Press Release - 14 June 2005

Tibet campaigners in Sydney and London today demanded that Australian venture capital company, Orchid Capital, cancel the launch of Tibet Pioneer Mining Company (TPMC), its joint venture with China Tibet Institute of Geology Survey.

The launch in Tibet's capital, Lhasa, on 15 June will herald the start of mining projects in Tibet, including the exploration in the immediate vicinity of the sacred Yamdrok Tso lake for gold and the Qu Long and Jia Ma copper finds. The Australia Tibet Council and Free Tibet Campaign oppose the exploitation by China of Tibet's natural resources whilst the country remains under occupation. Orchid Capital proposes to raise capital for the project by listing on London's Alternative Investment Market (AIM) which is slated to take place on 28 June 2005.

In a letter today to Orchid Capital's Managing Director, Alvin Tan, Australia Tibet Council's Executive Director Paul Bourke asserted that "We are opposed to exploitation of Tibetan's resources, particularly non-renewable resources such as gold and copper, whilst Tibet remains occupied by China and the Tibet-China situation remains unresolved." Alison Reynolds of Free Tibet Campaign added, "The exploitation of Tibet's gold and copper is clearly a sensitive ethical issue, and we urge investors to steer clear of Orchid's listing on AIM later this month."

Orchid Capital has demonstrated scant understanding of the inherent risks to investors of operating mines in an occupied territory such as Tibet. Whilst Tibetans are denied the right to determine if and how their natural resources are used, it is inappropriate for Orchid to extract Tibet's minerals.

Orchid Capital has also failed to acknowledge the potential financial risks to investors of such a project. In 2004, and after substantial preparatory work, Australian mining company Sino Gold pulled out of Tibet after a high profile international campaign. It is understood that reputational risk was key to Sino's decision to pull out. Up until its withdrawal Sino Gold, like Orchid now, claimed that the company would enjoy a major strategic advantage in being the first overseas investor to extract Tibet's gold.

For further information contact:
Liam Phelan, Australia Tibet Council + 61 (0)410 501 030.
Alison Reynolds, Free Tibet Campaign + 44 (0)20 7324 4605/+ 44 7711 843884.

Notes:
1. Orchid Capital is a venture capital company listed on the Australian Stock Exchange and the Unofficial Market of the Frankfurt Stock Exchange. Orchid Capital, through its wholly owned subsidiary Orchid Resources holds a 70% stake in the Tibet Pioneer Mining Company (TPMC). TPMC is Cooperative Joint Venture with a Chinese partner, the China Tibet Institute of Geology Survey holding the remaining 30%. Orchid's main business activity is share ownership of a resort and real estate in Phuket, Thailand. 

2. Orchid's involvement in Tibet: Orchid Capital formed subsidiary Orchid Resources in May 2004. Since then Orchid has focussed on exploration for gold at a site on the shores of Yamdrok Tso, around 100kms south west of Tibet's capital Lhasa. More recently Orchid has announced its interest in two copper sites: Qu Long and Jia Ma. Qu Long is around 60kms east of Lhasa, and Jia Ma 6kms north of Qu Long.