Offer Update

Rio Tinto PLC
27 April 2000


The following was released earlier today to the Australian Stock Exchange by
Comalco Limited.

                  INDEPENDENT EXPERT'S REPORT IN RELATION TO                  
                    RIO TINTO'S OFFER FOR COMALCO LIMITED                     
                                
As previously announced, the Independent Directors of Comalco Limited
('Comalco') retained an independent expert, Grant Samuel & Associates Pty Ltd
('Grant Samuel') to provide a report in relation to the offer made by Rio
Tinto Limited ('Rio Tinto') for the shares in Comalco that it does not already
own.

Grant Samuel's report has now been received and in accordance with the
company's continuous disclosure obligations, Comalco hereby lodges a copy of
the Grant Samuel report with the Stock Exchange. A copy of the report will be
available shortly on Comalco's website - www.comalco.com.au.

In its report, Grant Samuel has concluded that the offer made by Rio Tinto is
not fair but, for the reasons stated in the report, is reasonable.

Shareholders are urged to read the full report prior to making any decision in
relation to the Rio Tinto offer. The Grant Samuel report will be included as
part of Comalco's Target Statement.  The Statement will also contain the
Independent Directors' comments and/or recommendations and will be dispatched
to Comalco shareholders late next week.

Comalco has received advice from Rio Tinto that Rio Tinto dispatched its
Bidder's Statement to Comalco's shareholders on 20 April 2000.


For further information, please contact:

Comalco Limited                         Warburg Dillon Read
Neville Tiffen                          Matthew Grounds
Chief Counsel/Corporate Secretary       Executive Director 
[phone]                           [phone]



Note to Editors:

Rio Tinto owns 72.4 per cent of Comalco Limited.