HELIX RESOURCES LIMITED — Capital/Financing Update 2004

Mar 18, 2004

19th March 2004

Dear Optionholder

NON-RENOUNCEABLE ISSUE OF SHARES ON A PRO-RATA BASIS

As you may be aware from previous market announcements, Helix Resources Ltd proposes to undertake a rights issue of shares. The Company has today lodged a prospectus with the Australian Securities and Investments Commission and now provides the following information. Please contact your professional adviser if you are unsure how to deal with this information.

The pro rata entitlement offer is for one new share at a subscription price of 25 cents per share for every three shares held at the Record Date. A free attaching option (to subscribe for one new share at an exercise price of 25 cents each on or before 30 November 2005) will be issued for each two shares subscribed under this offer.

As an optionholder, you will only be eligible to participate in the rights issue if you convert your options to ordinary shares on or before the Record Date of 30 March 2004.

The number of options held by you is shown at the top of this letter, as is the payment required by you if you were to exercise all of your options. You should note that as at the date of this letter, the market price of the Company's shares on the Australian Stock Exchange is 27.5 cents, which is more than the exercise price of your options. The exercise of options is entirely at your discretion.

Should you wish to participate in the Issue, please complete the attached conversion form, enclose your payment and mail it to our Share Registry.

Please contact the undersigned if you have any queries or require clarification.

Yours sincerely

Riccardo Vittino CFO and Company Secretary