Resolution of claim with Alcan

CSR Limited advises that it has settled alongstanding dispute that arose following the sale of its interest in GoveAluminium Limited to Alcan Northern Territory Alumina Pty Limited in January2001. Gove Aluminium Limited held a 30%share in the bauxite and alumina joint venture at the Gove Peninsula in theNorthern Territory.

The dispute related to adjustments to the price paid forthe interest and was the subject of litigation in the Supreme Court of NewSouth Wales.

The parties have agreed to settle the dispute on the basisof a net amount payable to CSR of approximately A$21.5 million. This amount will be treated as a significantitem in CSR’s financial accounts for the half year ending 30 September 2004.

CSR continues to participate in the aluminium industrythrough its effective 25.2% interest in the Tomago aluminium smelter in theHunter Valley with joint venture partners Alcan and Norsk Hydro.