Highlights

Jabiru Metals Limited (Jabiru) is now strategically well positioned through two parallel exposures to the improving outlook for copper and zinc prices being:

• the successful completion of the critical BFS components; and
• an intensive fully funded exploration program on the Teutonic Bore Exploration Project.

Highlights

Jaguar Project

During the Quarter significant progress has been made on the Jaguar Project Bankable Feasibility Study (BFS) as indicated by the following:

• The 2004 (BFS) drill program has been highly successful, returning significant wide highgrade copper-zinc-silver intercepts of up to +13% copper equivalent grades.
• The drilling has also intercepted several zones of massive sulphide at 2 to 3 times the modelled (Pre-Feasibility) thickness. The Directors anticipate that this will lead to an increase in tonnage and grade over the initial resource estimate.
• The discovery of multiple Footwall Lenses below the Main Lens some of which may have been missed by earlier drill programs stopping short of the new target zone. The discovery of a footwall copper-rich stockwork/stringer zone which also has the potential to increase the total contained metal of the deposit
• On a worldwide basis the Jaguar deposit together with the previously mined Teutonic Bore deposit fall within the top 5% of volcanogenic massive sulphide deposits based on combined metal grades. The results of exploration by the Company’s joint venture partner Inmet on the surrounding tenements provide significant potential for the discovery of further deposits.
• The recently acquired Cadjebut plant was disassembled and approximately 90% of the equipment was relocated to the Jaguar site in preparation for project development.
• All of the major components of the BFS have been completed or are nearing completion. The BFS is on track to be completed in December 2004. Negotiations with various financial institutions interested in financing the development of the Jaguar Project will be finalised following completion of the BFS.
• The Company anticipates that funding arrangements and concentrate off-take agreements should be completed in time for the decline development to commence during the second quarter of 2005. Following the commencement of mining, the construction and mine development schedule will require approximately 14 months to first metal production.

Highlights

Jaguar Bankable Feasibility Study

The Jaguar BFS progressed very well during the quarter with excellent drill results being reported and positive results being achieved on various technical components of the Study.

Cadjebut Plant Acquistion

During the quarter, the Cadjebut processing plant was purchased for $1.4 million from Teck Cominco. In addition, a contract for dismantling, transport and unloading at Jaguar of the Cadjebut Plant was awarded during the quarter.

Highlights

• Jaguar Bankable Feasibility Study results confirm scoping study projections.
• Geotechnical studies – positive results indicate that extraction of up to 95% of the resource can be expected.
• Metallurgical studies indicate good recoveries of Cu, Ag and Zn concentrate grades.
• Title and environmental issues proceeding satisfactorily.
• Pilbara has purchased the Cadjebut treatment plant, powerhouse and camp for $1.4 million.
• Joint Venture partner, Inmet, is returning to site during first week of May 2004 to begin a follow-up diamond drill program targeting strong downhole EM conductors.
• Pilbara sold 3.1 million PowerTel shares for $2.93 million to fund the purchase of the Cadjebut plant and working capital.