Lihir Gold Limited

Rio Tinto PLC
12 November 2003





Lihir Gold Limited issued the following news release in Australia earlier today.
All dollar amounts are in Australian currency.  Rio Tinto held a 16.3%
interest in Lihir Gold prior to this announcement.

CAPITAL RAISING



Lihir Gold Limited (Lihir) announces that it is raising A$210 million
(approximately equivalent to $US150 million and PGK525 million) in new capital
by way of an underwritten institutional placement to Australian and offshore
investors (the Placement). The Company also intends to implement a Share
Purchase Plan (SPP) for existing shareholders in Australia, New Zealand and
Papua New Guinea which would raise a further $US10-20 million assuming usual
participation rates.

The Placement will be conducted by way of an overnight underwritten book build
and will be managed and underwritten by Goldman Sachs JBWere. The Company
proposes to place 140 million fully paid ordinary shares, or approximately 12.3%
of the Company's issued capital.  The underwritten price for the Placement is
A$1.50 per share. Details of the final Placement price and funds raised will be
announced tomorrow.  Shares issued pursuant to the Placement will rank equally
with the Company's existing ordinary shares.

The Placement will strengthen Lihir's financial position, enabling
implementation of efficiency and cost reduction initiatives and facilitating
access to accelerated growth opportunities.

The funds raised from the Placement and the SPP are intended for:

•       Geothermal power plant - Lihir's Board has recently committed to the
construction of a new 30MW geothermal power plant.  The power plant is estimated
to cost US$45 - US$50 million and expected to be operational in the first
quarter of 2005. Once operational, the Company anticipates the plant will
deliver substantial cost savings of around US$10 million per annum on a cash
operating basis, based on current fuel prices.  In addition, Lihir intends to
pursue the potential for further capacity, possibly up to an additional 20MW
above the 30MW already approved.

•       Retirement of high cost debt - The Company proposes to retire relatively
expensive debt facilities of approximately US$15m.

•       Acceleration of Kapit resource development - Subject to successful
conversion of resource to reserve at year-end, the Company proposes to
accelerate the intended development of the Kapit resource, including the
geothermal drilling programme.  This programme would be expected to cost up to
US$25m and would allow refinement of the long-term mining plan, potentially
enabling earlier access to the Kapit resource.

•       Efficiency initiatives - A range of programmes are being evaluated.
These include plant reliability and throughput options such as improved carbon
regeneration capability, increased ore feed washing capacity, more efficient
mine waste handling and potentially higher mining rate capability.

Following this equity raising, the Company intends to review its debt structure.

The Board is confident that the above initiatives will deliver increased value
to shareholders.

Rio Tinto

Rio Tinto has informed the Company that it does not intend to participate in
this Placement. Rio Tinto has advised Lihir  that its present intention is to
continue to hold its existing shares in the Company.

The Lihir Board advises that Rio Tinto will continue in its management role of
the Lihir Project under the existing management contract.

Lihirian Trust

The Company intends to allow a period of 30 days from the date of the Placement
for the Lihirian community (through the Lihirian Equity Trust) to subscribe for
an additional 10.2 million shares at the same issue price as the final issue
price of the Placement.  This offer is non-renounceable and will not be
underwritten.

The Board notes that the Lihirian people's interests have been materially
reduced since the Company's inception in 1995.  Most recently, and as discussed
by the Company at its Annual General Meeting held in April, the Lihirian
community has agreed to sell down its equity in Lihir to 5.2% to service the
major part of its remaining debt to the European Investment Bank.  As a result
of the administrative processes and approvals required, this sell down has not
yet occurred.

Lihir's Board continues to recognise the importance of the local Lihirian
community holding equity in the Company and considers it appropriate to assist
the Lihirian community to maintain their equity interest in the Company at 5.2%.
  It is likely that their interest will be diluted below this as a result of the
agreed sell down process and the current capital raising.  In this event, it is
the Board's intention to issue, for nil consideration, such number of shares to
the Lihirian community (through the Lihirian Equity Trust) as is necessary to
maintain their interest at 5.2%. At current exchange rates and recent share
price range, this potential issue is unlikely to exceed 5 - 6 million shares,
but the final issue to the Lihirian community will be determined with reference
to the number of shares issued under the SPP.

Share Purchase Plan

Lihir intends to extend an offer to its existing shareholder base in Australia,
Papua New Guinea and New Zealand to subscribe for shares under a Share Purchase
Plan.  The Company is applying for a waiver from the ASX to exclude the shares
issued under the SPP from the restriction contained in the ASX Listing Rules on
issuing more than 15% of the Company's issued capital in a 12 month period.  The
Company will also require a waiver of prospectus provisions from the Securities
Commission of Papua New Guinea. Subject to the grant of these waivers, the SPP
would enable eligible shareholders to subscribe for parcels of shares worth
approximately A$2,000, A$3,000 or A$5,000 (or the equivalent in Papua New Guinea
and New Zealand). The offer price will be equal to the Placement price. The
record date for the SPP will be announced shortly and details of the SPP are
expected to be mailed to eligible shareholders in approximately two weeks' time.
The SPP will not be underwritten and will be non-renounceable. Any shares
issued under the SPP will rank equally with the Company's existing ordinary
shares.

Trading Halt

The Company has requested that trading halts be placed on its shares on ASX and
POMSoX and its American Depository Receipts (ADR's) on NASDAQ until the
Placement has been completed and allocations advised to successful subscribers.
It is anticipated that the trading halts would be lifted by 12.00pm AEDT
tomorrow, Thursday 13 November.



This announcement has been prepared for use in Australia and may not be released
or distributed in the United States.  It does not constitute an offer of any
securities for sale in Australia, the United States, Papua New Guinea or any
other jurisdiction. Securities may not be offered or sold in the United States
in the absence of registration under the US Securities Act of 1933 or an
exemption from registration.





For further information, please contact:

LONDON                                               AUSTRALIA

Media Relations                                      Media Relations
Lisa Cullimore                                       Ian Head
Office:  [phone]                        Office:  [phone]
Mobile: [phone]                         Mobile: [phone]

Investor Relations                                   Investor Relations
Peter Cunningham                                     Dave Skinner
Office:  [phone]                        Office:  [phone]

Mobile: [phone]                         Mobile: [phone]
Richard Brimelow                                     Daphne Morros
Office:  [phone]                        Office:  [phone]
Mobile: [phone]                         Mobile: [phone]



Website: www.riotinto.com




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