HELIX RESOURCES LIMITED — Capital/Financing Update 2005

Oct 4, 2005

Helix Resources Limited A C N 009 138 738 Incorporated in Western Anstralia

1 for 4 Renounceable Rights Issue

5 October 2005

The Board of Helix Resources Limited ("Helix" or "the Company") is pleased to announce that the Company intends to make a renounceable pro-rata offer of fully-paid ordinary shares to all existing shareholders ("Rights Issue").Patersons Securities Limited ("Patersons") has been appointed as Lead Manager and Underwriter to the Rights Issue.

The offer will be on the basis of one fully paid ordinary share for every four Helix shares held by shareholders on the record date at an issue price of 10 cents per share subscribed, with each new share having one free attaching Option to subscribe for a further share at 14 cents to be exercised on or before 31 March 2007. The new shares will rank equally with existing ordinary shares from their date of issue. As a renounceable Rights Issue, the issue will allow shareholders to either maintain their percentage equity in the Company or alternatively trade their rights on the ASX.

Completion of the Rights Issue will result in the issue of 19,165,030 new shares and 19,165,030 new options and it will raise approximately \$1.92 million (before costs). The funds provided by the issue will be used to progress exploration at the Company's extensive tenement package in Western Australia, including follow-up work at the Mt Venn Project, as well as for general working capital.

Helix anticipates lodgement of a Prospectus for the Rights Issue within the next couple weeks and thereafter will advise shareholders concerning the timetable for the Rights Issue including other information as is required to comply with the Corporations Act and the Listing Rules of the ASX.

Riccardo Vittino Chief Operating Officer

For further information please contact:

Rob Mosig Executive Chairman Helix Resources Ph +61 8 9321 2644

Riccardo Vittino Chief Operating Officer Helix Resources Ph +61 8 9321 2644