MGX RESOURCES LIMITED — Capital/Financing Update 2005

Jun 20, 2005

ABN: 97 008 045 083

702 Murray Street, West Perth Western Australia 6005 Phone: 61 8 9213 9400 Fax: 61 8 9213 9444 Website: www.resmin.com.au

21 June 2005

The Company Announcements Office Australian Stock Exchange Limited 4 Floor 20 Bridge Street SYDNEY NSW 2000

RMC PLACEMENT RAISES \$1,584,000

Resource Mining Corporation Limited (RMC) has agreed to place 17.6 million ordinary shares at an issue price of \$0.09 per share to a group of iron ore industry participants and sophisticated investors to raise \$1,584,000.

These same participants (including Mount Gibson Iron, Stemcor Australia, Sinom (Hong Kong), Anchorage Holdings, Societe Generale and Euroz Securities) contributed the funds raised to advance the RMC's Argyle Iron Ore Project in the second half of 2004 and early 2005.

The participation by this group of companies in the placement again reflects their confidence in the Project and is a further indication of their willingness to provide financial support for RMC.

The placement will include a free attaching option exercisable at \$0.20 expiring on 30 June 2006 for every share subscribed.

The funds will be used primarily for the planned drilling program at the Argyle Iron Ore Project, for exploration on the Ravensthorpe Project and for working capital purposes.

E W Edwards Managing Director