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ANACONDA NICKEL LIMITED ASX CODE: ANL
12 November 2003

MURRIN MURRIN - THIRD PARTY ORE SUPPLY
DISCUSSIONS

Anaconda Nickel advises that it has held preliminary discussions with a number of companies holding nickel laterite resources, and that these discussions have led to speculation that some of these companies may be close to entering commercial agreements with Anaconda to supply ore to the Murrin Murrin nickel cobalt operation.

In the discussions Anaconda has advised that it will only contemplate entering into an agreement to take ore from third parties where the third party has fully defined its resources to a Measured status (as defined under the JORC code), where the ore meets the particular feed characteristics of the Murrin Murrin plant and, most importantly, where there is a clear net economic benefit to Anaconda and its shareholders.
Inferred or indicated resources are not considered a suitable basis for commercial negotiations.

As previously announced Murrin Murrin’s current ore reserves are 145 million tonnes @ 1.07% nickel and 0.085% cobalt, and total resources are 327 million tonnes @ 0.99% nickel and 0.063% cobalt. This represents sufficient mining ore reserves for more than 30 years of operations, and there is no requirement for the Company to purchase any additional ore from third parties unless there is compelling value for Anaconda shareholders.

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