RAIDEN RESOURCES LIMITED — Capital/Financing Update 2005

Feb 2, 2005

3 February 2005

Company Announcements Office Australian Stock Exchange Ltd Sydney 2000

Dear Sirs

Status of R&D Start Concessional Loan from Commonwealth

The Company wishes to update the market on recent developments affecting the R&D Start Concessional Loan ("R&D Loan") granted to the Company's wholly owned subsidiary, Heart Monitors Pty Ltd by the former Industry Research and Development Board, an agency of the Commonwealth. Refer page 25, item 15 of the Company's 2004 Annual Report.

The R&D Loan, originally $490,500, was granted to Heart Monitors in 1998/99 for the purposes of development of the MICRO electrocardiogram recorder and associated monitoring service ("Project"). The Project was successfully completed with the MICRO being listed as a finalist in the Australian Design 2000 Awards. Subsequent attempts to develop a profitable business in Australia based on the MICRO were not successful.

However the experience and knowledge gained through the Project was valuable in the development of later electrocardiogram monitoring devices and services for Australian and international markets.

As repayment instalments became payable under the R&D Loan from March 2002 onwards. Heart Monitors wrote to the Commonwealth on a number of occasions requesting deferral of payment and later conversion of the R&D Loan to a grant.

In June 2004 the Commonwealth (AusIndustry) wrote to Heart Monitors seeking repayment of the R&D Loan but also provided information regarding the appropriate mechanism for seeking 'waiver of the debt'. The power to waive such a debt pursuant to the Financial Management & Accountability Act 1997, is vested in the Minister for Finance.

In October 2004 Heart Monitors Pty Ltd formally applied to the Commonwealth for a waiver of the R&D Loan debt (now approximately $540,000 including interest).

Since that time. Heart Monitors has been assisting the Commonwealth in its determination as to whether to waive the debt, by providing extensive background information in relation to the Project, R&D Loan and Heart Monitors.

In the course of discussions with the Commonwealth, regarding the provided background information, the Commonwealth has indicated that, notwithstanding the application for waiver of the debt, it considers the debt to be due and payable in whole.

Based on its discussions with the Commonwealth the Company understands that the application for waiver of the debt is currently being considered and the Company has been advised that the Commonwealth is unlikely to seek recovery of the R&D Loan debt until the request for waiver has been finally determined.

The Company will keep the market informed as to the progress and status of the request for waiver, and believes that Heart Monitors would be able to make arrangements to repay the R&D Loan debt should the waiver application not succeed. The resolution of this matter may take in the order of a further 3 months before a determination is made.

Dr Allan Shell Managing Director

Medical Monitors Limited Suite 407 Office Tower Westfield Eastgardens Eastgardens NSW 2036 Australia Tel 02 9344 8100 Fax 02 9344 8200