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METALS AUSTRALIA LTD Capital/Financing Update 2006

Aug 15, 2006

65344_rns_2006-08-15_90530c30-9601-4bcb-a9ee-be2d05b03a7e.pdf

Capital/Financing Update

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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: [email protected] Website: www.austunitedgold.com

18 July 2006

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

Dear Sirs.

OPTION UNDERWRITING AGREEMENT

We wish to advise that the underwriting fee payable to RM Capital Pty Ltd as announced on 29 June 2006 has now been renegotiated.

The underwriting fee of \$155,000 was previously to be satisfied by the issue of 350 million options exercisable at 5 cents on or before 30 September 2009 and a cash payment of \$5000.

RM Capital Pty Ltd has now agreed that the \$155,000 fee be settled by the issue of 100 million options on the same terms and a cash payment of \$115,000 in lieu of the previous agreed fee.

As a result of this change the revised option issue will not require shareholder approval under Listing Rule 7.1 and the resolution will be withdrawn from the agenda of the General Meeting of Shareholders to be held on 7 September 2006. The only resolution to be considered at the General Meeting will be the change of the name of the Company to Metals Australia Ltd.

Yours faithfully, Australian United Gold Ltd

member

B R McCullagh Company Secretary