REACH RESOURCES LIMITED — Share Issue/Capital Change 2004

Mar 21, 2004

22 March 2004

Company Announcements Office Australian Stock Exchange PO Box H224 Australia Square Sydney NSW 2000

ISSUE OF SHARES TO FISHING BOATS

The Board of Cervantes Seafood Limited is very much aware that the fishing fleet is the foundation upon which the Company's operations are built. With that in mind, the Board wishes to announce the issue of fifty thousand (50,000) fully paid ordinary shares to each of the nineteen (19) fishing boats that have continued to support the Company over an extended period of time. The result will be a total allotment of nine hundred and fifty thousand (950,000) shares.

The Board agreed upon the allotment as a means of recognising the long-standing effort and commitment of its fishing fleet, and its contribution to the significant gains the Company has achieved throughout the current season.

The share issue will be made pursuant to the provisions of section 708 of the Corporations Act 2001 and under the Australian Securities and Investment Commission Class Order 02/1180. The shares will rank pari passu with all other existing ordinary shares of the Company. No funds will be raised by the issue.

Authorised by:

Barry MacKinnon Chairman