ASX ANNOUNCEMENT - 2 June 2004

MANUMBAR GOLD PROJECT - DRILLING COMMENCED

D'Aquilar has commenced a 5,000 metre drill program at Manumbar in south east Queensland
Manumbar is an epithermal gold target with potential for more than 0.5 million ounces
Manumbar is showing similarities to the Cracow and Vera Nancy gold projects which are also epithermal gold discoveries in Queensland

The Board of Directors of Australian gold exploration company, D'Aguilar Gold Limited, advise that the Company has commenced a 5,000 metre drilling program at the Manumbar epithermal gold project, 30 km south of the D'Aguilar Gold project based at the Shamrock Mine near Kilkivan, 50 km west of Gympie in south east Queensland (Figure 1).

Following an intense four month period of data reassembly and revision, designed to accurately define mineralised targets on the D'Aquilar mining leases, the Manumbar Epithermal Gold Project has emerged as a priority target.

Manumbar has geological similarities with the well-known epithermal gold projects in Queensland at Cracow (Newcrest/Sedimentary 0.8 million oz mined, 1 million oz in new resources) and Vera Nancy (Newmont, 3.5 million oz) - see Figures 2A and 2B. This underscores the potential for the discovery of more than 0.5 million ounces at Manumbar.

In particular, the potassium rich andesitic volcanic host rocks, concealed ore shoots not evident at surface and high grades in the deeper boiling zones are features of those major deposits that have been modelled for the drill targets at Manumbar (Figure 3).

The drilling program comprises $150 - 200$ metre reverse circulation percussion holes with diamond core tails to depths up to 450 metres total depth on the Manumbar mining leases.

A reported 49,000 ounces of gold have previously been produced from open cut mining at Manumbar, which exploited an epithermal carbonate gold vein at a heavily diluted grade of approximately 5.9 grams per tonne. A review of the data has shown that the known Manumbar veins are prospective over the entire known aggregated

ASX Code: DGR

strike length of 1.5 km and there is significant potential for the grade of the gold mineralisation to increase significantly at depth.

The current drill program is designed to test the vein system continuity and gold content to depths of up to 300 metres below the current surface.

During the data review of Manumbar, D'Aquilar defined continuous gold target positions as follows:

underneath the existing east, west and north pits, $\mathbf{r}$
along eastern extensions of the north lode, and $\blacksquare$
a further five positions previously unidentified as drill targets, as indicated $\mathbf{r}$ on the attached Figure 3.

The program is designed to extend the known strike extent of the Manumbar veins and identify additional high grade shoots. The number and location of the drill holes in this program are subject to the progress of results and permitting.

The Manumbar epithermal gold system is characterised by the carbonate vein host being emplaced in a dilatant brittle fracture in potassium rich andesitic volcanic host rocks. The host volcanics are part of the lower sequence of volcanics in the Esk Trough which abuts the D'Aquilar Block to the west. D'Aquilar has identified a number of additional localities within its tenements where epithermal carbonate vein hosted gold targets are outlined in the Sinai Basin and the Wongella - Gold Top prospects north of Kilkivan (Figure 1).

On behalf of the Board D P Cornish, Company Secretary D'Aquilar Gold Ltd

This announcement has been prepared by Nicholas Mather BSc Hons Geol, a person with over five years experience in the area reported on.

For further information, contact:

Mr Nicholas Mather, Managing Director or Mr Duncan Cornish, Company Secretary Telephone +61 7 3303 0680 or at [email protected]

Electronic copies and more information are available on the Company website: www.daquilar.com.au