HELIX RESOURCES LIMITED — Management Reports 2005

Oct 26, 2005

HIGHLIGHTS

• Drilling at the Mt Venn copper/nickel project completed with encouraging results:
• New drilling programs commence at the Tunkillia Gold Joint Venture;
• Anomalous gold and base metals geochemistry outlined in the Pilbara region:
• Kimberlite and diamonds located by DeBeers at the company's West Pilbara Diamond Project:

ES EN ARTICIPORTALE

Fully underwritten Renounceable Rights Issue to raise additional working capital commences.

SUMMARY

During the quarter, the Company completed its first reverse circulation drilling program at the Mt Venn project near Laverton Western Australia. Twenty-four holes were drilled for a total of 3031 metres, with most holes drilled to between 120 and 160 metres depth.

Significant drill intersections are reported in the attached Review of Operations. Best assay results were from drill hole MVRC 10, which intersected 2 metres grading 1.2% Nickel from a 4 metre wide zone grading 1.3% Copper. Most of the drill holes contained broad widths of geochemically anomalous copper and nickel varying from several metres to 60 metres in drilled widths.

Whilst, outcrop sampling in the general vicinity of the drilling is currently in progress, further exploration this year will focus on the delineation of likely structural trap sites containing potentially economic levels of copper and nickel.

Minotaur Exploration Pty Ltd has advised that a major program diamond and reverse circulation drilling commenced at the Tunkillia Gold Joint Venture during the quarter. The drilling is designed to test induced polarisation targets near Area 223 and Area 191, as well as other potential gold anomalies not previously investigated. First results from the drilling activities should be available in December.

In August, the Company provided further information concerning its diamond exploration activities in the West Pilbara region. The Helix West Pilbara diamond project is currently managed by De Beers Australia Pty Ltd under the terms of an earning-in agreement whereby DeBeers must spend the first \$3.0 million of exploration expenditure on the project before June 2006. To date, \$1.5 million has been spent by DeBeers. Two kimberlite dykes, both containing microdiamonds, have been found on the Helix tenements. No bulk sampling or other investigations have yet been carried out on the Helix kimberlites. However, one of the kimberlites is a dyke complex, which extends onto wholly owned DeBeers tenements, where one 32.5 tonne bulk sample has been collected from the kimberlite and over 5 carats of macrodiamonds were recovered.

Earlier this year, DeBeers advised Helix, that its field activities in Australia would be substantially reduced. Should DeBeers not spend the full exploration commitment before June 2006, this exciting project will revert to Helix Resources Limited 100%.

THE IYAREPORT 200

At the end of October 2005, the company announced the timetable for a fully underwritten renounceable 1 for 4 Rights Issue to all shareholders, to raise approximately \$1.9 million of additional working capital.

Successful completion of the Rights Issue will provide the company with almost \$2.7 million of funds to carry out its exploration activities for 2006.

Figure 1: Helix Project Locations

REVIEW OF OPERATIONS

MT VENN NICKEL PGM PROJECT - WESTERN AUSTRALIA Helix Resources Limited 80% FT 38/1000 Helix Resources Limited 100% EL 38/1476, ELA 1775

The Mt Venn Project is situated 100km east of Laverton W.A., on the edge of the Great Victorian Desert. During the quarter Helix carried out Reverse Circulation (RC) drilling with a total of 24 holes drilled for 3,031 metres targeting selected geochemical, EM, magnetic and structural features along 6 kilometres of strike length.

NARTORI 20

The majority of drill holes contained broad widths of geochemically anomalous copper and nickel, varying from several metres up to 60 metres in drilled widths. These intercepts are believed to be representative of the base metal distribution in the primary sequences of the intrusion.

The best assay results from the drilling program were from hole MVRC 10, which intersected 2 metres grading 1.2% Nickel from a 4 metre wide zone grading 1.3% Copper. MVRC 10 was drilled to test a cross-cutting shear zone and the mineralisation intersected is likely to represent re-mobilisation and concentration along a regional structure. This style of mineralisation will form the focus for future work.

A detailed structural interpretation of the northern, untested portion of the Mt Venn intrusion has recently been completed by the company's consultants. The study has identified several structural targets similar in orientation and/or stratigraphic position to the mineralisation noted in MVRC 10. Fieldwork will now concentrate on pinpointing these targets areas on the ground, using detailed field mapping and surface geochemical sampling. The program aims to delineate areas where economic levels of copper and nickel concentrations may occur for drill testing in 2006.

LAKE EVERARD PROJECT (INCL. TUNKILLIA) - SOUTH AUSTRALIA

Helix Resources Limited 100%, Minotaur Exploration earning 51% EL 3403, EL 2854 and EL 3335

A Joint Venture with Minotaur Exploration Ltd ("Minotaur") over the Lake Everard Project was signed in the first quarter of 2005. Under the terms of the Joint Venture, Minotaur can earn a 51% interest in all tenements by spending \$5.0 million over four years, of which \$1.0 million is a minimum commitment to be spent before the end of 2006.

Minotaur has taken over management of the project and subsequently carried out target generation for gold centred on the reprocessing and remodelling of the untested electrical geophysical data collected by Helix in late 2004. A program of 1,000 metres of diamond drilling and 4,000 metres of RC drilling has commenced to test the new models and provide detailed structural interpretation. Regionally, a number of aircore drill traverses are underway to locate new areas of gold and base metal mineralisation for subsequent bedrock follow-up. Results from this drilling are pending.

Regional and infill gravity surveys were completed across the breadth of the tenements and along the entire length of the Yarlbrinda Shear Zone, generating a number of targets for follow-up investigation.

																Quarter Ending 30 June 2005
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ES EN ARTICIPADA EN 1990

HELIX RESOURCES LIMITED

REVIEW OF OPERATIONS (Continued)

WEST PILBARA DIAMOND PROJECT - WESTERN AUSTRALIA

Helix Resources Limited 100%, De Beers Australia Exploration Limited earning 51% EL's 47/905, 1015, 1074-1075 ELA's 47/1090, 1144-1146, 1169-1171 MLA's 47/639-643, 786-794

Figure 2: Helix Tenements - West Pilbara

The Helix West Pilbara Diamond Project is situated to the south of the Company's Munni Munni PGM project. DeBeers Australia Exploration (DBAE) may earn a 51% interest in diamonds by spending AUD\$3 million by June 2006.

Previous reconnaissance and surface sampling by DBAE resulted in the discovery of two kimberlites. Blacktop and Clurrie, in 2004. As part of a follow up survey three micro-diamonds were recovered from a rock chip sample containing weathered kimberlite from the Blacktop area The discovery is. immediately adiacent to the DBAE Balmoral Project tenements where a 32.85 tonne bulk sample produced 89 macro diamonds totaling 4.17 carats $(-8.0 + 1.0)$ mm fraction) from the Blacktop kimberlite dyke and sill complex. A further 46 diamonds totalling 1.1 carats were also found in the tailings re-treatment audit of the bulk sample.

The kimberlite and micro-diamonds found on the Helix tenements are located on the extension of the Blacktop kimberlite trend found on DBAE's

ground. DBAE's drilling to date extends only to the boundary of the Helix tenements. The regional geophysics and surface loam sampling conducted by DBAE shows the complex extends for at least another 1.5 kilometres into Helix's ground where it terminates in a major regional fault.

Earlier this year, DBAE advised Helix that as a result of a reassessment of De Beers' global exploration priorities, field activities in Australia would be substantially reduced. As a consequence DBAE and Helix are currently discussing a number of options with a view to ensure that the diamond exploration potential of the ground held by both parties is assessed thoroughly.

			Ouarter Ending 30 June 2005

REVIEW OF OPERATIONS (Continued)

WEST PILBARA BASE METAL PROJECT - WESTERN AUSTRALIA Helix Resources Limited 100% EL's 47/905, 1015, 1074-1075, 1089-1090, M's 47/123-126, 141-144. ELA's 47/1090, 1144-1146, 1169-1171 MLA's 47/569-574, 639-643, 786-794

The West Pilbara Base Metal Project covers the same area as the DBAE diamond joint venture with the addition of the Munni Munni project area, approximately 75 kilometres south of Karratha WA.

ANERORIA

The tenement package covers a diverse range of rock types from sequences of the Hamersley Basin in the south, through Fortescue Formation volcanics and sediments to Archaean basement in the north, Aside from the PGM potential at Munni Munni, the region is considered highly prospective for gold and base metals.

A detailed review of the Munni Munni Intrusive Complex (MMIC) is underway with the aim of using the knowledge gained from exploring the companies Mt Venn project to define a series of sulphidenickel targets within the larger MMIC.

On the regional scale, as part of the DBAE diamond joint venture, a surface geochemical sample was collected by DBAE nearby to each diamond sample. The samples, collected at approximate 5 square kilometre spacings, were assayed by Helix for precious and base metals. Results have highlighted numerous gold, PGM and base metal anomalies that will form the basis for a field campaign on the project area in the 2005-2006 field season.

YALLEEN IRON ORE PROJECT - WESTERN AUSTRALIA

Helix 100%, API Management Pty Ltd earning 70% ELA's 47/1169-1171

The Yalleen Project is a joint venture between Helix and API Management Pty Ltd (a company equally owned by Aquila Resources Ltd and AMCI Holdings Australia Pty Ltd), and covers an area of 633 square km in the West Pilbara Region of Western Australia (refer Figure 1).

The project area covers the south eastern extension of the Robe River where it crosses the Marra Mamba and Brockman Iron Formations. The exploration target is the occurrence of channel iron deposits (CID's), accumulations of material anomalously high in iron that have concentrated in the channels and become lithified.

API plans to conduct programs of detailed mapping and sampling to define the CID's with follow-up drill testing of targets in the 2005/06 field season

NARI KORTAL

HELIX RESOURCES LIMITED

REVIEW OF OPERATIONS (Continued)

GLENBURGH GOLD PROJECT - WESTERN AUSTRALIA

Helix Resources Limited 100% EL 9/644 & 1079 MLA's 9/87-88, 122-125

Earlier this year a 2,000 metre RAB drilling program was completed over a series of geochemical anomalies at the Mustang Prospect, immediately east of the main Apollo Prospect at the Glenburgh Project. The RAB drilling program was designed to test the weathered basement below these anomalies to a depth of approximately 30 metres.

The program highlighted a number of significant plus $1g/t$ gold intersections including 8m at $3.8g/t$ and 7m at $2.1g/t$ over a 1.5 kilometre strike length. The results show potential for at least two new zones of mineralisation, both with geochemical signatures similar to that of the Apollo Prospect.

Future work will concentrate on defining the new zones of anomalous geochemistry with RC drilling and confirming the possibility for along strike repetitions of the shallow dipping high grade Apollostyle lodes under shallow cover.

HIGHWAY NICKEL PROJECT - WESTERN AUSTRALIA

Helix Resources Limited 38% (Diluting to 25%), Heron Resources Limited 62% MLA 29/214, E 29/139

The Highway Nickel Laterite Project is located 100km north of Kalgoorlie and 15 Km south of the town of Menzies in the Eastern Goldfields of Western Australia. The project covers a sequence of the ultramafic Walter Williams Formation which weathers to form a siliceous nickel bearing laterite. The project is a joint venture between Helix Resources and Heron Resources. Heron is also currently advancing the nearby Kalgoorlie Nickel Project with North American major Inco.

During the quarter a total of 113 holes, for 6,147 metres, were completed of an ongoing 16,000 metre program. The current drill program is infilling existing 400 X 80m spaced drilling carried out by Heron during 2004. The infill 160 X 80m spaced drilling will assist in upgrading the JORC resource category for the project. At the completion of this drilling, a program of Metallurgical PO diamond drilling will be carried out to test beneficiation characteristics of the ore.

Helix is currently assessing the future for the company's involvement in the Highway Project with a decision to contribute, at the 25% equity level, required in the coming quarter.

REVIEW OF OPERATIONS (Continued)

PERRY CREEK BASE METALS PROJECT -WESTERN AUSTRALIA

Helix 100% EL's 52/1623-1626

The Perry Creek copper-lead-zinc project is a conceptual base metals target situated in the Edmund Basin, Western Australia. The Perry Creek Project is an attractive target for sediment hosted base metals. The project area contains favourable rock types including shale and dolomites which are situated within an intracratonic rift setting. In addition, its age of 1.6 billion years is comparable to the Mt Isa and MacArthur River base metal deposits.

NARI KORTAL

The primary target in the project area is subhidic carbonaceous shale which overlies a thick clastic wedge of conglomerate and sandstone.

Previous explorers in the project area were Geopeko (1983-85) and Pasminco (1992-94). Both companies carried out primary exploration for Mt Isa style Pb-Zn mineralization and for Jillewarratype Cu-Pb-Au occurrences using aeromagnetic studies combined with geochemical sampling. Several anomalous localities were defined in areas of unexposed carbonaceous shale.

Helix will carry out further sampling and geophysical studies prior to drilling any defined targets in 2006.

ROBERT W MOSIG MANAGING DIRECTOR

MICHAEL WILSON EXPLORATION MANAGER

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.

HENARERORT 200

HELIX RESOURCES LIMITED

Corporate Directory

Directors

Robert W Mosia Riccardo E Vittino Greg Wheeler John den Dryver

Chairman Executive Director Non-executive Director Non-executive Director

Company Secretary

Riccardo E Vittino

Australian Business Number

27 009 138 738

Head and Registered Office

9 Richardson Street 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 110 Stirling Highway Nedlands WA 6009

PO Box 1156 Nedlands Western Australia 6909 Telephone +61893898033 Facsimile +61 8 9389 7871

HENNER PORT 20

HELIX RESOURCES LIMITED

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

Quarter ended ("current quarter")

30 September 2005

	Cash flows related to operating activities		Current quarter \$A'000	Y ear to date 3 months \$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for	(a) exploration and evaluation (b) development (c) production	(795)	(795)
		(d) administration	(260)	(260)
1.3	Dividends received
1.4		Interest and other items of a similar nature received	13	13
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)		2	2
	Net Operating Cash Flows		(1,040)	(1,040)
1.8 1.9 1.10 1.11 1.12	Cash flows related to investing activities Payment for purchases of: Proceeds from sale of: Loans to other entities Loans repaid by other entities Non – current asset)	(a)prospects (b) equity investments (c) other fixed assets (a)prospects (b) equity investments (c)other fixed assets Other (reclassification of term deposit $>$ one year to	(151)	(151)
	Net investing cash flows		(151)	(151)
1.13	forward)	Total operating and investing cash flows (carried	(1,191)	(1,191)

$2005$ $Q$ Endi 3 $\overline{0}$ $\mathbf{L}$ U ÷. $\mathsf{n}$ $\overline{q}$ $\mathbf{H}$ 'n $\boldsymbol{\rho}$ $\overline{a}$ r. $\epsilon$ $\mathsf{r}$

AREKORTZ

HELIX RESOURCES LIMITED

1.13	Total operating and investing cash flows (brought forward)	(1,191)	(1, 191)
1.14	Cash flows related to financing activities Proceeds from issues of shares, options, etc.
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (Share issue costs)
	Net financing cash flows
	Net increase (decrease) in cash held	(1,191)	(1,191)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	2.037	2,037
1.22	Cash at end of quarter	846	846

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

		\$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

Current quarter

1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated $2.1$ 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.

E 3 $\Omega$ $\overline{2}$ $0 \quad 0$ 5 $\circ$ $\mathsf{n}$ đ J $\boldsymbol{\rho}$ n O $\mathbf{H}$ n ΙÍ

ENERGER SORIALE

HELIX RESOURCES LIMITED

		Amount available \$A'000	Amount used SA'000
3.1	Loan facilities
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

	Total	250
$-4.2$	Development
-4.1	Exploration and evaluation	250
		\$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 SA'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	$\theta$	0
5.2	Deposits at call	594	1.636
5.3	Bank overdraft
5.4	Other (provide details)	252	401
	Total: cash at end of quarter (item 1.22)	846	2.037

ELECTION CONTRACT

HELIX RESOURCES LIMITED

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	E77/1029 E77/1043 E51/946 E52/1495	Surrendered Surrendered Surrendered Surrendered	100% 100% 100% 100%	$0\%$ $0\%$ $0\%$ $0\%$
6.2	Interests in mining tenements acquired or increased	EL3403 E38/1476 M09/122 M09/123 M09/124 M09/125 M47/786 M47/787 M47/788 M47/789 M47/790 M47/791 M47/792 M47/793 M47/794	Application granted Application granted New application New application New application New application New application New application New application New application New application New application New application New application New application	$0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ 0% $0\%$ $0\%$ $0\%$ $0\%$ $0\%$	100% 100% $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$

STAND DAY

HELIX RESOURCES LIMITED

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	price Issue 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	76,660,120	76,660,120
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)	3,962,999 16,437,863	Nil 16,437,863	Exercise price Various 25 cents	Expiry date 29 March 2009 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)

$E \n n$ $3 \quad 0$ $2005$ Q d $i - n$ $\mathbf{J}$ U ÷. e $\mathsf{r}$ g $\mathbf{u}$ n e $\overline{a}$ $\mathsf{r}$

Compliance statement

$\mathbf{1}$ This statement has been prepared under accounting policies which comply with accounting standards as 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

manusummummummummummum Date: 27 October 2005.

AREIORI

Print name: Riccardo Vittino.

Notes

$\mathbf{1}$ 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.

$\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements 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.

$\overline{3}$ 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.

The definitions in, and provisions of, AASB 1022; Accounting for Extractive Industries and AASB $\boldsymbol{4}$ 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.

3 5 $\Omega$ $\mathbf{H}$ $\boldsymbol{\rho}$ $E \n n$ đ $\mathbf{r}$ $\mathbf G$ $\Omega$ Ţ $\mathbf{H}$ $\mathsf{n}$ $\boldsymbol{\rho}$ $2^{\circ}$ $\theta$ $\overline{0}$ $\overline{a}$ $\mathsf{r}$