Letter to Shareholders from Brian PhillipsMANAGING DIRECTOR, MPI...

Letter to Shareholders from Brian Phillips
MANAGING DIRECTOR, MPI MINES LIMITED
Dear fellow shareholder,
I am pleased to provide you with a brief review of MPI Mines in connection with the Share
Purchase Plan.
In January 2003, your Company listed on ASX with an 80% interest in the Black Swan and
Honeymoon Well nickel projects in Western Australia, a 50% joint venture interest in the
Stawell Gold Mine and exploration areas, and a 25% interest in the Coolgardie project.
Since then we have completed 12 months of consolidation and the Company is poised for
growth in each of our gold and nickel businesses in 2004 and beyond. Funds raised in the
Share Purchase Plan will help fund the early stages of this growth.
At Black Swan, our high grade underground Silver Swan Mine has produced at above budget
rate, and we expect to maintain production levels in 2004. We have identified prospective
exploration targets to the north and south of the main mineralised zone which will be
drilled along with down dip extensions this year.
In December 2003, we committed to increasing nickel in concentrate production by the
development of Black Swan Disseminated open cut mine.
We are making a significant commitment to exploration and pre-feasibility work at
Honeymoon Well. I believe that Honeymoon Well has the potential to be a major
contributor to our medium and long-term growth.
In our gold business, we reached agreement in December 2003 to acquire the joint venture
interests of our partner, Pittston. Subject to approval of our shareholders and the adoption
of some debt and gold hedge positions, MPI will own 100% of Stawell Gold Mine and the
highly prospective Stawell Corridor. We will also move to a 50% equity position in the
Coolgardie joint venture. We will now work to determine the expansion opportunities at
Stawell Gold Mine’s Golden Gift zone and to follow up the encouraging drilling results
from Kewell and Wildwood in the Stawell Corridor.
Funds raised through the Share Purchase Plan will be used for:
– Acquiring Pittston’s gold assets
– Continuing exploration at Stawell, Stawell Corridor, and Coolgardie
– Advancing project feasibility studies
– General working capital
Both nickel and gold markets have been buoyant and have contributed to your Company’s
growth. I hope that we continue to enjoy this growth in the year ahead.
Further information on these projects follows. Thank you for your ongoing support.
Brian Phillips Managing Director