Press Release - 27 June 2005

Tibet campaigners in Sydney and London today called on British Fund Managers not to invest in Orchid Capital when the company lists on the Alternative Investment Market tomorrow, 28 June 2005. The Australian venture capital company has recently entered into a joint venture partnership with China Tibet Institute of Geology Survey to form Tibet Pioneer Mining Company (TPMC).

The AIM listing is intended to finance TPMC's mining projects in Tibet, including exploration in the immediate vicinity of the sacred Yamdrok Tso lake for gold and the Qu Long and Jia Ma copper finds. Australia Tibet Council and Free Tibet Campaign oppose the exploitation by China of Tibet's natural resources whilst the country remains under occupation.

In a letter to British Fund Managers, Alison Reynolds of Free Tibet Campaign said, "Free Tibet Campaign is opposed to the exploitation of non-renewable Tibetan resources whilst Tibet remains occupied by China and Tibetans are unable to exercise their economic rights, let alone their civil, political, social and cultural rights." The letter details concerns about Orchid's plans, ranging from ethical issues to financial and reputational risk.

Free Tibet Campaign considers that 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, 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: Alison Reynolds or Matt Whitticase on 020 7324 4605 or email matt@freetibet.org.

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 focused on exploration for gold at a site on the shores of Yamdrok Tso, around 100km south west of Tibet's capital Lhasa. More recently Orchid announced its interest in two copper sites, Qu Long and Jia Ma. Qu Long is 60km east of Lhasa and Jia Ma 6km north of Qu Long.