HELIX RESOURCES LIMITED — Interim / Quarterly Report 2003

Jul 28, 2003

QUARTERIN REPOR

HELIX RESOURCES LIMITED

Ouarter Ending 30 June 2003

HIGHLIGHTS

• Helix completes acquisition of AngloGold's 49% equity in the Gawler and Tunkillia Projects.
• Stage 1 Reverse Circulation (RC) Drilling underway at the 100% Helix owned Tunkillia Gold Project, South Australia.
• Impressive Bedrock Gold Geochemical Results from the Mustang, Tuxedo and Icon Anomalies at the Glenburgh Project, Western Australia.
• Joint Venture Agreement with DeBeers Australia Exploration Limited commences in the Pilbara region of Western Australia.
• \$826,000 raised from a Share Purchase Plan...

SUMMARY

During the quarter, the Company finalised its purchase of the Tunkillia Gold Project from AngloGold Australia Limited and now holds 100% of this project situated in the Gawler Craton region of South Australia.

RC drilling commenced on the 10^th July at Tunkillia. The drilling represents the first of a two-staged program costing a total of \$1.5 million, which is aimed at resource definition and extension. Approximately 50 RC holes (8,000 metre) will be completed within the Area 223 region. The drilling will concentrate on three primary target areas that currently have insufficient information to calculate a gold resource. Stage 1 drilling is due for completion by the end of August 2003. As previously reported, the Company views the Tunkillia Project as having the potential for 60,000 to 70,000 ounces of gold production per annum over a 5 to 7 year period. The next two stages of drilling will confirm the resource at Tunkillia and this work should be completed by November of this year. The Company hopes to commence gold production from Tunkillia as early as possible.

At the Company's 100% owned Glenburgh Gold Project in the Gascovne region of Western Australia, work continued with the completion of a 3,000 metre vacuum geochemical drilling program. Approximately 1.500 bedrock geochemical samples were collected from the Mustang, Tuxedo and Icon Anomalies with assay results showing immediate drilling targets, especially at the Mustang Anomaly. At Mustang, three new anomalies have been defined ranging in size from 100 metres to 500 metres in strike-length. The new Anomalies have individual assays varying from 50ppb to 6 g/t gold and appear to extend east along strike from the main Apollo trend. A new program of RC drilling to test the geochemical results is to be completed during the next quarter of operations.

Elsewhere, the Company is pleased to confirm the signing of a Farm-in and Joint Venture Agreement with DeBeers Australia Exploration Limited. The Agreement covers an area of approximately 5,000

Quarter Ending 30 June 2003

square kilometres of Helix tenements in the West Pilbara region of Western Australia. DeBeers can earn a 51% interest in any diamond deposit by completing expenditure of \$3 million within three years of the date of the Agreement.

During the Quarter, the Company issued all shareholders with information on voluntary subscription to a Share Purchase Plan (SPP). The SPP, which closed on July 25^th, raised a total of \$826,000. The funds will be applied to working capital and the further exploration of the Tunkillia and Glenburgh Projects.

QUARTERIN REPOR

HELIX RESOURCES LIMITED

Ouarter Ending 30 June 2003

Exploration Activities

GOLD PROJECTS

TUNKILLIA PROJECT - SOUTH AUSTRALIA Exploration Licence 2697 Helix Resources Limited 100%

RC drilling commenced at the Tunkillia Project on 10 July, the Stage 1 drilling of a planned 2 stage program will consist of approximately 50 drill holes totalling 8,100 metres. The Stage 1 drilling will focus on the evaluation of the Area 223 resource to a depth of 200 metres below the surface. The Stage 1 program, which is due to be completed by late August, will allow the first JORC resource to be calculated for Area 223.

The Area 223 mineralisation covers a strike-length of 1.6 kilometres and contains three main mineralised ore bodies, the central 800 metre long zone that contains the bulk of the resource and the smaller northern and southern zones (figure 1). Drilling during Stage 1 will be restricted to fully evaluating these three zones while other mineralization peripheral to Area 223 and between the three main bodies will be drilled during the Stage 2 drilling.

Although Stage 1 drilling is restricted to Area 223 above 200m, the mineralised trend remains open along strike and at depth. 400 linear meters to the north of Area 223, the next line of RC drilling intersected 41m @ 1.5g/t Au, including 10m @ 3.8g/t Au.

Preliminary economic evaluations on the Tunkillia global resource of 8.5 million tonnes at 2.3 $g/t$ Au (600,000 oz) show that at current grades and metal prices the project can be viable if the measured resource is in excess 350,000 ounces of gold and capital costs are kept under \$30 million AUD.

GLENBURGH PROJECT - WESTERN AUSTRALIA Exploration Licences 09/644, 09/1079 Mining Leases 09/87, 09/88 Prospecting Licences 09/424 - 427

During the quarter a vacuum-drilling program was completed over the Victoria Bore grid to obtain further surface geochemical gold information along strike from the Apollo, Tuxedo and Icon mineralisation. A total of 1,046 holes were completed for 3,034 metres of drilling. Drilling was conducted at 20 metre spacings along north-south lines between 50 and 200 metres apart (figure 2).

The results of the drilling show a significant enhancement of the gold anomalies when compared to previous soil sampling programs and have defined a number of new gold anomalies under areas of shallow cover.

At the Mustang Prospect three new gold anomalies have been discovered extending east over a distance of 1.5 kilometres along strike from the Apollo mineralisation. Importantly the anomalies

Ouarter Ending 30 June 2003

Exploration Activities

GOLD PROJECTS - continued

recorded peak gold values up to $3.7g/t$ within coherent 100ppb anomalism.

An RC drilling program totalling 2,000 metres is currently being planned to test the Mustang anomalism and the faulted down plunge continuation of the Apollo resource. It is anticipated that this program will be completed in early September.

The geochemical results also indicate that the Tuxedo Anomaly probably represents the faulted extension of the Apollo resource that is offset to the southwest along the Victoria Fault. RC drilling during the first quarter of 2003 had successfully extended Apollo mineralisation a further 100 metres along strike to the west from the previous resource where it is truncated by the Victoria Fault. Results of this earlier drilling included 6m at 20.5 $g/t$ gold.

DIAMONDS

WEST PILBARA JOINT VENTURE - WESTERN AUSTRALIA Exploration Licences 47/0905, 47/1015, 47/1074, 47/1075 Exploration Licences Applications 47/1090, 47/1144 - 47/1146, 47/1169 - 47/1171 Helix Resources Limited 100% DeBeers Australia Exploration Limited earning 51% (diamonds only)

The recently signed West Pilbara Diamond JV with DeBeers Australia Exploration Limited covers 11 exploration licences and applications, 2,000 sq km, surrounding the Munni Munni platinum project. DeBeers, have advised that regional diamond sampling programs will commence shortly, have the right to earn 51% in any new diamond discoveries by spending \$3 million on exploration within the next 3 years. Helix will then have the option participate in further exploration or development by contributing on a pro rata basis, 49%, or further diluting to a minimum interest of 25%.

ROBERT W MOSIG MANAGING DIRECTOR

ANTHONY R MARTIN DIRECTOR - EXPLORATION

This report is based on information compiled by full time employees of Helix Resources Limited, Messrs R W Mosig and A R Martin, who are competent persons as described by Listing Rule Appendix 5A. The report reflects the information compiled by them for the purposes of Listing Rules 5.10 and 5.12.

QUARTERINARE KORES

HELIX RESOURCES LIMITED

Quarter Ending 30 June 2003

Quarter Ending 30 June 2003

Ouarter Ending 30 June 2003

Corporate Directory

Directors

Ewen W J Tyler Robert W Mosig Anthony R Martin Ian K Macpherson Bryce E Wauchope

Non Executive Chairman Managing Director Executive Director Non Executive Director Non Executive Director

Company Secretary

Riccardo E Vittino

Australian Business Number

27 009 138 738

Head and Registered Office

Level 3, 24 Kings Park Road West Perth Western Australia 6005

P O Box 825 West Perth Western Australia 6872 +61 8 9321 2644 Telephone Facsimile +61 8 9321 3909 Email helix@helix.net.au Website http://helix.net.au

Share Registry

Advanced Share Registry Level 7, 200 Adelaide Terrace Perth Western Australia 6000

PO Box 6283 East Perth Western Australia 6892 Telephone +61 8 9221 7288 Facsimile +61 8 9221 7869

QUARTERINAREPORT 2

HELIX RESOURCES LIMITED

Ouarter Ending 30 June 2003

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

HELIX RESOURCES LIMITED

ABN

27 009 138 738

Consolidated statement of cash flows

Current quarter Year to date \$A'000 $\binom{n}{2}$ months) Cash flows related to operating activities \$A'000 $1.1$ Receipts from product sales and related debtors $1.2$ Payments for (a) exploration and evaluation $(384)$ $(2,316)$ (b) development (c) production (d) administration $(381)$ $(1, 333)$ $1.3$ Dividends received $1.4$ Interest and other items of a similar nature received 254 66 Interest and other costs of finance paid $1.5$ 1.6 Income taxes paid $1.7$ Other (provide details if material) $(127)$ $(72)$ Net Operating Cash Flows $(826)$ $(3, 467)$ Cash flows related to investing activities $1.8$ Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments 1.760 (c)other fixed assets $11$ $1.10$ Loans to other entities $1.11$ Loans repaid by other entities Other (provide details if material) 1.12 1,771 Net investing eash flows $1.13$ Total operating and investing cash flows (carried forward) $(826)$ $(1,696)$

Quarter ended ("current quarter") 30 June 2003

Quarter Ending 30 June 2003

1.13	Total operating and investing cash flows (brought forward)	(826)	(1,696)
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other (provide details if material)	(76)	129 24 (76)
	Net financing cash flows	(76)	77
	Net increase (decrease) in cash held	(902)	(1,619)
$1.20 -$ 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	4,624	5,341
1.22	Cash at end of quarter	3,722	3,722

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• $2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
• $2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available Add notes as necessary for an understanding of the position. QUARTERIN REPOR 134

HELIX RESOURCES LIMITED

			Quarter Ending 30 June 2003
		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

	Total	750
4.2	Development
-4.1	Exploration and evaluation	750
		\$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	(48)	816
5.2	Deposits at call	3,422	3,460
5.3	Bank overdraft
5.4	Other (provide details)	348	348
	Total: cash at end of quarter (item 1.22)	3.722	4.624

Changes in interests in mining tenements

		Tenement	Nature of interest	Interest at	Interest at
		reference	(note (2))	beginning	end of
				of quarter	quarter
6.1	Interests in mining	E 2906	Expired – not renewed	100%	$0\%$
	tenements relinquished,	E 2721	Expired - not renewed	100%	$0\%$
	reduced or lapsed	E 2722	Expired - not renewed	100%	$0\%$
		E 2714	Expired - not renewed	100%	$0\%$
		E 38/1354	Licence Surrendered	100%	$0\%$
		E 38/1475	Application Withdrawn	0%	$0\%$
		M 29/172	Application Withdrawn	$0\%$	$0\%$
		M 29/177	Application Withdrawn	$0\%$	$0\%$
6.2	Interests in mining	E 80/3092	Licence Granted	$0\%$	100%
	tenements acquired or	E 80/3093	Licence Granted	0%	100%
	increased	E 80/3094	Licence Granted	$0\%$	100%
		E 80/3090	Licence Granted	0%	100%
		E 80/3122	Licence Granted	$0\%$	100%

QUARTERIN REPOR e en

HELIX RESOURCES LIMITED

Issued and quoted securities at end of current quarter

Quarter Ending 30 June 2003

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note $3)$ (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference +securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3	+ Ordinary securities	50,525,458	50,525,458
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs
7.5	+ Convertible debt securities (description)
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	4,055,999 12,860,310	Nil 12,860,310	Exercise price Various 25 cents	Expiry date Various 30 November 2005
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

QUARTERINARENO

HELIX RESOURCES LIMITED

Ouarter Ending 30 June 2003

Compliance statement

This statement has been prepared under accounting policies which comply with accounting standards as $\mathbf{1}$ defined in the Corporations Act or other standards acceptable to ASX (see note 4).

$\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here:

. . . . . . . . . . . . . . . . . . . . Company secretary

Date: 29^th July 2003.

Print name: Riccardo Vittino.

Notes

$\mathbf{I}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements $\overline{2}$ acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

$\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

Accounting Standards ASX will accept, for example, the use of International Accounting Standards 5 for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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