PILBARA GOLD LIMITED — Capital/Financing Update 2012

Jul 3, 2012

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Wednesday 4[th] July 2012

Dear Shareholder,

NON-RENOUNCEABLE PRO RATA RIGHTS ISSUE

Mining Projects Group Limited ("the Company") has lodged a Prospectus with ASIC in respect of a nonrenounceable pro rata rights issue of four (4) new shares for every five (5) shares held at the record date at an issue price of 1 cent ($0.01) together with one (1) free-attaching option for every one (1) new share successfully subscribed for ("the Rights Issue"). Each new option will have an exercise price of 1.5 cents ($0.015), be exercisable on or before 30 November 2014 and will, upon exercise, entitle the holder to one ordinary share.

Peregrine Corporate Limited [ABN 40 062 478 997] [AFSL 237858] has agreed to underwrite shortfall in subscriptions up to $1,052,891.

The indicative timetable for the Rights Issue is as follows:

Event	Date
Lodgement of Prospectus	3 July 2012
Record date to identify Shareholders entitled to participation in the	11 July 2012
Rights Issue
Despatch of Prospectus	13 July 2012
Closing Date	27 July 2012
New Shares and Options quoted on a Deferred Settlement Basis	30 July 2012
Despatch date of holding statements	7 August 2012

Note: The above dates should be regarded as indicative only . Subject to the Corporations Act, the Listing Rules and other applicable laws, the Company reserves the right to change the above dates, to close the Rights Issue before the date stated above, to extend the closing date and subsequent dates, or not to proceed with the Rights Issue described in this Prospectus. Shareholders should refer to announcements to ASX by the Company on the ASX website and the Company's website for updated information about the closing date and timetable.

The shares offered under the Rights Issue are fully paid ordinary shares and will rank equally with the Company's existing ordinary shares.

The Company will apply to ASX for quotation of the shares offered. In addition, subject to being able to satisfy any requirements imposed by the ASX Listing Rules, the Company will make an application to quote the new options that are issued on a 1:1 basis for each new share successfully subscribed pursuant to the Rights Issue.

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Offers of the Company's shares are made in the Prospectus which has been lodged with the ASIC and ASX. Anyone wishing to acquire the Company's shares who is eligible to participate in the Rights Issue will need to complete an entitlement and acceptance (or application) form that will accompany the Prospectus. A copy of the Prospectus can be viewed on the website of ASX (www.asx.com.au), or the Company's website (www.miningprojectsgroup.com.au) or can be requested from the Company. Before deciding to acquire shares, you should read and consider the Prospectus in its entirety and, if in any doubt, consult with your professional advisor.

A copy of the Prospectus will be sent to each eligible shareholder.

Yours faithfully;

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Phillip Hains Director & Company Secretary Mining Projects Group Limited

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