coming back?

1 for 20 share consolidation.
After consolidation the Entitlement Issue price will be $0.05 (5 cents) per share.
Not much joy for existing shareholders.

Stock Exchange Announcement8 June 2004MARKET UPDATEBrandrill Announces Revised Terms of Entitlement IssueSince the previous announcement on 8 April 2004, Brandrill has made the following progress:1.Reward DeepsOn 17 May 2004 arbitration commenced on the dispute between Brandrill and Thalanga Copper
Mines over losses incurred by Brandrill at the Reward Deeps mine. The dispute has now been
settled with Brandrill receiving $2,000,000 in settlement (excluding GST). The profit impact of
this settlement is offset by the additional write down required on the underground equipment made
surplus.2.Woodie WoodieBrandrill has been awarded two contracts to provide drill and blast services at both the Woodie
Woodie manganese and Coobina chromite projects of Consolidated Minerals. These contracts are
both for two years and have a combined annual value of close to $5.0 million. We are pleased to
extend and expand our association with Consolidated Minerals at these mines.3.Surface ContractingThe surface contracting market remains buoyant with good opportunities for increased work,
especially in the coal sector in Queensland and New South Wales. Brandrill is seeking access to
additional equipment to secure this increased work.4.RockTekThe granting of required Department of Transport approvals in the USA has allowed
recommencement of sales in North America from a cost effective manufacturing arrangement that
has been established in Arkansas.Further successful PCF® trials have been carried out in Scotland and California. Although
generating keen interest, these have not yet led to sales because of the lead times involved in civil
engineering projects. Sales of PCF® in Australia over the last two months have been below
expectations due to a hiatus in major projects. Sales are expected to improve over the next few
months as a number of new projects commence.Brandrill Limited
ASX Announcement 8 June 200425.Capital RaisingThe recapitalisation of the Company announced on 8 April 2004 did not attract sufficient market
support to proceed. Brandrill has again appointed Patersons Securities to lead manage a non-
renounceable Pro Rata Entitlement Issue. It has been necessary to significantly adjust the terms of the
issue. The main features of the revised issue are:Subject to shareholder approval (and an appropriate waiver from the Australian Stock Exchange
Limited), a non-renounceable Pro Rata Entitlement Issue to raise a minimum amount of
$9,500,000 and a target amount of $13,300,000. The minimum raising is to be supported by
subscription agreements for the shortfall under the Pro Rata Entitlement Issue.The issue price will be $0.0025 (0.25 cents) (pre-consolidation).Subject to shareholder approval, there will be a 1 for 20 share consolidation (together with a
consolidation of options and mandatory converting notes on the same terms). After consolidation
the Entitlement Issue price will be $0.05 (5 cents) per share.Supporters of the minimum raising (through subscription agreements for the shortfall up to the
minimum raising amount) will be entitled to subscribe pro rata to their subscription under the
shortfall for up to a maximum aggregate of $2,000,000 of Short Term Redeemable Notes.The Short Term Redeemable Notes will, subject to shareholder approval, convert into shares at
completion of the Entitlement Issue at a price of $0.04 (4 cents) (post consolidation). Each Note
will carry a free 2 year option exercisable at $0.05 (5 cents).The Notes will be secured by a priority charge over the assets of Brandrill's subsidiary,
Rockbreaking Solutions Pty Ltd, which holds the extensive patents and other intellectual property
over the PCF® technology. Once the Short Term Notes are redeemed, that charge will be
released.The above arrangements are significantly different from those upon which the Industrial Development
Corporation of South Africa (IDC) agreed to release its contingent debt. The existing agreement with
IDC is being adapted accordingly. For shareholders, the Entitlement Issue provides the priority right to participate in the recapitalisation
of our Company. For holders of Mandatory Converting Notes, there is provision to also participate in
the Entitlement Issue on the same basis as if the Mandatory Converting Notes had been converted. If
holders of options wish to participate in the Entitlement Issue, they will need to exercise their options
prior to the record date for the Entitlement Issue. Brandrill will advise the market the proposed
timetable shortly, which will be designed to provide holders of options adequate opportunity to
exercise their options should they wish to participate.Patersons has commenced marketing the issue and once sufficient indications of subscriptions for the
shortfall have been obtained to guarantee the success of the raising, a formal Notice of Meeting will be
issued providing full details of the Pro Rata Entitlement Issue, consolidation, Short Term Redeemable
Notes and Options.For further information:Mr Ken Perry, Managing DirectorFor Company profile and information refer to www.brandrill.com