GOLDEN CROSS RESOURCES LTD — Capital/Financing Update 2003

Sep 8, 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

9 September 2003

ASX ANNOUNCEMENT

Drilling Commences at Sunny Corner

Drilling has commenced at GCR's 100%-owned Sunny Corner property near Lithgow, NSW. This first programme of approximately 1,000m of RC drilling is designed to test for gold and silver mineralisation near the old Sunny Corner Mine as well as anomalies delineated by recent geochemical surveys south of the mine (see Figure).

On 28 August GCR released results of a geochemical sampling programme at Sunny Corner. The results revealed that highly anomalous gold and silver is widespread in surface rocks and soils, particularly in breccias and fault zones around the old mine. Results included a continuous rock chip sample that returned 4.5m at 27.9 g/t gold and 1,270 g/t silver.

In addition, soil samples outlined a strong gold-silver-lead anomaly that not only encompasses the old mine area but extends at least 400m to the south of the area and remains open to the north and south. On the northernmost soil sampling line, a 200m-wide zone containing eight soil samples returned an average of 0.32 g/t gold and 7.3 g/t silver, a highly anomalous response for soils. It is unclear at this time whether this response reflects a true bedrock source or is the result of soil contamination from the historic smelters located in the valley below.

In addition to the drilling, GCR has initiated further soil sampling to the north and a detailed geochemical assessment of the 200m-wide soil anomaly. GCR is optimistic that the anomaly reflects a bedrock source and anticipates further drilling in this northern zone, to follow the present drilling programme.

A search of historical records revealed that mineralisation was recorded at prospects up to 3km north of the old Sunny Corner Mine. These include the Great Western Adit, where sulphide zones up to 6m wide averaged 217 g/t silver and 37% lead, and the Nevada Mine where lodes up to 9m wide averaged 416 g/t silver, 9.34% lead and 5.06% copper.

Very little systematic or modern evaluation of the gold content or geological setting of the Sunny Corner area or these prospects has been undertaken. GCR intends to carry out a detailed assessment of the entire zone of mineralisation and alteration, now estimated to be 3.5 km long.

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.

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.

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