HELIX RESOURCES LIMITED — Capital/Financing Update 2009

Jun 29, 2009

Dear Shareholder

You will shortly receive an Entitlement and Acceptance Form and Offer document. All Shareholders registered as at 5.00pm WST on 3 July 2009 will be entitled to participate in a pro-rata nonrenounceable entitlements issue of Options on the basis of 1 Option for every 2 Shares held. The issue price of the New Options is 1.5 cents per Option, with an exercise price of 7.5 cents and expiry date of 31 May 2011.

The Closing Date for acceptances is 5.00pm WST on 22 July 2009 and we look forward to your continued support.

The Directors will take up their entitlement and have agreed to underwrite an additional 9.2 million Options for no fee. The Company has also made provision for shareholders to apply for additional Options in the event of a shortfall.

Helix continues to advance our Mineral Projects each financial year as seen by the graph below.

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Outcomes from this mineral expenditure include:-

• An 88% Increase in Glenburgh Inferred Gold Resource from 108,000oz to 203,000oz

• Yalleen Indicated/Inferred Resource of 84.3 million tonnes @ 57.2% Fe - exploration targets identified

• Tunkillia Gold Resource update and further technical studies as Minotaur earn their 51% interest

• Identified walk-up drill targets at our Booyeema, Olary and Blacktop Projects

• Confirmed sedimentary copper mineralisation model for our Adelaidian Projects- regional prospectivity remains

We attach a short summary of our recent exploration activity and a Company Snapshot and advise you can review detailed information at any time at www. helix.net.au.

Yours sincerely

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Greg J Wheeler Executive Chairman

Exploration Update:

In addition to Helix’s advanced projects, the Company is continuing to use low cost methods to explore its greenfields projects in 2009. The following summarises the prospects emerging to drill status from our current tenement portfolio. The technical team are constantly developing new ideas, and reviewing opportunities, to add additional quality projects to the Company’s exploration and development portfolio.

Olary - South Australia

Helix Resources Limited 100% EL4022, EL3956

The Olary Project is a large 1,500km² area covering the eastern extent of the Adelaide Geosyncline. The area is considered prospective for gold and base metals. The exploration target being pursued is large mineral deposits within reactive sedimentary sequences interacting with late-stage granites, circulating basinal fluids and the structural influence of movement on deep seated craton margin structures. Interpretation of a 10,000 line kilometre detailed aeromagnetic survey completed in 2008 suggests the presence of deep magnetic complexes in the south and eastern portions of the survey area interpreted to be intrusive bodies, consistent with the exploration model.

First pass regional surface geochemical surveys conducted in late 2008 and early 2009 have identified several areas of interest including a +3km long gold in calcrete anomaly coincident with the interaction of a large north-west regional fault and a structurally complex magnetic unit buried under shallow cover. Infill calcrete sampling and field mapping to develop drill targets is planned for the current quarter.

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Booyeema Nickel Project – Western Australia

Helix Resources Limited 100% E471090 and ELA47/1089

The Booyeema Project in the West Pilbara is considered prospective for sulphide copper and nickel accumulations in mafic/ultramafic intrusives in Achaean basement under Fortescue Formation cover.

A detailed aeromagnetic survey completed in early 2008 as part of the Company’s broader base metal exploration strategy defined several discrete magnetic bodies associated with a regional NE structural corridor. In December 2008 an airborne VTEM electromagnetic survey was flown over the structural target. The survey highlighted a +800m long conductive body modeled at a depth of approximately 220m (depth is within basement lithologies under Fortescue Group cover). Helix has been awarded a grant from the WA Department of Minerals and Petroleum Exploration Initiative Scheme for 2009-2010 to drill test these geophysical targets.

Blacktop PGE-Basemetal Project – Western Australia

Helix Resources Limited 100% E47/1075, E47/1775, E47/1776

The Blacktop Project covers a re-activated, NE regional fault exposed in the Fortescue Group basin. This fault continues north to control and define the western edge of the Munni Munni intrusive complex.

A series of follow-up detailed soil traverses and mapping in April has identified PGE (platinum + palladium) and nickel anomalism associated with a unit within the Fortescue Group. This unit, which is interpreted to extend over 7kms along strike, is several hundred metres wide and appears to consist of a mixture of sulphide-rich mafic dykes and basaltic flows.

Additional soil traverses are being undertaken in the current quarter to test the along strike extensions. Detailed mapping and channel rockchip sampling of the anomalous zone will also be undertaken to assist in defining the mineralised position within the host rock package.

Project Locations:

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COMPANY SNAPSHOT www.helix.net.au

Helix is a mineral exploration company established in 1986 with a strategy of acquiring large tenement holdings in the frontier exploration regions of Australia, using leading edge exploration methodologies and techniques under the guidance of an experienced Board & Management team to create shareholder wealth.

Reserves & Resources

C	o	mmodityCategor	yPro	jectInterestResource
I
	r	n OreIndicate	Yalleen	JV, WA30%47.9Mt @ 57.3% Fe (ChannelIron)
		Inferred		36.4Mt @ 57.1% Fe (Channel
				Iron)

Joint ventured with API Management Pty Ltd (50% Aquila Resources, 50% AMCI) and forms part of their West Pilbara Iron Ore Project which comprises multiple JV’s. Significant exploration upside remains.

GoldScoping study	GoldScoping study	InferredGlenburgh, WA100%2.4Mt @ 2.6 g/t - 203,000 oz Auhas commenced to assess economic and technical viability.
Gold		OxideMeasuredIndicatedInferredPrimaryIndicatedInferredInferredTotalTunkillia JV, SA49% (Diluting)1.2Mt @ 1.8 g/t – 66,000 oz2Mt @ 1.3 g/t – 86,000 oz2.5 Mt @ 1g/t – 77,000 oz4.2Mt @ 2 g/t – 270,000 oz4.4Mt @ 2.1 g/t – 300,000 oz8.6Mt @ 5.7 g/t – 1.6M oz Silver0.8M oz Au and 1.6M oz Ag
		IndicatedInferredInferredTotal
	notaur Exploration Ltd has earned 51%ability of the project. Whilst Helix haspend an additional $10 million to dilute
	h Reserves

Minotaur Exploration Ltd has earned 51% and as JV Manager are assessing economic and technical viability of the project. Whilst Helix has the option to contribute at any time, Minotaur will need to expend an additional $10 million to dilute Helix from 49% to 24%.

Cash Reserves

The Option pricing structure has been determined to augment existing cash reserves of around $4.35 million whilst targeting a replenishment of cash reserves in the 2[nd] quarter of 2011 to continue exploration activities.

Helix has sufficient funds to carry out its modified exploration and development programs reflective of challenging economic conditions, whilst maintaining a watching brief on acquisition opportunities.

Competent Persons Statements

The information in this report that relates to the Yalleen JV Mineral Resources is based on information compiled by Mr Stuart H Tuckey. Mr Tuckey is full-time employee of the API Management Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposits 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 of Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves on all other projects is based on information compiled by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson has sufficient experience which is relevant to the style of mineralisation 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’. Mr M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.