PILBARA GOLD LIMITED — Capital/Financing Update 2012

Jul 2, 2012

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Tuesday, 3[rd] July 2012

Dear Option Holder,

NON-RENOUNCEABLE PRO-RATA RIGHTS ISSUE

Mining Projects Group Limited ("the Company") is pleased to announce that today it lodged a prospectus ("Prospectus") with ASIC in respect of a non-renounceable 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) per share together with one (1) freeattaching 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.

If none of the Company's existing options are exercised prior to the record date (being 11 July 2012) 105,289,176 new shares will be offered and up to approximately $1,052,891 (before costs) will be raised.

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

The full terms and conditions of the Rights Issue are detailed in the Prospectus which can be viewed on the ASX website at www.asx.com.au or on the Company's website at www.miningprojectsgroup.com.au. A copy of the Prospectus will be sent to each eligible shareholder.

There is no entitlement to participate in the Rights Issue in respect of the existing options you currently hold unless you exercise those options and are entered onto the register as a shareholder on or before the record date.

The timetable and important dates of the Rights Issue are set out below:

Event	Date
Lodgement of Prospectus	3 July 2012
Record date to identify Shareholders entitled to participation in the RightsIssue	11 July 2012
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 are anticipated only and announcements will be made regarding any changes. The Company reserves the right to extend the closing date without further notice. 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.

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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.

If you wish to participate in the Rights Issue in respect of some or all of your existing options, it will be necessary for you to exercise those options. Accordingly, you should complete a Notice of Exercise of Options and lodge that Notice with the Company, together with your payment for the number of options you wish to exercise. If payment for the exercise of options is not received prior to the record date (being 11 July 2012), you will not be able to participate in the Rights Issue in respect of any options which are unexercised.

Offers of the Company's shares and options are made in the Prospectus. Anyone wishing to acquire the Company's shares and options who is eligible to participate in the Rights Issue will need to complete an entitlement and acceptance form that will accompany the Prospectus.

If you do not wish to participate in the Rights Issue (in respect of your existing options), you do not need to take any action.

Before deciding whether to exercise any or all of your options, you should read the Prospectus in its entirety and, if in any doubt, consult with your professional advisor.

Yours faithfully;

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Phillip Hains Director & Company Secretary Mining Projects Group Limited

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