HELIX RESOURCES LIMITED - Capital/Financing Update 2003

25^th August 2003

AUSTRALIAN STOCK EXCHANGE LIMITED VIA ELECTRONIC LODGEMENT

Significant New Results from Tunkillia Drilling

Helix Resources is pleased to announce assay results from the next ten RC drill holes at the Tunkillia Gold Project in the Gawler Craton of South Australia. The latest results continue to expand the global resource at Area 223 and provide significant new information on potentially wider and higher-grade gold mineralisation in the northern portion of Area 223.

The new results, which are listed in the attached table, represent the completion of resource drilling at the 'Area 223 South' resource and the commencement drilling at the 'Area 223 North' resource area.

Drilling at Area 223 South has successfully extended the resource a further 50 metres to the north and showed similar results to previous drilling. The results for line 110800mN (Figs 1 and 2) show there is a broad low-grade eastern lode up to 10 metres wide with a number of steeply dipping higher grade hanging wall lodes 1 to 2 metres wide. These high-grade lodes appear to continue over vertical distances of 50 to 75 metres. The more significant gold results from Area 223 South include 7m at 1.7g/t and 2m at 6.8g/t in LRC 395, 2m at 5.6g/t and 1 m at 15.4g/t in LRC 398, 1m at 11.6g/t and 16m at 2.8 $g/t$ (including 2m at 8.4 $g/t$ ) in LRC 400.

Assay results have also been received for most of the one-metre intervals from first two holes drilled on Line 112050mN (Fig 3) at Area 223 North. Drill Hole LRC 403 intersected 29m at 4.3g/t gold which included 2m at 27.8g/t and 1m at 29.7g/t.

Previous drilling carried out by Acacia Resources Limited in 1998, 50 metres to the north of Line 112050mN also intersected significant gold mineralisation which included 14m at 3.2g/t. The new assay and geological information greatly enhance the gold resource and grade potential for Area 223 North. Further results from the remainder of drill holes on Line 112050mN are expected in the next two weeks

The region between the main Area 223 gold mineralisation and the new Area 223 North gold mineralisation has become a priority target, and will be the subject of immediate further drill investigation. To date, only 6 widely spaced RC drill holes have been drilled over the 300 metres of strike length between these two localities.

Table 1: Significant RC drill results

Drillhole ID	easting	northing	from	interval	grade
	mE	mN	ш	m	g/t
LRC 394	109795	110750	43	$\mathbf{1}$	1.1
			57	1	2.1
			64	$\mathbf{1}$	3.4
			73	$\mathbf 1$	1.8
			100	1	3.6
			112	1	1.7
			137	1	3.2
			169	1	1.5
			181	1	1.6
			186	1	5.2
			195	5	1.5
			205	3	1.4
LRC 395	109765	110750	84	9	1.0
			143	4	1.3
			155 187	1 2	2.0 6.8
			207	7	1.7
LRC 396	109960	110800	96	$\mathbf 1$	1.0
LRC 397	109900	110800	64	8	1.2
LRC 398	109870	110800	54	$\mathbf 1$	1.5
			98	2	5.6
			113	1	15.4
LRC 399	109840	110800	106	2	4.9
			124	1	1.5
			136	$\mathbf{1}$	4.1
			155	1	4.8
LRC 400	109810	110800	78	$\overline{2}$	1.1
			93 111	$\mathbf 1$ 1	1.6 11.6
			141	1	1.6
			146	3	3.3
			167	1	$1.1\,$
			173	4	1.0
			181	16	2.8
		including	181	2	8.4
LRC 401	109780	110800	89	1	1.1
			105	$\overline{2}$	4.2
			113	1	2.7
			162	3	3.6
			179	8	$1.0\,$
			198 204	4 4	3.1
LRC 402	110000	112050	66	4	1.0 1.6
LRC 403	109970	112050	57	29	4.3
		including	63	2	27.8
		and	84	1	29.7
		results outstanding from 107 to 157m

All holes drilled at 60 degrees towards grid east.

Assays by Aqua-Regia, AAS utilising 1 metre riffle split samples.

Assay intervals reported are >1g/t with a maximum of 3 consecutive metres of internal dilution.

This report is based on information compiled by full time employees of Helix Resources Limited, Messrs R W Mosig and A R Martin, who are competent persons as described by Listing Rule Appendix 5A. The report reflects the information compiled by them for the purposes of Listing Rules 5.10 and 5.12.

P.O. Box 825, West Perth, Western Australia 6872 Level 3, 24 Kings Park Road, West Perth, Western Australia 6005 Telephone +61 8 9321 2644, Facsimile +61 8 9321 3909, Email: [email protected], Website: helix.net.au