INDONESIAN GOVT GIVES GO-AHEAD FOR GOLD EXPLORATION PROJECT

MELBOUNRE, March 31 (Bernama) -- A joint venture in Indonesia between
Australia's Newcrest Mining Ltd and UK firm Sumatra Copper & Gold Plc has
received final government approval.

The Indonesian government agreement allows Newcrest, Australia's biggest
gold miner, to earn a 70 per cent interest in British firm Sumatra's Tandai gold
exploration project, the Australian Associated Press reported.

Drilling is to start this month at the 100,000-hectare site on the island of
Sumatra.

The heads of agreement involves Newcrest spending US$12 million over five
years, but, so far it has only subscribed for the US$1.75 million minimum spend
commitment.

Sumatra Copper has an economic interest of up to 92.5 per cent in three
projects in Sumatra. The company's main focus is to explore for gold and silver
at its Tembang, Tandai and Sontang sites.

Sumatra Copper revealed Thursday that Newcrest decided not to exercise its
option to take a 25 per cent stake in the Tembang gold project for US$10 million
($A9.71 million).

"This project may not satisfy Newcrest's investment criteria, but with more
than one million ounces of gold resources and significant silver credits,
bringing the project into production by ourselves will be the making of the
company," Sumatra Copper Managing Director Jocelyn Waller said in a statement.