PRODIGY GOLD NL — Capital/Financing Update 2002

Dec 11, 2002

12 December 2002

The Companies Announcement Office Australian Stock Exchange Limited 20 Bond Street Sydney NSW 2000

Via facsimile: 1300 300 021

Dear Sir

Re: SHARE PURCHASE PLAN (SPP)

The Directors have today adopted a Share Purchase Plan, which permits the Company to make offers of shares to each of the Company's existing shareholders.

The Company has currently 596 holders of less than a marketable parcel of shares (being less than \$500 worth of shares). This is a good means for those shareholders to top up their shareholding.

The Directors are pleased to announce that an offer under this SPP will be made to all Tantalum shareholders registered at 5pm WST on 24 December 2002 ("Record Date") whose registered address is in either Australia or New Zealand. The Directors have decided to limit this offer to each Shareholder to \$2,000.

These shareholders will each be able to apply for up to \$2,000 of new fully paid ordinary shares in the Company. The subscription price will be 90% of the average market price of Tantalum shares quoted on the ASX during the period of the 5 trading days up to and including the closing date of 28 January 2003 ("Closing Date").

A written offer document containing all relevant information and complying with all current legislation will be mailed to Shareholders no later than 3 business days after the Record Date.

Yours faithfully

Michael Fotios Managing Director

12 December 2002

The Companies Announcement Officer Australian Stock Exchange 20 Bond Street Sydney NSW 2000

Via facsimile: 1300 300 021

Dear Sir/Madam

Sale of Non-Marketable parcels of shares less than \$500 in value

The directors of Tantalum Australia NL ("the Company") announce that the Company, following completion of the Shareholder Share Purchase Plan issue, will proceed to procure the sale of non-marketable parcel shareholdings in the Company which are less than \$500 in value as at 24 February 2003 ("the Unmarketable Parcel Closing Date"). The Company currently has 596 holders of less than a marketable parcel of shares.

The unmarketable parcel record date is 12 December 2002 and this will apply to all shareholders holding a value of less than \$500 of shares on that date ("the Applicable Shareholders"). It is expected that documentation in respect to this matter will be dispatched to Applicable Shareholders on 16 December 2002. A draft copy of this document being sent to Applicable Shareholders is attached.

Applicable Shareholders who hold shares of a value of less than \$500 at the Unmarketable Parcel Closing Date will have the right to retain their shareholdings and instead to remain as shareholders in the Company. Applicable Shareholders will be given a period of 45 days in which to advise the Company not to sell their shares

The directors of the Company will not exercise these rights in respect of the shareholdings of Applicable Shareholders which, due to an increase in the share price of the Company, are no longer a non-marketable parcel shareholding as at the Unmarketable Parcel Closing Date.

The directors of Tantalum Australia NL have concurrently announced the implementation of a Shareholder Share Purchase Plan that gives shareholders a cost-effective opportunity to increase their shareholders.

For further information please contact the Company Secretary, Peter Farrah, on (08) 6241 1810.

Yours faithfully

Michael Fotios Managing Director

16 December 2002

Notice of intention to dispose of Shareholdings Which are Non-Marketable Parcels First Notice

Dear Shareholder

The Directors of Tantalum Australia NL ("the Company") have resolved to exercise the power granted to the Company under Schedule 4 (rule 9.12) of the Company's Constitution in respect to shareholdings in the Company which are less than a marketable parcel.

That power enables the Company to procure the disposal of such shareholdings and to remit the proceeds of sale to you, in accordance with the provisions of Schedule 4 (rule 9.12) of the Constitution and in accordance with the Listing Rules of the Australian Stock Exchange Limited ("ASX").

The Directors have resolved to pursue this course of action in order to achieve significant cost savings in reporting to shareholders and the share registry service costs. There is also the benefit to you of being able to realise the sale proceeds of your shares free of brokerage and other transaction costs. The Company will bear all costs of the sale of your shareholding.

Please note that you have the right to instruct the Company not to sell your shares. This right is dealt with later in this notice.

The Register of Members of the Company show you as at 12 December 2002 to be the holder of a number of shares in the Company which is less than a Marketable Parcel.

A Marketable Parcel is defined in the Listing Rules of the ASX to mean a parcel of shares with a value of not less than \$500. Based on the closing price of the shares on the ASX, as at 12 December 2002, your shareholding in the Company was less than a Marketable Parcel.

Please note that if, at the unmarketable parcel closing date of 24 February 2003, the share price of the Company has risen (since 12 December 2002) so that your shareholding then constitutes a Marketable Parcel, the Directors will not dispose of your shareholding.

SHAREHOLDER SHARE PURCHASE PLAN

Concurrent with this notice of intention to dispose of shareholdings that are non-marketable parcels. the Company is providing shareholders the opportunity to acquire additional shares. The shares purchased under the Shareholder Share Purchase Plan will not incur brokerage or other costs. As a shareholder you are entitled to participate in this offer which provides you with a cost effective means to top up your shareholding. Your right to acquire shares under the Share Purchase Plan expires on 28 January 2003. Please refer to the offer documentation. It is anticipated that the offer documented in the Share Purchase Plan will be mailed to you on 31 December 2002.

IF YOU DO NOT WISH YOUR SHARES TO BE SOLD

Please note that if you hold an unmarketable parcel of shares it will be necessary for you to advise the Company if you do not wish the shares to be sold.

If you do not wish your shares to be sold you must notify the Company in writing. The Company also proposes to issue a second and final notice, such that if you do not respond by 24 February 2003 your shares will be sold.

If you instruct the Company not to sell your shares, then your shares will not be sold and you will continue as a shareholder in the Company.

IF YOU DO NOT INSTRUCT THE COMPANY

If you do not instruct the Company not to sell your shares and they are not a Marketable Parcel on 24 February 2003, then your shares will be sold. The proceeds of the sale of your shares will be held in trust for you and will be remitted to you after the Company receives proceeds of the sale.

Should you have any questions in relation to the matter please do not hesitate to contact the Company Secretary, Peter Farrah, on (08) 6241 1810 or by email at ericai@tantalumaustralia.com.

Yours faithfully

Michael Fotios Managing Director