NRE increases exposure to Australian Coal - Acquires 4000 sq km of Western Australia for exploration, foray into Copper in Chile and Gold in Peru
(October 24, 2005)

Gujarat NRE Coke Limited today announced a strategic investment in Sydney based Rey Resources Limited (RRL).

The investment gives exploration access to a previously unexplored area of about 4000 sq kms in Western Australia, where preliminary studies have already identified a 15 m thick coal seam. The wholly owned subsidiaries of Rey Resources Limited are also scouting for Copper and Gold in South America, which too will add to the NRE basket of resources.

The 19.9 per cent investment by GNCL entitles it to the first right of refusal on any agency agreement for India in respect of any mine product produced in the future by Rey Resources Limited or any of its three wholly owned subsidiaries in Australia, Chile and Peru. This is in addition to the benefits that will accrue to Gujarat NRE Coke Limited by virtue of being an equity stakeholder in the company. Shri Arun Kumar Jagatramka, Vice Chairman and Managing Director of Gujarat NRE Coke Limited will be joining the board of Rey Resources Limited shortly to further strengthen the bonds between the two entities.

Gujarat NRE Coke, the largest manufacturer of Low Ash Metallurgical coke in the non-captive sector in the country, is the first Indian company to have acquired a coalmine in Australia. Said Shri Jagatramka, �at NRE, our mission is to achieve growth @ speed of thought. We grow by being a step ahead, visualising opportunities and then by giving concrete shape to our dreams. The move into Australia, with the acquisition of mines was one such step. The strategic investment in Zinico Resources which has access to iron ore was another example. The Rey Resources investment too, is part of the same strategy and I am confident that our investments will continue to pay rich dividends over the years, justifying forays into the future.�