Mithril Resources Limited

Mithril Resources Ltd (MTH) listed on the Australian Stock Exchange in November 2002 and is committed to creating shareholder value through the discovery and development of nickel–copper sulphide deposits in Australia. The company has 35.2 million shares on issue with approximately 50% of the issued shares held by our three largest shareholders (BHP Billiton Minerals Pty Limited, Minotaur Resources Ltd and Consolidated Minerals Ltd).

Mithril has a valuable strategic alliance with BHP Billiton. Our strategy is to generate new projects in some of the most prospective geological provinces within Australia, advance the highest priority projects to a drilling stage at which time they are offered to our alliance partner, BHP Billiton, as joint venture opportunities.

The alliance allows:

• Mithril access to BHP Billition’s extensive Australian geophysical database to generate new opportunities,
• BHP Billiton the option to joint venture into Mithril’s projects and
• The opportunity for Mithril to be the initial operator of all joint ventures.

As a result of a capital raising in 2004, Mithril activated certain rights which form part of the Alliance Agreement with BHP Billiton. Under the terms activated, BHP Billiton may not fund any third party to generate nickel sulphide exploration projects throughout Australia without the consent of Mithril. The company regards this change as a significant enhancement to the company’s strategy and in combination with our current cash reserves, positions us well for the future.

Mithril has been successful in generating numerous joint ventures with BHP Billiton and one with Falconbridge (Australia) Pty Ltd. We have embarked on an aggressive exploration program on some 25 leases throughout South Australia, Western Australia and the Northern Territory. Mithril has several drilling programs planned for 2004 and early 2005. The company is continually evaluating and generating new projects.

Mithril’s alliance with BHP Billiton in combination with a strong portfolio of quality exploration projects positions the company well for the discovery of a nickel sulphide deposit.

For further information on Mithril Resources, please contact:

Chairman: John Roberts
Managing Director: David Miller
E-mail: admin@mithrilresources.com.au