PRODIGY GOLD NL — Capital/Financing Update 2004

Aug 2, 2004

AUSTRALIA $N₁$

3 August 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 progress at the Norseman Gold project.

Yours faithfully

Peter Farrah Company Secretary

ASX ANNOUNCEMENT/MEDIA RELEASE

DRILLING UPDATE - NORSEMAN GOLD PROJECT

Tantalum Australia NL is pleased to announce final assay results of samples from recent Reverse Circulation (RC) drilling that was completed on June 15 at its Iron Duke prospect within the Norseman Project in Western Australia.

In this program of RC drilling at Iron Duke the holes were planned to intersect the mineralised structure down dip from previous intersections and to test the northerly extensions of the known mineralisation. This work confirmed earlier interpretations: the gold mineralisation occurs in a 50 metre wide "envelope" of moderately (west) dipping shears at grades up to 2.5g/t. However, within this zone there occur sub-vertical, discontinuous lenses of high grade (5-80g/t) material.

The vertical holes targeted at the northern strike extension (e.g. NDC 236) confirm that mineralisation extends more than 100 metres beyond the previously identified resource.

Results of the recent drilling have extended the strike of the mineralised zone to approximately 360 metres. Mineralisation is open to the north and south along strike.

The better intercepts from the latest round of results include:

19 metres	@	3.85 g/t Au
5 metres	@	11.50 g/t Au
6 metres	@	8.67 g/t Au
5 metres	@	5.57 g/t Au
9 metres	@	2.74 g/t Au

Follow up Drilling

An RC drilling program as follow up to the above drilling has been completed. The aim of the follow up drilling is to continue to extend the Iron Duke mineralisation to the north and south. Infill drilling will also be completed to update the resource model as part of the ongoing feasibility study. Given the recent success drilling programmes at Iron duke will continue at least until the end of August.

Significant Intercepts

Iron Duke - RC Drilling

Hole iD	MGA North	MGA East	Total Depth	Down hole Interval (m)	Width (m)	Au (g/t)
Iron Duke	AZ 090°	Dip - 60°
NDC 220	6429650	387500	60	29-30	1	1.32
				53-54	1	11.10
NDC 221	6429660	387500	60	42-47	5	3.65
NDC 222	6429680	387500	75	38-43	5	11.50
				54-55	1	7.86
NDC 223	6429700	387500	65	44-45	1	2.28
				58-59	1	6.04
NDC 224	6429710	387500	65	$11 - 12$	1	1.83
				$18 - 19$	1	2.34
NDC 226	6429735	387500	75	$10 - 11$	1	1.98
				22-23	1	4.2
				26-27	1	1.85
NDC 227	6429750	387500	65	$6 - 12$	6	8.67
				$14 - 16$ 56-61	2 5	1.56 5.57
NDC 228	6429770	387500	75	$8 - 10$	$\mathbf 2$	1.92
				29-32	3	2.95
				36-37	1	3.4
				46-47	1	2.57
				$51 - 52$	1	1.35
NDC 229	6429780	387488	60	$8 - 10$	$\overline{2}$	4.25
				41-50	9	2.74
NDC 230	6429790	387480	90	54-56	$\sqrt{2}$	2.15
NDC 231	6429820	387480	75	28-29	1	1.63
				45-47	2	2.26
				$50 - 55$	5	1.95
	Vertical*
NDC 236 *	6429840	387502	60	28-29	$\mathbf{1}$	6.43
				33-52	19	3.85
NDC 237 *	6429860	387503	60	$0 - 4$	4	1.54
				$23 - 24$	1	1.31
				27-29 47-48	2	6.02 1.22
				51-60	1 9	1.84
NDC 238 *	6429880	387515	60	$0 - 3$	3	1.77
				$15 - 19$	4	2.64
				39-42	3	2.16
NDC 239 *	6429900	387515	60	$10 - 11$	$\mathbf{1}$	3.95
				43-45	$\overline{2}$	1.26
				47-49	$\overline{2}$	1.18
				57-59	2	1.57