Issue of Equity

Providence Resources PLC
29 March 2004

                          PROVIDENCE Resources P.l.c.

   COMMITMENTS PROCURED TO RAISE €10.15 MILLION BY WAY OF ISSUE OF NEW EQUITY


    PROPOSED CONDITIONAL RIGHTS ISSUE TO RAISE UP TO A FURTHER €3.2 MILLION



Further to today's announcement relating to the Blackrock Prospect, PROVIDENCE
Resources P.l.c. ('Providence' or 'the Company') is pleased to announce that it
has procured firm commitments, through Davy, for 338,333,333 new Ordinary Shares
of nominal value €0.001 each in the capital of the Company at a subscription
price of €0.03 per share ('the Subscription' or 'the Subscription Shares'),
representing a 40% discount to the closing mid-market price on the Irish Stock
Exchange on 24 March, 2004. The subscribers comprise primarily UK and Irish
institutional shareholders, together with Sir Anthony O'Reilly, a substantial
shareholder in the Company, who is participating in the Subscription in respect
of €1 million. As part of the Subscription, each participant will, on
completion, be entitled to warrants, which may be exercised from the date of
grant up to 28 April, 2005 at an exercise price of €0.045 per new Ordinary
Share, on the basis of 1 such warrant for every 4 Subscription Shares
('Warrants'). The total gross proceeds of the Subscription, which will be used
to fund Providence's share of the drilling of a Test Well in 2004 on the
Blackrock Prospect and for general corporate purposes, will be approximately
€10.15 million. A further €3.8 million would be yielded assuming exercise of all
of the Warrants to be granted pursuant to the Subscription.


The completion of the Subscription is conditional, inter alia, on the receipt of
shareholder approval to be sought at an Extraordinary General Meeting of the
Company ('EGM'), and on admission of the Subscription Shares to dealing on the
Exploration Securities Market of the Irish Stock Exchange. A notice convening
this meeting will be sent to shareholders as soon as practicable and it is
expected to be held on or around 27 April, 2004. Assuming approval at the EGM,
admission to dealing is expected to occur, and the Subscription to complete, on
or around 30 April, 2004.


Rights Issue

The Company also announces its intention, conditional on the completion of the
Subscription, to offer its shareholders an opportunity to acquire new Ordinary
Shares on the same terms as those offered under the Subscription by way of a
rights issue. The Rights Issue, will, assuming conversion of all outstanding
capital bonds , involve the allotment of approximately 27,000,000 units to
qualifying shareholders, each such unit comprising 4 new Ordinary Shares at a
price of €0.03 per share, and 1 warrant with an exercise price of €0.045 and
exercisable up to 28 April, 2005 ('Unit').


The Rights Issue ratio will be 1 Unit for every 57 Ordinary Shares held on the
record date. Sir Anthony O'Reilly has committed to participate in the Rights
Issue in respect of his full entitlement. Following completion of the Rights
Issue, Sir Anthony will have an approximate 45% interest in the then issued
share capital of the Company. The total gross proceeds of the Rights Issue will,
assuming dilution as aforesaid, be approximately €3.2 million. A further
approximate €1.2 million would be yielded assuming exercise of all of the
warrants to be granted pursuant to the Rights Issue.


The record date for participation in the Rights Issue will be 20 April, 2004.
Documentation in connection with the Rights Issue will be posted to shareholders
following the EGM.


Commenting on the proposed equity issues, Dr. Brian Hillery, Chairman of
Providence said: 'The Subscription demonstrates the growing interest in the
Company from institutional shareholders, and we are delighted with the support
afforded to the Company by participants in the Subscription, including our major
shareholder, Sir Anthony O'Reilly. We hope that existing shareholders will also
avail of the investment opportunity represented by the Rights Issue.'




This announcement should be read in conjunction with the full text of the
announcement also dated 29 March, 2004 entitled 'PROVIDENCE Resources P.l.c.
ANNOUNCES BLACKROCK CELTIC SEA FARM-IN'.


For Reference:



PROVIDENCE Resources P.l.c.          Murray Consultants
                                  
Stephen Carroll/ Tony Odone          Pauline McAlester

Tel: [phone]                Tel: [phone]




29 March, 2004





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