HELIX RESOURCES LIMITED — Management Reports 2006

Jul 20, 2006

HIGHLIGHTS

New gold in soil anomaly, outlined 20km east of Glenburgh gold resource-"Challenger zone".

EXEMPLANCE PORT 2006

• Glenburgh RC drilling completed at Mustang and Shelby Prospects.
• Minotaur complete close-spaced diamond drilling program confirming central core of Tunkillia Area 223 Mineralisation and RC drilling is continuing as part of their \$5 million spend to earn 51%.
• Lake Throssell Uranium Project sold to Crusader Minerals NL for 750,000 (\$187,500) in shares.
• Iron ore drill targets outlined by Australian Premier Iron Joint Venture (API) at the Yalleen Iron Ore Joint Venture as part of their \$1.5 million spend to earn 70%.
• Joint Venture partner, Toro Energy, to commence uranium exploration on Helix's South Australian tenements as part of their \$2.0 million spend to earn 51% of the Uranium Rights.
• Successful "spin-off" and ASX listing of platinum assets into Platina Resources Ltd, raising \$6.2 million.

PROJECT LOCATIONS

SUMMARY

Helix Resources has continued to advance its Glenburgh Gold Project in the Gascoyne Region of WA. During the quarter, activities focused on determining the potential extent of the known mineralisation at Glenburgh as well as expanding into regional exploration, where sampling is identifying new drilling targets within the Company's 2,500km² ground holding.

EXERCITY REPORT 20

A Reverse Circulation (RC) drilling program was conducted during April and May at the Mustang and Shelby Prospects as well as into a series of IP anomalies surrounding the known prospects on the Victoria Bore Grid. Results from the drilling include $10m\omega$ 3.23g/t Au in VRC318 from 28m at the Mustang Prospect and $2m(a)$ 3.58g/t Au from 97m in VRC314 at the Shelby Prospect.

Regionally, Helix's field crews have been undertaking a campaign of surface geochemical exploration. The Challenger Zone soil anomaly has shown the best prospectivity to date with a series of gold in soil anomalies to 407ppb Au being defined over an area 6km x 2km. The zone is bounded along strike and to the south by shallow alluvial and colluvial cover. Field work is continuing on this, and several other priority target areas.

Joint Venture partner Minotaur Resources recently reported results from a series of close-spaced drill holes in the central Area 223 resource at the Tunkillia Gold Project in South Australia. Exploration by Minotaur continues with RC drilling being carried out to test numerous near resource and regional targets on the Lake Everard Project as part of their \$3M budget for this year.

The Lake Everard project area is also subject to the Toro Energy Uranium JV. Toro has recently committed to an airborne EM survey to cover palaeochannel and uranium targets on these tenements.

The Lake Throssell Uranium Project was sold to Crusader Minerals NL for a consideration of 750,000 (\$187,500) Crusader shares. The shares will be escrowed for a period of 12 months. This transaction, and the uranium joint venture with Toro Energy, provides Helix with an investment in the burgeoning uranium market without diverging from the Company's current exploration focus.

At the Company's Yalleen Iron Ore JV in the West Pilbara, manager AMCI/Aquila has carried out preliminary field mapping and planned drill holes after numerous weather delays in the first half of the year. Heritage clearances and establishment of access to drill sites are expected to be completed in the coming weeks. AMCI/Aquila are targeting Channel Iron Deposits (CID) as well as primary iron ore in the Mara Mamba Formation as part of their West Pilbara Iron Ore Project.

CORPORATE

Helix successfully "spun-out" the platinum assets of the Company into ASX listed Platina Resources Limited (PGM) in the 29^th May 2006 float, raising \$6.2M. Over 400 Helix shareholders participated in the priority entitlement offer.

A Board Restructure has also been carried out with Messrs Riccardo Vittino and Robert Mosig resigning. Mr Greg Wheeler has assumed the interim Executive Chairman role with Mr Gordon Dunbar being appointed a Non-executive Director. The Company is now focusing on recruiting a technical CEO with resource industry expertise, project generation capabilities and support from the investment community. Helix retains a cash balance of \$1.4M at June 30, 2006.

REVIEW OF OPERATIONS

GLENBURGH GOLD PROJECT - WESTERN AUSTRALIA Helix Resources Limited 100%

EL 09/644, 09/1079, ELA 09/1278-1289

The Gascoyne Region is the main focus for Helix's exploration effort in 2006, with the Company expanding its ground holding in the district to around 2,500 km². The Company is targeting highgrade, structurally controlled gold mineralisation hosted in a Proterozoic mobile belt flanking the north-western edge of the Archaean Yilgarn Block.

EXERCITA PORT 20

The encouraging results from the exploration program at the known prospects at Glenburgh in late 2005 provided the Company with the impetus to expand its ground holding in the Southern Gascoyne Region. Helix believes that the Glenburgh mineralisation identified to date is not unique in the area and views the region as a prospective exploration target given the variable rock types, structural complexity and the variable cover associated with partially preserved laterites and ephemeral drainage systems.

Regional Exploration

Regional exploration commenced in conjunction with the April drilling program. Stream sampling was conducted at two target areas out of a dozen areas that are considered high priority targets. The sampling identified an area 6km x 2km anomalous with gold to 20ppb from BLEG assays, named the Challenger Zone. The Challenger Zone is situated approximately 20 kilometres east of the known gold prospects. Stream sampling is continuing at several other prospective target areas, with results expected over the coming months.

The stream sediment anomaly at Challenger was followed up with broad spaced soil lines with close spaced sampling $(800 \text{m x } 50 \text{m})$ and more recently a $200 \text{m x } 100 \text{m}$ soil grid. Infill sampling was also completed on a 200m x 50m grid over several areas of interest. The survey has defined open ended gold in soil anomalies up to 300m wide and 1.4km long with assays up to 407ppb Au on a background of less than 1ppb (Figure 1). The geochemical response is similar to the initial work on the known gold prospects on the Victoria Bore grid. The anomaly is coincident with west-northwest cross cutting structures, in a de-magnetised shear that is bounding a large granitic body to the south. Field mapping has concentrated on structural interpretation and alteration mineral identification.

Field work is currently concentrating on exploring several similar prospects within the tenement package, using stream sampling to define zones of interest and following these up with soil geochemistry and mapping. This work will establish a series of Prospects which will be ranked as drill targets for testing later in the field season.

RC Drilling

Drilling was carried out in April, aimed at defining the extent of mineralisation at the Mustang and Shelby Prospects as well as testing a series of IP anomalies surrounding the known resources. At the Mustang Prospect, drilling for the first time at the Glenburgh Project, has confirmed the existence of supergene mineralisation in a preserved 40m thick weathering profile. The best supergene intersection from the recent program was from VRC 318 where assays from a depth of 28 metres reported an intersection of 10m $\omega$ 3.23g/t Au in a halo of lower grade material. This discovery provides encouragement that similar pods of supergene material are preserved within the region and are likely to add valuable shallow ounces to future resource calculations at Glenburgh.

REMORTAL

Primary mineralisation at Mustang has continued to show down dip potential with drilling intersecting wide zones of anomalous mineralisation interspersed with high-grade intersections. VRC 319 intersected 32m @ 1.03g/t Au including 1m @ 18.1g/t Au from 77m downhole (Table 1). The extent of mineralisation at Mustang remains open at depth and along strike (Figure 2).

At Shelby, 4 holes were drilled to test the down dip extensions of gold mineralisation to a vertical depth of 100m. The best results were from VRC 314 which intersected 2m $@$ 3.48g/t Au and 1m $@$ 4.00g/t Au (Table1). The mineralisation occurs as a series of thin lodes within a 15m wide corridor of +100ppb gold anomalism. The controlling structures appear to be relatively tight through this area and therefore are unlikely to represent sufficient contained tonnages to warrant further drilling at this stage.

Drilling of IP targets outside the known Prospects provided mixed results, with the best results from VRC327 intersecting 4m @ 1.53g/t Au (Table 2). The survey was carried out over known mineralisation which limited the number of new targets within the survey extent (Figure 3). The IP survey has shown that a distinct pattern exists between chargeable sulphide zones and known mineralisation, but there are parallel zones of conductive non-mineralised sulphide present which complicates the targeting and suggests that surface geochemistry remains the most cost-effective method at present for defining new drill targets.

The IP survey and follow up drilling has intersected a graphitic unit associated with a major regional shear, although un-mineralised at the position of intersection. This discovery confirmed that the area is geologically complex, and suggests there is potential for other styles of gold deposit in the region beyond that gold identified to date.

ELECTIVE PRESENTED 18

HELIX RESOURCES LIMITED

	Total
Hole ID	Depth	Target	Easting	Northing	Metres From	Gold
VRC314	150	Shelby	13150	9920	81m	39m @ 0.52g/t
				Incl	97 m	2m (a) 3.48g/t
					114m	1m (a) 4.00g/t
VRC315	160	Shelby	13100	9950	91m	8m (a) 1.00g/t
				Incl	91m	2m (a) 3.11g/t
				And	115m	1m (a) 1.25g/t
VRC316	180	Shelby	13000	9990	163m	$7m$ $@$ 0.50g/t
VRC317	169	Mustang	12450	10050	95m	7m @ 0.51g/t
				Incl	95m	2m (a) 1.25g/t
				And	105m	14m @ $0.52g/t$
				Incl	113m	2m (a) 1.26g/t
VRC318	103	Mustang	12500	9950	7m	39m @ 1.01g/t
				Incl	28 m	$10m$ (a) $3.23g/t$
				And	57m	1m (a) 1.10g/t
VRC319	175	Mustang	12500	10030	77m	32m @ 1.03g/t
				Incl	79 m	2m (a) 2.54g/t
				Incl	107 m	1m (a) 18.10g/t
				And	160m	10m @ 0.53g/t
				Incl	160m	1m (a) 1.45g/t
VRC320	139	Mustang	12600	9910	7m	7m @ 0.50g/t
				Incl	19 m	1m (a) 1.76g/t
VRC321	139	Mustang	12600	9965	27m	$7m$ (a) $0.75g/t$
				Incl	30 m	4m (a) 1.20g/t
				And	74m	10m @ 0.80g/t
				Incl	82m	2m (a) 2.67g/t

Table 1: Significant RC Drilling intersections from Mustang and Shelby Prospects

All holes drilled to grid south with an inclination of 60 degrees

Samples are 1m riffle split, assayed using a lead collection fire assay with a mass spectrometry determination
Intersections reported are results greater than 0.5g/t Au with less than 2m of internal dilution

SERING REPARATION

HELIX RESOURCES LIMITED

Table 2: Significant Results from IP Target Exploration Drilling
	Total
Hole ID	Depth	Target	Easting	Northing	Metres From	Gold
VRC322	127	IP Target	13100	10200		NSR
VRC323	152	IP Target	12200	10370	92m	$4m \omega 0.11g/t$
VRC324	127	IP Target	12000	10260		NSR
VRC325	145	IP Target	12100	9910	28m	28m @ 0.11g/t
				And	92m	4m (a) 0.13g/t
				And	128m	4m (a) 0.10g/t
VRC326	163	IP Target	11700	10250	28m	$8m \omega 0.18g/t$
VRC327	145	IP Target	11000	9800	124m	16m @ $0.62g/t$
				Incl	124m	4m (a) 1.53g/t
VRC328	115	Tuxedo	10900	9820	97m	$8m \, (a) 0.77 g/t$
				Incl	99 m	4m (a) 1.39g/t
VRC329	115	IP Target	10500	9350	92m	$4m \, \omega \, 0.17 g/t$
VRC330	151	IP Target	10500	10250	72m	12m @ 0.13g/t
				And	140 m	4m (a) 0.2g/t
VRC331	151	IP Target	10500	10100		NSR
VRC332	151	IP Target	10500	10250		NSR
VRC333	151	IP Target	10500	10550		NSR
VRC334	133	IP Target	12000	10230		NSR

All holes drilled to grid south with an inclination of 60 degrees
Samples are 4m composite spear samples, assayed using a aqua regia digestion with an ICP-OES determination
Intersections reported are results greater than

NSR- No significant result greater than 0.1g/t Au

LAKE EVERARD (INCLUDING TUNKILLIA) PROJECT - SOUTH AUSTRALIA Helix Resources Limited 100%, Minotaur Exploration Limited earning 51% Toro Energy Limited earning 51% of Uranium Rights EL 3403. EL 2854 and EL 3335

GOLD

Minotaur Exploration Ltd recently announced results from the completion of a diamond drilling program at the Tunkillia JV Gold Project. The program was aimed at confirming previous RC drilling by Helix, gaining detailed structural information and testing for continuity of mineralisation between the central and southern ore zones.

EXERCITY REPORT 20

The main core of mineralisation in the central zone of the Area223 resource was confirmed with results including $10m\omega$ 10.7g/t in LED017 from 112m, 17m $\omega$ 5.9g/t Au from 79m and 16m $\omega$ 5.3g/t Au from 106m in LED018 and 22m @ 3.0g/t Au from 80m in LED019 associated with the ductile, highly sericitised alteration zone. The hanging wall mineralisation appears less continuous, being related to discrete quartz $+$ sulphide veins in the brittle, weakly altered hanging wall gneiss.

Two diamond holes drilled between the central and southern ore zones failed to intersect any significant extensions to known mineralisation, with only sporadic assays recorded. A single diamond hole into the southern ore zone intersected 6m $@$ 3.4g/t Au from 173m and follow up structural interpretation suggests the veining in this area may be more complex than first thought with an E-W vein set noted in addition to the typical N-S vein orientation.

Minotaur is continuing its exploration on the project with a budget of \$3M for the calendar year. Work is concentrating on near-resource structural targets as well as testing a series of regional targets, including an Iron Oxide Copper Gold target on the adjoining Lake Everard West tenement (EL 2854).

URANIUM

Toro Energy Ltd has secured contractors and is preparing to fly a detailed airborne EM survey over a 921km² between the three Lake Everard tenements. The survey is targeting a series of palaeochannel hosted uranium anomalies. The survey is part of Toro's first year \$4M exploration program, after listing on the ASX in March, which is testing several uranium prospects throughout South Australia's Gawler and Curnamona Cratons. Toro can earn 51% of the uranium rights on the Lake Everard tenements by spending \$2M over 3 years.

BILYUIN GOLD PROJECT - WESTERN AUSTRALIA

Helix Resources Limited 90% E52/1496

At the Bilyuin Project, Helix is targeting hydrothermal gold associated with structurally controlled alteration, hosted in a volcanic breccia in the Peak Hill Goldfield. In May a soil geochemical survey was completed after rain delays earlier in the year. Samples were collected on 500 and 800m line spacings at 100m centres over a 15 square kilometre grid and assayed using BLEG and a partial leach method due to the existence of insitu cover.

The surface sampling indicates the Bilyuin magnetic feature is coincident with gold anomalism greater than 2 times background. West-northwest structures and interconnecting de-magnetised zones

Qua Ending $3 \quad 0$ $\mathbf{e}$ 2 0 0 6 t e $\mathsf{r}$ n

coincide with the best gold results. Drilling of these areas is being considered to provide confirmation of the model.

EENYREPORTAC

YALLEEN IRON ORE JV - WESTERN AUSTRALIA

Helix resources Limited 100%, Australian Premier Iron JV (AMCI/Aquila) earning 70% iron ore rights

E47/1169-1171

After carrying out a preliminary Hoist EM survey on the Yalleen Project in late 2005, Joint Venture partner API Management has defined iron ore drilling targets for both channel iron deposits and bedrock deposits in the prospective Mara Mamba iron formation.

An un-seasonally late cyclone season in the states North-West Region had reduced the ability to access the land for a significant part of the quarter. Field work on the project has been confined to geological field mapping and positioning drill holes for the planned program. In the coming weeks API expect to have heritage clearances and access tracks to drill sites completed, followed by the commencement of drilling.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves 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.

For further information please contact:

Greg J Wheeler Executive Chairman Helix Resources Ph +61 8 9321 2644

Michael H Wilson Exploration Manager Helix Resources Ph +61 8 9321 2644

THE NART ORIGINAL

HELIX RESOURCES LIMITED

Corporate Directory

Directors

Greg J Wheeler John denDryver Gordon Dunbar

Executive Chairman Non-executive Director Non-executive Director

Company Secretaries

Greg J Wheeler Joneen McNamara

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 Telephone +61 8 9321 2644 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 +61 8 9389 8033 Facsimile +61 8 9389 7871

EXEMPLY EXERCIST ANDS

Quarter ended ("current quarter")

30 June 2006

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

Cash flows related to operating activities			Current quarter \$A'000	Year to date $12$ months
				\$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (c) production	(a) exploration and evaluation (b) development	(204)	(1,736)
		(d) administration	(400)	(966)
1.3	Dividends received
1.4 1.5	Interest and other items of a similar nature received Interest and other costs of finance paid		26	88
1.6	Income taxes paid
1.7	Other (provide details if material)		4	10
	Net Operating Cash Flows		(574)	(2,604)
1.8	Cash flows related to investing activities Payment for purchases of: (a)prospects
		(b) equity investments (c) other fixed assets
1.9	Proceeds from sale of:	(a)prospects (b) equity investments (c)other fixed assets	295	284 515 17
1.10	Loans to other entities		(407)	(518)
1.11	Loans repaid by other entities		111	111
1.12	Other (reclassification of term deposit > one year to Non – current asset)			(151)
	Net investing cash flows		(1)	258
1.13	Total operating and investing cash flows (carried forward)		(575)	(2, 346)

Qua Ending $3 \quad 0$ -1 $\mathbf{2}$ $\theta$ $0₆$ е t е r n г u

EENYREZORIA)

Current quarter

HELIX RESOURCES LIMITED

1.13	Total operating and investing cash flows (brought forward)	(575)	(2.346)
	Cash flows related to financing activities
1.14 1.15	Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares		1,917
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (Share issue costs)	$\overline{\phantom{a}}$	(192)
	Net financing cash flows		1,725
	Net increase (decrease) in cash held	(575)	(621)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	1,991	2,037
1.22	Cash at end of quarter	1,416	1.416

Payments to directors of the entity and associates of the directors

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

		SA'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

ELECTIVE REPORT ANC

HELIX RESOURCES LIMITED

Financing facilities available

Add notes as necessary for an understanding of the position.

		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 \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	0	€
5.2	Deposits at call	1.151	1,726
5.3	Bank overdraft
5.4	Other (provide details)	265	265
	Total: cash at end of quarter (item 1.22)	1.416	1.991

EXERCISE PORT AND

HELIX RESOURCES LIMITED

Changes in interests in mining tenements

W

		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	E52/1624 E52/1625 E52/1626	Surrender Surrender Surrender	$100\%$ 100% 100%	$0\%$ $0\%$ $0\%$
6.2	Interests in mining tenements acquired or increased	E09/1325	New Application	$0\%$	$0\%$

ELECT YOU EN EXPLOITE 10

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	Issue price per security (see note $3)$ (cents)	paid up per Amount 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	95,838,566	95,838,566
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 19,167,836	Nil 19,167,836	Exercise price Various 14 cents	Expiry date 29 March 2009 31 March 2007
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)

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).

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

Sign here:

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

Date: 20 July 2006

BERTY REPORT

Print name: Greg J Wheeler.

Notes

The quarterly report provides a basis for informing the market how the entity's activities have been $\mathbf{1}$ 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 $\overline{z}$ 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.

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

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards 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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