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METALS AUSTRALIA LTD Capital/Financing Update 2003

May 19, 2003

65344_rns_2003-05-19_1698973a-7dba-4a08-a56c-94be14e532ff.pdf

Capital/Financing Update

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Australian United Gold Ltd

ACN: 008 982 474

Postal Address:

PO Box 1618 West Perth 6872 Western Australia

Telephone: (08) 9481-7833 Facsimile: (08) 9481 7835

Office Location:

1st Floor, 8 Parliament Place West Perth. 6005 Western Australia

May 20 2003

Australian Stock Exchange 20 Bond Street Sydney New South Wales

Australian United Gold Ltd Options - Expiring June 30 2003

Australian United Gold Ltd currently has on issue 109,000,000 listed options, each able to convert to one fully paid share in Australian United Gold Ltd, at an exercise price of \$ 0.05 ( five cents ) per share, expiring in June 30th 2003.

The consequence of non-payment of the exercise price of five cents is that the option holder forgoes the right to convert an option into a share, in Australian United Gold Ltd. However should the option holder desire to acquire a share, the market price for a share has been trading much lower than five cents

The last day of quotation of the options will be June 23 2003, which allows five business days before the June 30th 2003 expiry date.

The latest available market price for ordinary shares in Australian United Gold Ltd on May 19th 2003 was $$0.007$

In the previous three months, from February 19th 2003, the highest price for ordinary shares has been \$0.008, and the lowest price has been \$0.006

In view of the above, the Company has sought, and received, a waiver from the ASX so that the Company is not obligated to incur expense in advising option holders of the impending expiry date.

Yours faithfully

Bruce McCullagh Company Secretary