23 October 2006

The Company Announcements Office

Australian Stock Exchange Limited

Laos Bolaven Plateau Bauxite Project Update

An Ord River Resources (ORD) delegation is leaving this week for Laos to commence
implementation of the proposed Bolaven Plateau bauxite development.

ORD and China Non-ferrous Metals International Mining Co. Ltd (CNMIM) have a Joint Venture (JV)
to develop a major bauxite deposit in Southern Laos, on the Bolaven Plateau. CNMIM is China’s
major institution for sourcing non-ferrous mineral supplies for Chinese industry.

Initial exploration work undertaken by ORD and CNMIM shows that Laos’s bauxite deposits have the
potential to be as large as Western Australia’s Darling Ranges’ deposits, which produce 14% of the
world’s alumina, and preliminary sampling indicates they have similar quality and grade.

The bauxite potential, in and around the project’s existing tenement, is estimated to be up to 2 – 2.5
billion tonnes. Negotiations are in progress for the JV to secure additional tenements in the area.

With that potential, ORD estimates an annual production of up to 20 mtpa (million tonnes per annum)
of bauxite from the Bolaven Plateau is possible, which may be refined to 5 - 7 mtpa of alumina.

ORD is planning to achieve an initial JORC resource estimate by mid-2007.

Ord River Resources

Currently there is a JV between ORD (49%) and CNMIM (51%).

The ORD/CNMIM JV (70%) has an agreement with a Laos company (30%) to develop a 138 square
kilometre tenement on the Bolaven Plateau.

2006 spot alumina US$430/tonne Price of aluminium2 US$2,716.50/tonne

price average1 19 Oct 2006

Patrick Sam Yue

Company Secretary

Contact:
Libby Gauld, Wilkinson Media, 02 8001 8888, 0404 889 692, lgauld@wilkinsonmedia.com.au

The information in this report that relates to Exploration Results is based on information compiled by
Mr Peter Temby and reviewed Mr Michael Morgan, a bauxite consultant and a member of The
Australian Institute of Mining and Metallurgy. Mr Morgan has sufficient experience that is relevant to
the style of mineralization and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Morgan
consents to the inclusion in this report of matters based on this information in the sense that the
scientific reasoning behind the acquisition of the figures appears to him to be reasonable..

1
ABARE Australian Commodities: September Quarter 2006
2
London Metal Exchange: cash seller and settlement
Media Release - 23 October 2006

Australian resource company pioneers a new

aluminium industry in Laos

Ord River Resources (ORD) has identified bauxite deposits in Southern Laos’ Bolaven Plateau, which may support a
large scale mining operation – and boost the country’s fortunes.

“Early analysis indicates the quality and quantity of bauxite could fuel an industry as big as the Darling Ranges’
aluminium industry in Western Australia, which produces 14% of the world’s alumina. At current alumina prices, this
represents US$3.2 billion per year,” said John Towner, Executive Chairman, ORD.

“The Lao Bolaven Plateau has the potential to be one of the largest bauxite deposits in the world.”

The Bolaven Plateau also has the potential to support a fully integrated aluminium industry: bauxite mining, an alumina
refinery and an aluminium smelter.

The industry’s likely viability is boosted by the Plateau’s natural resources, ability to produce hydro power and proximity
to China – a major aluminium market.

“An aluminium industry would have huge economic benefits for the people of Laos,” said Mr Towner.

“The World Bank considers Laos one of the world’s least developed countries. In 2004 GDP was $US399 per person.

“A new resource industry will act as a catalyst for better infrastructure development and the development of a skilled
workforce.”

ORD has an agreement to develop the Bolaven Plateau bauxite deposit with its strategic partner, China Non-ferrous
Metals International Mining Co Ltd (CNMIM), the institution for sourcing major nonferrous mineral supplies for Chinese
industry.

“ORD is currently considering various community, transport and mining infrastructure opportunities with our Chinese
partners, in conjunction with the Lao Government. A delegation leaves for Laos this week,” said Mr Towner.

CNMIM has already secured an interest in 138 square kilometres of the Bolaven Plateau for bauxite exploration and
development. Negotiations are underway to acquire additional areas.

The venture will be enhanced by CNMIM’s strong relationship with the Lao Government.

“ORD and CNMIM are focused upon creating a long-term sustainable industry in Laos,” said Mr Towner.

“With an upskilled workforce, world best practice standards and a co-operative relationship with the Lao Government,
everybody will benefit.”
Ends

Contact: Libby Gauld, Wilkinson Media, 02 8001 8888, 0404 889 692
ORD data
The bauxite potential, in and around the existing tenement, is estimated to be up to 2 – 2.5 billion tonnes. Negotiations
are in progress for the JV to secure additional tenements in the area.

With that potential ORD estimates an annual production of up to 20 mtpa (million tonnes per annum) of bauxite from
the Bolaven Plateau is possible, which may be refined to 5 – 7 mtpa of alumina.

2006 spot alumina price US$430/tonne Price of aluminium** US$2,716.50/tonne

average* 19 Oct 2006

*ABARE Australian Commodities: September Quarter 2006

**London Metal Exchange: cash seller and settlement
 Developing an integrated
aluminium industry in Laos

Policy overview – an evolving

document

Prepared by Wilkinson Media Pty Ltd

23 October 2006
Contents

1. Overview

2. The people of Laos

3. The Bolaven Plateau – supporting a new industry for Laos

4. CNMIM – a strategic partner

5. Ord River Resources – a unique approach

6. The strategy – making it happen

7. Next steps

2
Overview
A world class The Bolaven Plateau in Laos contains one of the world’s largest
undeveloped bauxite deposits.
prospect
Ord River Resources Limited (ORD), an Australian resource company, has
an agreement to develop the Bolaven Plateau bauxite deposit with its
strategic partner China Non-ferrous Metals International Mining Co Ltd
(CNMIM), and a local Lao company.

CNMIM is China’s leading non-ferrous minerals investment company and

the international representative of their smelting industry.

ORD, CNMIM and Laos stand to become major players in the global
aluminium industry.

A fully Laos has the natural resources and strategic location to allow for
development of an integrated aluminium industry.
integrated
aluminum Initial exploration shows that Laos’s bauxite deposits have the potential to
industry be one of the largest bauxite resources in Asia, as big as Western
Australia’s Darling Range’s deposits, which produce 14% of world’s
alumina.

Put simply, an integrated industry involves mining surface bauxite deposits,

transforming the ore into aluminium oxide (alumina), and then converting
the alumina into aluminium metal – the end product.

Laos already has the three ingredients required to make this industry a
success. Laos has immense bauxite resources, cheap and ample hydro
power and is located next to the large and rapidly growing Chinese market.

The World Bank considers Laos one of the world’s least developed
countries. A new resource-based industry will bring much needed jobs,
income, skill development, and associated major works to Laos. This will
result in a dramatic and sustainable increase in GDP per capita, and much
needed foreign exchange.

Combining CNMIM, with its close political and economic relationships with the Lao
Government, is currently in discussions with key members of the
talents government to help build support for the aluminium industry.

CNMIM also brings access to the enormous Chinese metals market. China
is a large consumer of aluminium products, and with depleting domestic
bauxite resources, will increasingly rely upon foreign imports.

ORD has the necessary experience to manage a resource project start-up,

has access to the international capital required to fund the venture, and
brings with it western expertise, OH&S and environmental standards.

3
 Together ORD, CNMIM and the Lao company can develop a sustainable
and profitable aluminium industry, which will generate value, and
economically empower the people of Laos.

Recent ORD and CNMIM are visiting Laos in late October to commence detailed
Developments exploration and development of the bauxite deposits.

The Bolaven Plateau – key facts

Currently there is a Joint Venture (JV) between ORD (49%) and CNMIM (51%) for all CNMIM’s
interests in Laos.

CNMIM (70%) is currently in a JV with a local Lao company (30%), and has secured a 138
square kilometre tenement on the Bolaven Plateau.

The bauxite potential, in and around the existing tenement, is estimated to be up to 2 – 2.5 billion
tonnes. Negotiations are in progress for the JV to secure additional tenements in the area.

With that potential, ORD estimates an annual production of up to 20 mtpa (million tonnes per
annum) of bauxite from the Bolaven Plateau is possible, which may be refined to 5 - 7 mtpa of
alumina.

2006 spot alumina US$430/tonne Price of aluminium** US$2,716.50/tonne

price average* 19 Oct 2006

*ABARE Australian Commodities: September Quarter 2006

**London Metal Exchange: cash seller and settlement

4
The people of Laos

Laos is officially known as the Lao People's Democratic Republic (Lao PDR).

It has a population of approximately 6 million people.

Laos is a land-locked country in mainland South East Asia, bordered by China, Vietnam,
Cambodia, Thailand and Burma.

Its total land area is approximately 237,000 square kilometers - roughly equivalent to the state of
Victoria or the United Kingdom.

Laos is classified as a Least Developed Country (LDC) by the World Bank and relies heavily on
foreign aid.

In 2004, GDP per capita was US$3991. Social indicators revealed that Lao health and education
were amongst the poorest in the region. Infant and maternal mortality rates were high, and the
average life expectancy was 54.7 years.

Only half the population currently has access to safe drinking water, and less than half has
access to safe sanitation facilities.

Economic development
Laos is a Marxist-Leninist state. Since 1986 however, Laos has promoted gradual economic
liberalisation.

The economy is dominated by subsistence agriculture, upon which 80% of the population relies.

The industry and service sectors are growing however and now account for almost half GDP
growth.

The Lao Government is now actively promoting development of its rich natural resource base in
hydropower, bauxite, gold-copper, tin, iron ore and coal. Foreign investment is being encouraged
to accelerate economic reform, and help generate improvements in education and infrastructure
necessary for Laos’s economic development and international competitiveness.

The introduction of attractive foreign investment legislation has helped increase foreign
investment inflows, particularly in the hydropower and mining sectors.

The Sepon gold and copper mine in Savannakhet, Southern Laos, is an example of the Lao
Government partnering with an Australian resource company, Oxiana. It is the largest foreign
direct investment project in Laos, and with around 2,000 permanent employees, is the single
largest employer outside of government.

The project has made a significant contribution to Laos’s GDP. In 2005 it contributed 30% to
Laos’s export revenue2.

1
Australian Government Department of Foreign Affairs and Trade: Laos Country brief - October 2006
2
Oxiana 2005 Sustainability Report

5
The Bolaven Plateau
ORD, through its work with CNMIM,
has identified bauxite deposits on the
Bolaven Plateau, Southern Laos, that
may support a large-scale mining
operation, with a very long mine life.

A bauxite mining industry will have

huge economic benefits for the
people of Laos.

A mine, operating to world’s best

practice, will act as a catalyst for
better infrastructure development and
the development of a skilled
workforce.

A host of new businesses and

industries will be generated to
support the new resource base.

It is considered that the bauxite

mining development in the Bolaven
Plateau will be bigger than any
resource project currently in Laos,
including the Sepon gold and copper
mine.

To ensure safe operations, the JV will undertake a long term unexploded ordnance (UXO)
clearance program, to remove residual military ammunition and explosives left from the regional
conflict in the 1960s and 1970s.

Agent Orange, a powerful herbicide and defoliant, was sprayed on the Plateau during this period.
The Plateau, unlike much of Laos which is densely forested, is now bare and infertile. Bauxite
mining, and the sustainable environment practices required, will help revegetate the land.

The Bolaven Plateau bauxite province

6
The Bolaven Plateau – supporting a new industry for Laos

Quality and quantity

ORD has identified one of the world’s largest undeveloped bauxite resources in Southern Laos,
with the greatest individual areas of bauxite on the south-eastern part of the Bolaven Plateau.

The bauxite province extends into Cambodia and Vietnam. BHP Billiton is currently exploring the
bauxite deposits in Cambodia. Alcoa, the world's largest alumina supplier, is exploring in
Vietnam.

Initial exploration on the Bolaven Plateau by ORD and CNMIM show the bauxite deposits to be
low grade (low levels of Al2O3). It is high quality however, with low levels of undesirable elements
and minerals. This is good news as it reduces the cost of production of alumina.

The grade and quality is comparable to the bauxite found in the Darling Ranges, Western
Australia, which currently supports three major bauxite mines and four alumina refineries.

Bolaven Plateau bauxite resources

Exploration of the Bolaven Plateau

The JV has already secured a 138 square kilometre tenement on the Bolaven Plateau for
exploration. It is now negotiating for a further 84 square kilometres in one adjoining block.

The project is 30% owned by a local Lao company. ORD/CNMIM owns the remaining 70%.

The bauxite potential, in and around the existing tenement, is estimated to be up to 2 – 2.5 billion
tonnes.

Negotiations to acquire additional areas of the bauxite province are currently in progress.
Securing these areas is desirable to ensure a long mine life at high capacity.

7
CNMIM’s original tenement on the Bolaven Plateau – red outline

Development of the Bolaven Plateau

CNMIM’s geologists and engineers have broad experience in precious and base metal
exploration and international development ventures, including aluminium mining and production.

Its skills have already been paramount in defining the bauxite resource area on the Bolaven
Plateau.

Together with ORD’s skilled geoscientists and sound economic start-up models, the development
of the project will progress rapidly.

An integrated aluminum industry for Laos

ORD’s short term program is to explore the feasibility of mining the outcropping bauxite deposits
and developing an on-site alumina refinery.

The vertically integrated project may also include an aluminium smelter.

8
Once the bauxite ore is mined, an alumina refinery is required to convert the raw bauxite ore into
alumina (aluminium oxide).

An aluminium smelter then converts the alumina into aluminium metal – the end product.

The production of aluminium offers the prospect of aluminium metal industries being developed in
Laos, such as fabricated product businesses.

An aluminium smelter also offers the possibility of drawing business from other bauxite and
alumina production sites; in Vietnam, Cambodia and China.

The feasibility of the integrated project model is being evaluated. The size of the deposits,
availability of power, cost of power, and cost of transportation from the Bolaven Plateau to the
global market are key considerations in the viability of this project.

Hydropower
The aluminium industry requires a huge amount of power.

In fact, aluminium is often referred to as ‘solidified electricity’ because it requires so much energy
to produce.

The integrated project in Laos will need a cost-effective power source locally available.

Laos has significant hydropower resources and experience with this technology. It currently
exports power to Vietnam and Thailand.

With its rivers, mountainous terrain, and a local 900 metre relief, the Bolaven Plateau has
significant hydropower potential.

ORD’s program, subject to a feasibility study, is to construct a local hydropower scheme to

sustain an integrated aluminium industry.

Proximity to market
Laos’s proximity to the Chinese metal market is a strong leverage point into the aluminium
industry.

Laos shares its northern border with China – and China is a large and very rapidly expanding
market for aluminium.

In the short term, China’s power is predominately coal based. With the industry in Laos operating
on hydropower, it will be more cost-effective for China to use a Lao alumina refinery and
aluminium smelter.

In the long term, the shortage of aluminium raw materials in the Chinese market will be a
significant issue. On average, China consumes 75 million tonnes of bauxite per year3. China has
depleted its natural bauxite resources and by 2015 its stocks will be totally deficient.

Laos is strategically placed to meet this ever-increasing demand.

3
Macquarie Bank, October 2005: Aluminium outlook – why are prices here and why could they go higher?

9
Global Demand

Supply / demand studies predict that global aluminum demand will outstrip supply by 2008.
An aluminum industry in Laos will have substantial market power – and profitability.

Derived in part from Macquarie Bank October 2005: Aluminium outlook

65000000

60000000
Alcoa demand
prediction
55000000
BHP-B demand March 2006
prediction April
50000000
2006

45000000
Demand outstrips
tonnes

production capacity
40000000 2008

35000000

30000000

25000000

20000000

15000000
1990 1995 2000 2005 2015 2020
year

The World Bank

The World Bank is a vital source of financial and technical assistance to developing countries.

It provides low-interest loans, interest-free credit and grants to developing countries for education,
health, infrastructure, communications and many other purposes.

A new aluminium industry in Laos will require World Bank assistance and support.

With that support comes scrutiny. A condition of World Bank lending is that world best standards
are adhered to, in all aspects of the development.

This is another checkpoint to ensure that world-best employment, infrastructure and

environmental practices are adhered to throughout the industry’s development.

10
CNMIM – a strategic partner

CNMIM
China Non-ferrous Metals International Mining Co. Ltd (CNMIM) is China’s leading non-ferrous
minerals investment company, with international mining and smelting operations.

As the international representative of the Chinese smelting industry, its core business is the
exploration and development of overseas mineral resources.

CNMIM has more than 24 years experience in non-ferrous metals resource development and
construction.

It is the biggest overseas non-ferrous metals resource developer in China, producing 68% of total
domestic copper, 88% nickel, 17% zinc and 92% platinum.

Ord River Resources and CNMIM

In 2004, CNMIM chose ORD to be its entrepreneurial partner. This followed a global market
survey by CNMIM to find a western partner with which it could form a strategic relationship and
conduct major mineral projects worldwide.

CNMIM was looking for technical and corporate expertise, including skills at raising investment
capital in western markets.

CNMIM identified ORD personnel as having the following attributes:

• Successful project management.

• A track record for exploration and development of mineral resources.
• A track record for successfully launching listed resource based companies.
• Geoscientists committed to the exploration of world class mineral resources.

CNMIM has since purchased a 20% share in ORD.

Chairman Mr Tao Luo, Chairman and President of CNMIM, sits on the ORD Board of Directors as
Deputy Chairman.

The two companies have an agreement to explore the potential of developing an integrated
aluminium industry in Laos.

The Lao and Chinese strategic economic alliance

Laos and China, together with a number of other Asian countries, have an economic program of
co-operation. Through this relationship CNMIM has developed strong personal and business ties
within Laos.

This provides a strong base for discussions regarding the exploration and development of a new
aluminium industry with the Lao Government.

11
Ord River Resources – a unique approach
ORD was formed in 2004 and listed in March 2005. ORD’s vision is to grow by acquiring
prospective precious and base metals tenements, exploring, appraising, developing, and
ultimately mining gold and base metals.

In Australia, ORD is currently exploring the Tanami gold province in the Northern Territory and
prospective copper resources in the East Kimberley area, Western Australia.

Internationally, with CNMIM, ORD is looking for additional mineral exploration ventures.

Project evaluations are currently in progress for bauxite mining in Laos and copper mining in
Bougainville.

The management team

ORD boasts a board and management team with solid experience in resource industry project
start-ups, investment and development, and access to international investment and technical
know-how.

The Company has excellent management and technical skills, with the ability to source expertise
in geology, exploration, mining, appraisal, development, operations and funding.

It is this entrepreneurial management skill that convinced CNMIM that ORD should become its
international partner.

Responsible corporate citizenship

ORD comes to Asia at a time when other western mining companies have left a trail of failed
relationships and environmental disasters. There are also many success stories.

ORD’s aim is to form mutually beneficial relationships in South East Asia, bringing skills that
ensure world best practice in terms of mining extraction and mineral processing, operational
practices and environmental preservation.

ORD will work closely with the Lao Government and its people to ensure they acquire the
education, training and know-how required to operate and manage the mining and processing of
bauxite ore.

Objectives in Laos
ORD has the following strategic objectives in Laos:
1. Secure all available bauxite areas.
2. Secure the rights to potential hydropower sites.
3. Create a long term sustainable mine with sustainable benefits for the people of Laos,
ORD, CNMIM and shareholders.

12
 The strategy – making it happen

Lao Government
The special relationship that exists between CNMIM, the Lao company and the Lao Government
will assist to make the project feasible.

ORD and CNMIM will continue to nurture this relationship.

The corporate-government model proposed by ORD and CNMIM is based on the highly
successful Australian aluminium industry. The model has allowed Australia to grow from a small
player in the 1970s, to become the largest producer of bauxite and alumina in the world,
producing 30% of the world’s alumina.

Australian Aluminium Production Growth

2,000,000

1,800,000

1,600,000

1,400,000

1,200,000
tonnes

1,000,000

800,000

600,000

400,000

200,000

0
1972

1977

1982

1987

1992

1997

2002*

Source: Ord River Resources from Australian Aluminum Council data

There are three key ingredients to this model:

1. That the Lao Government recognises the positive impact the business will have
on Laos, and works with ORD and CNMIM to create a world class aluminium
industry.

2. That the Lao Government works with CNMIM and ORD to develop the majority of
the bauxite resources. Economy of scale is critical to ensuring a profitable
industry. Fragmentation works against, not for, a healthy aluminium industry.

3. That the Lao Government sells hydropower at cost price, or near aluminium
industry competitive price. Aluminium production requires a large amount of
power. Approximately 14kw hours are required to produce one kilogram of
aluminium. Production is only cost-effective if power price compares favourably
to the discounted prices obtained by aluminium smelters globally.

13
Australian Government
The Australian Government’s understanding of the ORD – CNMIM – Laos relationship is
important to ensure the project is consistent with Australian foreign policy.

The Australian Government has a prominent and positive profile in Laos, and is one of the five
largest aid donors. In 2005-06, Australian Government aid to Laos is estimated to be AUD$19.6
million4.

The Australian Agency for International Development’s (AusAID) education contribution each
year, which totals AUD$3.98 million, includes funding 40 students to study in Australia and 64
students to study at the National University of Laos.

The focus of Australia’s aid is to strengthen Lao human resources, promote growth in the market
economy and reduce the vulnerability of the poor.

Australia is also one of the major foreign investors in Laos, contributing to the Lao economy and
local employment through its mining companies, particularly the gold and copper mining projects
currently being developed.

A strong relationship between the Australian Government and ORD is essential.

ORD will explore the feasibility of Australian Government funding to support the Lao mining and
resource industry, by way of local education and scholarships.

Lao Community Relations

To ensure local support for the mine, ORD will develop strong local community relations with the
people on the Bolaven Plateau and the rest of the country. It is essential that the people of Laos
recognise the positive benefits the industry will bring to their country, and the additional income,
jobs, skills and associated major works that will take place.

Regular communication with the Lao Government and media will help achieve this.

Investor Relations
Australian investors, and potential investors, will be kept updated on the company’s activities
through regular communication with the Australian Stock Exchange and through the general
media.

To raise the necessary funds for a Lao aluminum industry, ORD plans to dual list by seeking
quotation on the London Stock Exchange (LSE). British investors, and potential investors, will
then be informed through the LSE and general media.

Mass media
Australia and international media will be watching to ensure ORD and CNMIM do not repeat the
pattern of environmental disasters left by other mining companies in the region.

Strong relations with media are critical to ensuring ORD’s activities are accurately reported.

4
Australian Government Department of Foreign Affairs and Trade: Laos Country brief - October 2006

14
Timeline

Initial exploration: June 2007

• ORD to be onsite by December 2006: two field camps to be established.

• Commence exploratory work:

- Drilling: Approximately 12,000 metres of vertical drill holes

- Pitting and channel sampling: Approximately 500 pits to be tested

- Ore modelling: Determine the shape of the deposits.

- Detailed Geographic Survey: Map all drill holes and pit samples.

- Contour maps: Develop contour maps of the 250 square kilometres, of and adjacent
to the two tenements, for detailed interpretation.

- Initial metallurgical sample: Process testing.

• Commence baseline environmental studies to determine the state of the environment

before mining operations commence.

• Prepare a JORC (Joint Ore Reserves Committee) compliant resource statement.

Further exploration: June 2008

• Continue exploratory work:

- Drilling: An additional 18,000 metres of vertical drill holes.

- Pitting and channel sampling: A further 700 pits to be tested.

- Ore modelling: Additional resources to be added to the model.

- Detailed Geographic Survey: Additional drill holes and pits to be mapped.

- Representative metallurgical samples: The second and possibly third

metallurgical samples to be tested.

• Upgrade JORC compliant resource statement as results are received.

Status quo: December 2008

• Preliminary mine planning completed.

• Results of the pre-feasibility study assessed.

• Decision to proceed to full feasibility study.

• Commencement of full feasibility study.

15