METALS AUSTRALIA LTD — Capital/Financing Update 2004

Feb 25, 2004

AUSTRALIAN UNITED GOLD LTD ACN 008 982 474

1st Floor, 8 Parliament Place West Perth WA 6005 PO Box 1618 West Perth WA 6872 Tel: (08) 9481-7833 Fax: (08) 9481-7835 Email: aul@austunitedaold.com Website: www.austunitedgold.com

26^th February 2004

Australian Stock Exchange Companies Announcement Office 20 Bond Street SYDNEY NSW 2000

We wish to advise the following:

Project Acquisition $1₁$

The Directors have agreed to acquire an 80% interest in the Manindi Zinc Project located in the East Murchinson District of Western Australia 20 kms south east of Youanmi.

The project hosts a series of volcanogenic massive sulphide (VMS) zinc-copper deposits, which show synergies with the Golden Grove deposits located to the southwest at Yalgoo, and the Teutonic Bore/ Jaquar deposits in the Eastern Goldfields.

The resource definition drilling is in an early phase, and the potential exists for significant advancement of the resource base of the project through systematic and well-targeted exploration.

The current resource base which is near surface stands at:

At >1% Zn Cut-Off 1.05 Mt @ 7.64% Zn

At >3% Zn Cut-Off 0.79 Mt @ 9.48% Zn

This shows potential for significant upgrades in both grade and tonnage. There are also copper credits.

An extensive program of surface geochemistry is planned for the coming months to test the southern strike extensions of the mineralised system. This exploration will be followed up with drill testing of targets generated by this sampling, and extensional drilling within the resource areas.

The project has an excellent geochemical & geophysical database, which acts as a foundation for further exploration.

The Tenements are:

M57/227, M57/240 P57/934-936, P57/938-939, P57/942 The tenements are held 100% by Karrilea Holdings Pty Ltd a wholly owned subsidiary of Pan Pacific Mining Pty Ltd.

The Company has acquired an 80% interest in the project through the purchase of 80% of the issued shares in Karrilea Holdings Pty Ltd held by Pan Pacific Mining Pty Ltd. The consideration of \$350,000 was satisfied by the issue of 35 million ordinary fully paid shares in Australian United Gold Ltd at an issue price of 1 cent each.

These shares were issued under the authority granted at the Annual General Meeting held on 27^th November 2003.

Option Placement $2.$

Pursuant to the authority granted at the Annual General Meeting on 27^th November 2003 we have today issued 100 million options at 0.1 cents each to Coniston Pty Ltd. The options, to acquire ordinary fully paid shares in the Company, are exercisable at 2 cents per share on or before 30^th June 2006. The issue raised \$100,000 which will provide working capital for ongoing mineral exploration. The options are unlisted.

Yours faithfully

D N ZUKERMAN Director

Competent Person Declaration

The geological information included in this report has been prepared by Mr Tim Putt, a member of Australian Institute of Geoscientists, a consultant to the Company and a geologist with more than the required five years experience.