July 19, 2005

Chemeq Limited update regarding additional convertible bonds
 

Chemeq Limited (ASX: CMQ) was due to allot and issue additional convertible bonds to Mizuho International plc, Stark Trading and Shepherd Investments International (the" Subscribers"), with a face value of US$20 million on July 15, 2005.

The issue of the additional convertible bonds was approved by Chemeq shareholders at a

General Meeting on March 23, 2005.                                                                  

The Subscribers requested further information from Chemeq to enable them to determine whether all conditions precedent to the issue of the additional convertible bonds had been satisfied. The information has been provided to the Subscribers, while Chemeq and the Subscribers have agreed to extend the completion date under the Convertible Bond Subscription Agreement to Monday July 25, 2005.

Accordingly, the allotment and issue of additional convertible bonds having a face value of US$20 million would now take place on July 25, 2005, in accordance with the terms of the Convertible Bond Subscription Agreement previously approved by shareholders.

Chemeq issued the first tranche of convertible bonds to the Subscribers and received

US$40 million on March 31, 2005.

For further information, please contact:

Brian Mangano

Chief Financial Officer and Company Secretary

Chemeq Limited

Tel: +61-08-9362-0100