets - mid-2005

Limestone Creek Project

ASTONE

• Await permit grant expected during 2005
• Surface sampling to define mineralised zones
• Drill best mineralised zones -mid-late 2005

Summary

• Mount Morgan Drilling results expected by end-November
  • Testing main areas of interest:
    • Mount Victoria target
    • lacktriangleright 1105" gravity anomaly cluster
  • November results could generate further Mount Morgan targets
• Aerial magnetic survey (this month) north of Mount Morgan pit • Survey results may reveal further drill targets
• Example 1 Drilling at Quadrio project during early 2005
• Proposed drilling at Cracow South project mid-2005
• $\blacktriangleright$ Awaiting grant of Limestone Creek permit, with drilling to follow during 2005

• Consider farm-out of non-core projects, depending on funding WIDESTONE

Appendices - further background material

Mt Morgan - The Target

".... find another Mount Morgan VMS deposit"

• 9.5 million Oz gold produced
• Average 5 g/t Gold
• 360,000 tonnes Copper
• 1.6 million Oz Silver
• Gross Value
  • $>$ A$6.4billion

World class gold-copper deposit

"Australia's premier VMS deposit"

Depression and a	Au Grade cy't l	Million Oz Au
Kalgoorlie	4.3	54
Telfer	1.3	26
MountMorgan	5.0	9.5
Boddington	4	8.6
St Ives	37

Mt Morgan Project & VMS Deposits

Cross-Section of Historic Mount Morgan Orebody

ALLEDESTONE

Mount Morgan Regional Geology

The Team

Board & Management

John Shaw John McCawley Greg Baynton Martin Ackland

Mark Dugmore Leni Stanley

ASTONE

Chairman Executive Director Non-executive Director Non-executive Director

General Manager CFO/Company Secretary

Technical Personnel

Dr Douglas Haynes Dr Gary Arnold Dr Peter Fox Tim Hopwood Alex Taube Trent Pezzot & Syd Visser

Consulting Geologist Consulting Geologist Consulting Geologist Consulting Geologist Consulting Field Geologist Consulting Geophysicists (SJ Geophysics)

Mt Victoria Prospecti

• Mineralised structure extends from Mt. Morgan mine to Mt Victoria (1.5km)
• Previous Newcrest drilling intersected 30m averaging 0.26g/t gold (including 6m @ 0.58 g/t gold). Upper intersection of 2m averaging 9.49 g/t gold.
• Strong gold anomalies in rocks, soils & stream sediments surround area

Tambo Grande VMS Geophysics

• Precious metal-bearing, volcanogenic massive sulphide (VMS) deposits in the Tambo Grande region of northern Peru rank among the largest of all VMS occurrences in the world. This project is owned by Manhattan Minerals and the Peruvian Government.
• Mineral exploration in the Tambo Grande region is hampered by a lack of outcrop and geophysical techniques have become the dominant exploration tool.
• To date, three sulphide deposits are known and geological and geophysical data imply that additional occurrences remain to be found.
• Gravity surveys have been directly responsible for the latest two massive sulphide discoveries. These recent gravity surveys have been interpreted by SJ Geophysics.