GREENWING RESOURCES LTD — Capital/Financing Update 2006

Jul 4, 2006

5 July 2006

The Company Announcement Platform Australian Stock Exchange Limited Level 8, Exchange Plaza 2 The Esplanade PERTH WA 6000

Dear Sir/Madam

Sale of Saracen's Tasmanian Exploration Division to Bass Metals Ltd.

The Company advises that it has reached aareement with Bass Metals Ltd whereby Bass will purchase Exploration Licences 47/2003, 48/2003 and 55/2004, together with all Mining Information data, etc, with the result that Saracen will transfer its entire Tasmanian interests to Bass.

The consideration comprises 6.4 million Bass ordinary fully paid shares, plus \$300,000 in cash. The share component of the transaction represents around 15% of Bass's expanded capital following Completion.

The transaction is subject to a number of standard conditions, and is expected to be settled in September, upon the relevant Tasmanian Ministerial approval. Also, a small component (1 million shares) of the proposed share consideration requires Bass shareholder approval under Chapter 7 of the Listing Rules.

From Saracen's perspective, the sale benefits Saracen in that it will: -

• a) enable Saracen's senior management to focus on the South Laverton gold interests,
• b) obviate the need for further direct funding, enabling Saracen's exploration dollars to be directed to the South Laverton gold interests,
• c) result in Saracen obtaining exposure, through its shareholding in Bass, to the exciting work programmes being implemented in Bass's neighbouring Que River-Hellyer-Mt Charter tenement holdings, and
• d) result in Saracen obtaining exposure, through its shareholding in Bass, to the future initiatives of Bass's well-credentialed and experienced board and management team in the broader combined Mt Read tenement holdinas.

For further information please contact:

Guido Staltari Managing Director

Tel (03) 9670 0040 E-Mail --- avido@saracen.com.au

Saracen Mineral Holdings Limited ACN 009 215 347

Level 7, 350 Collins Street Melbourne Victoria 3000

Telephone (61 3) 9670 0040 Facsimile (61 3) 9670 0049