REACH RESOURCES LIMITED — Capital/Financing Update 2003

Feb 13, 2003

13/02 2003 THU 17:47 FAX 93821322 Anthony Ho & Associates $\rightarrow \rightarrow$ ASX Company Ann Offic $\Box$ 001/002

scafood limited ABN 79 097 982 235

ASX CODE: CVS

FACSIMILE

Attention:	ASX Company Announcements Office Date: 13 February, 2003
From:	Anthony Ho	Receiving Fax Number: 1300 300 021
Subject:	Announcement	Pages (including Cover Sheet): 2

Please telephone (08) 9382 1311 if there are any problems with this transmission

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Dear Sir/Madam

Please find attached an update on the activities of the Company.

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Yours sincerely,

Chen Hao Managing Director

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ACN 091 214 998

219-221 York Street SUBIACO WA 6008

Telephone: +61893821311 Facsimile: +61 8 9382 1322

ANNOUNCEMENT TO THE MARKET

ACTIVITIES UPDATE

The Company is pleased to present the following activities update:

2002/03 Lobster Season

The 2002/03 lobster season has been commenced with a predicted industry catch of 11500 tonnes. In the early stage of the season, beach prices have ranged from A$30 to A$36. The China and Japanese market has showed some sign of improvement despite a slow start to the season. The global uncertainty emanating from the Middle East has understandably had a dampening effect on lobster sales.

The funds of the Company have been significantly applied during the quarter ended 31 December 2002 to the purchase of fish baits and the payment of pot leases in preparation for the commencement of the season. This seasonal and non-recurring cash outflow has substantially been satisfied by 31 January 2003.

The seasonal payments include pot leases paid up front prior to the start of the season and are recoverable from fishermen. Another seasonal payment incurred in the quarter is in respect of bait for the 2002/03 scason which is also substantially recovered from the fishermen during the course of the season.

Other Sales Activities

The Company has also sucessfully completed the sale of 125 tonnes of Ribbon Fish sourced from India and sold to the Chinese market. The Company also expects to continue to build on this revenue activity in the coming months, expecting to have sales of 750 tonnes of this fish representing a revenue of approximately US$700,000.

Corporate

The Company is currently negotiating to complete a banking facility to provide for expansion of its trading activities. Further update on this is expected during the current quarter.

Authorised by:

Chen Hao Managing Director

13 February 2003