ground next to alk & more.....

CMX have 289m shares with the top 20 holding 84% so when gold trends higher you would expect more interest in this stock.land next to ALK's Wyoming prospect where recent results about doubled the price of ALK.NCM drilling on CMX tennaments next to their Cardia mine etc etc. this could be the last of the 'cheapies'.


Chairman`s Address to Shareholders

CLIMAX MINING LIMITED 2002-11-22 ASX-SIGNAL-G

HOMEX - Sydney

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The objectives for the 2001/2002 year were to determine the
feasibility of a number of alternative developments for the Dinkidi
gold, copper deposit in the Philippines, which would require initial
capital of less than US$50 million, thereby increasing the
probability of early development, and to progress exploration on our
more significant properties of Didipio and Paco in the Philippines,
Mistry in Fiji, and Junction Reefs in NSW, Australia.

In the light of the prevailing very difficult conditions for the
mining industry the Company also sought to significantly reduce
operating costs.

The political environment in the Philippines has improved since the
collapse of the Estrada government which led to the halting of the
proposed financing of the US$132.5 million block cave development of
Dinkidi in early 2001. The public statements of President Gloria
Macapagal-Arroya seeking the alleviation of poverty and creation of
employment through foreign investment, coupled with a firmer gold
price in the latter part of this year, have seen renewed interest in
the exploration potential of the country. Anglo American, in joint
venture with Philex Gold, continue to have major drilling success at
the gold, copper discovery at Boyongan in north east Mindanao, near
the Company's Paco prospect, and three small Australian public
companies, Lafayette Mining Limited, Red 5 Ltd and Indophil Resources
NL have raised funds in Australia for potential mine developments in
the Philippines.

Several major companies have inspected the Papaya prospect within the
Didipio FTAA and discussions as to a farmin are continuing. This area
of Miocene alkaline volcano-plutonic complex covers an area of some
50sqkms, lies about 12kms to the west of Didipio and has a similar
geological character to Boyongan.

The Papaya complex hosts four areas of gold, copper mineralisation
associated with quartz monzonite intrusions. The most interesting
prospect, covers a roughly circular area of alteration, seven kms in
diameter. This large area of alteration was identified from the
Company's geological mapping, air magnetic and radiometric surveys.

Extensive geochemical sampling subsequently established that
anomalous gold and copper is pervasive with higher grades evident in
areas of potassic-magnetite altered monzonite, which includes a
5-metre channel sample at Ubon Creek returning 3.7g/t gold, 0.1%
copper, 0.1% molybdenum.

In the Didipio Valley intrusive complex to the east of the Papaya
prospect, discussions are progressing on potential farmin to this
area of 16sqkm which hosts some 18 gold, and gold, copper
mineralised prospects and includes the Dinkidi gold, copper deposit.

Feasibility studies completed in 1996 established a measured,
indicated and inferred resource of 121 million tonnes of 1.49g/t gold
equivalent at a 0.5g/t equivalent cut-off for Dinkidi. A feasibility
study in 2000 indicated an underground block cave development with a
mining reserve of 17.758 million tonnes of 3.04g/t equivalent at a
2g/t equivalent cut-off was viable at US$325 oz gold and US$0.75
cents /lb copper. Offers of equity and debt finance to meet the
US$132.5 million cost of development were made in the 2000 year, but
financing was not completed due to the perceived change in Philippine
risk and weakening commodity prices.

Consequently, the Company decided that a smaller scale, staged
development, requiring no more than US$50 million of initial capital
would be more appropriate. Through the 2001/2002 year, studies have
been conducted which indicate that a number of alternate developments
are possible using cut-off grades between 0.5g/t gold equivalent, up
to 5g/t gold equivalent. With the benefit of these studies and an
improved commodity environment, the Company, in the third quarter of
2002, began seeking equity partners, a potential operator and
financing for both the small and large scale developments.

On the island of Mindanao to the south of the main island of Luzon
where Didipio is located, Climax completed the farmout of its Paco
gold, copper prospect to AurionGold Limited (now Placer) in June of
this year. Aurion may earn a 51% interest by spending US$3.25
million.

The property lies 1.5kms west of Boyongan and has a similar
geological environment. Broker estimates of Boyongan suggest some 280
million tonnes of 0.97g/t gold and 0.43% copper with the prospect of
a smaller tonnage of much higher grade indicated by an intercept of
187 metres averaging 4.47g/t gold, 2.58% copper.

Drilling on Paco began in October and the initial 2000 metre diamond
drilling programme should be concluded by February. Two rigs are on
site and a third should begin shortly.

In Australia, our Taroona gold, copper prospect in NSW was farmed out
to MIM who conducted geophysical studies and drilled 3 holes
identifying a mineralised hydrothermal breccia system. Adjacent to
our Wyanga property, Alkane Exploration Limited has made a promising
gold discovery at its Wyoming prospect.

Newcrest Mining Ltd continued its aggressive exploration of the
Company's Junction Reefs property in NSW which is adjacent to their
Cadia and Ridgeway gold, copper mining operations. Newcrest spent
$2.8 million on deep drilling in the year seeking Ridgeway style
mineralisation, and may earn a 51% interest in the Junction Reefs
area by expending $14 million on exploration. At the end of June they
had spent $4.6 million.

Long intercepts of low grade gold, copper mineralisation similar to
that found in the halo surrounding Ridgeway were located at the
Gooley's, Warrangong and Randall's prospects. At the Black Rock
prospect 7 diamond core and 12 reverse circulation holes intersected
elevated gold values suggesting the gold mineralisation is in the
distal part of a porphyry system.

Results have been very encouraging and we expect a similar level of
expenditure on exploration this year.

At our Mistry property in Fiji, Millennium Mining (Fiji) Ltd is
earning a 51% interest by expending $2 million on exploration.
Following the relogging of Climax Mining's core and reverse
circulation samples Millennium carried out geochemistry to better
locate the mineralised shear that connects the Mistry gold mine to
the Faddys gold resource on the Mistry tenement. A drilling programme
of 1,600 metres commencing in early 2003 is proposed to test the
Faddy's deposit downdip and laterally, which has a resource potential
of the order of 350,000 oz.

We were pleased we were able to introduce farmin partners to a number
of our exploration properties in what is still a difficult market for
exploration and we are hopeful of farming out more properties in the
coming year.

We look forward to the active drilling programmes at Paco, Junction
Reefs and Mistry and are confident we can introduce exploration
partners to the high exploration potential of the Didipio FTAA and
our properties in the Lachlan Fold Belt of NSW.

We also feel confident that we can secure equity partners in the
coming year, provided gold prices hold at current levels, to progress
the development of Dinkidi in one of the development alternatives we
have investigated during this year.

I wish to thank shareholders for their continuing support and
patience regarding the Philippines and to thank our staff, small
number that they are now, for continuing to seek our objectives with
optimism, in a very difficult environment.

Thank you all for coming.

ATTRIBUTION

Aspects of this report that relate to Mineralisation, Mineral
Resources or Ore Reserves are based on information compiled by
persons who:

* are Fellows or Members of the Australasian Institute of Mining and
Metallurgy and/or the Australian Institute of Geoscientists, and

* are full time employees of the Company or joint venture
organisations (unless otherwise noted), and

* have sufficient relevant experience of the activity undertaken and
of the mineralisation style and type of deposit described.

They qualify as Competent Persons as defined in the 1999 Edition of
the "Australasian Code for the Reporting of Resources and Reserves".
A list of the names of the Competent Persons is available upon
request. The above statement fairly reflects the reports prepared by
these Competent Persons and has been prepared by Paul Joyce as
Competent Person for Climax Mining Ltd. Paul Joyce consents to the
inclusion in this report of the matters based on their information in
the form and context in which it appears.