19th December 2003
LARGE MAGNETIC FEATURES DETECTED AT RUBY PROJECT

The Company’s recently completed regional magnetic survey has shown that known magnetic anomalies underlying high grade ruby gravels are part of a newly mapped and far larger magnetic feature.

The previously mapped anomalies were investigated to determine their nature, and whether they may guide the Company to a hard rock source for the alluvial rubies being produced. The magnetic map produced is shown as Figures 1 and 2, and an interpretation as Figure 3. The area of the previous magnetic survey and drilling is shown on these figures as Brazier Flat.

The larger and prominent circular magnetic feature comprises two concentric magnetic lows, from 70 to 150 metres wide, with diameters of 700 metres and 1,500 metres respectively. Small parts of two similar concentric features, but with far larger diameters, may have been detected further to the west.

Several pits dug into one of the concentric low (blue) anomalies, and beneath the Upper Terrace gravels, have shown areas of granite bedrock which has been decomposed, possibly by the action of hot spring activity in the past. Indeed, many of these magnetically low zones form boggy areas at present, suggesting that springs may still be active beneath them.

Pits dug into the high (red) anomalies penetrated fresh granite bedrock, or granite boulders, suggesting that spring activity has been less intense here. Within the Upper Terrace pit currently being excavated, such a magnetic high consisted of large unweathered boulders. Low grades were present over this zone (Sections 6 and 7), but channels scouring out both sides of it (Sections 8, 9 and 14) contained the highest ruby grades recovered to date.

The large, circular low anomalies are interpreted by the Company to have formed by release of gasses, including water, emanating from a volcanic intrusion beneath the central area of the anomaly, but at depth. Whether small parts of such an intrusion have been exposed at the surface, and whether such intrusive activity could transport rubies to the surface, allowing them to be concentrated in the overlying gravels, is being investigated. Initial geological mapping and magnetic modelling will be used to locate drill holes or trenches searching for a hard rock ruby source.

Peter Kennewell
MANAGING DIRECTOR

12th December 2003
Trial Underground Production to commence on Copeton Diamond Field

The Company has commenced seeking tenders for sinking of a two metre by two and a half metre shaft to fifty metres depth on the Davis Block, at Mount Ross, Copeton. When the shaft is completed, a two and a half metres wide tunnel will be driven for fifty metres from its base across a buried river channel. The tunnel aims to recover diamonds from sediments at the base of the river, and determine their size, quality and value on the present wholesale market, to allow calculation of average grade for the part of the deposit accessed. An experienced mining contractor will carry out the mining program. It is budgeted at half a million dollars, and will be funded from monies received from the exercise of the Company’s options during December.

The shaft is to be sunk between the Mount Ross Shaft and the Syndicate No 1 Shaft, in the centre of the Davis Block (See Figure 1 below).

The shaft and tunnel will provide access to an inferred resource of 200,000 tonnes of diamond bearing sediments with a grade of 250 carats of gem quality diamonds per hundred tonnes (see Figure 2 below). 2 kg/tonne of cassiterite (tin oxide) is also inferred. This exceptionally high grade is reported in mining literature of the early nineteenth century. Cluff’s mining aims to confirm these high diamond grades, and allow determination of the most suitable mining methods for diamond production by the Company. Confirmation is expected that tunnelling in the inferred resource last century was very limited.

This Davis Block is the extension deeper beneath Mount Ross of the diamond bearing river channel worked nearer its outcrop by the Inverell Diamond Fields Company from 1897 to 1904 by the Deep Shaft, and then by the Deep Shaft Company until 1911. Four shafts subsequently accessed this Block, with high grades reported, but no large scale production has since been recorded. The Mount Ross Diamond and Tin Mining Company, which subsequently held this Block, had labour conditions suspended in 1916, perhaps due to a manpower shortage during the First World War. The Davis Block is additional to the inferred resource of one million tonnes at 50 carats per hundred tonnes reported in 1999, based on underground operations and diamond recovery by Audimco Limited, the company from which Cluff purchased the Copeton mining leases.

If the shaft and tunnel successfully produce economic diamond grades, a second shaft will be established for safety and ventilation reasons, a permanent headframe will be installed, and the most suitable production method for the mining conditions will be trialed. Diamond bearing gravels produced will be processed through Cluff’s currently operating trommel and jig plant, with a 2 km haul.
Whilst water deposited sediments are being targeted in this appraisal, the diamonds previously extracted from the Copeton deposits show few signs of long alluvial transport, and underground access is expected to provide further evidence of a local origin for these diamonds.
Although mine development on an inferred resource entails risks, the Board’s opinion is that the cost of this shaft sinking is small in relation to potential profits. Much of the cost of developing a mine at Copeton has already been expended, with mining leases granted, exploration drilling completed, and a production plant operational on site. This underground development aims to capitalise on previous expenditure by the Company, and to quickly establish a positive cash flow for the Company as a diamond producer with access to half a million carats of gem quality diamonds.

Because of the unusual nature of the inferred resource calculation, a definition of an inferred resource, and the data upon which this one is based, is included in this report.

TECHNICAL REPORT - INFERRED RESOURCE
An inferred resource is one for which tonnage, grade and mineral content can be estimated with a low level of confidence. This resource is inferred, firstly from geological evidence of a buried river channel based on drilling by Cluff, and by Audimco Ltd during the 1970s and, secondly, from assumed but not verified geological continuity and grade continuity based on statements in century old publications. These state that exploratory tunnels were in a continuous run of diamond wash, and refer to the patchy nature of the alluvial, with spectacularly high grades interspersed with lower grades.

Within the inferred resource there may be areas below the selected cut off grade to ensure that the inferred mineral resource comprises a body of mineralisation of adequate size and continuity to properly consider mining. The location of such areas is uncertain, and inferred average grades are used in this resource.
Basis of Inferred Resource

The inferred resource is based on information gathered through shafts, tunnels, small mined areas, and drill holes. Shaft and tunnel information is of uncertain quality
because although shafts have been reliably identified, the location of the tunnels extending from them, and small mined areas accessed by the tunnels is not known in most cases. The sources for the information include reports of the NSW Mines Department, contemporary newspaper reports, particularly the Australian Mining Standard, and a prospectus for the Mount Ross Diamond and Tin Mining Company NL, together with subsequent company reports. Many of these reports were written in an imprecise manner, and relied on field correspondents for their content, but the large number of sources provides generally consistent information.

Due to the uncertainty attached to this inferred mineral resource, it cannot be assumed that all or part of it will be upgraded to an indicated mineral resource as a result of continued evaluation. Confidence in the estimate is not sufficient to allow appropriate application of technical or economic parameters, or to enable an evaluation of economic viability. This inferred resource should not be used in economic studies.

Geology
The deposit of diamonds occurs in a "deep lead" (buried river channel) present beneath about fifty metres of basalt lava and lake sediments. The diamonds occur in extremely high grade "patches" within gravels and "wash" of the former river channel. The river deposits are about 120 metres wide, and the inferred resource extends along 450 metres of its length. To the south these river channel deposits were worked out during the period 1897 to 1911. They extent to the north for at least another 400 metres, but insufficient data is available to quantify the deposit in this area. The river predates the overlying basalt lavas, and was active before about 50 million years ago.

Nature, Quality and Value of Diamonds
1. Bulk sampling by Cluff and previous workers has shown that more than 90% of diamonds recovered during bulk sampling in many parts of Mt Ross, and the Copeton field, are of gem quality.
2. At Deep Shaft, Cotton (1915) notes that "the stones average three to the carat and are of good quality. From 40 to 50% of the stones are white, rather more are a light yellow, while a few are brown and green. Octahedral stones are conspicuous; probably 6 to 8 % of the diamonds being of this nature. A number of the crystals exhibit twinning. Pieces of Bort, several carats in weight, have also been found at this mine."
3. No microdiamonds have been identified on the Copeton Field. The minimum size of diamonds recovered by the Company during previous testing was 0.7 mm.
4. Based on Mt Ross DTM Co (1911), the composition of a sample of 707 carats in the Syndicate No 1 Shaft area was reconstructed as below:

Mining Method Assumptions
Mining methods will be assessed when access to the inferred resource is obtained.

Metallurgical Assumptions
Using a trommel and jig plant or diamond pan, both of which are owned by Cluff, a recovery of diamonds well in excess of 90% is anticipated.

Cut-off Grades
Available descriptions of the diamond bearing gravels state that highest grades are in a thin layer at the basement contact (Idress, 1948). This is common in river deposits. It is therefore assumed that wherever the base of the river deposit has not been eroded, the rich layer carrying the bulk of the diamonds is present, and the extent of this layer has been taken as the cut off of the extent of the resource.

Extreme Grade Treatment
In reporting grades, only grades from larger bulk samples or small scale mining, and statements as to the average grade throughout the mine have been used. Many instances of spectacularly rich grades are reported in the literature, but it is also stated in the literature that these will be averaged downwards by areas in which grades are poor (AMS, 1902). Hence the high grades have not been utilised in preparation of the inferred resource.

Previous Extraction of the Inferred Resource
Four shafts (Syndicate No 1, Mount Ross, Hills and Heath No 1, Davis) are recorded as accessing the inferred resource during the period 1911 to 1916. Available information indicates that the Mount Ross DTM Company, which owned the leases during that period, produced only about 2,600 carats. Total production recorded by the Mines Department from the Copeton field from 1912 to 1916 was 10,000 carats. Mines Department records show only prospectors working in the areas of the inferred resource after this period. Hence it is unlikely that large areas of the resource have been extracted. It is assumed, however, that 10% of the resource has been mined.
Portions of the deposit are considered to have reasonable prospects for eventual economic extraction, based on reported tunnelling and mining of small areas withinup to 1916, after which little production was recorded by the NSW Mines Department from this area of Mount Ross.

Potential of the Deposit
Comments in square brackets are by the author.
1. AMS (1913) (December 4) reports "As there is a large scope of deep country extending into the hills still unprospected, there is every reason to believe that development work will locate rich runs in the deeper ground – as this feature has characterised past operations".
2. Australian Mining Notes (1909-1913) states that "A low level tunnel is beyond the prospectors finances….Consequently upon this field acres and acres of ground, extending into the deep country in the hills, are unprospected, with every chance of being just as rich as were the surface shows.
3. AMS (1911) (November 30). "Some years ago, a rock shaft [Mount Ross Shaft] was commenced by the Star Company. It was abandoned after being sunk for about 40 feet. Rich faces, which were not easy to reach from the main shaft, were proved to extend in that direction, and the work promised well to repay expenditure. The Mount Ross Co. intends to bottom this shaft. The prospect of rich faces in this direction is almost assured, apart from what the Star Company left. The Deep Shaft Company is driving in the direction of the work proposed to be done by the new Company, and there is every chance of their meeting a similar rich deposit to that found in the Deep Shaft Mine." [The Company subsequently deepened the Shaft, and referred to ‘"Ross" water drive’, suggesting there may have been water problems encountered in mining. These can be now be addressed using modern mining techniques.]
4. AMS (1913), (December 4), reports that "The Rossmount Company own several [leases], occupying important positions in the centre diamondiferous area. One of these blocks – as the "Deep Shaft" mine – holds a prominent place amongst the diamond claims held, gems weighing up to four carats being obtained from it. The adjoining block, formerly known as "Davis’s Shaft", has also produced deposits of tin and diamonds. As there is a scope of deep country extending into the hill still unprospected, there is every reason to expect that development work will locate rich runs."

Tonnage Estimation Technique
The resource tonnage was estimated by preparation of five cross sections across the deposit at 100 metre spacings, based on drillholes. The area of diamond bearing sediments was determined, assuming each section represented an area extending fifty metres to either side. A working thickness of two metres was assumed throughout the deposit, as this is the minimum that can be extracted by modern bulk mining techniques. The layer of diamond bearing material is always thinner than this, and the overlying lower grade or barren rocks, which also must be extracted, will dilute its grade. Tonnage was determined by using an in situ density of two tonnes per bank cubic metre, based on testing by Audimco Ltd during the 1970s.

Grade Estimation Techniques
Grades in the "wash" reported below were corrected to a two metre thickness, assuming overlying material is barren. Notes in square brackets are explanatory additions by the author.
All grades in the past literature are in carats per "load". McNevin (1973) states that "a load comprised about three-quarters of a cubic metre of washdirt, and roughly approximated to one t.". Pittman (1901) describes the throughput of the Star of the South Mine as 300 cu yards per day in one part of his text, and as 300 loads per day in another. Assuming a load is one cubic yard, it would equate to 0.765 cubic metres. Field Geologists Manual (2000) gives a density for unconsolidated dry gravel after excavation of 1.4 g/cm3. Hence one cubic metre of dry gravel would weigh 1.4 tonnes, and 0.765 cubic metres (one load) would weigh 1.07 tonnes. For calculations below it has been assumed that mine measurements were approximate, and one load equals one tonne.

Line 9700 (Grade Assumed 150 carats per hundred tonnes)
1. Daily Telegraph, (1911), April 13, reports "The wash showing in the faces averages a thickness of about 2 ft, and produces about 50 lb of stream tin per load. The estimated diamond deposit of this claim [Deep Shaft Mine] averages 6 carats to the load throughout the mine." [This represents a grade corrected to a two metre thickness of 180 carats per hundred tonnes average for the mine.]
2. NSW Mines Department (1909) reports the recovery at Deep Shaft of 2,260 carats of diamonds from 224 loads of wash. Assuming a thickness for the "wash" of 0.3 metres (Cotton, 1915), this represents a grade of 151 carats per hundred tonnes. As production had only recommenced in about 1907, this is very likely from near this line, on the southern part of the lease, near Deep Shaft. It is also likely to be from development drives and hence representative of grades over extensive areas.
3. This grade is consistent with the average cut off grade of 187 carats per hundred tonnes over an undefined thickness being worked by the Inverell Diamond Fields Company at their mines (including Deep Shaft) when its mining operations were shut down (AMS, 1902).

Line 9800 (Grade assumed 200 carats per hundred tonnes)
1. AMS (1911) reported that "for the whole of the distance between these two shafts [beneath Line 9800] a continuous run of diamond wash has been met with".
2. It was reported (Mt Ross DTM Co, 1911) that a party of miners followed the lead for 700 feet to the north and northeast with improving values towards the centre of the Mount Ross Block [beneath this section and to its north].
Line 9900 (Grade assumed 260 carats per hundred tonnes)
1. AMS (1911) (20 April) reports, [apparently beneath Syndicate No 1 Shaft,] that the wash showing in the faces averages about two feet thick, and produces about 50 lbs of stream tin and 6 carats of diamonds to the load. This represents 180 carats of diamonds per hundred tonnes and 6 kg of SnO2 per tonne over a two metre working thickness.
2. AMS (1911) (3 August) reports that "this rich diamond deposit (which is two feet thick) is estimated in prospects washed from the face to yield 150 carats per load." [This represents 4,500 carats per hundred tonnes over a two metre working thickness].
3. AMS (1911) (17 August) reports further rich developments, and the wash has increased from two feet to six feet in thickness.
4. AMS, (1911) (31 August). The Deep Shaft Party were on a very rich face of diamond wash, going from 20 carats to 150 carats to the load, and the depth of wash varies from 2 feet to 6 feet. [This averages a grade in excess of 600 carats per hundred tonnes over a two metre working thickness].
5. AMS (1911) (October 5), referring to Syndicate No 1 Shaft, states "In blocking out here a space of 18 ft by 20 ft produced over a thousand carats of diamonds." [This represents a grade of 750 carats per tonne over a two metre working thickness].
6. NSW Department of Mines (1911) reports 2,000 carats from 50 loads [600 carats per hundred tonnes], almost certainly from this area.

Line 10000 (Grade assumed to be 300 carats per hundred tonnes)
1. Cross (1911) "inspected the drives [north from Syndicate No 1 Shaft] extending to 150 feet from the boundary of the Davis property. The wash is heavy in the eastern drive [suggesting that there were two drives], and varies from two feet to six feet in depth. They have driven from the new shaft [Syndicate No 1] about 100 feet, with improving results going in a north easterly direction, and although cross drives have been put in at intervals, the width of the lead is not known, as it has not been crossed".Because of "improving results", a grade of 300 carats per hundred tonnes has been assumed for this area.

Line 10100 (Grade assumed to be 300 carats per hundred tonnes)
This line, to the north of the Mount Ross Shaft, is on the Davis Block.
2. Cross (1911) states "They have large heavy wash there; so was the Davis as far as they went. All the wash in the Davis block taken out was rich in tin and diamonds".
3. Cross (1911) continues "On the western side [of the Davis Block] both ends of the workings are rich. The eastern run [of the Davis Block, and almost certainly within the inferred resource] is, in my opinion, far better than anything that has yet been seen, as only the shallow and dry ground has been worked.
4. AMS (1911) (30 November) states that "During the time that the Star Co held this ground, [Davis’s Block] rich faces were exposed in drives extending beyond this shaft. Some years ago a rock shaft was commenced by the Star Company. It was abandoned after being sunk for about 40 feet. Rich faces which were not easy to reach from the main shaft were proved to exist in that direction and the work promised well to repay expenditure. The Mount Ross Company intends to bottom this shaft. The prospect of rich faces in this direction is almost assured, apart from what the Star Company left.
5. At Hills and Heath No 1, AMS (1921) (8 September) from a primitive trial of this wash deposit – a bucketful or two – four diamonds were obtained. The Party, on indications revealed, are almost sure to open up rich tin and diamond bearing wash.
6. On this basis a grade continuation to the north of 300 carats per hundred tonnes is assumed for this line.

Inferred Resource Summary

Assuming 10% of the deposit is worked out, with rounding off of the figures, this represents an available tonnage of 200,000 tonnes at an average grade of 250 carats per hundred tonnes.

Technical Data
Drillholes utilised in the study include composite percussion, blade and core drilled holes, and Calweld large diameter holes, and were professionally logged. In most cases the river channel was drilled by blade bit, and logged by cuttings. 35 drillholes were utilised in the interpretation. A diamond was recovered from one Calweld drillhole, and from mullock around shafts. Processing was by a small attrition mill and jig. Holes were located by theodolite survey. This drilling density is sufficient to establish continuity of the deep lead deposit over the area studied.

Tenure
The resource is located on MLs 1058, 1083, 5904 and ELA 1952. The area is owned by the Department of Land and Water Conservation, and is partly within a reserve managed by the local Council.

REFERENCES
AMS, 1911, (31 August). Australian Mining Standard, August 31, 1911. (Other dates detailed)
Cotton, L., 1915, Diamond Deposits of Copeton, NSW. Proceedings of the Linnean Society of NSW, Vol. 39.
Cross, W, 1911. Report to J.A. Ross Esq., 29 July, 1911
Daily Telegraph, 1911, April 13.
Field Geologists Manual, 2000. Australasian Institute of Mining and Metalllurgy, Melbourne, 2000
Idress, I.L., 1948. Stone of Destiny. Angus and Robertson, Sydney.
Mount Ross Diamond and Tin Mining Company, 1911, Prospectus.
Mount Ross Diamond and Tin Mining Company, 1916. Report to Shareholders.
McNevin, A.A., 1973. Diamond in New South Wales, Department of Mines, Geological Survey of New South Wales, Mineral Resources No 42.
NSW Department of Mines 1909. Annual Report for Year 1909. (Other dates detailed).
Pittman, E.F., 1901. Diamonds. in The Mineral Resources of New South Wales, Geological Survey of NSW, Sydney.

The information in this report that relates to mineral resources is based on information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 1999 Edition of the "Australasian Code for Reporting of Identified Mineral Resources, and Ore Reserves". Peter John Kennewell consents to the reporting of the matters based on their information in the form and context in which it appears.

Peter Kennewell,
MANAGING DIRECTOR

5th December 2003
Gloucester Ruby Project - 23,755 carats of uncut ruby from pit sections 13, 14 and 15

Processing of 538 tonnes of ruby bearing gravels from Section 13, Strip 3 (28 to 48 metres from the river end of the pit) yielded a total of 10,710 carats of uncut ruby: 7,370 carats of facet quality and 3,340 carats of cabachon quality. This represents a grade of 19.9 carats per tonne saleable to CPH Limited. Wash thickness ranged from 1.3 to 2metres, and overburden thickness ranged from 0 to 1 metre.

260 tonnes of gravels were processed from Section 14, yielding a total of 8,782 carats of uncut ruby: 5,681 carats of facet quality and 3,101 carats of cabachon quality. The resultant grade was 33.7 carats per tonne – the second-highest grade obtained at the ruby project so far. Wash thickness ranged from 1.1 to 1.3 metres and there was no overburden.

Section 15, located 75 to 55 metres along Strip 3, yielded 4, 263 carats of uncut ruby from 304 tonnes processed: 3,154 carats of facet quality and 1,109 carats of cabachon quality, with a resultant grade of 14 carats per tonne. Wash thickness averaged 0.8 metres, in line with the adjacent Section 6.

The diagram below shows the pit section layout with all sections mined to date numbered. Mining and processing of gravels continues at the rate of 150 tonnes per day.

Peter Kennewell,
MANAGING DIRECTOR

2nd December 2003
Letter to Optionholders

The following letter has been sent this week to all holders of December 31, 2003 Options (CFRO), regarding the conversion of the options to ordinary shares (CFR). We wish to draw shareholders’ particular attention to the proposed activities at Mount Ross as described in ‘Diamonds’ below:

Dear Optionholder,

CLUFF’S FUTURE WORK PROGRAM
Cluff Resources has been very active in recent months, particularly, since agreement was reached with Consolidated Press Holdings Ltd for the development of the ruby project. With your support, by converting your December 2003 options to Cluff ordinary shares for 4 cents per share, the Board intends to maintain this momentum towards establishing viable mining operations and thereby achieving a positive cash flow.

ACHIEVEMENTS
Since dispatch of the Annual Report, the Company has steadily progressed towards our objective. Particular highlights include the following.

• Cluff reached agreement with CPH on the Gloucester Ruby Project, whereby both Companies contribute in their areas of specialisation. Subject to the successful outcome of the current trial marketing operation and a feasibility study, Cluff will mine and process rubies which it will sell to CPH at a fixed mark up. CPH will market the stone and derived jewelry products, remitting 20% of the net profits of that operation to Cluff.
• Cluff is currently producing gemstones from a designated trial mining area, and selling this production to CPH. Your Company has refurbished its production plant, mined 6,000 tonnes of gravels, and produced 77,700 carats of rough ruby and about 8,000 carats of rough sapphire to date.
• Top quality contract cutting of the gems by CPH is in progress, and finished stones have been shown to the trade, with very favourable comments on their brilliance. CPH is cutting the stones and conducting the market investigation at its own cost. The result is Australia’s first trial ruby mining and marketing operation.
• On diamond exploration, a new geological model has been developed by Cluff to explain the origin of the Copeton/Bingara diamonds, and diamonds in unconventional rocks have been demonstrated
  

For further details of the Company’s operations see our website: www.cluff.com.au.

THE FUTURE
Gloucester Ruby Project

• Cluff plans to continue ruby production at the present rate, subject to CPH’s positive decision to progress to a feasibility study for a large-scale mining operation. This study will investigate the economics of Cluff constructing a new plant designed to process 1,500 tonnes per day of ruby bearing gravels, with Cluff selling ruby concentrates to CPH and participating in net profits from CPH’s marketing operations.
• According to CPH’s merchandising consultant, Mr Gerry Manning of New York based Manning International, the deposit has the potential to be a "single source for a full rainbow palette" of highest quality untreated gemstones.
• Cluff will search for the primary ruby source. A large hard rock source may warrant long term mining, possibly with more regular ruby quality. A recent extensive ground magnetic survey has already indicated target areas.
• Ruby deposits known in the surrounding areas will be prospected to increase the resource.
  
  

Diamonds

• A shaft is to be sunk forty metres to confirm diamond grade and quality in a high grade exploration target at Mount Ross, on the Copeton diamond field. Discussions are being held with potential joint venture partners for mining of this block.
• Drilling will continue on the Bingara diamond field to locate the rocks mined in the 1890s, aiming to outline an open pit mining operation.
  
  

UNDERWRITING
Underwriting has been obtained for the first two million dollars of the option conversion, ensuring that the Company will enter the new year with at least that amount of money available to carry out an exciting year’s exploration and development.

The underwriting, by Kefu Underwriters Pty Ltd, has normal conditions and limitations. These include release from the agreement upon 10% declines in any of the ASX 500 index, the Dow Jones Industrial Averages, and the $US gold price.

Directors holding options have indicated that they intend to convert at least part of their holdings to shares. Those directors holding options have undertaken that the proceeds of any shares or options which they may sell during December will be fully reinvested in conversion of options, so as to benefit the cash position of the Company. Those Directors not holding options have agreed not to sell shares in December.

CONDITIONS OF THE OFFER
Attached to this letter you will find your personalised Options Exercise Notice. If you wish to convert all or part of your options to fully paid ordinary shares you are required to fill the notice out and send it back via the enclosed reply paid envelope, along with your payment.

Please note the following information:

• The conversion, or exercise price is 4 cents per share.
• The last date for payments to be accepted is Wednesday the 31st of December 2003.
• Date quotation of options will end: 4 pm on Monday the 22nd December (5 business days before the expiry date).
• Latest market price of CFR fully paid ordinary shares: 4.3 cents, at 27/11/03
• Highest and lowest prices for ordinary shares over the past 3 months:
  Highest: 6.3 cents per share on November 5, 2003
  Lowest: 1.5 cents on September 8, 2003
• Consequences of non-payment: Options will cease to be quoted at the close of trading on Monday the 22nd of December 2003, and will automatically expire on the 31st of December 2003. They will have no value after this date.
  
  

Stephen Gemell,
CHAIRMAN


28th November 2003
Underwriting of Options Conversion

In accordance with ASX listing rule 3.11.3, the Company is pleased to advise that it has secured an agreement to underwrite the exercise of its listed options up to the value of $2,000,000.

The options, which are exercisable at 4 cents per share, expire at 4.00 pm EST on Wednesday the 31st of December.

The underwriting, by Kefu Underwriters Pty Ltd, has normal contingencies which allow for release from the agreement. These include (but are not limited to): insolvency; a 10% decline in any of the ASX 500 Index, the Dow Jones Industrial Average, and the $US gold price; an outbreak of hostilities;and/or an actual or projected increase in the Resrve Bank of Australia's Official Cash Rate beyond 6%.

The underwriting ensures that the Company will raise at least $2 million, which will be used to continue its current ruby and diamond exploration and development programs.

A 5% fee is payable in respect to the underwriting agreement.

Peter Kennewell,
MANAGING DIRECTOR

25th November 2003
Gloucester Ruby Project - 21,973 carats of ruby recovered from Sections 6/7, 10 and 11/12

Processing of 265 tonnes of ruby bearing clayey gravels from Section 6/7, Strip 2 (65 to 30 metres from the river end of the pit) yielded a total of 6.901 carats of uncut ruby: 4,432 carats of facet quality and 2,469 carats of cabachon quality. This represents a grade of 12.36 carats per tonne saleable to CPH Limited. Wash thickness ranged from 0.5 to 1.1 metres, and overburden thickness ranged from 1.7 to 2.35 metres.

395 tonnes of gravels were processed from Section 10, yielding a total of 3,858 carats of uncut ruby: 2,686 carats of facet quality and 1,172 carats of cabachon quality. The resultant grade was 9.77 carats per tonne. Wash thickness ranged from 1.3 to 2.3 metres and overburden thickness averaged 1.4 metres.

Concentrate production from Sections 11 and 12 was combined during processing, and the 848 tonnes of gravels yielded 18,046 carats of uncut ruby. This consisted of 11,541 carats of facet quality ruby and 6,505 carats of cabachon quality. The gravel thickness for Section 11 was 0.7 metres, while in Section 12 the thickness ranged between 0,8 and 2.1 metres. Overburden thickness ranged from 0 to 1.0 metres.

Mining continues at the ruby project, with ruby-bearing gravels from Strip 4 now being excavated and processed. To date, over 5,500 tonnes of gravels have been processed, and recorded production of ruby rough is over 77,700 carats. The pit sections diagram below shows the extent of these workings.

Payment of $14,038 has been received from CPH Limited with respect to production from the third week of operations at the ruby project, and a third shipment containing 30,722 carats of uncut ruby has been dispatched to CPH Limited for downstream processing and marketing

Peter Kennewell,
MANAGING DIRECTOR



19th November 2003
Drilling for diamonds at Bingara completed

Sixteen large diameter drill holes were completed on the Bingara Diamond Field in the recent drilling program. Three infilled shafts from the 1890s were also drilled out to determine the level the Melbourne and Bingara Diamond Company was evaluating. The holes, up to fifteen metres in depth and 0.7 metres in diameter, aimed to find diamond bearing conglomerates at the base of a raised terrace of river gravels on the Four Mile Creek area. Drilling totaled 220 metres.

The diagram below shows the location of these activities:

All holes were drilled to hard basement shales. The basal river gravels were penetrated in six of the holes, and four samples of between 0.5 and 1.5 tonnes were taken for testing for diamonds. In the other ten holes the basal river gravels were not present, and up to eight metres of extremely altered and broken claystone with bedrock fragments at its base sits on the basement. The basal river gravels appear to have been eroding into this clay.

The upper part of this claystone has been tested previously, and did not contain diamonds, but nonetheless was sampled in two holes. The basal part, with bedrock fragments, has not been tested before, and six samples of this, ranging from 0.5 to 2.5 tonnes, will be processed for diamond content. Although the origin of the clay with bedrock fragments is uncertain, the Company believes that testing for diamonds is warranted. In one hole, drilled next to an 1890s shaft, 0.4 metres of this zone was backfilled with loose sand, suggesting that rocks from this zone were removed for diamond (or gold) testing during that period.

Thirteen samples are now stockpiled on site, and rather than transport them to Mount Ross for processing, the Company's small transportable processing plant has been set up at Bingara, and is expected to commence processing of the samples tomorrow.

A ten metre deep pit will be commenced this week to excavate a sample of about sixty tonnes of rock from the horizon previously sampled by the 1890’s operators near drillhole CR37. This will be transported to Mount Ross for processing.

The diamond deposit occurs on EL 3325 held by Cluff Minerals (Australia) Pty Ltd, a subsidiary of the Company. It is subject to an agreement with Diamond Ventures Exploration Pty Ltd whereby that Company receives a Net Profit Interest of 10% before DVE has received NPI payments totaling $2 million, and 5% thereafter.

Peter Kennewell,
MANAGING DIRECTOR

14th November 2003
Extension of Ground Magnetic Survey - Gloucester Ruby Project

A ground magnetic survey investigating the regional extent of the magnetic anomalies underlying high grade ruby gravels has been commenced.

This survey follows up the trial ground magnetic survey completed in September, which suggested a relationship between magnetic anomalies and the occurrence of high grades of ruby in the overlying gravels. The survey aims to map the regional setting and extent of these anomalies, and may assist in locating a primary source for the rubies.

The survey will extend over an area approximately 5 km by 1 km. It will generally be carried out by walking using 50 metre line spacings, with intermediate lines giving a 25 metre line spacing over areas of possible significance. Fieldwork for the survey is expected to be completed in about a week. The resultant map will be released shortly thereafter, when the field data has been processed. Subsequent interpretation of the survey will take some time.

Digital Terrain Modelling for the Gummi River Valley will be carried out concurrently with this survey, as a base line study for the Environmental Impact Statement which will need to be prepared prior to larger scale mining.

The ruby deposit occurs on EL 5336 held by NSW Gold, a 100% subsidiary of the Company, and is subject to a business arrangement with Consolidated Press Holdings Limited.

Peter Kennewell,
MANAGING DIRECTOR



10th November 2003
Diamond Exploration Program commences at Bingara

A large diameter drilling program exploring for diamonds has commenced on the Four Mile Creek area of the Bingara Diamond Field in northern NSW. This was an area evaluated by the Melbourne and Bingara Diamond Mining Company during the early 1890s and extends about 1 km by 0.5 km.

Mr G. Stonier, Geological Surveyor, reported in the 1894 Annual Report of the NSW Department of Mines and Agriculture:
"A large amount of work well distributed over the blocks has been done, and in all a dozen shafts have been sunk, mostly through drift, with depths varying from 14 to 64 feet, a number of shafts of a lesser depth, and several cuttings. On Portion 134 the wash runs up to 8 feet In thickness, and averages 5 feet, and on Mineral Lease 9 the average is from 3 to 4 feet. Mr Mercer, the Manager, estimates that both blocks will yield an average of half a carat to the load. Records have been kept of various washings, and they account for 221 carats of diamonds, and 15 oz. gold from 220 loads on Portion 134, and 130 carats from 202 loads on Portion 9." (Note: A load roughly approximated to one tonne).

These basal gravels cover about 1 km by 0.5 km. Reported shaft depths indicate that the gravels fill a shallow basin, the edge of which was tested by several pits of about five metres depth by Cluff during the early 1990s with low grades of diamonds recovered. The current drilling aims to test the nature of the gravels and diamond content in the centre of this structure, where modern testing has not been carried out.

The holes drilled will be 0.7 metre diameter, and each is expected to yield several tonnes of gravel, which will be processed through the Company's processing plant at Mount Ross, Copeton, to determine diamond content.

The diamond deposit occurs on EL 3325 held by Cluff Minerals (Australia) Pty Ltd, a subsidiary of the Company. It is subject to an agreement with Diamond Ventures Exploration Pty Ltd whereby that Company receives a Net Profit Interest of 10% before DVE has received NPI payments totaling $2 million, and 5% thereafter.

Peter Kennewell,
MANAGING DIRECTOR


7th November 2003
Gloucester Ruby Project - 9,142 carats of uncut ruby from section 8, strip 2 - grade of 34.5 carats per tonne

Processing of 265 tonnes of ruby bearing clayey gravels from Section 8, Strip 2 (30 to 20 metres from the river end of the pit – see attached diagram) yielded a total of 9,142 carats: 6,219 carats of facet quality uncut ruby and 2,923 carats of cabachon quality uncut ruby. This represents a grade of 34.5 carats per tonne saleable to CPH – the highest grade recorded so far at the Project. All stone reported is greater than 2 mm in diameter.

Section 8 gravels mined ranged in thickness from 1.4 to 1.7 metres, averaging 1.5 metres. Overburden thickness averaged 2 metres. Processing of other sections at our trommel and jig plant is continuing at the rate of approximately 150 tonnes per day, and concentrate continues to be upgraded through our Sydney facility.

This section and the adjoining section 9 encountered a deep channel filled with gravels. This was created by the river flowing around higher basement rock with granite boulders which underlies section 6/7. A similar channel has been cut on the southern side of the higher basement rock underlying sections 4 and 5.

The ruby deposit occurs on EL 5336 held by NSW Gold, a 100% subsidiary of the Company. It is subject to a business arrangement with Consolidated Press Holdings by which Cluff Resources Pacific NL will receive 20% of the net profits from sale of gemstones marketed by CPH. CPH purchases the gemstones from Cluff at production cost plus 10%.

Peter Kennewell,
MANAGING DIRECTOR

4th November 2003
First payment received from CPH Limited

Payment has been received from CPH Limited for sale of ruby bearing concentrate produced during the first two weeks of operations at the Gloucester Ruby Project.

The amount of $34,730 represents a payment towards Cluff’s operating costs of the ruby project under the terms of the agreement.
This payment does not include any revenue contribution under our agreement with CPH Limited from the future sale of gemstones. This agreement provides for Cluff Resources Pacific NL to receive 20% of the net profits from sales and marketing of gemstones purchased by CPH Limited.

The ruby deposit occurs on EL 5336 held by NSW Gold, a 100% subsidiary of the Company,and is subject to a business arrangement with Consolidated Press Holdings Limited.

Peter Kennewell,
MANAGING DIRECTOR

24th October 2003
Gloucester Ruby Project - highest grade recorded to date: 33 carats per tonne

14,679 carats of uncut ruby were recovered from Section 9, Strip 2 yielding a grade of 33.3 carats/tonne, the highest recorded to date from the project.

Processing of 441 tonnes of gravel, extracted from 90 to 99 metres along Section 9 of Strip 2, yielded a total of 9,617 carats of facet quality uncut ruby and 5,062 carats of cabachon grade, totalling 14,679 carats of uncut ruby saleable to CPH Limited. This represents a grade of 33.3 carats per tonne – the highest grade recorded to date at the Gloucester Ruby Project. All stone reported is greater than 2 mm in diameter.

Ruby bearing gravels were continuous along the length of Strip 2, being thick in Sections 8 and 9 (about 2 metres) and thin (about 0.7metres) throughout Sections 6 and 7.

Sections 6 to 8 are currently being processed at our Sydney facilities. Section 9 was processed first due to the large volume of concentrate extracted, warranting priority. Sections 6 and 7 yielded far less heavy concentrate, and are expected to carry lower grades of ruby. The Table below shows results to date, and the Figure shows the locations of the Sections with respect to the pit excavation area. The Photograph shows Strip 2, looking to the south from the Gummi River end towards the boulders excavated in Section 6 and 7.

	Photo: Strips 1 and 2 of the Ruby Pit looking south, and showing overburden (white clay and topsoil) overlying the ruby bearing gravels. The yellow rock in the base of the pit is altered granite basement.

Peter Kennewell,
MANAGING DIRECTOR

16th October 2003
Gloucester Ruby Project - 9,400 carats of uncut ruby from sections 4 and 5, strip 2

Strip 2 of the ruby mine, seven metres in width and contiguous to Strip 1, has progressed northwards, from 0 to 45 metres through gravels with a clayey matrix for the two sections reported below, then through a zone of boulders up to 80 metres, and through a channel with sandy gravels between this zone and 99 metres. Strip 3 has now commenced.

Processing of 361 tonnes of ruby bearing clayey gravels from Section 4, Strip 2 (0 to 19 metres measured from the southern end of Strip 2) yielded a total of 1,650 carats of facet quality uncut ruby and 703 carats of cabachon grade uncut ruby. This represents a grade of 6.6 carats per tonne saleable to CPH. As cabachon quality stone (cut with a rounded polished surface and popular in Asian countries) grades into low value corundum, CPH will at a later stage be conducting test polishing of this stone to confirm Cluff's grading of cabachon stone.

Processing of 521 tonnes of ruby-bearing gravels, from Section 5, Strip 2 (19 to 45 metres along Strip 2) yielded a total of 4,175 carats of facet quality uncut ruby and 2,872 carats of cabachon grade. This represents a grade of 13.5 carats per tonne. The higher grade is probably due to the sandier nature of the gravel. All stone reported is greater than 2 mm in diameter.

Ruby bearing gravels have been continuous along this section of Strip 2, range in thickness from 0.5 to 1.95 metres, averaging 1.2 metres. Overburden thickness averaged 2.3 metres. Processing is continuing at the rate of approximately 150 tonnes per day, and concentrate continues to be upgraded through our Sydney facility.

The ruby deposit occurs on EL 5336 held by NSW Gold, a 100% subsidiary of the Company.It is subject to a business arrangement with Consolidated Press Holdings by which Cluff Resources Pacific NL will receive 20% of the net profits from sale of gemstones marketed by CPH. CPH purchases the gemstones from Cluff at production cost plus 10%.

Peter Kennewell,
MANAGING DIRECTOR

7th October 2003
Shipment of first parcel to CPH Limited : 15,574 carats of uncut ruby

The first shipment of 15,574 carats of uncut ruby from Strip 1, Sections 1 and 2/3 (production results already reported) was dispatched today. This is the first parcel of rough gemstone production to be shipped under the agreement with CPH Limited.

The parcel will be sorted, cut and marketed by CPH Limited under the terms of the agreement. Payment is expected within 15 working days.

The ruby deposit occurs on EL 5336 held by NSW Gold, a 100% subsidiary of the Company.
It is subject to a business arrangement with Consolidated Press Holdings by which Cluff
Resources Pacific NL will receive 20% of the net profits from sale of gemstones marketed by
CPH. CPH purchases the gemstones from Cluff at production cost plus 10%.

Peter Kennewell,
MANAGING DIRECTOR



2nd October 2003
5,625 carats of uncut ruby from Strip 1, Section 2/3

Processing of the latest 520 tonnes of gravels, which were extracted from 55 to 110 metres along Section 2/3 of Strip 1, yielded a total of 5,625 carats of uncut ruby suitable for sale to CPH Limited. This represents a grade of 10.8 carats per tonne. Additional ruby suitable for alternative cutting processes is also being evaluated by CPH Limited for its marketing potential. All stone reported is greater than 2 mm in diameter.

Ruby bearing gravels have been continuous along this strip, averaging 1.2 metres in thickness. Overburden thickness averaged 2.2 metres. A second strip, which is 7 metres in width and is contiguous to the first, has now been excavated and mining is proceeding. Processing is continuing at the rate of 150 tonnes per day, and concentrate continues to be upgraded through our Sydney facility.

The ruby deposit occurs on EL 5336 held by NSW Gold, a 100% subsidiary of the Company.It is subject to a business arrangement with Consolidated Press Holdings by which Cluff Resources Pacific NL will receive 20% of the net profits from sale of gemstones marketed by
CPH. CPH purchases the gemstones from Cluff at production cost plus 10%.

Peter Kennewell,
MANAGING DIRECTOR



19th September 2003
First production yields 10,027 carats of uncut ruby

Commissioning of the upgraded plant at the Gloucester Ruby Project has been successfully completed. During the 3.75 day trial 560 tonnes of ruby bearing gravel were treated, with a throughput of 150 tonnes per day. As the plant was being fine tuned during this period,material was fed into it slowly, and there were small delays. It is anticipated that the plant is capable of treating gravels at a substantially higher rate. An upgraded concentrate processing circuit using heavy liquid separation was also successfully trialled, eliminating the need for costly hand picking of the ruby before sale.

The initial trench of the pit has been excavated to 100 metres length, and a stockpile of gravels is being created to ensure continuous feed for the plant. Excavation of the second cutof the pit is now commencing. Ruby bearing gravels have been continuous along the length of
the trench averaging about 1.2 metres in thickness, but varying from over two metres in the deeper channels to about 0.6 metres over small basement highs. The trench commenced near the northern edge of the Upper Terrace channel, and has not yet intersected the southern edge of the channel. Gravels at the end of the trench are 0.8 metres thick and continuing.

Processing of the 560 tonnes of gravels yielded 10,027 carats of uncut ruby. This represents a grade of 17.9 carats per tonne. The stone is of good quality and colour, ranging from deep red through deeper pinks to a very pale pink reminiscent of Argyle pink diamonds. Only ruby of quality suitable for sale to Consolidated Press Holdings has been included in this grade. All stone reported is greater than 2 mm in diameter. Production at the mine is continuing at 150 tonnes per day.

The ruby deposit occurs on EL 5336 held by NSW Gold, a 100% subsidiary of the Company. It is subject to a business arrangement with\ Consolidated Press Holdings by which Cluff Resources Pacific NL will receive 20% of the net profits from sale of gemstones marketed by CPH. CPH purchases the gemstones from Cluff at production cost plus 10%.

Peter Kennewell,
MANAGING DIRECTOR

12th September 2003
Magnetic anomalies beneath ruby gravels

Strong magnetic anomalies have been detected beneath the higher grade zones of the Upper Terrace ruby bearing gravels by the ground magnetic survey completed recently (see attached figure - Acrobat PDF format). If these anomalies are produced by rocks containing the rubies, ground magnetic surveys may be a means to quickly locate high grade gravels, and the underlying source rocks for the rubies.

Several pits will be completed in the next month to expose the bedrock beneath anomalies to determine their nature and economic significance.

The ground magnetic survey was carried out by walking, with line spacings of ten metres and positions determined by differential GPS. Differential in magnetic intensity between dark blue areas and red areas is high, at approximately 400nT.

Much of the area surveyed has a gently undulating magnetic pattern in the orange to green-blue range, which probably represents the normal granite bedrock. In some areas this grades to a light blue colour, possibly caused by breakdown of magnetic minerals within the granite by hot watery gases which have moved through it in the past. Neither pattern underlies high grade ruby gravels.

Very sharp anomalies about 20 by 30 metres in size and in places coalesced and forming linear zones, are both normally and reversely magnetised, giving very intense deep blue or red colours. That they originate immediately beneath the gravels, at very shallow depth, is indicated by sharp edges to the anomalies. It is likely they represent zones in the granite bedrock enriched in either ilmenite or haematite, both iron rich minerals which have been recorded in the ruby bearing concentrates.

The ruby grades recorded from past drilling and trenching in the overlying gravels are plotted on the accompanying figure, and, in general, show an increase in grade of the rubies over the anomalies. Whether the ruby enriching the overlying gravels originates in the rocks producing these magnetic anomalies will be determined by pitting.

For further information please contact Peter Kennewell on (02) 9482 4655.

Peter Kennewell,
MANAGING DIRECTOR



10th September 2003
Commissioning of new Ruby plant commences

The Company is pleased to report that commissioning of the upgraded ruby processing plant on the Gloucester Ruby Project commenced yesterday, and is proceeding in a satisfactory manner.

Gravel from the Upper Terrace has been exposed in the first cut of the mine, located one hundred metres east of Trench 11, and a working face of between one and two metres of gravel beneath a metre and a half of silty overburden is now being extracted.

Results from the first washing of the gravel are expected by the end of next week.

Peter Kennewell,
MANAGING DIRECTOR

5th August 2003
Ruby pit ground magnetic survey

A ground magnetic survey to assist mine planning for the ruby mining pit and surrounding area commences today.

The survey maps the intensity of the earth’s magnetic field, which becomes stronger where deeper parts of the gravels contain high concentrations of the iron bearing mineral ilmenite, and possibly similar concentrations of rubies. It will attempt to determine the location and direction of these deeper parts of the channel beneath the flats of the Upper Terrace to allow orientation of the working face in the most efficient direction for mining.

As well as covering the proposed pit area, the survey will extend across previously drilled parts of the Upper Terrace, so that its effectiveness can be checked. Several additional lines are planned across the total width of the Upper Terrace to investigate the technique as a regional exploration tool for mapping the extent of the ruby bearing gravels.

The upgrade of the production plant to 150 tonnes per day by installation of additional jigs, and stripping of the pit overburden ready for mining will be completed by the middle of this month. Mining and commissioning of the plant will then commence.

Peter Kennewell,
MANAGING DIRECTOR

25th July 2003
Gloucester Ruby Project - Agreement with Consolidated Press Holdings Limited

Cluff Resources Pacific NL has entered into an agreement with Consolidated Press Holdings Limited ("CPH") for the development of the Gloucester Ruby Project.

The objective of this agreement is to conduct a staged development program of the Project in which Cluff benefits from the advantage of CPH’s active involvement. CPH brings financial strength, commercial prowess and access to its extensive media network as distinct advantages in the future development of a market for this unique Australian gemstone.

The agreement covers three phases. Phase 1 will consist of trial mining, Phase 2 involves the preparation of a feasibility study, and Phase 3 will be the production period.

The principal elements of the agreement are as follows:

- Cluff will mine and exclusively sell to CPH the gemstone product from the Project. The gemstone sale price will be set to cover mining costs plus a margin of 10%. The definition of mining costs extends in later phases to accommodate anticipated development costs.

- CPH will receive, as a royalty, 10% of the gemstones recovered from mining operations on CPH freehold land. The cost of mining these stones will be incorporated in the sale price calculation of the remaining 90% of production.

- CPH will market the gemstones. This will involve precision cutting, colour sorting, manufacturing fine jewellery products, promotion and, initially, test marketing in various prestigious international centres. Cluff is not required to contribute funds to assist CPH in developing markets.

- Cluff will receive 20% of the net proceeds of the marketing of stones purchased by CPH. Gemstones larger than 4 carats rough will be separately accounted, and for these Cluff will receive 50% of the net proceeds.

The three phases of the development program are distinct, and progression to later phases is at CPH’s option. Cluff has been granted the right to continue mining, with a 10% royalty payable in rough gemstones if CPH does not wish to continue participation.

Phase 1 will consist of the trial mining of ten thousand tonnes of gravels from the rich Upper Terrace at a rate of 150 tonnes per day utilising the small plant currently on site, and is expected to yield about 120,000 carats of rough ruby. Coloured gemstone marketing is a highly specialised business, and external expert services will be required. Natural faceted higher-quality gemstones will initially be sold into the top level of the wholesale and retail markets, whilst markets for the lower grade materials will be investigated and the overall profitability of the operations determined. The stone will be marketed by CPH with a budget in the order of one million dollars.

In Phase 2, CPH will prepare (at its cost, to be amortised against the project if it proceeds to Phase 3) a detailed Feasibility Study for CPH’s marketing and Cluff’s mining operations. Cluff will cooperate with the preparation of this study, which envisages a mining and processing rate of 1,500 tonnes per day. Subject to further statutory approval, Cluff will continue trial mining at additional target sites in the deposit, selling the gemstones to CPH and sharing in net marketing proceeds as in Phase 1. Cluff will continue, at its cost, with the preparation of an Environmental Impact Statement for the larger scale mining operation.

CPH will decide within 75 days of completion of its Feasibility Study whether to proceed with Phase 3, Full Mining Operations. If it does so, a New Agreement will be signed, based on the above profit sharing arrangements, and on a Business Plan set out in the Feasibility Study. Working capital for this large scale purchasing, cutting, manufacturing and marketing program will be provided entirely by CPH, and is expected to be several millions of dollars. As Cluff will be mining and processing the ruby deposit, funding for the construction of a larger plant will be required. Provision has been made, if necessary, for a loan facility from CPH for the full amount of the capital cost and working capital required to construct and operate the Phase 3 mining program.

The above arrangements apply to the Gummi river catchment. Other ruby-bearing areas within Cluff’s existing tenement base at Gloucester are subject to a right of first refusal by CPH if Cluff seeks to introduce another participant. If this right is exercised, gemstones from these areas will be sold to CPH under the same conditions as in the agreement, except that Cluff will be entitled to 50% of the net proceeds from CPH’s marketing operations.

The Cluff Board welcomes the substantial input of CPH to this exciting project, and believes that it provides many advantages for your Company. In addition, this co-operation in mining and marketing potentially will have positive flow-on effects for the Australian gemstone industry as a whole.

For further information please contact Scott Enderby or Peter Kennewell on (02) 9482 4655.

Peter Kennewell,
MANAGING DIRECTOR

13th June 2003
Gloucester Ruby Project - Approval for 10,000 tonne bulk sampling program

The Company has received approval from the Department of Mineral Resources to proceed with the Company’s next 10,000 tonne bulk sampling program at the Gloucester Ruby Project.

The area to be excavated, on the Upper Terrace of ruby-bearing gravels, was trenched during 2002 yielding grades of 15 to 25 carats of rough ruby per tonne.

The company has been upgrading its trommel and jig plant and camp facilities in anticipation of the approval, and plans to commence the program shortly, following the completion of current negotiations with Consolidated Press Holdings Limited.

Results of the program will be reported on a regular basis.

For further information please contact Scott Enderby or Peter Kennewell on (02) 9482 4655.

Peter Kennewell,
MANAGING DIRECTOR

5th June 2003
Negotiations with Consolidated Press Holdings Ltd Continuing

The Company reported on the 23rd of May that it was in the advanced stages of negotiations with Consolidated Press Holdings Limited for
an agreement on the Gloucester Ruby Project.

The timetable has extended beyond that which was previously expected.The Company is now in possession of draft documents relating to the
proposed agreement, and negotiations are continuing.

Specific terms of the agreement are still under discussion.

P Kennewell,
MANAGING DIRECTOR

2nd June 2003
Chairman's address to Shareholders: Annual General Meeting 30th May 2003

I must first express my pleasure in participating in the direction of your Company. Your board is looking forward to a hopefully progressive period of development and growth.

It is appropriate that I express the Company's thanks to Walter Penninger, the previous Company Chairman, for his work and commitment over the past years. He has provided guidance through difficult stock market conditions and has been instrumental in establishing the base from which the Company can now proceed.

The Company plans to remain focused on exploring and (more importantly) developing gemstone properties, with the objective of transforming Cluff into a steady-state and profitable producer.

The Company has interests in three groups of properties, containing recognised diamond, ruby and sapphire deposits. Your board plans to progress these deposits in a systematic manner, progressively gaining market recognition for the gemstone products and expanding production rates correspondingly.

In doing this, your board will work towards maintaining an appropriate balance between risk and reward. As the transition between explorer, developer and miner progresses, so too will this balance change. There are significantly different risk profiles associated with:
* the discoveryof a gemstone-bearing deposit;
* the delineation of the mineral resource;
* the projection of future revenue, capital cost and operating cost in the bringing of a property to production;
* the establishment of gemstone markets; and
* the assessment of value-adding opportunities such as downstream processing and strategic partnerships.

We believe that it is important that the company recognises in a timely manner the inherent elements of the various risk-reward profiles, and manages them well.

S Gemell
CHAIRMAN

28th May 2003
Successful completion of Share Purchase Scheme

The Company is pleased to advise that its Share Purchase Scheme has been successfully completed and closed, with the full 15% of the issued capital being fully subscribed. $804,000 was raised by the Share Purchase Scheme.

Only a very small proportion of applicatios received by Registries Limited on Wednesday the 28th of May could be processed before the issue was fully subscribed.

P Kennewell,
MANAGING DIRECTOR

27th May 2003
Appointment of Chairman

The Board is pleased to announce that it has appointed Mr Stephen Geoffrey Gemell as Chairman of Cluff Resources Pacific NL.

Mr Gemell has previously held executive and non executive directorships in six ASX-listed mining companies and three unlisted mine operators or joint venturers. He is currently Chairman of Central West Gold NL and Chairman of Mount Conqueror Minerals NL.

He is a consulting Mining Engineer with more than twenty five years operations and exploration experience, both in Australia and overseas. He has been a Principal of Gemell Mining Engineers since 1984, and is a Fellow of the Australasian Institute of Mining and Metallurgy, a Member of the Mineral Industry Consultants Association, and a Member of the American Institute of Mining, Metallurgical and Petroleum Engineers

.P Kennewell,
MANAGING DIRECTOR

23rd May 2003
Ruby negotiations with Consolidated Press Holdings Ltd

The Company is pleased to report that in is in negotiations with Consolidated Press Holdings Ltd with respect to developing a ruby mining industry at its Gloucester Ruby Project, north of Sydney.

Discussions over the last couple of months to develop the ruby project have reached an advanced stage. The Company hopes that an agreement on the project can be settled next week.

The discussions provide for Cluff to carry out mining on the deposit, initially at a rate of 150 tonnes per day, yielding about 10,000 carats of rough ruby per week. Ruby production from the mine will be purchased by Consolidated Press Holdings Ltd.

The economics of mining determined from this operation will then be evaluated with a view to substantially raising the throughput and profitability of the mine.

P Kennewell
MANAGING DIRECTOR

29th April 2003
Share Purchase Scheme

The Company is pleased to announce a Share Purchase Scheme for its shareholders, to raise a small amount of working capital to
supplement sales of gemstones. The scheme is open to all Shareholders, and provides them the opportunity to purchase listed
shares in parcels from a minimum of $140 to a maximum investment of $4,900.

Details of the offer are attached.

P Kennewell
MANAGING DIRECTOR


24th April 2003
Appointment of Board Member

The Board is pleased to advise that Mr Stephen Geoffrey Gemell has accepted a position of Director of Cluff Resources Pacific NL.

Steve is no stranger to Cluff's properties, having been Project Manager of the Copeton Diamond Project for Audimco Ltd during theearly 1980s, driving tunnels and sinking shafts into the diamond deposits untouched by the 1890s miners, and deep beneath Mount Ross.

He is now a consulting Mining Engineer with more than twenty five years operations and exploration experience, both in Australia and overseas. He has been a Principal of Gemell Mining Engineers since 1984, and is a Fellow of the Australasian Institute of Mining and Metallurgy, a Member of the Mineral Industry Consultants Association, and a Member of the American Institute of Mining, Metallurgical and Petroleum Engineers.

He has previously held executive and non executive directorships in six ASX-listed mining companies and three unlisted mine operators or joint venturers. He is currently Chairman of Central West Gold NL and Chairman of Mount Conqueror Minerals NL.

P Kennewell
MANAGING DIRECTOR

4th April 2003
Sale of Monte Christo Rough Diamonds

The Company is pleased to announce the sale of the 1,352 carat parcel of rough diamonds produced from the Monte Christo mine at Bingara. The sale raised $A95,600, representing a price of $US42.45 per carat.

This Monte Christo parcel averaged seven stones to the carat, with 76% of the stone being melee (less than 0.25 carats in size) or smaller. This is a much smaller stone size than other deposits on the field. Mount Ross averages four stones to the carat or better, and Collas Hill three to the carat. Larger stones fetch substantially higher prices.

The party purchasing the parcel has also shown interest in participating in further developments on the field.

The sale is consistent with the Board's policy of generating cash flow by sale of stock to fund further production.

P Kennewell,
MANAGING DIRECTOR

31st March 2003
Appointment of Director

The Board is pleased to advise that Mr Peter Barrow, (FCA, FAID) has accepted a position as Director of Cluff Resources Pacific NL.
Peter is a partner of MBT Chartered Accountants. He brings financial and Board experience from his Directorship at Flight Centre Limited,Australia's leading travel agency.

Mr Peter Kennewell has accepted the position of Company Secretary.

It is not a requirement that the Board elect a Chairman, and until a suitable Chairman is selected, meetings will be chaired by a Board member chosen by the Directors present.

P Kennewell
MANAGING DIRECTOR AND COMPANY SECRETARY

27th February 2003
Ruby & Sapphire Marketing at Tucson Gem Fair USA

Six days were recently spent exhibiting the Company's rubies and sapphires at the Tucson Gem Fair, USA, by the Company's Marketing Director and Managing Director. Tucson is the largest gem exhibition in the world, and the Company exhibited with its US agent Manning International, at the American Gem Traders Association, the chief gem-wholesaling group in the US.

Rubies and pink sapphire had been cut with the highest quality 58 facet cutting, in calibrated sizes from 1 to 1.5mm. These stones were flawless, not heat treated, and included the full range of colours available in the deposit. About 30% of the deposit consists of stones of this quality. They, together with the rough stone from which they were cut, were examined by about a dozen of the US's largest gem wholesalers, andpurchasers for manufacturing jewellers, many based in New York. All agreed that they were of very high quality, with the deeper red colours being in unique and beautiful shades. Many expressed an interest to purchase stones when commercially available, despite being advised that they would be selling in the uppermost part of the market.

Larger rubies with commercial quality cut were also shown, with similar favourable response.

The Company's cut sapphires were exhibited, and are regarded by these dealers as of commercial quality, with most suitable for large runs of commercial jewellery. Sales of about $US 8,000, mainly as samples, were made at the Fair. Negotiations to purchase part of the Company's large parcel of cut sapphire at bulk wholesale prices through our agent were initiated.

P Kennewell,
MANAGING DIRECTOR

26th February 2003
Director & Company Secretary Resignation

The Board advises that it received this morning the resignation of Mr Walter Penninger from the positions of Director of the Company and its subsidiaries, and from the position of Company Secretary.

P Kennewell
MANAGING DIRECTOR

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