PRODIGY GOLD NL — Capital/Financing Update 2005

Sep 28, 2005

AUSTRALIA $N₁$

29 September 2005

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 Erayinia JV - Drilling Update, Significant base Metal Mineralisation.

Yours faithfully

Peter Farrah Company Secretary

AUSTRAILA $N₁$

29 September 2005

ASX Code: TAA

ASX ANNOUNCEMENT/MEDIA RELEASE

SIGNIFICANT BASE METALS DISCOVERY - ERAYINIA PROJECT (TAA EARNING 80%)

HIGHLIGHTS

• RC drilling targeted at the upper edge of the 400 metre long E1 anomaly has identified sulphide mineralisation over a strike length of 200 metres that is open to the north and south.
• Drilling confirms Archaean VMS style massive sulphide potential similar to Golden Grove and Teutonic Bore
• Six magnetic anomalies over 5 kilometres of strike north of E1 remain to be tested by EM and drilling with further magnetometry required to provide data along strike to the north and south (refer Plan1).
• Four drill holes at the northern end of the E1 target intersected massive sulphides along 200 metres of strike (open to the north and south) with best intercepts:
• ERC 14 7 metres of 4.38 % Zn, 0.28% Pb and 31 ppm Aq Incl. 1 metre of 8.40% Zn, 0.86% Pb, 93 g/t Ag and 0.16 g/t Au
• ERC 17 3 metres of 2.19 % Zn, 0.27% Pb and 18.7 ppm Aq
• ERC 21 4 metres of 1.75 % Zn. 0.12% Pb and 18.8 ppm Aq
• ERC 23 1 metre of 1.24% Cu, 1.11% Zn, 0.13%Pb, 29 g/t Ag and 1.65 g/t Au
• Core of E1 target down plunge/dip of current drilling remains untested

Tantalum Australia NL (TAA) is pleased to announce that it has received results from the first pass RC drill programme at the Erayinia JV with Great Gold Mines NL targeted at the relatively shallow upper margin (between 30 and 100 metres depth) of the E1 base metal target. The Erayinia project area is located approximately 130 km south east of Kalgoorlie and covers an area of 275 km².

Ten RC drill holes (ERC14 to ERC 23) were completed for a total of 1012 metres including a water bore (ERC 20) drilled to support future diamond drilling. The Erayinia project is located within the poorly outcropping Erayinia greenstone belt which is located at the extreme (south) east of the Yilgarn Block - adjacent to the Albany-Fraser tectonic zone. TAA is targeting Archaean volcanic-hosted massive base metal sulphide (VMS) deposits and pegmatite hosted tantalum-niobium-tin mineralisation. The RC drill program was designed to provide proof of concept data with respect to the VMS mineralisation potential of the area.

The drill holes intersected an interpreted VMS sequence including:

• Altered footwall felsic/intermediate volcanics containing disseminated sulphides anomalous in Cu. Pb. Zn. Ag and Au (e.g. ERC 23).
• A sulphide zone between ten and twenty metres wide containing massive (+40%), semi massive $(10 - 40%)$ and disseminated $(1 - 10%)$ sulphides (e.g. ERC 14, 17 and 21). This zone also contains variable amounts of sphalerite, pyrite, pyrrhotite, chalcopyrite, galena and silica alteration and appears to grade laterally into a sulphidic banded chert
• Hangingwall intermediate/mafic volcanics that appear to be unmineralised.

The sulphide mineralisation strikes north – south and dips to the east at about 50 degrees. The sequence appears to be overturned as the footwall felsic volcanics and alteration occur above the sulphide mineralisation. Significant intercepts are listed below:

Hole ID	MGA North	MGA East	Declination	Total Depth	Down hole Interval (m)	Width (m)	$Z_{\rm fl}$ (%)	PЬ $(\%)$	Cu (%)	Ag (g/t)	Au (g/t)
ERC 14	6538646	484569	60	140	103-107	3	0.66	0.10	0.13	7.0	0.11
				inel.	$107 - 114$	7	4.38	0.28	0.01	33.1	0.10
					108-109		8.40	0.86	0.01	93.0	0.12
ERC 17	6538595	484543	60	120	103-106	3	2.19	0.27	0.03	18.7	0.04
ERC 21	6538742	484501	90.	55	$40 - 44$	4	1.75	0.12	0.02	18.8	0.03
ERC 23	6538594	484510	90	153	134-151	18	0.38	0.07	0.17	5.8	0.18
					148-149		1.11	0.13	1.24	29	1.65

(1 metre samples – $Au/Ag$ by aqua-regia/AAS, other by multi acid digest/ICP-OES)

ERC 14 was drilled down dip of ERC 8 (drilled by earlier explorers – refer attached plan and section) and indicates increasing grade and width. It intersected massive sulphides from 107 to 114 metres down hole (interpreted true width) with disseminated footwall sulphides from 103 to 107 metres. A diamond drill hole is planned to test the core of the surface EM anomaly down dip of ERC8 and ERC14 (refer attached section)

ERC 17 (massive sulphides from 103 to 106 metres down hole) and ERC 23 (disseminated footwall sulphides from 134 to 151 metres down hole) were drilled on a section 50 metres south of ERC 8. Down hole intercepts in ERC21 and 23 approximate 70% of true width.

ERC 21 was drilled 100 metres north of EC 8 and intersected massive sulphides just below the weathering zone from 40 to 44 metres down hole.

ERC 15, 16 and 22 were all drilled on a section 100 metres south of ERC 8 and intersected a cross cutting dolerite dyke in the interpreted position of the sulphide zone.

ERC 18 and 19 were drilled on a section 200 metres south of ERC 8 and intersected black shale/banded sediment anomalous in zinc and copper.

Planned Base Metal Exploration

TAA has already completed an extensive review of the previous exploration data. The ongoing program of field exploration work will include diamond drilling targeted at the existing EM anomaly and down dip extension of the shallow massive sulphides, geophysical surveys consisting of ground/down hole EM and airborne magnetics.

BACKGROUND

The following is the summary of previous exploration as announced 7 April 2005.

Previous exploration work completed in the early 1990s included soil/bedrock geochemistry, air/ground magnetic surveys, ground EM and limited RC drilling. The magnetometry identified a 35 kilometres long and 0.5 to 1.0 kilometres wide north striking sequence of metamorphosed sediments, mafic and felsic volcanic rocks thought to be prospective for VMS. In addition lithium bearing pegmatites prospective for tantalum were identified. Detailed evaluation however was limited to a relatively small area (refer Plan 1 - attached).

Base Metals

Soil and bedrock geochemistry defined a 2200 metres long and 200 metres wide zinc and copper RAB geochemical anomaly hosted by felsic volcanics thought to represent a footwall alteration zone. The zinc anomaly has a peak value of 3600ppm (0.36%) and the parallel copper anomaly to the east has a peak value of 2950ppm (0.29%). In addition a banded chert unit located to the west of the anomaly returned zinc and lead values up to 0.49% and 0.34% respectively.

Ground EM over an area of 1.0 by 0.8 kilometres outlined a significant transient electromagnetic (TEM) anomaly (E1 - refer Plan 2 attached) between 100 and 150 metres depth caused by an excellent conductor with a strike length of 200 metres. To the south and continuous with this conductor there is evidence of a less conductive and perhaps deeper section that extends the strike length of the TEM anomaly to 400m. E1 is interpreted to be situated stratigraphically above the footwall alteration and below the anomalous chert unit.

Subsequent limited RC drilling testing (4 holes) only partially tested the up dip extension above the E1 target in unweathered rocks (40 metres vertical depth - refer attached cross section) and returned massive sulphides (50 to 80%) including sphalerite and pyrrhotite with very encouraging zinc results includina:

4 metres of 1.34 % Zn, 0.16% Pb and 26 ppm Aq 1 metre of 2.65% Zn, 0.20% Pb and 48 ppm Aq 4 metres of 0.54%Zn,

The sulphides are considered to be of hydrothermal origin and contain traces of lead, copper, indium, tin, antimony and selenium, among other elements, producing a suite similar to other Archaean VMS deposits. There is alteration (sericitic-chloritic) of the country rock adjacent to the sulphidic zone including fine grained lithic fragments (lapilli). These characteristics are indicative of a mineralised VMS hydrothermal system. The RC program was abandoned after the drill rig failed to reach target depth and was unable to drill deeper than 70 metres down hole. The results were not followed up.

There are some geological and geochemical similarities with the Golden Grove (Scuddles-Gossan Hill deposits) in the Murchison District and Teutonic Bore in the Eastern Goldfields, Western Australia. Trace element analysis of the massive sulphides at Erayinia displayed a signature similar to Golden Grove. It is considered that the Erayinia project represents an excellent brown-fields base metal exploration target.