GOLDEN CROSS RESOURCES LTD — Capital/Financing Update 2003

Sep 22, 2003

GOLDEN CROSS RESOURCES LTD

ABN 65 063 075 178

22 Edgeworth David Ave Hornsby NSW 2077 Phone (02) 9482 8833 Fax (02) 9482 8488

ASX ANNOUNCEMENT

23 September 2003

POSITIVE RESULTS FROM FOLLOW-UP DRILLING AT CANBELEGO

A second drill programme consisting of 11 RC holes, 9 of which were at Mt Boppy South, has been completed. Results confirm the gold grades and widths intersected in the first programme.

The second programme was designed to infill the first programme and to test the northern strike extension of the Mt Boppy South gold veins. Holes were drilled at a declination of -60 degrees and an azimuth of 240 degrees except for holes SB-18 and SB-19, which were at an azimuth of 60 degrees.

Best results from the second programme are set out below.

Hole No.	East* (m)	North* (m)	From (m)	Intercept (m)	Gold (g/t)
SB-11	435425	6507185	17	2	1.83
SB-12	435435	6507190	38	3	8.65
	and		51	2	5.42
SB-15	435450	6507170	30	5	4.98
SB-17	435425	6507210	Surface	8	5.26
	and		26	4	4.26
SB-18	435380	6507220	5	2	2.50
	and		24	3	2.10

Mt Boppy South – Best results from Second Drill Programme

Note: * Coordinates are approximate only at this stage.

In addition to the nine holes at Mt Boppy South, two exploratory holes were drilled at the Mt Boppy West prospect where the best result was an encouraging 3m at 4 g/t gold.

On 2 April GCR announced a farm-in by Polymetals Pty Ltd to the Canbelego Area, part of GCR's 100%-owned Pipeline property near Cobar, NSW. Polymetals owns and operates the Mt Boppy Gold Mine at Canbelego, currently producing approximately 25,000 ounces of gold per annum. Mining of the open pit has been completed and consideration is being given to underground development of the plunging ore body while concurrently exploring for open pittable ore on the surrounding Golden Cross ground.

In May Polymetals completed an initial programme of 10 reverse circulation (RC) drillholes over a strike length of 150m at Mt Boppy South, situated on GCR ground approximately 500m south of the Mt Boppy mine. The holes were designed to test three sub-parallel epithermal veins previously identified by GCR as hosting surface samples averaging 5 g/t gold. All holes were drilled at an azimuth of 230 degrees and a declination of -60 degrees.

The previous drilling results are set out below for comparison

Hole No.	East (m)	North (m)	From (m)	Intercept (m)	Gold (g/t)
SB-01	435450	6507200	14	4	3.29
SB-03	435438	6507220	24	2	3.42
SB-06	435462	6507175	9	10	2.75
Including			12	4	4.95
SB-07	435477	6507182	32	4	2.91
and			70	4	2.59
Including			71	2	4.70
SB-09	435432	6507177	24	3	10.80

Mt Boppy South - Best results from First Drill Programme

From the drilling to date it appears that the gold zone consists of at least three subparallel, steeply dipping gold veins over a width of 35m, extending for a strike length of at least 150m, open in both directions and at depth. Results suggest a southerly plunge to mineralisation beneath shallow cover rocks.

The results add credence to the possibility of developing an open-pittable gold resource. which could provide GCR with its first cash flow. GCR will receive the net proceeds from 50% of any gold produced from the Canbelego Area.

The first and second drill programmes are considered to be highly encouraging and will be followed up in early October with a third drill programme to establish resources.

GCR is a gold and base metals explorer, searching in NSW for large deposits in highly prospective mineral belts, providing significant potential upside for the speculative investor.

The Company holds significant mineral tenement positions within the highly prospective Lachlan Fold Belt, which contains Cadia-Ridgeway, the highest gold site revenue earner in Australia. GCR also owns a major land position in the Curnamona Craton of western NSW, which contains the world class Broken Hill orebody, the largest deposit of its type in the world.

Enquiries/requests to receive announcements by email: David Timms, Managing Director Ph (02) 9482 8833, email address: david.timms@goldencross.com.au

This report was prepared by David Timms, full time employee of Golden Cross Resources Ltd, who is a Fellow of the AIG and AusIMM and has more than five years experience in the field of activity in which he is reporting.

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