Being Caned !, page-2

SONS OF GWALIA LIMITED 2002-10-18 ASX-SIGNAL-G

HOMEX - Perth

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Sons of Gwalia Ltd (the Company) wishes to advise that it will lodge
its Quarterly Report for the period ended 30 September 2002 on
Tuesday 22 October 2002.

Previous to that filing, the Company wishes to advise that:

i. It is unlikely to meet analysts' and broker profit expectations
for the first half andfull year ended 30 June 2003.

ii. Second half profits will exceed the first due to both increased
gold production and tantalum sales.

iii. As previously reported in the June 2002 Quarterly Report, the
Company has experienced geotechnical problems at its Tarmoola Gold
Mine near Leonora. These problems have continued during the September
quarter and will negatively impact on gold production, profitability
and cashflow. The Company is currently reviewing the Tarmoola
operations and the current stripping and development programmes.

iv. Global economic conditions have resulted in a significant fall
in demand for tantalum and other products used in the electronic and
telecommunications industries. This, in turn, has let to reduced
demand for the Company's tantalum products. As a result of this,
projected tantalum sales for the year ended June 2003 have been
reduced by approximately 300,000 lbs to approximately two million
pounds.

Although the status and pricing of the base contracts have not
changed, some higher priced contracts entered into in November 2000
have been reduced and, consequently will reduce both the net cashflow
and profitability of the division.

Both the Greenbushes and Wodgina mines are currently operating at
high performance levels and productivity. It is likely that
production will be reduced at one or both of the mines to avoid
directing cashflow into excess stocks and inventory.

Further details in respect of the above will be set out in the
Company's Quarterly Report for the period ended 30 September 2002.

P Lalor
EXECUTIVE CHAIRMAN