INOVIQ LTD — Capital/Financing Update 2006

Jul 2, 2006

ASX ANNOUNCEMENT

3 July 2006

ASX & AIM Symbol "EUG"

Termination of Sale Agreement with Oxus Gold plc

On 1 May 2006 the Eurogold Limited (the "Company") announced that it had sold its Saulyak project in the Ukraine and exploration licences in Romania to Oxus Gold plc ("Oxus"). The sale was subject to shareholder approval, which was obtained on 15 June 2006.

Settlement, which involved consideration of approximately A\$22,000,000 was due to take place on Friday 30 June 2006.

On 29 June 2006 by notice Oxus terminated the sale on the basis that there had been a material adverse change in the financial position and assets of Eurogold group since 30 April 2006 being the date of execution of the Asset Sale Agreement. The notice of termination refers to, amongst other things, the standing of the Saulyak licence in the Ukraine. Eurogold disputes that Oxus was entitled to terminate the sale and has reserved all of its rights against Oxus.

Eurogold and Oxus have commenced discussions on a "without prejudice" basis to determine if they can agree to stagger (not change) the consideration until such time as this disputed issue is resolved. There can be no assurance that Eurogold and Oxus will be able to resolve all disputed issues.

If Eurogold and Oxus can agree then Eurogold will again need to get shareholder approval.

If Eurogold and Oxus cannot agree then Eurogold will be forced to raise capital of up to A\$2m to fund working capital, pursue its rights against Oxus and protect its position generally.

Peter Gunzburg Executive Chairman Eurogold Limited