ROX RESOURCES LIMITED — Capital/Financing Update 2004

Aug 18, 2004

ASX RELEASE 19 August 2004

Menzies Shows True Colours in Spectacular Style

HIGHLIGHTS

Two potential discoveries in shallow RAB drilling

• Bonnie Jean, 13 metres @ 9.9 g/t Au

• Ballarat Menzies, 1 metres @ 7.8 g/t Au

• Further high-grade intercepts at Wedderburn (First Hit South)

• 5 metres @ 12.8 g/t Au

Another four areas of significant gold anomalism encountered

RAB DRILLING PROGRAMME

Rox Resources Limited (ASX code RXL, "Rox") recently completed a 6,700 metre RAB drilling program at its Menzies Project 130 km north of Kalgoorlie. The reconnaissance drilling was designed to test a number of soil anomalies highlighted in the recent Prospectus. and accordingly was shallow and wide spaced.

RESULTS

Results were excellent and exceeded the Company's expectations by returning:

• Significant high-grade intercepts in two new areas;
• Confirmation of mineralisation at Wedderburn (First Hit South) discovered in the ø Company's May RC drilling; and
• Significant gold anomalous mineralisation in four other areas.

Potential Discoveries

The potential for two new discoveries is highlighted by the high-grade RAB drill intercepts testing soil anomalies S7 (200 metres south of Bonnie Jean workings) and S8 (Ballarat Menzies workings). Neither area had been previously drilled.

Bonnie Jean	S7RB0052	13 metres @ 9.90 g/t Au from 20 metres (to EOH)
Ballarat Menzies	S8RB0004	10 metres $@$ 1.24 $g/t$ Au from 15 metres
	and	1 metre $\omega$ 7.84 g/t Au from 30 metres (to EOH)

Both holes ended in mineralisation and the intercept at Ballarat Menzies was supported by adjacent holes, along strike respectively 210 metres north, 140 metres north, and 50 metres south.

S8RB0001	5 metres @ 1.09 g/t Au from 10 metres
S8RB0002	5 metres @ 2.31 g/t Au from 15 metres
S8RB0005	5 metres @ 1.43 g/t Au from 10 metres

Wedderburn Confirmation

To the south of the First Hit Open Pit Mine follow up RAB drilling to the previously announced intercept of 2 metres @ 10.8 a/t Au in hole FHRC0001 encountered more high-grade mineralisation. This area is coincident with RAB target R4 and is now called the Wedderburn Lode.

Wedderburn	FHRB0006	5 metres $@$ 12.8 g/t Au from 25 metres
	FHRB0007	5 metres @ 2.49 g/t Au from 25 metres
	FHRB0008	10 metres @ 1.46 g/t Au from 40 metres

Four Areas of Gold Anomalism

The RAB drilling also identified anomalous mineralisation at soil anomalies S1 (Aspacia), S2 (Menzies Ltd), S4 (no old workings) and S7 (Three Sisters and Two Walters prospects). These areas warrant further follow up. Full results above a 0.5 g/t Au cut-off are shown in the attached table

SIGNIFICANCE

The high grade hits encountered in this RAB drilling, and to a lesser extent in the previous RC drilling, are particularly significant as the high-grade ore bodies exploited at Menzies in the past, e.g. Lady Shenton (185,000 t @ 32 g/t Au) and First Hit (165,000 t @ 32 g/t Au), which contained up to 200,000 ounces of gold each, are small in strike extent and show a relatively small surface footprint and therefore can be missed by wide spaced drilling. The RAB program was wide spaced (minimum spacing 100 metres) and shallow, which augurs well for future exploration and development of these new drill intercepts into high grade shoots as seen in the past. In addition a number of RAB and soil anomalies still remain to be tested.

WAY FORWARD

The Company is focussing on rapidly increasing its gold resources at Menzies, which currently stand at 153,000 ounces (refer ASX announcement 5 July 2004).

It will achieve this by:

• 1. Further investigation of the current high-grade RAB drilling intersections,
• 1. Drilling to test high-grade targets beneath the First Hit, Lady Shenton and Yunndaga pits.
• 1. Investigations of possible strike extensions to current resources, and
• 1. Resource modelling and pit optimisation work to evaluate remaining ore reserves at the existing mines.

The company is moving quickly to achieve this aim and will shortly commence a 4,000 metre RC drilling program to follow up on these new discoveries. The drilling will test along strike and down dip of the new discoveries and provide proper definition for resource estimation.

Rox Managing Director, Ian Mulholland, said "We are now showing our true colours as a successful explorer. We are doing what we said we would do in our Prospectus, and that is finding gold. The two drilling campaigns now completed by the Company demonstrate this. and are reinforced by the very pleasing results released today".

ABOUT ROX

Rox was listed on the ASX on 27 April 2004, after raising $4.5M in its IPO. Rox is a Perthbased gold exploration company focussed on the historic Menzies Goldfield 130 km north of Kalgoorlie in Western Australia. Menzies is a million ounce goldfield with past production from underground mining more than 650,000 ounces of gold at a grade of 22.5 g/t Au and recent production from open pit mining over 140,000 ounces at 2.6 g/t Au. Current resources total 153,000 ounces grading 2.75 g/t Au.

$- FMD -$

FOR FURTHER INFORMATION CONTACT:

Ian Mulholland, Managing Director Tel: (08) 9486 4537

The information on mineralisation contained in this statement accurately reflects information compiled by Mr Ian Mulholland B.Sc (Hons), M.Sc., F.Aus.I.M.M., F.A.I.G., who is a Competent Person (as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves) with relevant experience in relation to such mineralisation. Mr Mulholland has given permission for the information to be included in this statement, and is a full time employee of the Company.

Location of New Discoveries at Menzies

Hole ID	Northing	Easting	HoleDepth (m) From (m)		To $(m)$	Intercept(m)	Grade g/tAu	Prospect
S1RB0003	6713930	307640	48	40	45	5	1.11	Aspacia
S1RB0008	6713855	307545	49	45	49 (EOH)	4	1.00	Aspacia
S2RB0009	6712760	308435	79	35	40	5	0.72	Menzies Ltd
S2RB0010	6712745	304415	50	35	40	5	0.66	Menzies Ltd
S4RB0006	6710770	308950	89	35	40	5	0.81
				40	45	5	1.35
				45	50	5	0.76
S4RB0008	6710830	309030	61	30	35	5	0.51
S5RB0012	6710905	309925	73	30	35	5	0.68
S5RB0014	6710825	309360	74	45	50	5	0.88
S6RB0008	6710365	309240	46	30	35	5	0.56
S7RB0006	6710970	310535	30	5	10	5	0.79	Three Sisters
S7RB0008	6710805	310325	34	25	30	5	0.47	Three Sisters
				30	34	4	1.33
S7RB0009	6710765	310270	32	0	5	5	0.79	Three Sisters
S7RB0010	6710895	310610	23	5	10	5	0.40	Three Sisters
				10	15	5	1.76
S7RB0029	6710235	310560	42	35	40	5	0.97	Two Walters
S7RB0034	6710090	310540	26	20	25	5	0.95	Two Walters
S7RB0052	6709310	311145	33	15	20	5	0.60	Bonnie Jean
				20	25	5	18.30
				25	30	5	6.61
				30	33 (EOH)	3	1.28
S8RB0001	6710020	311010	29	10	15	5	1.09	Ballarat Menzies
S8RB0002	6709955	311040	26	15	20	5	2.31	Ballarat Menzies
S8RB0004	6709835	311105	31	15	20	5	1.49	Ballarat Menzies
				20	25	5	0.98
				30	31 (EOH)	1	7.84
S8RB0005	6709800	311135	47	10	15	5	1.43	Ballarat Menzies
				20	25	5	0.64
				35	40	5	0.92
S8RB0006	6709780	311115	61	40	45	5	0.84	Ballarat Menzies
FHRB0002	6713610	308655	59	40	45	5	0.65	Wedderburn
FHRB0004	6713590	308625	70	40	45	5	0.55	Wedderburn
				45	50	5	0.76
FHRB0006	6713645	308630	58	25	30	5	12.81	Wedderburn
				30	35	5	0.88
				35	40	5	0.67
FHRB0007	6713633	308615	64	25	30	5	2.49	Wedderburn
				35	40	5	0.95
				40	45	5	0.63
FHRB0008	6713620	308600	60	35	40	5	0.72	Wedderburn
				40	45	5	1.38
				45	50	5	1.53

Menzies RAB drilling program - July-August 2004

All holes drilled at -60 degrees towards 053 magnetic azimuth, 5m composite spear sampling, AAS gold assay, 0.5 g/t Au lower cut-off, GDA94 Grid Datum.