riddle me this

Question: When is a fully debt funded project not a fully debt funded project?
Answer: When the project is run by Sally Malay and they do a placement equal to approx. 30% of the listed capital AFTER earlier saying the project was fully funded. Go figure.

SALLY MALAY MINING LIMITED 2003-06-27 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
SALLY MALAY MAKES PLACEMENT TO RAISE $5.85 MILLION

* Local and offshore institutional investors agree to subscribe for
20.185 million shares at 29 cents per share.

EQUITY RAISING

Sally Malay Mining Limited (ASX: SMY) is pleased to advise that local
and overseas based institutional investors have agreed to subscribe
for 20,185,000 fully paid ordinary shares at an issue price of 29
cents per share to raise $5.85 million. The funds to be raised from
this placement represent equity required by the project financiers as
a condition precedent to the drawdown of the Sally Malay Project
Senior Financing Facility.

This placement will be conditional upon shareholder approval at an
extraordinary general meeting to be held as soon as practicable. This
placement is made in accordance with Section 708 of the Corporations
Act and the Company advises that no shares in this placement were
placed with any directors or their associates.

COMMENTARY

This placement to Australian and North American based institutional
investors is a significant milestone for the Company and the Sally
Malay Project. It is the first time institutional investors have
taken shares in the Company and confirms confidence in the Sally
Malay Nickel Project to deliver strong cash flows following scheduled
start up in early 2004. This is at a time when nickel prices are
expected to be strong based on a forecast supply deficit in the
global nickel market.

PROJECT FINANCING

The Senior Project Financing Facility documentation has been
finalised and it is anticipated that the execution of the
documentation will take place next week.

PROJECT DEVELOPMENT

The Sally Malay Project development timetable is on track with site
works scheduled to commence during July 2003. The 42 person
construction camp is on site and operational in preparation for
mobilisation of earthworks contractors.

P Harold
MANAGING DIRECTOR