DJ UPDATE: Herald Resources Briefs Interested Parties

(Adds detail of Dairi project and declaration that Bumi's offer is
unconditional) By Alex Wilson Of DOW JONES NEWSWIRES

MELBOURNE (Dow Jones)--Herald Resources Ltd. (HER.AU) said Thursday it has
this week briefed interested parties, raising the prospect a rival bidder
could emerge to challenge a A$445 million bid from PT Bumi Resources Tbk
(BUMI.JK).

In a statement to the Australian exchange, the base metals developer said
it has conducted management briefings with the parties, some of which will
visit its Dairi zinc and lead project in Northern Sumatra next week.

A person familiar with the situation said the interested parties are from
Indonesia, Australia and elsewhere and have signed confidentiality
agreements.

Herald has until Jan. 23 to issue its recommendation on the Bumi offer,
which closes on Feb. 15 unless extended, and the takeover target has
reiterated its advice to shareholders to take no action in the interim.

The Perth-based company also Thursday released the results of a definitive
feasibility study into the Dairi project, which it said would deliver post
production cashflows of US$1.1 billion after tax and have an internal rate
of return of 48%.

Herald said the capital cost of the development was US$227 million, up
from the previous estimate of US$221 million, and that US$50 million of
that has already been spent.

Chairman Terry Allen said the study is for a mine life of seven years but
that Herald is very hopeful it can extend this substantially with
resources from nearby deposits.

Meanwhile, Bumi said that it has received approval from Australia's
Foreign Investment Review Board for its bid and that its offer is now
unconditional.

Herald closed up 0.5% at A$2.21, below the Bumi offer of A$2.25 per share,
in an Australian market down 0.2%.



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