REACH RESOURCES LIMITED — Capital/Financing Update 2003

Nov 10, 2003

ACQUISITION OF INF

ANNOUNCEMENT

11 NOVEMBER 2003

We are pleased to advise that, pursuant to shareholder approval granted on 16 October 2003, the Company has allotted to INF Pty Ltd 57,527,778 fully paid ordinary shares in consideration for the acquisition of the business and assets of INF as previously advised to ASX.

Attached is a Proforma Statement of Financial Position of the merged entities.

AUTHORISED BY:

Chen Hao Director

CERVANTES SEAFOOD LIMITED PROFORMA POST MERGER CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 17 OCTOBER 2003

Current Assets
Cash	609.216
ReceivablesInventories	856.1871,220,971
Prepayments	281,073
Total Current Assets	2,967,447
Non-Current AssetsLand at Valuation	1,412,185
Buildings at Valuation	385,395
Less
Accumulated Depreciation	(33, 810)
	1,763,770
Plant & Equipment
A† cost	5,455,400
At valuationAccumulated appreciation	923,932(3,849,158)
	2,530,174
Total Property, Plant & Equipment	4,293,944
Other Non-Current AssetsIntangibles - Goodwill	1,080,993
Less
Accumulated Amortisation	(83, 803)997.190
Processing Licence	500,000
Pot Licenses	300.000
Investments	3,396
	803,396
Total Non-Current Assets
	6,094,530
Total Assets	9,061,977
Current Liabilities
Trade Creditors	336.725
Other creditors	410.813
Provision for employee entitlements	25,686
Total Current Liabilities	773,224
Non-Current Liabilities
Borrowings - secured	920,595
Total Non-Current Liabilities	920,595
Total Liabilities	1,693,819
Net Assets	7,368,158
Shareholders Equity
Contributed Equity	10.633.868
Asset Revaluation reserveAccumulated losses	923.932(4,189,642)

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