HELIX RESOURCES LIMITED — Capital/Financing Update 2004

Mar 18, 2004

19th March 2004

Dear Shareholder

On behalf of the Board I invite you to make an important further investment in Helix Resources Limited.

The Company is seeking to raise approximately \$4.74 million in additional working capital by way of a non-renounceable Rights Issue as outlined in the accompanying Prospectus. The Rights Issue offers shareholders the opportunity to acquire one New Share for every three shares currently held, at an issue price of 25 cents. Attached to every two New Shares subscribed for, is one free New Option to subscribe for a further share at 25 cents exercisable no later than the 30^th November 2005. The New Options will be of the same class as the existing Listed Options. At the time of writing this letter, the Listed Options and the shares of the Company were trading at 8.5 and 26 cents respectively.

The new funds derived from the Rights Issue will assist with the further exploration and development of Area 223 at the Tunkillia Gold Project in the Gawler Craton of South Australia.

As was recently disclosed in our Scoping Study, Area 223 appears to be financially robust and technically sound, and your Company is proceeding with the confirmation of these parameters by undertaking a Feasibility Study. The Feasibility Study will commence in May and is expected to be completed by the end of 2004.

Your Directors will endeavour to take up most of their entitlements, and after reading the Prospectus I urge you to strongly consider supporting your Company in its gold production quest by subscribing to your entitlement under the Rights Issue.

Yours sincerely

Ewen W J Tyler Chairman

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: helix@helix.net.au, Website: helix.net.au