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MINERALS CORPORATION LIMITED 2003-01-24 ASX-SIGNAL-G

HOMEX - Sydney

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QUARTERLY REPORT ON MINING AND EXPLORATION ACTIVITIES FOR THE QUARTER
ENDED 31 DECEMBER 2002

CORPORATE DEVELOPMENT

EQUITY RAISING

The Company raised $1.1 million from a Share Purchase Plan together
with $2.1 million from private placements. These funds were required
for pre-shipment working capital for the commencement of production
of our kaolin business.

BANK FUNDING

A further $700,000 was drawn against our structured $11.1 million
fixed rate facility making total drawings to date $1.85 million. This
facility allows for progress payments against production and
operating hurdles.

An additional export post shipment bank discounting facility was
arranged this quarter to cover all planned sales for the next two
years.

Both the above bank facilities provide for very competitive funding
costs to the Company.


OPERATIONS REVIEW

SKARDON RIVER KAOLIN BUSINESS

An annual single mining campaign was undertaken to excavate raw
kaolin onto the wet plant stockpile during the dry season. 22,000
tonnes of good quality ore were mined and stockpiled. This fresh
mining campaign fully validated ore quality expectations resulting
from the prior exploratory drilling and thus provides surety to the
geological model.

Skardon River Kaolin made its marketing debutat the International
Coatings Exhibition in Guangdong, "Chinacoat 2002". Our booth
attracted an overwhelming number of enquiries from Chinese and
international paint companies which will be followed up next quarter.
Also during the quarter an expanded number of potential distributors
and agents have entered into discussions with the Company. The
processing plant was prepared for commencement of production for
January 2nd 2003 which is proceeding per plan.

The main focus forexploration and development this quarter has been
on development of paper grade kaolin products at Skardon River.
Similar work was undertaken by the prior owners (AKL), however, for
various technical reasons Skardon River Kaolin has decided to
virtually start this work afresh in order to properly document and
characterize performance parameters as part of our quality control
matrix.

MINATEK BUSINESS

Minatek continues to make steady progress with profits improvement. A
fundamental business restructure is being planned for 2003 to further
develop the better performing products and further discard low profit
or low potential products. This is a continuing program of
improvement. New product line tests conducted June - December 2002
were very successful with good market response. Production of lower
value feldspar to the glass fibre industry has now ceased and is
being replaced with higher value products. A total of 668 tonnes was
produced for newcustomers and this will substantially increase in
the next quarter.

C V Alexander
CHAIRMAN
..................im in. topped up today ,yet i will rest when they hit .30