Lihir Gold Placing of Shrs

RIO TINTO PLC
7 October 1999
                               
                               
The following was announced by Lihir Gold Limited on 7th October 1999.

LIHIR GOLD

Institutional Placement

Lihir Gold is pleased to announce the completion of the placement of 141,287,000
new shares to institutions and other investors at A$1.45 per share through J. B.
Were & Son. The issue represents just under 15% of Lihir's existing issued
capital.

The funds raised from the placement of approximately US$135 million, together
with the US$52 million net cash balance expected to be held by Niugini Mining at
the effective date of the Scheme of Arrangement for its acquisition, total
approximately US$187 million before expenses. These funds will be used to reduce
the amount and cost of Lihir's debt finance, and will provide enhanced
operational flexibility.

The equivalent issue price for Lihir's American Depositary Receipts is US$19.14.

Acquisition of Niugini Mining Limited

In accordance with the agreement reached with Niugini Mining, A$1.45 will be the
price used to calculate the number of Lihir shares to be issued to Niugini
Mining shareholders in exchange for Niugini Mining's net cash balance at the
effective date.

For further information contact:

Media Relations                    Investor Relations
John Hughes                        Peter Jarvis
+ 44 207 753 2331                  + 44 207 753 2401