Drilling Report

Vane Holdings PLC
29 September 2004

                               VANE HOLDINGS PLC

                   DIABLITO DRILLING CONFIRMS HIGH GRADE VEIN

VANE Holdings Plc ('Vane' or 'the Company') announces that the second phase of
in-fill and offset drilling, consisting of 26 holes (DIA 10-01 to DIA 35-01)
designed to upgrade the status of the announced 100,000 tonne mineral resource
at Diablito, has been completed. Forty-two holes have now been drilled in an
area 450 metres by 100 metres to test the shallowly dipping vein on a 12.5m to
25m Grid.

Mineralised vein material was encountered in all but four of the holes assayed
to date. The four holes drilled through cover on the western projection of the
vein early in the first phase drilling programme failed to intersect the vein,
probably as a result of being collared in the footwall. All 26 holes drilled in
the second phase drill programme intersected vein material with assays received
to date confirming the presence of significant gold mineralisation.

Drill core from the vein was sawn, half of it was bagged and shipped for assay
to Actlabs in Tucson, Arizona. The remainder of the core has been stored on
site. Core recovery during the current programme has been satisfactory and a
programme of check assaying has confirmed analytical results so far provided by
Actlabs. Assay results received for holes DIA 10-01 to DIA 24-01 are summarised
below with gold values as high as 33.3 g/t, equivalent to 1.07 ounces per metric
tonne in hole DIA 14-01 and silver values as high as 4500 g/t (145 opmt) in hole
DIA 19A-01. Vein intercepts vary from 0.20 metres to 4.2 metres. Assay results
for the remaining eleven holes (DIA 25-01 to DIA 35-01) are expected by the end
of September, when a further announcement will be released.

When all assays are available the data will be compiled by Independent Mining
Consultants of Tucson in order to develop a mining plan for Diablito by year
end.

PARTIAL LIST OF ASSAYS (by holes):

Hole No.      From       To   Interval      Gold      Gold     Silver     Silver
               (m)      (m)        (m)     (g/t)    (opmt)      (g/t)     (opmt)
             
DIA 10-01    20.15    20.35        0.2      3.57      0.11        615        20
DIA 11-01    20.00    20.40        0.4      0.27      0.01         33         1
DIA 12-01    20.05    22.85        2.8      5.34      0.17        559        18
DIA 13-01    29.60    33.80        4.2      6.63      0.21        965        31
Includes     30.10    31.10        1.0     18.10      0.58       2823        91
DIA 14-01    33.75    36.25        2.5     11.26      0.36       1293        42
Includes     34.25    34.75        0.5     33.40      1.07       3000        96
DIA 15-01    29.70    30.80        1.1      2.00      0.06         63         2
DIA 16-01    27.85    28.95        1.1      0.81      0.03         28         1
DIA 17-01    44.35    45.65        1.3      2.37      0.08        341        11
DIA 18-01    36.80    37.70        0.9     18.70       0.6       2897      0.60
DIA 19A-01   38.50    41.00        2.5     12.50      0.40       1890        61
Includes     40.00    40.50        0.5     30.30      0.97       4500       145
DIA 20-01    41.70    44.20        2.5      4.09      0.13        784        25
DIA 21-01    44.70    45.30        0.6      2.54      0.08        464        15
DIA 22-01    46.30    47.20        0.9      7.27      0.23       1250        40
DIA 23-01    48.55    50.25        1.7      8.94      0.29       1235        40
Includes     48.55    49.35        0.8     10.13      0.33       1790        58
DIA 24-01    50.45    52.05        1.6      1.96      0.06         24         1



For further information, please contact:

VANE Holdings Plc     Seymour Pierce                 Parkgreen Communications
Matthew C. Idiens     Sarah Wharry / Jeremy Porter   Justine Howarth / Cathy Malins
[phone]       [phone]               [phone]
www.VANEminerals.com


Notes to editors

VANE owns 100% of the mineral rights to the Diablito Project. Diablito is an
advanced high-grade precious metal vein deposit located in the State of Nayarit,
Mexico. VANE plans to put the Diablito prospect into production by early 2005 in
order to finance exploration costs elsewhere in the Company. The Directors
believe that the simplicity of the mining process, and the Company's ability to
vary the production rate, make this an achievable objective.

VANE was co-founded by CEO Steven Van Nort, who was previously Senior
Vice-President of exploration-metals at Freeport McMoRan until 2000. The Board
also includes L. Clark Arnold as Director of Geology, who participated in the
development and implementation of a statistically based method of porphyry
copper prospecting which eventually led to two major discoveries: The Escondida
mine in Chile, believed to be the world's largest copper deposit, and the Santa
Cruz deposit in Arizona. Matthew Idiens, formerly a Fund Manager for Laing and
Cruickshank Investment Management, is Commercial Director and Robert Jeffcock,
who brings many years' of experience raising funds within the resources sector,
is a Director. Michael Spriggs, who has 27 years of mining sector experience,
worked as an exploration geologist for Anglo American, Falconbridge and Rio
Tinto before joining the SG Warburg mining team, brings extensive contacts from
the mining and finance fields in his position as Non-Executive Chairman.




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