METALS AUSTRALIA LTD — Share Issue/Capital Change 2006

May 2, 2006

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@austunitedgold.com Website: www.austunitedgold.com

3 May 2006

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

Dear Sirs.

ISSUE OF AUSTRALIA UNITED GOLD LTD SHARES SECONDARY TRADING NOTICE PURSUANT TO SECTION 708A(5)(e) of the Corporations Act 2001

On May 3 2006 the Company issued a total of 6,032,620 ordinary fully paid shares following exercise of options by holders. The shares will rank equally with all existing ordinary shares.

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 intends issuing the Securities without disclosure to investors under Part6D.2 of the Act:
• b) As at May 3 2006 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 May 3 2006 there is no information:

• i) that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and

• that investors and their professional advisors would reasonably require for the $\mathbb{I}}$ 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

$\sum$

D N ZUKERMAN Director