Drilling Report

Brancote Holdings PLC
5 March 2002



Date                  5 March 2002



Contacts:             Richard Prickett, Chairman

                      Bill Humphries, Managing Director

                      Brancote Holdings PLC    020 7493 1002



                      David Bick

                      Holborn                  020 7929 5599

                                               [e-mail]





                             BRANCOTE HOLDINGS PLC


                          Esquel Gold Project (76.4%)

             Progress Report on the Phase V Drilling Programme.



Feasibility infill drilling.



Close spaced drilling of the remaining 120 metre 'gap' in the Julia resource,
centred on last seasons outstanding drill-hole JD 51A, has confirmed the
presence of a large shallow dipping vein containing very high grade gold.

The continuity of a high grade zone, >200g/m, within the Julia vein system has
now been established for almost a kilometre from the Football Field in the north
to the edge of the scarp in the south.



Results from Julia include;

                                    Table 1

                      Galadriel Sur Diamond Core Drilling
       Hole         Easting        Northing         Depth          From           Intersection     Grade
    N degrees          156            525           metres         metres             metres      g/t gold
       JD 52         4396.3         1470.6          135.9          102.0               19.0         12.6
       JD 57         4329.0         1457.2          148.0           73.2               29.5         11.4
       JD 58         4350.3         1381.4           91.1           25.0               15.2          8.4
       JD 59         4340.1         1405.1          135.9           57.5               37.4         20.2
       JD 61         4323.4         1371.9          125.2           47.1               26.0         17.0
       JD 62         4413.3         1492.5          157.0           98.4               15.6         10.6



The success of the Phase V infill-drilling programme has exceeded all
expectations, and has ensured a substantial increase in both the Julia and
Galadriel resources together with the Feasibility mining reserves.



Results from the programme are currently being compiled and, when completed,
will be forwarded to mine engineering consultants Pincock Allen and Holt for
resource definition.

A total of 9778 metres of diamond-core drilling was completed in the Phase V
programme. Assay results are awaited from the last eight drill-holes on Julia
and the Football Field.



Ungoliant Exploration Drilling



A 550 metre, reverse circulation, drilling programme has been completed on the
northern section of the Ungoliant vein which occupies a sub-parallel structure
to the east of the Galadriel/Julia system and is traceable, through outcrop and
float, for over two kilometres.

The drilling has returned spectacular results confirming that gold values are
increasing with depth with grades of 1oz. Gold/ton over a minimum true width of
five metres at a depth of 90 metres below surface.



Results received include;

                                    Table II

                     Ungoliant Reverse Circulation Drilling
        Hole        Easting        Northing         Depth           From           Intersection    Grade
    N degrees         156            525            metres         metres             metres      g/t gold
       UR 08         5173.7         1273.3           83.0          51.00                8.0         15.8
       UR 11         5193.5         1256.3          126.0           61.0               38.0         12.3
                                 Including                          82.0                9.0         34.3



Further exploration drilling is planned for an area 300 metres to the south
later in this season in preparation for a diamond-core drilling campaign to
commence in October of this year.



Feasibility Studies.



Golder Associates, a world recognised leader in open pit mining slope stability,
has commenced Geotechnical works on site for open pit design, groundwater
hydrology, waste dump stability and plant site foundation. A 1,100 metres
diamond core-drilling programme will be completed in March to support their
work.

A 1400 metre drilling programme, for additional metallurgical testing to be
carried out by Hazen Research of Golden Colorado, commenced on February 27th and
is scheduled for completion later this month.



                                    - ENDS -



Geological information in this report has been compiled by Marc J. Sale, who:

•         Is a consultant to Brancote Holdings plc;

•         Has relevant experience in relation to the mineralisation being
          reported on to qualify as a Competent Person as defined in the 
          Australian Code for Reporting of Identified Mineral Resources and Ore 
          Reserves;

•         Is a member of the Australian Institute of Mining and Metallurgy and
          has more than five years experience in this field of activity reported 
          herein;

•         Has consented to the inclusion of this data.



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            The company news service from the London Stock Exchange