PRODIGY GOLD NL — Capital/Financing Update 2005

Jul 5, 2005

AUSTRALIA $N₁$

5 July 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 release regarding Entitlement Issue.

Yours faithfully

Peter Farrah Company Secretary

AUSTRAILA N₁

5 July 2005

ASX Code: TAA

ASX ANNOUNCEMENT/MEDIA RELEASE

ENTITLEMENT ISSUE

Tantalum Australia NL is pleased to announce that the 1 for 2 Entitlement Issue for \$2.14 million closed on 30 June 2005. Shareholders subscribed for \$191,960 of the Entitlement Issue and under the terms of the Underwriting Agreement the Underwriters will subscribe for the amount underwritten being \$1,545,000.

The non underwritten shortfall amount has been reduced to \$383,185 (25,545,689) shares) by a number of shortfall applications from existing shareholders totalling \$20,223 $(1.348.207$ shares).