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Orchid Capital Ltd (ORC)

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Tuesday 02 August, 2005

Orchid Capital Ltd

Update on Orchid Resources

Orchid Capital Ltd
02 August 2005

For immediate release

Stock Exchange Announcement

2nd August 2005

                             Orchid Capital Limited

                           Update on Orchid Resources

Orchid Capital Limited (ASX: ORC) provides the following activities update on
its wholly owned subsidiary, Orchid Resources Limited.

Qu Long Copper Project

Intense negotiations between Orchid Resources Limited (ORL) and the Tibet
Autonomous Region Government have continued, but to date have not led to the
expected signing of a final contract to acquire up to 80% of the Qu Long and Jia
Ma Copper Projects in Tibet.

In February 2005 ORL signed a Letter of Intent (LoI) with the China Tibet
Institute of Geology Survey (CTIGS) to obtain and develop the Qu Long and Jia Ma
Copper Projects.

However, ORL has now been informally advised that the Government is also dealing
with a competing bidder for Qu Long, in spite of the LoI.  It is understood that
the competing bidder is a Chinese company.

Orchid intends to lodge a formal objection with the relevant authorities but due
to current circumstances, the Board of Orchid has decided to suspend any further
exploration and field work on the Qu Long Project.  Orchid will keep
shareholders informed of any further developments.

Ausenco Report

Orchid Resources has received the Technical Due Diligence Report from
independent Australian mining consulting group Ausenco Limited, on its projects
in the Tibet Autonomous Region.

The Report comprises a due diligence review of the geological, mining, process,
operational and environmental aspects of the Qu Long and Jia Ma copper assets.

The Report concludes that infrastructure around the project areas are good and
are continually improving.

The Report supports Orchid's JORC Compliant Inferred Resource status for the Qu
Long copper project and that there is good further exploration potential.

Orchid Capital Chairman Dr. David Tyrwhitt said: 'During recent visits to the Qu
Long site, our geological team had the opportunity to inspect the most recent
cores from new drill holes, which suggest higher Copper and Molybdenum grades
than the cores from previous drill holes.  We have not received any assays for
these cores and they do not form part of the Ausenco Report.'

Due to the fact that there is a competing bidder for the Qu Long Project, hard
copies of the 60-page Ausenco Report may be made available to shareholders on
their written request and after signing a Non-Disclosure Agreement.

Interested shareholders please contact [email protected]

Information in this announcement that relates to mineral resources is based on
data compiled by Dr. David Tyrwhitt PhD (Geology), BSc (Hons), FAusIMM, FSEG
(USA), CPGeo, who is a Fellow of The Australasian Institute of Mining and
Metallurgy and has over 40 years' experience in the mining and exploration
industry.  Dr. Tyrwhitt is employed by Orchid Capital Limited.  Dr. Tyrwhitt has
sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the 
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves'.  Dr. Tyrwhitt consents to the inclusion in the announcement of
the matters based on his information in the form and context in which it

About Orchid Capital Limited

Orchid Capital is an Australian registered investment company listed on the
Australian and German Stock Exchanges and on AIM in London, and is currently
invested across a broad range of sectors.  The company has approximately
AUD$5million of cash and near cash assets available and the Board continues to
seek additional investment opportunities.

About Orchid Resources Limited

Orchid Resources Limited (ORL) is a wholly owned subsidiary of Orchid Capital.
ORL's focus is on the exploration and development of resource opportunities in
the People's Republic of China (PRC).

                                    - End -

Alvin Tan                              Media Enquiries:
Joint Managing Director                Sarah Allchurch
Orchid Capital Limited                 Allchurch Communications

+61 8 9321 3664                        +61 8 9381 6625
                                       +61 412 346 412

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

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