RNS Number:8102T
Hardman Resources Limited
05 January 2004

HARDMAN RESOURCES LTD

Ground Floor, 5 Ord Street, West Perth
PO Box 869, West Perth
Western Australia 6872
Tel: +61 8 9321 6881 Fax: +61 8 9321 2375
ABN 98 009 210 235


STOCK EXCHANGE / MEDIA RELEASE

RELEASE DATE:     5 January 2004

CONTACT:          Ted Ellyard (08 9321 6881)

RE:               HARDMAN SIGNS MOU TO EXPLORE OFFSHORE ERITREA

Hardman Resources Ltd ("Hardman") is pleased to announce that it has signed a
Memorandum of Understanding (MOU) with the Government of Eritrea over the 11,550
sq km Massawa Block offshore Eritrea, Red Sea.  Hardman has been joined by Afrex
Limited (Afrex) and Pancontinental Oil & Gas NL (Pancontinental) in this
venture.

The MOU covers the principal terms negotiated over the last 12 months with the
Government for a Production Sharing Contract (PSC) over the Massawa Block,
located solely within Eritrean territorial waters.  Subject to the PSC being
finalised over the next six months, the joint venture has exclusive rights to
explore for hydrocarbons in the Massawa Block for up to 7 years.

The interests in the joint venture are:

Afrex Limited (Operator)              40%
Pancontinental Oil & Gas NL           30%
Hardman Resources Ltd                 30%

The Massawa Block lies in a Tertiary aged salt basin of the southern Red Sea.
To the north of the Massawa Block, in offshore Egypt, a large number of
commercial oil and gas fields have been discovered over the past 20 years.
Within the Massawa Block itself, surface oil seeps have been identified near the
Dahlak Islands (see attached map).

The exploration programme in the Massawa Block will commence with re-mapping of
the existing seismic data and seismic reprocessing (if necessary) followed by
the acquisition of new seismic data.  The joint venture will then consider
inviting farminees to earn equity in the Block by drilling one or more
exploration wells.

Hardman's Managing Director Ted Ellyard commented, "We have been investigating
the potential of Offshore Eritrea with our Australian partners for a
considerable time and we are pleased to have now finalised the licence terms
with the Government of Eritrea.  The Massawa Block has indications of
hydrocarbon potential from earlier exploration work and we believe it will
benefit from the application of modern seismic evaluation techniques.  The
addition of offshore Eritrea to Hardman's international portfolio comes at a
time when many of our other international frontier projects such as Guyane are
reaching the drilling stage.  We look forward to working with the Eritrean
government and progressing the project through a staged exploration programme of
seismic evaluation, new seismic acquisition and drilling."


SCOTT SPENCER

DIRECTOR



Note:  In accordance with Australian Stock Exchange Limited listing
requirements, the geological information supplied in this report has been based
on information provided by geologists who have had in excess of five years
experience in their field of activity.



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