Orica SPS Offer Closes Oversubscribed

16 March, 2006

ASX CODES:  ORI
                      ORIPB

Orica Limited is pleased to announce that the offer of Orica Step-Up Preference Securities (“Orica SPS”) (“the Offer”) has closed oversubscribed. A total of five million Orica SPS have been issued, raising a total of $500 million.

Allocation of Orica SPS

Applications received from existing Orica Shareholders have received preferential allocation and these applications have been allotted 100% of their applications. Due to strong demand, and in accordance with the allocation policy outlined in the Prospectus, applications received under the General Offer have not been allocated any Orica SPS. Refund cheques will be issued for unsuccessful applications.

Distribution rate

The distribution rate for the first distribution period ending on 30 November 2006 will be 6.995% per annum.  This has been determined under the Orica SPS terms as the 180 day Bank Bill Swap Rate on 15 March 2006 of 5.6450% (being the Issue Date), plus the initial margin of 1.35% per annum.

Following the first distribution period, the distribution rate for Orica SPS will be set semi annually at a margin of 1.35% over the relevant 180 day Bank Bill Swap Rate.

Trading on ASX

Orica SPS will begin trading on a deferred settlement basis on ASX on Thursday, 16 March 2006 at 10.00am (Sydney time) under the code ORIPB. Trading is expected to commence on a normal settlement basis on Tuesday, 21 March 2006.

Holding statements

Holding statements confirming the number of Orica SPS issued to each successful applicant will be despatched to Orica SPS holders on Monday, 20 March 2006. Any holder wishing to trade Orica SPS prior to receiving their holding statements will be responsible for confirming their holding prior to trading by checking with their broker, co-manager or by contacting the Orica SPS Information Line on 1300 733 154. Holders who sell their Orica SPS before receiving their holding statements do so at their own risk.

Investors requiring further information should contact the Orica SPS Information Line on 1300 733 154.