HELIX RESOURCES LIMITED — Capital/Financing Update 2006

Mar 27, 2006

ASX RELEASE

$28^th$ March 2006

Letter to Shareholders

A strategic review by the board of Helix Resources Limited (Helix) identified that greater shareholder value could be delivered through the creation of two distinct entities to manage the gold and platinum assets. Accordingly Helix has decided to spin off its Platinum Group Metals (PGM) assets into a separately funded exploration company, Platina Resources Ltd ("Platina").

It is planned to list Platina on the ASX in conjunction with a fully underwritten capital raising of approximately \$4.3 million through an IPO. Helix shareholders will be given a priority allocation. The board of Platina is considering the options for oversubscriptions for what it believes will be a high level of shareholder demand.

Patersons Securities Limited has agreed to act as lead manager and underwrite the issue, which at this stage is expected to be finalised within the next six weeks.

The funds raised in Platina will be dedicated to exploring and further advancing the platinum projects together with securing other PGM prospective areas.

In deciding to seek ASX listing for Platina in conjunction with the proposed capital raising, a number of issues were considered.

$\ddagger$ . Helix will act as promoter of Platina

Helix believes the value of its platinum assets is not fully appreciated or reflected in its share price. Helix therefore is effectively acting as Promoter in the ASX listing of Platina by:-

• De-merging its PGM assets in exchange for a nominal 10,000 Platina shares at the IPO price of 20 cents; ٠
• Offering Helix shareholders the right to participate in Platina on a priority basis for over 80% of the issue.

Given there are no Promoter Shares or dilution to IPO participants by the vend of mineral assets, the capital structure will be tight and cash backing per share prior to ASX listing costs will equate to the issue price of 20 cents. Helix believes the Platina float compares very favourably to other ASX mineral floats.

$\mathcal{L}$ The importance of maximising the value of the platinum interests for the benefit of Helix shareholders, without detracting from Helix's current gold exploration and investment portfolio.

Glenburgh

Helix is currently focused on its 100% owned Glenburgh gold project, which has an inferred JORC resource of 1.09Mt @ 3.1q/t Au (Cut) for 108,000oz.

An exploration RC drilling program in December 2005 successfully identified new primary mineralisation below two gold anomalies, the Mustang and Shelby Prospects. Both have strike lengths exceeding 300 metres and are open along strike and at depth. The drilling confirmed shallow plunging mineralisation similar in geometry to the lodes defined within the Apollo resource and provided the impetus for closer investigation of the area via an Induced Polarisation (IP) survey which covered the Apollo resource and extensions over a 3.5 km strike length.

The survey has successfully recognised existing mineralisation and has identified new targets that will be tested by a 2,500m RC drilling program due to commence in early April 2006. The aim of the drilling is to rapidly expand the resource potential immediately surrounding the known Prospects.

The recent exploration at Glenburgh has also improved the understanding of the structural and lithological controls and has enabled Helix to outline priority Glenburgh-style targets in the region, resulting in the application for an additional 2,000 square kilometres of prospective ground over the Gascoyne Complex.

Tunkillia

The Tunkillia gold project comprises an indicated and inferred JORC resource of 10.5Mt grading 2.2g/t Au for 730,000oz and is under joint venture with Minotaur Resources Limited ("Minotaur").

Minotaur is continuing to earn a 51% interest in the Project by spending \$5 million before mid 2009 and has recently completed a re-assessment of the Area 223 resource economics. Several scenarios were investigated and a conceptual mining operation of a minimum of 1,000,000 tonnes per annum, producing some 80,000 ounces per annum at the current gold price highlighted the requirement for immediate further exploration drilling at Area 223. The new \$2M drilling program will comprise approximately 4,000 metres of diamond drilling and 10,000 metres of RC drilling. In addition, metallurgical and structural studies will be carried out.

It is considered there is ample potential to expand the deposit and production rate, particularly at Area 223 South in the southern portion of the deposit which remains open along strike and where previous drilling by Helix intersected the highest grade, continuous primary mineralisation ever found at Tunkillia (3m at 17g/t and 15m at 7.7q/t in LRC 498).

Should the results be encouraging and the resource expanded, a pre feasibility study on the project will commence in the second half of 2006.

Bilvuin

At the Bilyuin Project, Helix is targeting hydrothermal gold associated with structurally controlled alteration hosted in a volcanic breccia. In November 2005, Helix carried out a small orientation survey testing possible sample media and assay techniques for identifying gold anomalism under cover over the Bilyuin geophysical target. With a suitable technique identified, in early February a survey was commenced collecting samples on 500 and 800m line spacing at 100m centres. The field-work was suspended due to the wet season.

Other Investments and Joint Ventures

West Pilbara - Diamonds

The West Pilbara diamond project has reverted 100% to Helix after DeBeers' decision to withdraw from Australia and the Joint Venture. With ±\$2 million having been spent to date and kimberlites and micro-diamonds identified, significant value attaches to this asset and discussions with interested parties are progressing in order to maximize its value.

West Pilbara - Yalleen (Iron Ore)

The Yalleen Iron Ore Project is a Joint Venture with API Management Pty Limited ("API"). API can earn a 70% interest in iron ore deposits by expending a total of \$1.5 million over four years

West Pilbara - Gold and Base Metals

Helix retains the tenements for 1,400 square kilometres of ground in the West Pilbara. The area covers a diverse range of rock-types from the Hamersley Suite in the south to Archaen basement lithologies in the north and is considered perspective for precious and base metals.

Uranium Assets

Lake Everard Uranium Joint Venture

Recently listed Toro Energy Limited ("Toro") is Helix's joint venture partner. The Joint Venture tenements cover a number of unexplored radiometric anomalies within a chain of remnant lakes that follow a series of Tertiary Palaeo-channel Systems

Under the terms of the new Joint Venture, which covers the same tenements as the Gold Joint Venture with Minotaur. Toro may earn a 51% interest in the Uranium Rights for an expenditure of \$2 million over three years This JV provides the Company with exposure to the new exploration campaigns currently targeting uranium throughout Australia.

Lake Throssell

Helix holds exploration licence applications that cover a uranium channel radiometric anomaly approximately 150 kilometres east of Laverton in the Great Victorian Desert. The tenements are currently being reviewed by interested parties for inclusion in a potential float.

$\overline{3}$ . The opportunity to capitalise on the prevailing positive sentiment towards the platinum group metals market.

The proposed capital raising of \$4.3 million will provide the funds to immediately evaluate the potential of Platina's comprehensive platinum group metals portfolio, whilst not diluting the Helix shareholder interest in those assets should they participate in the IPO.

$\overline{\mathbf{4}}$ . The separation of Helix's platinum exploration interests into Platina, and the subsequent ASX listing of Platina together with a capital raising is the initial stage in achieving the full value of Helix's platinum interests.

Platina will be specifically platinum focused, with a management team with relevant experience in platinum exploration/development and operating in Australia. The management team will be committed to increasing shareholder value through exploration success.

It is proposed to raise funds via an offer to Helix shareholders in the form of a priority entitlement to the Platina shares to further develop existing and future platinum assets.

5. The Helix Projects to Form Part of Platina

Fifield Project

The Fifield project consists of one Exploration Licence covering the entire 30 square kilometre (Alaskan type) Owendale igneous intrusion approximately 100 kilometres north of Parkes in central New South Wales. The Owendale intrusion is located immediately north of Australia's only recorded alluvial platinum production of 700 kilograms. Mining was sporadic and essentially from two deep leads with variable annual production between the late 1890's through to the 1950's.

Extensive RC drilling, diamond drilling and costeaning by Helix at the Owendale intrusion was carried out during 1986 to 1992 in an attempt to find mineable primary platinum. Early results included drill widths up to 2 metres and grades up to 13g/t Pt (with minor Pd), however the pods of platinum mineralisation were extremely variable. Whilst no economic primary resources were identified, the potential for discovery still remains significant. An unclassified eluvial resource was estimated in the Cincinatti region at 1.2 million tonnes at 1.2 to 1.4g/t platinum. This resource estimation requires immediate evaluation to assess possible production benefiting from the current high platinum price.

Since 1994, no platinum activities at the Owendale intrusion have been carried out although some work has been done on the nickel and cobalt potential of the lateritic components.

Current platinum prices also provide impetus for the confirmation and further definition of alluvial resources at Owendale for immediate development. The successful production from the existing platinum resource would provide funds to further examine the potential for primary platinum mineralisation.

Munni Munni

The project consists of title to almost the entire 225 square kilometre Munni Munni intrusive complex in the West Pilbara, approximately 50 kilometres south of Karratha. The northern one third of the complex outcrops or is developed under shallow alluvial cover and a JORC resource (measured and indicated) of 23 million tonnes grading 2.9g/t 4E (Pt, Pd, Rh and Au) for over 2 million ounces of PGM.

The remaining southern two thirds of the complex are covered by variable thicknesses of vounger cover. Exploration in this area has generally been inconclusive and further exploration drilling is required after a more thorough understanding of the architecture of the Munni Munni intrusive complex is carried out.

At 2000 prices the PGM resource was uneconomic. However there is potential for areas of higher PGM grade or higher metal accumulation within the Ferguson Reef. These higher grade 'shoots' will be investigated.

Yilgarn Targets, including Mt Venn

The company has built up extensive expertise on the mineral chemistry of selected Australian PGM occurrences. As such, certain new pathfinders to assist in the delineation of PGM occurrences are now considered significant.

The Yilgarn region of Western Australia is an example of a vast region of Archaean and Proterozoic rock types containing large amounts of ultra-mafic rocks considered to have potential for PGM mineralisation. The Mt Venn Project will form the initial focus of the search. The Project contains a layered mafic/ultra-mafic intrusion that is considered prospective to host PGMs. Since the majority of the PGM host rocks in the remainder of the Yilgam are held under tenement by other companies. Platina will be targeting generative alliances with companies to specifically explore for PGM's.

CAPITAL STRUCTURE

Platina will seek to raise \$4.3 million through the issue of 21.5 million shares at \$0.20 each. It is intended that 100% of the issue will be reserved as a Priority Entitlement Offer for eligible Helix Shareholders at the Record Date. The board of Platina is considering oversubscriptions to maximise the opportunity for shareholder participation.

Patersons Securities Limited has been engaged as Lead Manager and indicated their willingness to be Underwriter to the Offer of Securities.

Holders of the Helix 30 April 2007 options exercisable at 14 cents will have the opportunity to participate in the IPO by exercising their options prior to the Record date of 19 April 2006.

All applications must be for a minimum of 10,000 shares, with the option for shareholders to apply for additional shares. Applications for the priority pool must be made on the personalised application forms that accompany the prospectus.

Issued Shares	No. of Shares
Shares held by Helix as consideration for the platinum	10,000
tenements transferred
Shares offered for subscription to Helix shareholders or the public at issue price of \$0.20 per Share	21,500,000
Total Issued Capital	21,510,000

NOTE: ELIGIBLE HELIX SHAREHOLDERS WILL BE THOSE REGISTERED AS SHAREHOLDERS ON THE COMPANY'S SHARE REGISTER AT NO LATER THAN 5.00PM WST ON THE RECORD DATE OF 19 APRIL 2006.

Platina intends to lodge a prospectus with ASX and ASIC within the next six weeks. It is anticipated that shareholders will receive a prospectus about 10 days after the lodgement date, at which time the prospectus will also be available on Helix's website: www.helix.net.au.

MANAGEMENT - BOARD COMPOSITION AND SENIOR MANAGEMENT

The Board and Management of Platina will provide a blend of complementary skills and strong background in platinum exploration and development, as well as a sound working knowledge of operating in Australia and in an ASX listed company environment.

Helix has appointed Mr Robert Mosig as Executive Chairman and Managing Director, and Mr Greg Wheeler as Non Executive Director to lead the transition of Platina to an ASX listed PGM explorer.

Further Director and Management appointments will be made to ensure Platina has solid management, technical, commercial, financial and legal skills to deliver the company's objectives.

THE WORLD PGM MARKET

The Directors of Platina perceive that a strong outlook exists for the world PGM market, in view of the following:

Platinum

Platinum demand is expected to extend its decade-long upward trend in 2006, with growth likely to accelerate compared with 2005. The auto-catalyst market will continue to generate much of the forecast additional demand, with purchases of platinum expected to climb in Europe, North America and Asia. Supplies of platinum and demand for the metal are projected to grow at similar rates in 2006, and the market is therefore set to remain in deficit. With fund interest in precious metals still high and the fundamentals supportive, the price of platinum could trade in the range US\$900 to US\$1,000 in the near term unless demand from jewellery manufacturers contracts more substantially than current trends suggest.

Palladium

After five vears of significant surpluses, the palladium market could move closer to balance in 2006. Market stocks of metal, however, remain substantial and so the direction of the price will continue to rest largely with fund managers. The improving fundamentals of the palladium market should keep sentiment positive and may draw in sufficient additional speculative investment to push the price upwards, particularly if gold and platinum also rally.

Rhodium

Demand for rhodium is forecast to increase due to greater purchases of metal for use in autocatalysts, in turn driven by tightening vehicle emissions limits world-wide. Demand from the glass industry for rhodium is also expected to be strong again this year, with further expansion of LCD glass manufacturing capacity in Asia.

Helix believes Platina will emerge as an active and serious player in the platinum exploration sector and maximize the value for Helix shareholders.

ROBERT MOSIG CHAIRMAN

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Messrs R Mosig and M Wilson who are full time employees of Helix Resources Limited and, who are Members or Fellows of The Australasian Institute of Mining and Metallurgy. Messrs R Mosig and M Wilson have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Messrs R Mosig and M Wilson consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.