kalgoorlie acquisition & joint venture

Kalgoorlie Acquisition & Joint Venture

SYNERGY METALS LTD 2002-11-26 ASX-SIGNAL-G

HOMEX - Perth

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1) KALGOORLIE ACQUISITION AND JOINT VENTURE

Synergy Metals Ltd is pleased to announce that its 100% owned
subsidiary, Synergy Exploration NL, has acquired a 51% interest in
two unique gold projects located at Kalgoorlie, Western Australia.
Shareholder approval will be sought for the transactions, which are
described in further detail below.

Synergy Exploration NL ("Synergy") has entered into a joint venture
agreement with Cossack Resources Pty Ltd ("Cossack") and its nominees
whereby Synergy acquired 51% of the West Kalgoorlie and Seven Mile
Hill projects.

WEST KALGOORLIE

The West Kalgoorlie project comprises 1647 hectares and is located on
the western edge of the City of Kalgoorlie/Boulder in the gold rich
province of the Eastern Goldfields, one of the world's major gold
mining centres. The project consists of 12 tenements numbered from
P26/3151 to 3162 inclusive, and encompasses a number of gold mines
previously worked during the early 1900's. The mining tenure adjoins
the giant North American gold producer Barrick Gold's Super Pit
operations and the highly prospective mining tenements of Australian
producer Croesus Mining NL.

SEVEN MILE HILL

The Seven Mile Hill project is situated on P15/4547, some 14km west
of Kalgoorlie and adjoins Croesus Mining's current mining operations
at Binduli. This tenement has an area of 155 hectares and abuts the
Rand Mining NL and Tribune Resources NL's Seven Mile Hill Joint
Venture which has reported that it has identified 16 targets by
regional aeromagnetic survey flown over this region.

STRATEGIC HOLDING

The West Kalgoorlie and the Seven Mile Hill projects give Synergy a
strategic holding in the centre of the gold rich mineralisation area
in Kalgoorlie, Australia's most outstanding gold mining location and
an area that has provided exploration success for numerous major and
junior mining companies.

ACQUISITION COSTS

Subject to shareholder approval, Synergy will pay the following
acquisition costs to Cossack to acquire the initial 51% interest in
the tenements: a cash payment of $50,000 and the issue of 50 million
options in Synergy Metals Ltd within three months of shareholder
approval; or if the issue of options is not approved by shareholders,
an additional cash payment of $100,000.

FIRST RIGHT OVER REMAINING 49%

The payments described above will also give Synergy the first right
to purchase the remaining 49% of the interests in the mining
tenements. Synergy's first right to purchase the remainder of the
project will be for $1.4m in either cash or shares to be agreed by
Cossack. Included in the agreement, Synergy also has the first right
to purchase Cossack's royalty of $2.50 per tonne of ore mined.

Synergy will be obtaining all historical and closed/open file data
from the Department of Mineral and Petroleum Resources to assess
previous exploration reports and to further enhance new
interpretations for future exploration. Synergy and Cossack will seek
shareholder approval to the transactions, and will comply with all
requirements of ASX, ASIC, and any other relevant regulatory
authority.

2) DALTONS PROJECT

On 29 July 2002, the company announced that it intended acquiring the
Daltons Project, subject to shareholder approval. On 25 October 2002,
the company issued a notice of meeting for a shareholders' meeting to
be held on 27 November 2002, which inter alia, included a resolution
for shareholders to vote on the proposed acquisition of the Daltons
Project.

As a consequence of today's announcement in relation to the West
Kalgoorlie and Seven Mile Hill tenements, the directors have decided
not to proceed with the acquisition of the Daltons Project, and
accordingly have withdrawn that resolution from the shareholders'
meeting to be held on 27 November 2002.

All other resolutions included in the notice of meeting will be voted
on at the shareholders' meeting.