PRODIGY GOLD NL — Capital/Financing Update 2004

Sep 20, 2004

AUSTRALIA NL

21 September 2004

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

By ASX Online Transmission

Dear Sir.

Please find attached ASX/Media release regarding RC drilling results at the Mt Deans Tantalum project.

Yours faithfully

Peter Farrah Company Secretary

21 September 2004

ASX ANNOUNCEMENT/MEDIA RELEASE

MT DEANS TANTALUM PROJECT STRONG DRILLING RESULTS - FEASIBILITY CONTINUES

Tantalum Australia NL ("TAA") is pleased to announce that it has received assay results that confirm the intersection of a significant zone of pegmatites in Reverse Circulation (RC) drilling at its Mt Deans project. 7 kilometres south of Norseman in Western Australia. This intersection confirms the extensions to the pegmatite intersected in RC drilling during March.

Inclined reverse circulation drill holes were completed in the Western Lode system ("WLS") at Mt Deans to follow-up a broad intersection of pegmatite that was made in MDC 162 (72 metres at 324 g/t Ta2O5 from 0-72metres down hole) the results of which were announced to the market on 5 May 2004.

Assay results have now been returned for the RC programme and include the second broad pegmatite intersection in a zone containing two pegmatites from 13 to 26 metres and 36 to 97 metres down-hole in MDC 182 located approximately 60 metres northeast of MDC 162.

The better intercepts include:

15 metres	@	244 g/t Ta 2 O 5
61 metres	@	177 g/t Ta 2 O 5
6 metres	@	371g/t Ta 2 O 5
4 metres	@	339 g/t Ta 2 O 5
13 metres	@	213 g/t Ta 2 O 5
9 metres	@	209 g/t Ta 2 O 5

Significant results are listed in Table 1(attached).

Surface geological mapping of pegmatite outcrops in the WLS has confirmed two trends of pegmatite. One set oriented in a northwesterly direction and another set of veins that are almost at right angles trending northeasterly. It is the northeasterly trending set that has returned the recent broad intercepts and further drilling is required to accurately determine the vein geometry. Similar NW/NE trending pegmatite veins occur in the main (Eastern Lode System -"ELS") zone of Mt Deans giving the Company confidence in relation to consistency and scale of the mineralized system.

Numerous pegmatites defined by the mapping are yet to be tested by drilling.

Follow up Drilling

A 2000 metre RC drilling programme has been designed to:

• Further test the WLS
• Infill drilling in the ELS to increase the resource estimate to the measured category in areas identified for initial pit designs.

Drilling is expected to be completed during October and November.

Feasibility Study

As a result of the significant discovery in the WLS the feasibility study timeframe has been extended to incorporate the assessment of this near surface potentially open pittable mineralisation. The study timetable has now been extended to allow completion during the December quarter and includes:

• Further RC and diamond drilling
• A new resource estimate incorporating past and proposed drilling $\bullet$
• Preliminary pit optimisation. $\bullet$
• Metallurgical test work: Three 300 kilogram samples have been taken from pegmatites in $\bullet$ the Western Lode System and transported to TAA's Balcatta facility for detailed metallurgical test work scheduled to be completed during November.
• $\bullet$ Engineering study and cost estimates of utilising the common infrastructure at the company's Norseman CIP processing plant, which includes crushing, grinding, tailings storage facility, process water supply and dams.)

The recent increases in the price of tantalum pentoxide and the market demand projections forward into 2005/2006 are providing a major impetus for the development of the Mt Deans project. TAA's strategic partners/customers have shown significant interest in the development of Mt Deans and discussions are continuing with respect to future off take.

The availability of the existing infrastructure at Norseman should enable a lower cost start up of operations following a favourable feasibility assessment and the conclusion of the off take agreements mentioned above.

For further information contact:

Michael Fotios Managing Director Imants Kins Manager Business Development

(08) 6241 1888

			Table 1: Significant Intercepts - Mt Deans
--	--	--	--------------------------------------------	--	--

Hole No	MGA North	MGA East	Azimu th	Dip	Hole Depth	Interval	Intercept (M)	(g/t) $Ta_2O_5$
175	6425000	384060	270°	$-60^\circ$	63m	$8 - 14$	6	371
						59-61	2	310
176	6425000	384080	$270^\circ$	$-60^\circ$	80m	20-24	$\overline{4}$	166
177	6425040	384060	270°	$-60^\circ$	60m	18-22	$\overline{4}$	232
178	6425040	384090	270°	$-60^\circ$	90m	36-38	$\overline{2}$	155
179	6425040	384110	$270^\circ$	$-60^\circ$	80m	47-49	$\overline{2}$	190
180	6425080	384060	$270^\circ$	$-60^\circ$	60m	$6 - 10$	4	339
						26-31	5	194
181	6425080	384080	270°	$-60^\circ$	80m	38-41	$\overline{\mathbf{3}}$	215
182	6425080	384105	270°	$-60^\circ$	99m	13-26	$\overline{13}$	213
						36-97	61	177
						36-51	15	244
						76-83	7	240
184	6425077	384081	$090^\circ$	$-60^\circ$	33 m	17-27	10	200
185	6425040	384055	$090^\circ$	$-60^\circ$	21m	$5 - 15$	10	231
186	6424980	384010	$090^\circ$	$-60^\circ$	23m	$10 - 11$	1	375
						$15 - 17$	2	118
187	6425080	384045	$090^\circ$	-60°	33 m	$16 - 18$	$\overline{2}$	330
						20-29	9	209

MT DEANS TANTALUM PROJECT - Location Plan