Bay Resources Ltd Announces Major Porphyry Copper-Gold Exploration Deal in Tibet.

Business Editors

MELBOURNE, Australia--(BUSINESS WIRE)--Dec. 4, 2002

Bay Resources Ltd (a Delaware Corporation listed on the over the counter market OTC:BYRE) announces that it has now signed the contract for a co-operative joint venture with the Tibet Bureau of Geology and Minerals Exploration and Development ("Tibet BGMR"), China, previously announced on October 31, 2002. Bay Resources can earn a minimum 51% interest, with the right to earn up to 70% interest by a further capital investment, in two drill tested porphyry copper-gold deposits (Chong Jiang and Qu Long). Bay Resources can earn a 70% interest in the surrounding exploration area of approximately 15,000 square kilometres, where previous exploration by the Tibet BGMR has defined a further six porphyry targets, which have not yet been drill tested. These additional six porphyry targets were defined by regional geochemical surveys, with anomalous areas being further refined with ground geophysics, and finally trenching of mineralized areas.

Drilling of the Chong Jiang porphyry copper-gold deposit about 120 kilometres west of Lhasa has recovered 1% copper and 0.2 grams per tonne ("g/t") gold over 300 metres in one hole, with similar grades over 93 metres in an adjacent adit.

Only one hole has been completed at the Qu Long porphryr copper-gold deposit, 80 kilometres east of Lhasa. The mineralizations in this hole are highly variable from 0.2% to 1.8% copper and higher gold values of 0.2 - 0.3 g/t generally associated with the higher-grade interval. A 45-metre interval graded 1% copper and 0.2 g/t gold, similar to the Chong Jian porphyry copper-gold deposit. A recent geophysical survey has indicated a strong anomaly over a kilometre in length on the northern contact zone of the Qu Long porphyry. Drilling of this target will only be possible in March 2003 when the snow cover melts. The project is located at an elevation of 5,000 - 5,400 metres. High-grade skarn mineralization, discovered by the Tibet BGMR on the southern contact of the Qu Long porphyry copper-gold deposit, is being mined on a small scale by a local company from Lhasa. Ore grades from this operation vary from 10% to 15% copper.

There are also a number of discrete gold anomalies detected in the Tibet BGMR regional geochemical survey. Pitting in one area, northeast of Qu Long, has shown gold values of 5 g/t over several metres on the contact of a small porphyry intrusion. Many of the gold targets remain unexplored and provide an encouraging target for testing in 2003.

Importantly, the Tibet BGMR has agreed to include the Jia Ma Skarn deposit within the scope of the joint venture. This deposit, located 10 kilometres north-east of Qu Long, was discovered by the Tibet BGMR ten years ago and has been drilled to a depth of 300 metres and tested by a number of adits over a 3 kilometre strike length. The approved reserves (by the Ore Reserve Evaluation Committee of the PRC) are 20 million tonnes at a grade of 1.16% copper, 0.5 g/t gold, 0.25% molybdenum and variable but significant silver credits. The in-situ contained metal values are 500,000 tonnes copper, 500,000 ounces ("ozs") gold, 700 tonnes silver (20 million ozs) and 100,000 tonnes of molybdenum. There is considerable upside in increasing the tonnage beyond the 300 metres depth drilled to date. In addition, both copper and gold grades tend to increase in depth. Bay Resources can earn between a 60% and 70% interest in the Jia Ma mining lease through deeper drilling and feasibility-study. The area surrounding this deposit and mine lease is already within our regional exploration area where Bay Resources can earn 70% interest. Several gold targets have been recently discovered associated with small porphyry intrusions that warrant immediate follow up exploration.

The porphyry copper-gold belt east and west of Lhasa was only discovered in 1999 during the Frontier Exploration Program funded by the Ministry of Lands and Resources in Beijing. The first drill holes were completed at Chong Jiang in 2001 and at Qu Long in September 2002.

Forward-Looking Statements

Forward-looking statements in this press release are made pursuant to the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, the risks of exploration and development stage projects, political risks of development in foreign countries, risks associated with environmental and other regulatory matters, mining risks and competition and the volatility of gold prices. Actual results and timetables could vary significantly. Additional information about these and other factors that could affect the Company's business is set forth in the Company's fiscal 2002 Annual Report on Form 10-K and other filings with the Securities and Exchange Commission

The technical information in this press release has been reviewed by DR DS Tyrwhitt PhD (Geology), BSc (Hons), FAusIMM, F.SEG, CPGeo, FIMM (London) who is a member of the Australasian Institute of Mining and Metallurgy and has more than 40 years experience in the mining industry.