Drilling Report

Vane Holdings PLC
25 October 2004


25 October 2004

                               VANE Holdings plc

   Final Assay Results continue to confirm strong mineralization at Diablito
                                    property

VANE Holdings ('VANE' or 'the Company') announces that the final assay results
from the Diablito gold / silver property in Mexico have continued to confirm the
presence of a high grade mineralized vein. Following the results reported on the
29th September 2004, drill holes DIA25-01 through to DIA35-01, have now been
received and are listed below. The results received in this batch show values of
gold (Au) as high as 33.53 g/t and Silver (Ag) as high as 6250 g/t.

Hole No.   From    To      Interval   Gold (g/t)    Gold     Silver (g Silver
           (m)     (m)     (m)                      (opmt)   /t)       (opmt)
      25   27.40   29.40       2.00         12.98     0.42      2093      67.3
Includes   27.40   27.90       0.50         33.53     1.08      6250       201
      26A  16.15   19.15       3.00          0.61     0.02       102       3.3
      27   Blank   Hole    Stopped    prematurely
      28   61.10   62.00       0.90          1.82     0.06       328      10.5
      29   68.40   69.20       0.80          2.88     0.09       453      14.6
      30   87.70   94.00       6.30          4.62     0.15       934      30.0
Includes   87.70   88.30       0.60         10.80     0.35      2320      74.6
Includes   89.20   90.00       0.80         11.76     0.38       985      31.7
Includes   92.95   94.00       1.05         10.20     0.33      1720      55.3
      31   95.10   95.80       0.70         14.13     0.45      2725      87.6
      32   49.00   49.45       0.45          3.95     0.13       675      21.7
      33   18.10   19.70       1.60          8.64     0.28       454      14.6
Includes   18.10   18.85       0.75         17.31     0.56       885      28.5
      34A  20.30   21.20       0.90         14.43     0.46      1230      39.5
      35   33.20   34.45       1.25         25.83     0.83      3949     127.0
Includes   33.20   34.20       1.00         31.47     1.01      4800     154.3

The Directors are very pleased that results continue to show strong
mineralization, and are especially encouraged by the results in DIA 31-01 as
this proves that mineralization continues down dip.

As before, the drill core from the vein was sawn, half of it was bagged and
shipped to Actlabs in Tucson, Arizona for analysis. The remainder of the core
has been stored on site. Core recovery during the current programme has been
satisfactory and a programme of check assaying from Actlabs has confirmed
analytical results so far.

All of the assays have now been sent on to Independent Mining Consultants (IMC)
of Tucson and work has commenced on the compilation of data for the development
of a mining plan. This should be available in the middle of November and will
detail the Company's objectives and timeframes for the project.

The Company's Guadalacazar Property in San Luis Potosi, Mexico is also
progressing very satisfactorily. Geophysical surveys (magnetics and VLF) and
sampling (rock, water and mesquite) were completed in early October. Samples
have been sent to Actlabs in Tucson and the geophysical data is being tabulated
for interpretation. Indications for possible drill sites should be available in
mid-November.

Steven Van Nort, CEO of VANE, commented, 'We are encouraged by the Diablito
assay results and feel our stipulated plan of initiating production at Diablito
in early 2005, 6 months after starting the drilling programme, can be achieved.
The high grades will enable us to capitalize on this investment and move forward
with our exploration plans at Guadalcazar and Mina Charay'

Enquiries:

VANE Holdings plc    Seymour Pierce Limited    Parkgreen Communications
Matthew Idiens       Jonathan Guy              Justine Howarth / Cathy Malins
020 7667 6322        020 7107 8000             020 7493 3713
www.vaneminerals.com

Notes to editors

VANE owns 100% of the mineral rights to the Diablito Project. Diablito is an
advanced high-grade precious metal vein deposit located in the State of Nayarit,
Mexico. VANE plans to put the Diablito prospect into production by early 2005 in
order to finance exploration costs elsewhere in the Company. The Directors
believe that the simplicity of the mining process, and the Company's ability to
vary the production rate, make this an achievable objective.

VANE was co-founded by CEO Steven Van Nort, who was previously Senior
Vice-President of exploration-metals at Freeport McMoRan until 2000. The Board
also includes L. Clark Arnold as Director of Geology, who participated in the
development and implementation of a statistically based method of porphyry
copper prospecting which eventually led to two major discoveries: The Escondida
mine in Chile, believed to be the world's largest copper deposit, and the Santa
Cruz deposit in Arizona. Matthew Idiens, formerly a Fund Manager for Laing and
Cruickshank Investment Management, is Commercial Director and Robert Jeffcock,
who brings many years' of experience raising funds within the resources sector,
is a Director. Michael Spriggs, who has 27 years of mining sector experience,
worked as an exploration geologist for Anglo American, Falconbridge and Rio
Tinto before joining the SG Warburg mining team, brings extensive contacts from
the mining and finance fields in his position as Non-Executive Chairman.





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