herald resources rising on balfour project announc

virtually no sellers.

Balfour Project Tasmania

HERALD RESOURCES LIMITED 2003-05-15 ASX-SIGNAL-G

HOMEX - Perth

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Herald Resources is pleased to announce that it has entered into an
agreement giving it exclusive rights to negotiate, for a period of
six months, an option to purchase 95% equity in mining tenement EL
4/2002, situated in the Balfour region in NW Tasmania. The cost of
this agreement was $10,000 and was signed with the owner of the
tenement, New Challenge Resources Pty Ltd ("NCR"). The basic terms of
the option to purchase have been agreed and will be announced when
and if signed.

During the intervening period Herald shall have access to a large
database of information compiled by NCR. EL 4/2002 is a 110sqkm
tenement which covers approximately 17kms of the 35kms strike of the
Balfour copper belt.

New discovery potential has been enhanced by a recent electromagnetic
(EM) survey flown in early 2002 by the Tasmanian Government. This
survey has defined specific drill target conductors. The principal
conductors are located adjacent to where the best known
mineralisation occurs.

Conceptually, the Proterozoic geology in the Balfour area is
prospective for major sediment hosted copper and zinc deposits. The
district is one of the most mineralised in Tasmania, with copper,
zinc, lead and tin-tungsten occurrences and anomalies existing.

The district falls within one of Tasmanian Government's Strategic
Prospectivity Zones, which are backed by legislation that provides
strong guarantees to mineral explorers.


M P Wright
EXECUTIVE DIRECTOR