yet another new zone of gold

Drilling discovers new zone of gold mineralisation at the Long Chieng Track Deposit, Laos

Pan Australian is pleased to announce that exploration drilling at the Long Chieng Track deposit (Figure 1) has identified a shallow and thick zone of gold mineralization capable of hosting a significant mineral resource. Best results include:

�� 48m at 1.0 g/t from a depth of 16m including 6m at 2.7 g/t in LRC14; and

�� 36m at 2.2 g/t from a depth of 30m including 8m at 5.7 g/t in LRC19.

The program of 10 reverse circulation drill holes (Figure 2 – LRC13 to 22) was designed to test a 200m wide zone of quartz stockwork over a strike length of 500m with the potential to extend a limited block of mineralization that had been previously discovered by the Normandy-Anglo joint venture.

Results from six of the first seven holes that have been received (LRC13 to LRC19
inclusive) confirm the success of the program and are tabulated below. Results for the remaining three holes (LRC20 to LRC22 inclusive) are pending.
Hole No. Down-hole
interval (metres)
Width
(metres)
Gold
Grade (g/t)
Peak gold intervals (g/t)
LRC13 0-10 10 0.9 2m at 2.4 g/t from a depth of 4m
LRC14 16-64
76-88
48
12
1.0
1.7
6m at 2.7 g/t from a depth of 48m
8m at 2.0 g/t from a depth of 80m
LRC15 26-38
42-56
12
14
0.4
1.1
4m at 2.2 g/t from a depth of 42m
LRC16 18-64 46 0.5
LRC18 48-87 39 0.7 2m at 2.2 g/t from a depth of 66m
LRC19 30-66 36 2.2 8m at 5.7 g/t from a depth of 46m 6m at 3.3 g/t from a depth of 60m

The Long Chieng Track deposit is approximately 5km from the Phu Kham gold cap deposit. These two deposits together with the Ban Houayxai deposit comprise the Phu Bia Gold Project in Laos. A pre-feasibility study that was completed in October 2003
identified a total mineral resource containing 385,000 ounces at the Phu Kham gold cap and Ban Houayxai deposits, but no allowance was made for any resource for the Long Chieng Track deposit.


However, the success of recent extension and infill drilling at the Phu Kham gold cap
deposit combined with the new results from Long Chieng Track, increase the likelihood that the total resource for the Project will exceed 500,000 ounces.
Infill drilling will be required at Long Chieng Track before a resource estimate can be completed. However, the mineralized zone remains open along strike to the southwest and further step-out drilling will also be completed during the feasibility study to test the
size potential of this new discovery.

A detailed feasibility study is currently being conducted on the Phu Bia Gold Project withthe focus on the Phu Kham and Ban Houayxai gold deposits. This study will now be extended to include the Long Chieng Track gold deposit.

For further information:
Mr Gary Stafford
Managing Director
Pan Australian Resources NL