METALS AUSTRALIA LTD — Capital/Financing Update 2005

Mar 7, 2005

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.austunitedaold.com

8th March 2005

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

Dear Sirs.

Placement of Shares and Options Re:

The Directors are pleased to announce that under the authority granted to them at the General Meeting of Shareholders on 15^th December 2004, they have now placed the following securities to clients of holders of Australian financial services licences:-

• 100 million fully paid ordinary shares at an issue price of \$0.015 each, together with 100 million $a)$ free attaching options, to raise \$1,500,000.
• $b)$ 100 million Options at an issue price of \$0,001 each, to raise \$100,000.

Additionally, the Directors have placed 5 million fully paid ordinary shares at an issue price of \$0.015 each, together with 5 million free attached Options to a sophisticated investor to raise \$75,000.

All the above Options are exercisable at \$0.02 each on or before 30 June 2006.

The Placements raised a total of \$1.675,000 (before costs) which will be used to fund the Company's exploration programmes at the Manindi and Sherlock Bay Extended Projects, the appraisal and evaluation of additional investment opportunities as they arise, and for general working capital.

An Appendix 3B for the Placement Shares and Options will be submitted within the next few days.

Yours faithfully,

D N ZUKERMAN Director