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PRODIGY GOLD NL Capital/Financing Update 2004

May 24, 2004

65615_rns_2004-05-24_0abe3e9e-182e-4966-969c-c09a35fb6b86.pdf

Capital/Financing Update

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AUSTRALIA $N1$

25 May 2004

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

By ASX Online Transmission

Dear Sir

Please find attached ASX/Media release regarding Chinese MOU and tantalum supply.

Yours faithfully

Peter Farrah Company Secretary

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AUSTRAILA $N1$

25 May 2004

ASX ANNOUNCEMENT/MEDIA RELEASE

TANTALUM AUSTRALIA NL CONTINUES TO EXPAND ITS BUSINESS IN CHINA

Tantalum Australia NL ("TAA") has signed a Memorandum of Understanding ("MOU") with another Tantalum processor in China. Both Parties have agreed that it is their intention to enter into agreements for the sale of tantalum concentrates for a multi-year period.

The MOU and forthcoming agreements will connect TAA with the Chinese processor to secure a stable, long term tantalum supply chain.

For further information contact:

Michael Fotios Managing Director Imants Kins Manager Business Development

$(08)$ 6241 1888