mail to management

Dear Mr. Lockyer,

today Perilya hit a new 21 month low. A strong downtrend
is established and Perilya's share price will continue to
fall. If you take the Zinc price into account the desaster
is complete and reflects the evidence of incapacity of
the Perilya management. Around Sept. 8th 2003 the
price of Zinc stood at .37US/lb today around .57US/lb.

The decline in share price forshaddows another disappointing
quarter and as usual funds and individuals provided with
insider information fuel the selling in anticipation of a
newly operational desaster at Broken Hill mine.

Management has risen expectations but havn't delivered yet.
This fuels disappointment that is reflected in the share price.

Perilya lacks of the ability to give a realistic guidance and
management obviously think that it is better to talk about
record results in the near future than telling the truth to
the shareholders.

If you don't believe me about the frontrunning just look
at the statictics that tell the whole of the story.

From March 25th - April 5th 2004 we saw an ATH in shareprice
around 1.39 $. Starting at the 8th April we saw heavy
selling with average volume of 1.3 mio. shares daily
till the 20th April, the day where the desastrous Q1 2004
report was released after close. The heavy selling
drove the shareprice down from 1.30 $ to 1.02 $.
This can only be related to selling based on insider
information. I don't suspect you or your colleagues here
but probably some fund managers get information somewhere
and small investors like me were really annoyed about this
indiscretion.

You will have to answer the question when Perilya will close
Broken Hill a mine that will probably never will yield positive
results. Shareholders are sick of your wrong projections
and the perpetual failure in terms of the set targets.

I hope the management will bear the consequences and will
step down before destroying even more shareholder value.

Regards

Lenni from Berlin