Lihir Gold Limited

Rio Tinto PLC
29 January 2002

The following was released to the Australian Stock Exchange by Lihir Gold
Limited, a 16.3 per cent associate of Rio Tinto.

LIHIR ANNOUNCES A SIGNIFICANT INCREASE IN RESERVE

  Total Reserves increase by 3.0 million ounces (+25%) to 15.1 million ounces

The ore resources and reserves in the table below are based on a major review of
Lihir's resource model completed in December 2001.

Since the previous model review in 2000, substantial diamond drilling has been
carried out in North East Minifie (23 holes), Borefields/ ROM zones (113 holes)
and in the eastern half of the Lienetz deposit (44 holes). Holes included in the
revised resource model are those available to the end of September 2001. These
reserves do not include results from drilling conducted during the fourth
Quarter 2001, nor do they include results from any drilling from the northwest
extension of Lienetz.

As reported during the year, new mineralised extensions to the Lienetz and
Borefields zones have been identified and are now represented in the resource
model for the first time.

Based on the additional data, and a full review of mining and processing costs,
a new optimised pit design has also been completed.

On this basis, the Measured, Indicated and Inferred Mineral Resources, inclusive
of the Ore Reserves, are 353.8 million tonnes averaging 3.04 grams of gold per
tonne for 34.6 million ounces of contained gold. Included within this are Proved
and Probable Ore Reserves of 120.8 million tonnes averaging 3.90 grams of gold
per tonne for 15.1 million ounces of contained gold.

The following tables show the composition of Lihir's 34.6 million ounces of
resource and 15.1 million ounces of reserves.

IDENTIFIED MINERAL RESOURCES (1) (Resources are inclusive of reserves)

                                      Resource          Tonnes          Average          Contained
                                      Category                          grade            Ounces (3)&(4)
                                                          (millions)    (g Au/t)         (millions)
Minifie, Lienetz, Borefields,         Measured               30.8          3.44                    3.4
Coastal and Kapit Deposits            Indicated             192.7          3.36                   20.8
                                      Inferred              130.4          2.16                   10.3
Total Resources (2)                                         353.8          3.04                34.6(5)


(1)          Cutoff grade 1 .5g Au/t (equivalent to US$400 per ounce cutoff grade).

(2)          Inferred Resource material falling within the planned mining pit,
along with indicated material between the Resource cutoff of 1.5g Au/t and the
Reserve cutoff (1.6 to 2003 and 2.Ig Au/t beyond) within the mine pit, is not
included in Resources. This identified material accounts for an additional 46.1
Mt @ 1 .9g Au/t containing 2.8 M oz.

(3)          Resources for the period have been depleted by mining, conversion
to reserves, and revised modeling of marginal resources at the limits of the
Minifie and Coastal deposits.

(4)          The number of contained ounces does not indicate the ounces that
will ultimately be recovered. The ounces ultimately recovered and available for
sale depends on whether, and to the degree which, Mineral Resources are
converted to Ore Reserves and upon mining and processing efficiency.

(5)          2000 resource was 428.9 Mt at 2.69g Au/t for 37.1 M oz Au.

Ore Reserves (1)
                                          Reserve Category   Tonnes           Average grade    Contained
                                                                                               Ounces (4)
                                                                              (g Au/t)         (millions)
                                                             (millions)
Reserves at 31st  December                Proved                 10.3            4.55              1.5
2001
                                          Probable               90.2            4.05             11.8

Sub total                                 Proved                100.4            4.10             13.3
Stockpiled Ore (2)                                               20.4            2.87              1.9
Total Reserves (3)                                              120.8            3.90             15.1


(1)          Reserve tonnages have been depleted during 2001 by mining activity.
Reserves quoted are those remaining below the 31 December 2001 mining surface,
within a revised ultimate pit design (January 2001), based on the December 2001
revised Resource model.

(2)          Cutoff grade for the reserve calculations is fixed at 1 .6g Au/t
for the first 6.5 years of mining operations (till end of 2003), increasing to
the economic cutoff, currently 2.1 g Au/t for the remaining mine life. This is
required under the Mining Development Contract with the state of PNG.

(3)          Stockpiled ore totals reflect ore above cutoff currently on
stockpile at 31 December 2001.

(4)          The reserves reflect an assumed life-of- mine gold price of US$300
per ounce. The number of contained ounces does not indicate the ounces that will
ultimately be recovered. The company currently estimates an overall recovery of
13.6million ounces of gold from the 15.1 million contained ounces.

(5)          2000 reserve was 108.8 Mt at 3.65 g Au/t for 11.8 M oz Au (US$300
oz).

Lihir continues to use a long-term gold price assumption for grade cutoff and
pit design purposes of US$300 per ounce. The company believes this to be in line
with general industry expectations and peer group reporting assumptions.

In order to assess the potential impact of a lower metal price, a reserve
sensitivity case at $280 per ounce reduces the reserve by 2.2% to 115.2mt @
4.OOg Au/t for 14.8 M oz contained gold.

Comparisons

The US$300 estimate at end- December 2000 was a proved and probable reserve of
12.8moz, in comparison to the current 15.1 M oz at end 2001, representing a 2.3
M oz or 18% reserve increase (net of 2000 depletion) achieved during the year.

Comparison of the end-December 2001 position on the previous model (December
2000) shows increase of 3.0 M oz or 25% in reserves over the same period.


@US$300 / oz                    End-December 2000             End-December 2001            End-December 2001
                                   2000 model                    2000 model                    2001 model

Proved and probable

                                 Mt     g Au/t      Moz        Mt    g Au/t      Moz        Mt    g Au/t        Moz
In Pit Ore                     92.2       3.71     11.2      84.0      3.78     10.2     100.4      4.10       13.3
Stockpile Ore                  16.6       3.03      1.6      20.4      2.87      1.9      20.4      2.87        1.9
Total Reserve                 108.8       3.65     12.8     104.4      3.76     12.1     120.8      3.90       15.1

Further Developments

During the resource and mine resource optimisation studies, a substantial
tonnage of indicated resource at moderate depth has been identified in the
Northern Lienetz area. Given the proximity of this resource to the coastline,
engineering studies to test the full economic potential of the mineralisation
have commenced.

Drilling is also continuing on the central and western flanks of Lienetz, and
will continue in this area, and further to the west of Minifie, throughout 2002.
A reserve update is planned for mid-2002, to take into account data collected
since September 2001.

The information in this report that relates to Mineral Resources or Ore Reserves
is based on information compiled by the Company's chief Geologist, Steve Hunt,
who is a member of the Australian Institute of Geoscientists and a full-time
employee of the Company. Steve Hunt has sufficient experience which is relevant
to the style of mineralisation and the 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 Mineral
Resources and Ore Reserves. Steve Hunt consents to the inclusion in the report
of the matters based on their information in the form and context in which it
appears.


                      This information is provided by RNS
            The company news service from the London Stock Exchange