METALS AUSTRALIA LTD — Share Issue/Capital Change 2004

Oct 24, 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

25^th October 2004

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

Dear Sirs.

UPDATE TO PREVIOUS ANNOUNCEMENT TODAY ON THE ISSUE OF SHARES FOLLOWING PLACEMENT AND NOTICE UNDER SECTION 708A(5)(e)

We refer to the announcement by Australian United Gold Ltd (AUL) made on 20 October 2004 of a placement of 30,000,000 ordinary shares at a price of 1 cent per share to raise \$300,000. The shares have been placed with a group of four investors. The shares issued pursuant to the placement rank equally in all respects with all existing ordinary shares previously issued by the Company. The funds raised in the placement are being used to fund the acquisition of the Sherlock Bay Extended Project and Working Capital.

Issue of Australian United Gold Ltd Shares - Secondary Trading Notice Pursuant to Section 708A(5)(e) of the Corporations Act 2001 ("Act")

On 21 October 2004, the Company issued 30,000,000 fully paid ordinary shares ("Securities") to local investors.

Secondary Trading Exemption

The Act restricts the on-sale of securities issued without disclosure, unless the sale is exempt under section 708 or 708A. By the Company giving this notice, a sale of the Securities noted above will fall within the exemption in section 708A(5) of the Act.

The Company hereby notifies ASX under paragraph 708A(5)(e) of the Act that:

• a) The Company issued the Securities without disclosure to investors under Part6D.2 of the Act;

• b) As at 25 October 2004 the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and section 674 of the Act; and

• c) As at 25 October 2004 there is no information:

• i) that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and
• ii) that investors and their professional advisors would reasonable require for the purpose of making an informed assessment of:
  • A) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or
  • B) the rights and liabilities attaching to the Securities.

Yours faithfully, Australian United Gold Ltd

D N ZUKERMAN Director