PRODIGY GOLD NL — Capital/Financing Update 2003

Jun 17, 2003

Wednesday 18 June 2003

The Announcements Office Australian Stock Exchange Limited Level 3, 20 Bridge Street SYDNEY NSW 2000

By electronic lodgement

Dear Sir

Tantalum Australia NL (TAA) has been awarded long term contracts that will generate revenue of A$56 with the potential to reach A$123m. TAA considers that the margins it will achieve in these contracts can be regarded as normal and commercial for trading in such commodifies.

A sales contract for the supply of tantalum materials has been signed that incorporates a conditional agreement for the supply of niobium products (a by-product of TAA's tantalum business) that is awaiting formal product qualification. The sales contract is linked to supply agreements TAA has entered into with a European metal refining group, for the supply to TAA of tantalum and niobium products and the supply by TAA to it, of tantalum $(Ta2O3)/niobium (Nb2O5) concentrates.$

The sales contract underwrites TAA's tantalum strategy and its long term commitment to the tantalum and niobium industry. The contracts diversify TAA's market penetration to include the aerospace components industry which supplements its current exposure to the electronics market, traditionally the major consumer of tantalum products, through its association with KEMET and other consumers in the electronic supply chain. The contracts also offer TANL the opportunity to expand its operations beyond mining and sale of concentrate, into the purchase, upgrade and sale of ore obtained from other sources that are more readily available in the current economic climate.

The tantalum material contracts will generate sales revenue of approximately A$56m. The contract includes the supply of tantalum and niobium raw material concentrates by TAA. The sales revenue of the potential niobium product contract is approximately A$22m.

The minimum revenue over three years is expected to be A$78m with indications that expansions to the volumes anticipated in years two and three could increase the revenue to approximately A$123m. This estimate excludes the favourable price adjustments that are anticipated to take place in vears two and three with recovery in the world economy, TAA believes that the contract has been written at a 'price low' in the pricing cycle and expects increases in prices over the life of the contract.

Over the last 18 months, TAA has been involved in a rigorous quality assurance process in order for its products to meet its customer's qualification standards. TAA has qualified as a supplier of tantalum products to major aerospace component manufacturers and is in the process of achieving similar accreditation for its niobium products which could be achieved by 31 October 2003.

Tantalum Products Supply Contract

The above contract TAA has entered into is with the Australian subsidiary of a US listed integrated aerospace products manufacturer. The US customer is a NYSE listed company is a worldwide manufacturer of complex metal components and products. It is the market leader in manufacturing large, complex structural investment castings, airfoil castings, and forged components used in jet aircraft engines. Its fiscal 2003 year sales totalled US$2.12 billion.

The contract is due to commence in July 2003.

TAA's Revised Tantalum Strategy

TAA has reviewed its strategy and involvement in the tantalum industry as follows:

• It will trade in tantalum end user products at the best margin it can negotiate:
• It will supply concentrates to downstream processors with whom it will acquire downstream processed materials;
• The state is a term if the state is the world spot market and from its own developed supply database for value added processing at its Balcatta mineral dressing facility;
• The 1t will bring on stream mining of its own resources as and when it makes commercial sense to do so: and
• It will continue to invest in its R&D programme.

TAA has tantalum resources at Dalgaranga, Mt Deans and Binneringie in WA and Walwa in Victoria. It holds properties prospective for columbite at the Kimberley region at the Brockman Project. Collectively TAA's inferred resources at Mt Deans, Binneringie, and the Brockman Project of approximately 9 million lbs of contained Ta2 O5 and 40 million lbs of contained $Nb2O5$ . No estimate has been made for any resource at the Gascoyne Project. TAA will however mine and bulk sample its colombite resources at the Gascoyne Project to meet the robust demand for $Nb2O5$ concentrate.

TAA has been awarded these long term contracts on the basis that it possesses considerable resources to exploit over a long term and is committed to the continued exploration and identification of rare metal resources. The customers have also been attracted to TAA for its initiative in supporting research and development into alternate rare metal extraction methods.

These major developments will establish a sound platform for significant and sustained long term growth of TAA after having endured a prolonged period of setbacks due to the dramatic downturn in global demand for tantalum as a result of the world wide collapse in the demand for electronic components.

A copy of a respective press release is attached.

For further information contact Michael Fotios on 08 6241 1888.

Yours Faithfully

Peter Farrah Company Secretary

13 Mumford Place, Balcatta WA 6021 Telephone 08 6241 1888 Fax 08 6421 1818Email: admin@tantalumaustralia.com Website: www.tantalumaustralia.com

AUSTRAILA $N1$

ASX/MEDIA RELEASE 2003

Wednesday 18 June

TANTALUM AUSTRALIA NL (TAA) ANNOUNCES AWARD OF LONG TERM CONTRACT

Tantalum Australia NL (ASX: TAA) today announced the signing of contracts for tantalum materials that will generate a minimum sales revenue of A$56 M and will further cement its place in the tantalum industry.

A long term contract has been signed with the Australian subsidiary of a major US aerospace components manufacturer for the supply of tantalum materials. A related sales contract has also been signed with a European metal refining group for the supply of tantalum and niobium concentrates. The revenue generated from both these tantalum material contracts is A$56 million.

The tantalum materials contract with the aerospace components manufacturer also incorporates a conditional agreement to also supply niobium products, a by product of TAA's tantalum business. The Niobium business which is subject to completion of a well advanced material qualification program is estimated to generate additional revenue of A$22 M.

The aerospace contract is linked to the simultaneous signing of a supply contract with a European metal refining group. As noted above this contract also includes TAA supplying tantalum and niobium concentrates.

Mr Michael Fotios said, "The securing of these contracts marks the beginning of a major new growth phase for TAA. We have been working on this innovative supply chain architecture for over 18 months. Much hard work has gone into obtaining these contracts as TAA has had to meet the stringent and rigorous due diligence and quality control assessment of major players in the world aerospace industry."

The multi million dollar sales contract underwrites TAA's tantalum strategy which is to:

• Build a world class resource base
• Build a integrated downstream tantalum business from concentrates to metal
• Grow through establishing global alliances

Mr Fotios said," TAA has focused on developing strong relationships with end user customers in the Tantalum and niobium business. KEMET Corporation is already a key partner and shareholder in TAA. We have now added one of the world's key aerospace components manufacturer's and a major European metal manufacturer to the strategic partners supporting TAA. TAA now has a strong platform from which to launch its exciting new growth phase."

The tantalum material contract commences in July 2003 and over its three years has the potential to generate sales revenue of an estimated A$123 M. This potential

revenue is based on signing of the niobium sales contract and volume increases over the term of the contracts.

CONTACT

Mr Michael Fotios Managing Director 624 11818

Mr Imants Kins Manager Business Development 624 11818

13 Mumford Place, Balcatta WA 6021 Telephone 08 6241 1888 Fax 08 6421 1818Email: admin@tantalumaustralia.com Website: www.tantalumaustralia.com