REACH RESOURCES LIMITED — Capital/Financing Update 2004

Jul 21, 2004

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement. application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 177/96. Origin: Appendix 5. Amended 177/98, 179/99, 177/2000, 30/9/2001, 11/3/2002, 171/2003.

Name of entity

CERVANTES SEAFOOD LTD

ABN

79 097 982 235

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbf{I}$ +Class of +securities issued or to be issued

Shares

• $\overline{2}$ Number of +securities issued or to be issued (if known) or maximum number which may be issued
• $\overline{3}$ Principal terms of the +securities (eg, if options, exercise price and date; if partly paid $\exp$ irv *securities, the amount outstanding and due dates for payment; if +convertible securities. the conversion price and dates for conversion)

850,000

Fully paid ordinary shares

+ See chapter 19 for defined terms.

4	Do the + securities rank equally inall respects from the date ofallotment with an existing *classof quoted *securities?If the additional securities do notrank equally, please state:	Yes.
	• the date from which they dothe extent to which theyparticipateforthenextdividend, (in the case of atrust, distribution) or interestpayment• the extent to which they do notrank equally, other than in
	relation to the next dividend,distributioninterestŌΓpayment
5.	Issue price or consideration	Shares issued for free.
6	Purpose of the issue(If issued as consideration for theacquisition of assets,clearlyidentify those assets)	The allotment was made as a means of recognising thelong-standing effort and commitment of the Company'sfishing fleet, going to each of the nineteen (19) fishingboats that have continued to support the Company overan extended period of time.
7.	Dates of entering *securities intouncertificated holdings or despatchof certificates	20 July 2004
8	Number*class-٥falland*securitiesASX.quotedon.(including the securities in clause2 if applicable)	Number	+ Class
		91,230,696	Ordinary fully paid shares
		16,426,458	Options exercisable at 20 centseach on or before 31 August 2005

+ See chapter 19 for defined terms.

9 Number and "class of all "securities not quoted on ASX (including the securities in clause 2 if applicable)

Number	+ Class
30,730,416	Ordinary fully paid shares
24,059,653	Options exercisable at $20$cents each on or before $31$August 2005

$10$ Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

Not applicable.

Part 2 - Bonus issue or pro rata issue

Questions 11 to 33 - Not Applicable

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

Questions 34 to $42$ – Not Applicable

$\overline{\text{+ See chapter 19 for defined terms.}}$

Ouotation agreement

• *Quotation of our additional *securities is in ASX's absolute discretion. ASX may quote $\mathbf{1}$ the *securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
  • ٠ The issue of the 'securities to be quoted complies with the law and is not for an illegal purpose.
  • There is no reason why those *securities should not be granted *quotation.
  • An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that noone has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the *securities to be quoted, it has been provided at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the *securities be quoted.
• $\overline{3}$ We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before "quotation of the "securities" begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: ...................................... Company Secretary

Print name: Anthony Ho

+ See chapter 19 for defined terms.