ROX RESOURCES LIMITED — Capital/Financing Update 2004

Apr 22, 2004

ASX RELEASE 23 April 2004

ROX RESOURCES LISTS ON ASX, TO COMMENCE DRILLING

Rox Resources Limited ("Rox") will commence trading at 1.00pm E.S.T. (11.00 am W.S.T.) on Tuesday 27 April 2004.

Rox raised $4.5 million to develop the historic Menzies goldfield, 130km north of Kalgoorlie in WA after the successful conclusion of an over-subscribed Public Offer. The over-subscription was accommodated from the shortfall from the Priority Offer to shareholders of vendor company Deep Yellow Limited

An initial 2,000 metre RC drilling campaign targeted at the priority targets of Selkirk, First Hit, Lady Harriet South and Lady Sherry will commence immediately.

Rox's aim for the next 6 months is to rapidly increase its current resource base of 153,000 ounces gold and to identify mineable ore reserves at Menzies by:

• Drilling for extensions to high-grade resources at Selkirk and First Hit,
• Follow-up drilling of shallow RAB/RC drill intercepts at Lady Harriet South and Lady Sherry,
• RAB drilling of soil anomalies, and $\bullet$
• Evaluate the opportunity to commence mining from known resources next to existing open $\bullet$ pits.

Mr Max Maczurad has joined the Company as Senior Geologist for the Menzies project. Mr Maczurad has over 25 years experience in the exploration and mining industry, with significant exposure to gold and nickel exploration, development and production.

An exploration office at Menzies has also been established with all facilities necessary to support the field activities.

High-grade Resources

Rox has identified high-grade resources that may be developed using underground methods from the bottom of existing open pits at Selkirk of 18,000 tonnes grading 8.95 g/t Au, and at First Hit of 20,000 tonnes grading 10.35 g/t Au (see Figure 1 and Table 1). Further study of these resources show that a small amount of additional drilling is needed for resource definition before mining studies commence

Previous drilling results being followed up include:

Selkirk 1 metre @ 12.2 g/t Au 4 metres $@8.4$ $d/t$ Au 2 metres $@$ 24.1 $a/t$ Au 2 metres @ 33.0 g/t Au 2 metres @ 17.4 a/t Au

First Hit 5 metres @ 44.9 g/t Au 6 metres $@$ 16.3 $q/t$ Au 1 metre @ 16.2 g/t Au 1 metre @ 14.7 g/t Au 8 metres @ 83.2 a/t Au

RAB/RC targets

Ten (10) targets defined by previous RC and RAB drilling have been assessed and prioritized for further drilling (Figure 2). Two of these targets, Lady Harriet South (target R11) and Lady Sherry (targets R1 and R2) will be assessed in the initial drilling program. Previous drilling results include:

Lady Harriet South	Lady Sherry
6 metres $@$ 7.6 g/t Au	2 metres $@$ 16.0 g/t Au
7 metres @ 9.7 g/t Au	2 metres @ 10.5 g/t Au
2 metres @ 20.1 g/t Au	5 metres $@6.4$ g/t Au

The mineralisation south of the Lady Harriet pit is particularly attractive, with wide zones of potentially open pit material already identified by previous drilling. It is anticipated that this mineralisation, together with identified resources lying below the current Lady Harriet pit could be developed in a relatively short time frame. Resources at Lady Harriet have been estimated to be 89.400 tonnes grading 1.79 g/t Au (Table 1), however there are high-grade zones (such as those listed above) within this resource which will be targeted by the planned drilling.

Lady Sherry is an area of old workings situated between the existing First Hit and Selkirk pits. Resources at Lady Sherry have been estimated as 30,800 tonnes grading 1.89 g/t Au (Table 1), although the high-grade zone (defined by drill intercepts such as those above) presents an attractive drilling and development target.

RAB Drilling of Soil Anomalies

A number of soil anomalies (Figure 3) that lie along mineralised structures will be investigated by RAB drilling. The company is currently assessing these anomalies and planning the drilling which will take place within the next 3 months. In addition the company will be assessing the current RAB drilling coverage with a view to extending it over areas considered prospective for gold mineralisation.

Scoping Study

Rox has inherited a large database, compiled by several companies that have operated in the area over the last 15 years. Database consultants, IO Digital are validating and verifying the data. Once this is complete, Rox will assess the economics of the current resources. This will involve evaluation of pit cutback alternatives and/or underground exploitation. This initial work is anticipated to take about 3 months to complete. If results are positive it is likely the company will commence feasibility studies on proposed operations.

For more information: lan Mulholland Managing Director Rox Resources Ground Floor, 1 Havelock Street West Perth WA 6005 Tel: 08-9481-6888

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., and Mr Malcolm Castle B.Sc (Hons), M.Aus.I.M.M., who are Competent Persons (as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves) with relevant experience in relation to such mineralisation. Mr Castle and Mr Mulholland have given permission for the information to be included in this statement. Mr Mulholland is a full time employee of the Company.

Prospect	Measured		Indicated		Inferred		Total
	Tonnes	Grade	Tonnes	Grade	Tonnes	Grade	Tonnes	Grade	Ounces
First Hit	4,500	13.20	7,500	10.50	8,000	8.60	20,000	10.35	6,654
QueenslandMenzies	18,400	2.50	8,100	2.21	25,000	2.20	51,500	2.31	3,823
Golden Age	24,500	2.10	9,474	1.65	4,000	1.20	37,974	1.89	2,311
Selkirk			8,066	12.12	10,000	6.40	18,066	8.95	5,201
Lady Sherry	11,800	1.70	13,011	2.29	6,000	1.40	30,811	1.89	1,873
Unknown	22,000	2.30	5,654	2.78	3,500	1.90	31,154	2.34	2,346
Lady Shenton			400,000	3.11	40,000	2.50	440,000	3.05	43,211
Lady Harriet			89,471	1.79			89,471	1.79	5,149
South Dump	12,000	2.70	7,500	2.92	2,000	2.30	21,500	2.74	1,894
Yunndaga			150,000	2.50	680,000	2.40	830,000	2.42	64,527
Aspacia			7,000	3.40	12,000	3.20	19,000	3.27	2,000
Warrior			50,150	1.84			50,150	1.84	2,967
Total	93,200	2.79	755,926	2.87	790,500	2.51	1,639,626	2.69	141,953
Lady Irene	5,027	3.21	54,362	3.29	35,044	4.74	94,433	3.82	11,610
Grand Total	98,227	2.81	810,288	2.90	825,544	2.60	1,734,059	2.75	153,563

Table 1: Menzies Resources

Note: The accuracy of the tonnage, grade and ounces calculations are as reported in various source

Figure 1: Menzies Project Deposit Locations

Figure 2: Menzies Project RAB/RC Target Locations

Figure 3: Menzies Project Soil Anomaly Locations