RNS Number:1622P
Portman Ld
29 August 2003




Portman
Limited



                                                              ACN 007 871 892
                                                              ABN 22 007 871 892

29 August 2003
                                                              Level 11
                                                              The Quadrant
                                                              1 William Street
                                                              Perth,  6000
                                                              Western Australia
                                                              GPO Box W2017
                                                              VIA ASX Online
                                                              Perth, 6001                         
                                                              Tel:   61 8 9426 3333
                                                              Fax:    61 8 9426 3344

The Announcements Officer
Australian Stock Exchange (Sydney) Limited
Level 10
20 Bond Street
SYDNEY  NSW  2001


Dear Sir,


ISSUE OF OPTIONS TO MANAGING DIRECTOR


Please be advised that Portman Limited has issued 1,500,000 options to the
Managing Director that are subject to the Terms and Conditions (see attached)
approved by shareholders at the Annual General Meeting (AGM) of the Company held
on 28 May 2003.



Normally these options would have been issued within one month of the AGM but a
waiver from Listing Rule 14.7 was granted by ASX on 25 June 2003 on the proviso
that the options be issued no later than 31 August 2003.



1.         Number and class of Issue - 1,500,000 Options to subscribe for
1,500,000 Ordinary Fully Paid Shares in Portman Limited.

2.         The 1,500,000 options all have the same exercise price of
$1.031 but are divided into 3 tranches of 500,000 each with a different hurdle
that must be achieved before options are exercisable.

3.         Participation in dividends (on pari passu basis) only applies when
the Options have been exercised to Fully Paid Shares in accordance with the
Terms and Conditions attached thereto.

4.         The dividend policy of the Company will not be varied as a
consequence of the exercise of any of the Options.

5.         These options have an issue date of 29 August 2003.

6.         These options will expire on 29 August 2008.



Should you require any further information please contact the undersigned.



Yours sincerely
G T Clifford
COMPANY SECRETARY



                      PORTMAN LIMITED  ABN 22 008 871 892
                        TERMS AND CONDITIONS OF OPTIONS


1.                  Each Option is to subscribe for one fully paid ordinary
share in the Company.

2.                  Each of the Options has an exercise price of $1.031.

3.                  No consideration is payable in respect of the grant of the
Options.

4.                  The Options will be divided into 3 tranches, each tranche
comprising 500,000 options.

5.                  The options in the 1st tranche will be exercisable in part
or in whole any time after the 1st anniversary of their date of issue (Issue
Date), provided that the closing sale price of fully paid ordinary shares in the
Company on ASX (Share Price) at any time on or after the 1st anniversary of the
Issue Date is equal to or greater than $1.40 per share.

6.                  The options in the 2nd tranche will be exercisable in part
or in whole at any time after the 2nd anniversary of the Issue Date, provided
that the Share Price at any time on or after the 2nd anniversary of the Issue
Date is equal to or greater than $1.80 per share.

7.                  The options in the 3rd tranche will be exercisable in part
or in whole at any time after the 3rd anniversary of the Issue Date, provided
that the Share Price at any time on or after the 3rd anniversary of the Issue
Date is equal to or greater than $2.20 per Share.

8.                  Any Options not exercised before 5pm (WST) on the 5th
anniversary of the Issue Date (the Expiry Date) will automatically lapse.  Any
options which have not become exercisable by the Expiry Date will automatically
lapse.

9.                  The Options are exercisable by notice in writing to the
Company accompanied by payment in full of the exercise price.

10.               All shares issued on the exercise of the Options will rank
equally in all respects with the Company's then existing fully paid ordinary
shares.

11.               The Options are not transferable and will not be quoted on
ASX.

12.               The Company must apply to ASX for all shares issued pursuant
to the exercise of the Options to be admitted to quotation within 10 business
days after their date of issue.

13.               Mr Eldridge may only participate in new issues of ordinary
shares to shareholders if an option has been exercised and shares have been
issued in respect of the option before the record date for determining
entitlements to the issue.  The Company must give at least 7 business days
notice to Mr Eldridge of any new issue before the record date for determining
entitlements to that issue, in accordance with the ASX Listing Rules.

14.               There will be no change to the exercise price of an option or
the number of shares over which an option is exercisable in the event of the
Company making a pro rata issue of shares or other securities to shareholder.

15.               If there is a bonus issue (Bonus Issue) to shareholders, the
number of shares over which an option is exercisable will be increased by the
number of shares which Mr Eldridge would have received if the option had been
exercised before the record date for the bonus issue (Bonus Shares).  The Bonus
Shares must be paid up by the Company out of the profits or reserves (as the
case may be) in the same manner as was applied in the Bonus Issue and upon issue
rank equally in all respects with all other shares of that class on issue at the
date of the issue of the Bonus Shares.

16.               If, prior to the expiry of any options, there is a
reorganisation of the issued capital of the Company, options are to be treated
in the manner set out in the ASX Listing Rules applying to reorganisations of
capital at that time.

17.               If Mr Eldridge ceases to be an employee of the Company, for
whatever reason, prior to all options held by him being exercised by the date of
his ceasing to be an employee of the Company, the Company's board of directors
will determine whether any unexercised options will automatically lapse as at
the date of his ceasing to be an employee of the Company, or whether Mr Eldridge
will be permitted to retain some or all of the unexercised options, and, if so,
for what period.






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