re: ed nealon running the show - acquires everest And further to...

re: ed nealon running the show - acquires everest And further to that, today's Annonuncement:

26 May 2005

The Manager
Company Announcement Office
Australian Stock Exchange Limited
Exchange Centre
20 Bond Street
Sydney NSW 2000


Dear Sir,

RE: EVEREST NORTH PROJECT & PLACEMENT

The Directors of Sylvania Resources Limited (“Sylvania”) are pleased to announce an Agreement between Sylvania South Africa (Pty) Ltd (a 100% controlled entity of Sylvania), and Aquarius Platinum (SA) Ltd (“Aquarius”), whereby Sylvania will take control of the exploration/mining of the Everest North project in South Africa.

The Everest North project lies on the Farm Vygenkoek in the eastern Bushveld of South Africa, and is prospective for Platinum Group Metals (“PGMs”). Previous work has outlined an Inferred resource of 7.4 million tonnes grading 3.38 g/t (Platinum, Palladium, Rhodium and Gold), for an Inferred resource of 796,000 ounces of PGM’s. Sylvania will further test the ground to assess the viability of delivering dense medium separation sinks to Aquarius at their Everest South Mine, which is currently under construction.

Sylvania will initially pay to Aquarius R2 million and will become a contractor to Aquarius. Sylvania will then, at its cost, prospect the Everest North Project area. Upon proof of the project viability, Sylvania will assist Aquarius to obtain a mining right which will subsequently be transferred to Sylvania. Sylvania will pay a further R6 million to Aquarius upon grant of the mining right to Sylvania.

Aquarius and Sylvania shall, for a period of three months from the date of the grant of a mining right to Sylvania, negotiate on an exclusive basis, to conclude a written agreement to regulate the terms upon which Sylvania shall supply to Aquarius all PGM bearing ore produced from the property, or in circumstances where Sylvania has constructed a concentrator plant to process PGM bearing ore from the property to produce PGM concentrate, any such PGM concentrate.


Placing

Sylvania further announces that 7,780,000 fully paid ordinary shares have been placed with institutional and other investors through London Stockbroker, Williams de Broe Plc, acting as agent at a price of £0.186 (A$0.45) per share. The placement will raise approximately A$3.5 million which will be utilised to make the first payment on Everest North, fund exploration activities on Everest North and for working capital to assess other opportunities.

The Company gives this notice pursuant to Section 708A(5)(e) of the Corporations Act. The shares were issued without disclosure to investors under Part 6D.2, in reliance on Section 708A(5)(e) of the Corporations Act.

The Company, as at the date of this notice, has complied with:

a) the provisions of Chapter 2M of the Corporations Act; and

b) Section 674 of the Corporations Act.

There is no excluded information for the purposes of Sections 708A(7) and (8) of the Corporations
Act.


Yours faithfully

Sylvania Resources Limited