Planned Exploration Programme

Falkland Islands Holdings PLC
13 February 2004

                          Falkland Island Holdings plc


                  Major minerals exploration programme planned



Falkland Island Holdings announces that the Company and its Joint Venture
Partners Cambridge Mineral Resources plc ('CMR') and Global Petroleum Limited ('
Global') have obtained financing from funds managed by RAB Capital Limited ('RAB
') to form a new Falkland Islands based company, Falklands Minerals Limited ('
FML'), through which they will fund further investigations of the minerals
potential of the Falkland Islands.



Falkland Island Holdings  previously had a 33.3% interest in the joint venture
which held the minerals exploration licence covering substantially the whole of
the Falkland Islands, some 14,000 sq km.



Under the terms of the new agreement, RAB  will invest  US$1.2 million towards a
US$1.535 million minerals exploration programme which will include several areas
that have already been identified as prospective on the basis of previous work
by the Joint Venture. Of the balance of the funding FIH will contribute US
$241,000.



As a result of this agreement FIC will have a 22.5% shareholding in FML which
will hold the minerals exploration licence. David Hudd, Chairman of FIH will sit
on the Board of FML.



The Work Programme that has been agreed for FML comprises an aeromagnetic survey
over the whole of the Falkland Islands and additional stream sampling, field
work and assaying. This survey is scheduled for February, March and April this
year and will be followed by a 2005 work plan to drill areas of interest
identified by the aeromagnetic survey.



The earlier work by the Joint Venture identified a number of areas which are
thought to be prospective for gold and these will be covered by the higher
line-density parts of the aeromagnetic survey.



FML has contracted Global Petroleum to operate the project for the next two
years, and this will involve key staff being based in and working for part of
each year out of Stanley, the capital of the Falkland Islands.



David Hudd, Chairman, Falkland Island Holdings commented:



'The Falkland Islands remains practically unexplored for minerals. The funding
which has been secured will enable a comprehensive exploration programme to be
undertaken which for the first time will have the benefit of modern technology.'



                                                                13 February 2004







ENQUIRIES:


Falkland Islands Holdings                            Tel: [phone]
David Hudd, Chairman

College Hill                                         Tel: [phone]
James Henderson




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