PACIFIC RESOURCES LIMITED — Share Issue/Capital Change 2004

Dec 8, 2004

9 December 2004

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

Dear Sir,

OPTIONS EXPIRING 7 DECEMBER 2004 (LODO)- SHORTFALL NOTIFICATIONS

Lodestone Exploration Limited (LOD) wishes to advise that a total of 51,250 options exercisable at 20 cents prior to 7 December 2004 were duly exercised before the expiry date by the option holders and fully paid ordinary shares in respect of these were allotted on 8 December 2004.

A total of 6,193,750 options exercisable at 20 cents were not exercised by the due date of 7 December 2004 and have now lapsed.

Yours sincerely

hene Stanley

L P Stanley Company secretary