6th July 2005

Company Announcements Office
Australian Stock Exchange Limited
10th Floor
20 Bond Street
SYDNEY NSW 2000

Dear Sir

PROSPECTUS DISPATCHED TO SHAREHOLDERS

The Company advises that the Prospectus for the Two for One Entitlements Issue was dispatched to shareholders of the Company today.

The closing date for the issue is 5.00pm WST on 20th July 2005.

JUNE PRODUCTION

Blair Nickel Mine production results for June have been received and are above forecast for the month with 140 tonnes of contained Nickel metal delivered. The production result for the quarter is a total of 460 tonnes of contained Ni metal. This result has been an improvement on the previous quarter where the company reported 319 tonnes of contained Ni metal production.

Yours faithfully
Australian Mines Limited

Brett Young
Company Secretary
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