PRODIGY GOLD NL — Capital/Financing Update 2004

May 12, 2004

13 May 2004

The Companies Announcements Office Australian Stock Exchange Ltd 20 Bond Street Sydney NSW 2000

Stock Exchange Announcement and Media Release

By ASX Online Transmission

Dear Sirs.

TANTALUM AUSTRALIA SECURES LONG TERM SALES CONTRACT WITH CHINESE REFINER

Tantalum Australia NL ("TAA") has signed a 2 year agreement to deliver tantalum concentrates. The contract, at today's exchange rates, has a total value of up to A$35M. The first delivery is scheduled for June 2004. Subsequent deliveries are expected on a regular basis, which may vary subject to the customer's future production scheduling and TAA's availability of supply.

This sale into China confirms the improvement in demand in the global tantalum market. This demand is being driven by increased consumer demand for electronic products such as mobile phones, computers and digital cameras. In addition forward orders for aircraft are boosting demand in the industrial market.

For further information contact Michael Fotios or Imants Kins on 08 6241 1888.

Yours faithfully,

Peter Farrah Company Secretary