HELIX RESOURCES LIMITED — Capital/Financing Update 2004

Mar 3, 2004

HELIX MOVES TO TUNKILLIA FEASIBILITY AFTER SCOPING VIABLE GOLD DEVELOPMENT UPGRADED RESOURCE OF 730,000 OUNCES ANNOUNCED

Helix Resources Limited (ASX: HLX) will immediately commence a Feasibility Study on development of its Tunkillia Gold Project in South Australia after announcing a positive Scoping Study of a potential open pit development of the Area 223 resource including a newly upgraded 730,000-ounce JORC resource for the deposit.

The Perth-based Company said the Scoping Study, which included open pit shell optimisations using Whittle Four-X Software, showed excellent potential mining economics including conversion to an insitu resource of over 390,000 ounces to 180 metres vertical depth at a A\$550/oz gold price.

Estimated cash costs per ounce of potential gold production from mining this resource at a head grade of 2.4 $g/t$ and a waste-to-ore ratio of 7.5:1 were A\$375/oz, resulting in an undiscounted cash surplus of over \$62 million before capital costs.

"This is a very favourable outcome for a Scoping Study which strongly supports our commitment to start a Feasibility Study leading to development of Area 223 potentially as South Australia's second stand-alone gold mine," said Helix's Managing Director, Mr Rob Mosig.

"This represents another important step in Helix's strategy to become a mid-tier Australian gold producer by focusing on the short-term development of the Tunkillia Project and effectively underwrites our exploration and development strategy moving forward," he added.

The Scoping Study – by AMC Consultants Pty Ltd in conjunction with in-house studies and evaluations – confirmed a new diluted JORC resource estimation for Area 223 to a 250 metre depth of 10.5 million tonnes grading 2.2 $g/t$ gold (using a 1 $g/t$ gold cut-off) for approximately 730,000 ounces. This represents a significant increase on the previously announced resource in February 2004 of 7.3 million tonnes grading 2.64 $g/t$ for 620,000 contained ounces and more accurately represents the likely mining characteristics of the deposit.

The new resource is contained within a global envelope of 14 million tonnes grading 2.2 $g/t$ for 1 million ounces. A figure of 92% gold extraction was used in the Scoping Study, based on limited metallurgical test work indicating favourable gold recoveries.

Mr Mosig said full details of the proposed Feasibility Study would be announced within 4-6 weeks, while a new program of reverse circulation drilling would start later this month designed to further increase the Project's resource inventory over the 1 million ounce level. "The Area 223 mineralisation itself is open at depth and along strike both to the north and the south. We have also recently identified a group of highly prospective exploration targets in the area which offer considerable potential to further increase the global resource inventory."

Mr Mosig said Helix would also now make the final deferred payment of A\$500,000 to the previous joint venture partner of the Tunkillia Project, AngloGold, completing its 100% ownership of the Project.

Released by: Jan Hope / Nicholas Read Jan Hope & Partners Telephone: (+61-8) 9388-1474 Mobile: (0419) 929 046

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On behalf of: Mr Rob Mosig Managing Director Helix Resources Limited Telephone: (+61-8) 9321-2644