INOVIQ LTD — Capital/Financing Update 2006

Feb 8, 2006

ASX RELEASE

08 February 2006

ASX & AIM Symbol "EUG"

Transgold S.A. (Eurogold 50%)

The current extreme cold weather in Romania [coupled with the ongoing low production levels at the Transgold CIL processing plant] has caused a section of the Transgold tailings pipeline in Baia Mare to freeze. The Transgold plant cannot operate without this pipeline and as a consequence the plant has been shutdown. Furthermore, due to damage to some pipe sections and welds caused by the freezing, as a precautionary measure the entire pipeline is being dismantled and transported to the tailings dam for drainage and storage.

The Transgold board is evaluating the alternatives for the operation going forward, and will do this in consultation with the relevant Romanian authorities, its toll ore treatment customers and its bank. UniCredit SA.

Over the last 12 months Transgold has paid down UniCredit's loan from US\$1.5m to US\$825,000. As Transgold continues to operate at low capacity and at close to breakeven, Eurogold believes that the reinstallation of the pipeline and recommencement of production would only be warranted when a sustainable higher level of feed is available for the plant.

Eurogold does not consolidate Transgold in its Balance Sheet and is owed approximately US\$2.9m by Transgold. Until such time as the reopening of the plant can be justified, Eurogold does not intend to provide any further funding support to Transgold. Eurogold has no exposure to Transgold apart from this loan.

Given these circumstances, Eurogold believes that Transgold will not be able to continue trading without further immediate support from UniCredit, the Romanian government or other third parties.

Should this disruption result in the sale of the Transgold assets, Eurogold will redirect any funds that may be received from that sale to the ongoing development of its Saulyak Deposit in the Ukraine.

Saulvak (Eurogold 99.72%)

In last weeks quarterly report Eurogold released the first 5 drill results from its current 94 hole underground drilling program which is designed to both convert the current soviet C1 C2 resource of 578,000 oz and increase the size of that resource.

Results included 8.82m @7.88 g/t and 7.08m @ 5.58g/t which support the previous estimates of both the width and grade of the orebody.

The underground drilling programme will continue over the next 2 reporting periods. During the December quarter EUG also completed another successful step out hole from surface which supports our belief that the Saulyak ore body extends further along strike and down dip.

P GUNZBURG

Executive Chairman Tele: +618 94810572 Fax: +618 94813586