straits purchases mim's exploration portfolio in a

2 September 2003

Straits Purchases Xstrata's (formerly MIM's) Exploration Portfolio in Australia

Perth, Australia: Straits Resources Limited, (`Straits', ASX: SRL) is pleased to
announce that its wholly owned subsidiary, Straits Exploration (Australia) Pty
Ltd,has today entered into an agreement with Mount Isa Mines (MIM) Limited and related companies (now owned by Xstrata) to purchase the former MIM's
exploration portfolio in Australia which includes the exploration technical
database.

Commenting on the purchase, Straits CEO Mr. Milan Jerkovic said, "Straits will
acquire a highly prospective ground package with the potential for the rapid
definition of economic ore bodies. Our primary focus will be on a number of
advanced, high-grade gold and base metal targets in Western Australia,
Queensland and South Australia."

"We believe this transaction is highly beneficial to Straits and its shareholders,
providing the company with a low cost entry to an extensive gold and copper-
gold exploration portfolio in Australia."

The portfolio (see attached map) includes six 100% held project areas in
Queensland, South Australia and New South Wales, and features high-grade
gold and copper-gold targets.

In addition, Straits has agreed to acquire interests in eleven `farm in' and `farm
out' properties subject to any applicable pre-emptive rights that are held by the
joint venture parties. The joint venture agreements within the portfolio feature
gold and copper-gold projects in the Murchison and Pilbara regions of WA as
well as Queensland and South Australia.

The Australian exploration database and technical information for all current
and historical data are also included with the purchase.

Excluded from the portfolio are coal tenements and the NW Queensland and
Northern Territory data associated with Xstrata's existing operations.
Straits Resources Limited ABN 2205 66 01 417 1st Floor 35 Ventnor Avenue West Perth WA 6005 PO Box 1641 West Perth WA 6872 Australia Telephone (61 8) 9480 0500 Facsimile (61 8) 9480 0520 www.straits.com.au MEDIA RELEASE MEDIA RELEASE MEDIA
The complete package was acquired for a cash only payment with the final
price dependent on any pre-emptive rights being exercised within the joint
venture agreements.

The accompanying technical database, built up over several years, is
considered to be of great significance to Straits for the generation of high
quality exploration and development targets


Straits' Development Strategy

Straits is an Australian-listed company focused on acquiring and developing
assets within the gold, copper and bulk commodity sectors. Based in Perth,
the company has an impressive management team with an outstanding track
record of advancing resource projects through to full-production. Straits owns
(80% stake and operator) the 2 million tonnes per annum Sebuku Coal Mine in
Indonesia, and holds a portfolio of highly prospective tenements throughout
Australia and Indonesia.