PRL GLOBAL LTD — Capital/Financing Update 2005

Aug 21, 2005

Level 3, 89 St Georges Terrace, Perth Western Australia 6000

CI RESOURCES LIMITED

Postal: GPO Box 2504 Perth WA 6001

Phone: (618) 9485 0433 Fax: (618) 9485 0455

22 August 2005

The Manager Australian Stock Exchange Limited Level 4 20 Bridge Street Sydney, NSW 2000

Dear Sir

INVESTMENT IN CHINESE FERTILIZER PLANT

Further to the announcement made by the company on 16 August 2005, the Board of CI Resources Limited (CII) would like to advise that XiFeng International Pte Ltd (XiFeng), the company in which CH will acquire a $51%$ interest has signed the Joint Venture Agreement (JV) with Guizhou Tianfeng Chemical Company Limited (GTCC) a Chinese State Owned Enterprise.

Xiffeng has acquired 32% of the JV, with 52% acquired by GTCC and the remaining 16% being taken up by an independent party.

GTCC has been operating for approximately 40 years with well established domestic sales markets. In addition, GTCC has existing contracts with suppliers of its major raw material inputs and has direct ownership in some of the key raw materials required to manufacture its products. All current sales and purchase contracts pertaining to the MAP and NPK products have been transferred to the new JV.

GTCC is the third largest fertiliser company in Guizhou. GTCC will contribute the plant which manufactures approximately 100,000 tonnes of MAP (Mono Ammonia Phosphate) and 100,000 tonnes of NPK fertilizer, for its 52% interest in the new JV. This plant has been valued at RMB60 million (approximately $AUD9.6 million). The plant being transferred into the JV is approximately 5 years old.

The following summarises the final investment structure:

The JV will be under the general management of Dr Louis Huan Liu. Over the past eight years, Dr Louis has previously held positions as Managing Director of Guizhou Wide-Phos Chemical Ltd in China, Guizhou Wide-Phos United Fertilizer Ltd (China), a director of Guizhou Rich-Phos Chemicals Ltd in China, and Vice Chairman of Guizhou Jiafeng Organic Fertilizer Ltd.

Dr Loius has also consulted to the New Zealand Diary Group in establishing a Joint Venture in North China, along with two other consulting engagements on Chinese joint venture projects.

Dr Loius has acquired the remaining 49% interest in XiFeng.

As previously advised, the acquisition is in line with the Boards policy of identifying investments in related and complementary industries which have synergy with its current investments, in particular Phosphate Resources Limited. The directors believe this investment into China will be the initial catalyst that will strategically position the company to pursue other ventures including the potential acquisition of further phosphate resources.

CII's investment in Xifeng does not impact on the current merger process with Phosphate Resources Limited (PRL). The Scheme Booklet has been distributed to PRL Shareholders who will also be updated in respect to the recent acquisition. The Scheme meetings are set to take place on 10 September 2005, with the final court hearing to take place shortly there after. The Board of CII believes that the current acquisition demonstrates the added benefits that PRL shareholders can enjoy should they vote in favour of the merger.

For further information regarding this announcement, please contact Mr Peter Torre.

Yours Sincerely

Peter Torre Company Secretary