HELIX RESOURCES LIMITED — Capital/Financing Update 2006

Aug 24, 2006

A.C.N. 009 138 738 Incorporated in Western Australia

25 August 2006

The Manager Company Announcements Office Australian Stock Exchange Limited

BY ELECTRONIC LODGEMENT

Dear Sir

Tunkillia Exploration Update

Please find attached an Exploration Update for work carried out by Joint Venture Partners, Minotaur Exploration Limited, on Helix's Tunkillia Gold Project.

Yours faithfully

Michel Lite

Greg Wheeler For: Chairman

25 August 2006

ASX Release

TUNKILLIA EXPLORATION UPDATE

Helix Resources Limited is pleased to announce the following exploration update for the Tunkillia Gold Project in South Australia. Minotaur Exploration Limited (Minotaur) is earning 51% in the Project by spending \$5M by 2009

This work follows up previously released exploration results from Area 191, where Minotaur announced RC drilling had identified a relationship between chargeable sulphide anomalies and gold mineralisation at the Area 191 Prospect. Results included 7m @ 3.9g/t Au in LRC506, 4m @ 7.7g/t Au in LRC514 and 16m @ 2.6g/t Au in LRC536.

Minotaur is continuing its exploration on the project with a budget of \$3M for the calendar year.

The following information is an excerpt from Minotaur's ASX Release this today.

Summary

Minotaur has completed a program of angled RC (Reverse Circulation) drilling within the central portion of the Area 223 gold deposit at Tunkillia. The program was designed to test the nature and continuity of gold mineralisation at the up-dip end of previous drill traverses undertaken by Helix Resources Limited. Twelve of the thirteen holes successfully intersected mineralisation, with highlights including:

LRC538, 7m @ 3.2g/t Au from 54m LRC540, 6m @ 3.4g/t Au from 47m LRC543, 6m @ 3.1g/t Au from 72m LRC546, 6m @ 3.9g/t Au from 71m LRC549, 3m @ 8.5g/t Au from 72m LRC543, 5m @ 3.3g/t Au from 103m LRC544, 7m @ 7.7g/t Au from 93m

Drilling also intersected significant zones of low grade oxide gold mineralisation within the weathered zone (grading $0.3-1.0$ g/t Au) and Minotaur will undertake further drilling and metallurgical test work on representative samples to test the viability of heap leaching this material.

Tunkillia Area 223 Drilling

Thirteen Reverse Circulation holes totalling 1132m were drilled within a conceptual pit outlined by Helix Resources Limited at Area 223 (See Table 1 and Figure 1).

DriIlhole	Easting	Northing	Depth
ERC538	109995	111300	78
LRC539	109955	111350	102
LRC540	110005	111400	82
ERC541	109965	111550	96
LRC542	110015	111550	60
LRC543	109960	111600	138
ERC544	109990	111600	108
LRC545	110010	111650	72
LRC546	110004	111700	84
ERC547	110015	111750	72
ERC548	110005	111800	72
ERC549	109937	111650	102
ERC550	110000	111452	66

Table 1: Summary of RC drillholes

All holes were inclined at $60^{\circ}$ towards grid east.

Holes were drilled:

• At the eastern ends of selected existing drill traverses, to test the eastern up-dip extensions of known $\bullet$ mineralisation
• Between existing drillholes to test for continuity of shallow primary mineralisation. $\bullet$

Twelve of the thirteen holes intersected significant gold mineralisation $(>1 \text{ g/t Au})$ , both within the supergene and primary ore zones (Table 2). All holes also intersected zones of lower grade gold mineralisation $(0.5 \text{ g/t})$ Au) in the oxide zone. On several lines, most notably lines 111300, 111400, 111650, 111700 and 111800, the oxide zone mineralisation remains open to the east.

A program of shallow drilling is underway to define the limits of the oxide zone mineralization. Metallurgical testing on high, medium and low-grade mineralised samples, including oxide zone samples that may be amenable to heap-leaching, is to be undertaken.

Table 2: Summary of significant intercepts

			Drilled
Drillhole	From	Tо	width	Grade
LRC538	54	61	7	3.20
LRC539	79	80	Í	4.76
	84	85	ĺ	3.18
	88	89	ĺ	2.21
	92	93	ĺ	2.70
	98	102	4	2.15	EOH
LRC540	47	53	6	3.41
	58	59	ĺ	1.12
LRC541	79	86	7	3.27
	91	96	5	1.57	EOH
LRC542	$\overline{51}$	54	$\overline{3}$	2.16
LRC543	72	78	$\overline{6}$	3.13
	83	90	7	1.15
	103	108	5	3.28
	111	112	Ĭ	1.64
	130	131	ĺ	1.46
	135	136	ĺ	1.35
LRC544	67	70	$\overline{\mathbf{3}}$	3.18
	76	78	$\overline{2}$	8.62
	82	83	ĺ	4.42
	87	88	l	6,94
	93	100	7	7.66
LRC545	58	67	9	1.48
LRC546	54	58	$\overline{4}$	1.41
	61	62	ĺ	8.49
	67	68	ĺ	14.63
	71	77	6	3.85
LRC547	60	61	Í	2.71
	64	66	$\overline{c}$	4.50
LRC548	10	11	ī	1.70
	57	58	ĺ	1.19
LRC549	65 61	68 63	3 $\overline{2}$	3.16 1.44
	72	75	3	8.54
	85	86	ĺ	1.11
	91	92	ĺ	1.71

Samples are 1m cone split RC face sampling hammer. Assays initially by aqua regia digestion with flame AAS analysis, and with any sample recording $>1$ g/t Au repeated using 25 gram fire assay and flame AAS analysis. Assay intercepts reported using a $\hat{I}$ g/t Au cutoff and up to 2m internal dilution

Fig 1 - Location Map Tunkillia Area 223 drilling

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr A. P. Belperio, who is a full-time employee of Minotaur Exploration Limited and a Fellow of the Australasian Institute of Mining and Metallurgy. Dr A. P. Belperio has a minimum of 5 years experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Dr A. P. Belperio consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.