PRODIGY GOLD NL — Interim / Quarterly Report 2003

Nov 2, 2003

AUSTRAILA $N₁$

31 October 2003

The Listing Manager Australian Stock Exchange Limited 10th Floor 10 Bond Street Sydney NSW 2000

Dear Sir.

ACTIVITIES REPORT FOR THE 3 MONTHS ENDED 30 SEPTEMBER 2003

EXPLORATION

During the guarter field based exploration concentrated on drilling and development of the Iron Duke gold prospect near Norseman. However, data research and examinations of gold, base metal and rare metal projects continued. Agreements to farm into several projects are near conclusion.

Gold

Norseman

A reverse circulation (RC) drilling program was completed in August at the Iron Duke prospect some six kilometres south of Norseman. This augmented the program mentioned, with preliminary assays, in the June report. A further 36 holes were completed for an advance of 1,120m. All holes were inclined -60° to the east except when difficulty of access precluded this, in which cases holes were vertical. Whilst remaining competent, the rocks at the Iron Duke prospect are of a geochemically oxide status and gold mineralisation is largely of a supergene nature. Drill testing remains at a relatively shallow depth and has been designed for an open pit resource to approximately 30m. Significant results from the last two drilling programs are shown in Table 1.

Hole ID	MGA North	MGA East	Total Depth	Downhole Interval (m)	Width (m)	Gold (g/t)
NDC 48	6429651	387553	25	$1 - 4$	$\overline{3}$	3.00
			And	$10 - 17$	$\overline{7}$	2.07
NDC 49	6429671	387531	40 m	$6 - 9$	$\overline{3}$	0.77
			And	26-40 EOH	$\overline{14}$	9.86
NDC 56	6429721	387547	25m	$8 - 11$	$\overline{3}$	1.08
			And	13-20	7	2.43
NDC 57	6429741	387487	30 m	23-24	1	1.06
NDC 58	6429566	387506	45m	14-23	$\overline{9}$	3.84
			And	34-36	$\overline{2}$	0.85
			And	$38 - 39$		32.07
NDC 61	6429765	387540	40m	19-22	$\overline{3}$	6.65
			And	25-31	$\overline{6}$	2.62
NDC 71	6429620	387490	50m	34-47	$\overline{13}$	20.09
			inc	36-37		222.36
NDC 72	6429625	387523	35 m	$0 - 1$		1.21
				$13 - 14$		2.86
				$17 - 19$	$\overline{2}$	4.44
				32-35	$\overline{3}$	3.00
NDC 73	6429625	387512	45m	24-25		3.18
				30-39	9	4.27
			inc	$31 - 32$ 41-45	4	24.07 1.17
NDC 75	6429640	387530	35 m	$11-15$	4	1.36
				$30 - 31$		3.27
* NDC 76	6429640	387527	45m	$9 - 10$	1	1.72
				17-19	$\overline{2}$	4.37
				$31 - 34$	$\overline{3}$	1.29
* NDC 77	6429640	387510	50 m	36-38	$\overline{2}$	9.63
				41-43	$\overline{2}$	2.65
NDC 78	6429650	387528	40m	$16 - 19$	1	1.14
				$29 - 36$	7	6.23
			inc	29-30	1	35.31
NDC 79	6429680	387550	25m	$0 - 3$	$\overline{3}$	2.99
				$6 - 7$	1	3.57
				$11 - 12$	1	2.18
				14.5-20	5.5	2.16
NDC 80	6429680	387530	45m	$13 - 17$	4	5.08
			And	$27 - 28$	1	2.70
				37-39 $10 - 13$	$\overline{2}$ $\overline{3}$	3.28
NDC 89	6429780	387522	50 m	16-17	1	0.91 1.36
				$21 - 25$	4	2.94
				35-38	$\overline{3}$	3.81

Table 1 - Significant Intercepts, 1m re-splits

All holes inclined -60° to east except (*) which are vertical.

The RC programs were aimed at testing gold mineralisation over a zone of 250m length to a nominal pattern of 20m x 10m. Results show that there are two principal, sub-parallel, high grade lodes extending at least 120m within a broad shear that strikes north and dips 45°-65° to the west. Further drilling is scheduled to commence during November to identify the continuation of the lodes along strike and provide additional information for a feasibility study, into the re-establishment of gold operations at Norseman, to be complete by end of November.

TANTALUM ACTIVITIES

BUSINESS DEVELOPMENT

Boston University SOM R&D

As announce during the quarter the final results of the Phase I R&D program confirmed the success of the SOM process in converting tantalum concentrates to tantalum metal at a purity of greater 99%. Boston University is preparing a Phase II research proposal for implementation during the December quarter. The Phase II program will fundamentally be a feasibility study at the kilogram scale as a precursor to the establishment of a semi commercial pilot plant in Western Australia during 2005

Discussions are ongoing with several strategic partners interested in participating in the project. The company is also preparing a proposal for a federal grant to assist in funding the development of the technology. Several patent applications are expected to be lodged during the December quarter to protect the significant new intellectual property developed during Phase I.

African Operations

The company has opened an office in Southern Africa and appointed a senior metallurgist with over 30 years experience in the African mining industry. Mr Alan Still, as Manager Africa. Alan is responsible for compiling a data base of all known tantalum operations and projects in the region. The company has already started negotiations to purchase tantalum concentrates on a regular basis for shipment to the Balcatta Mineral dressing facility for upgrade and delivery into the company's existing contracts.

In addition the Company is receiving a large number of requests to participate in projects by providing technical, financial and marketing assistance.

OPERATIONS

Balcatta Mineral Dressing Facility

The Balcatta Mineral Dressing Facility received no new feed for the September quarter. Work continued on the reprocessing of the low grade dry plant tailings producing saleable concentrate grades.

No concentrate shipments were made during the September quarter.

Dalgaranga

The Dalgaranga plant remained on care and maintenance.

Gascovne

The construction of the Gascoyne Jig Plant is continuing. Fabrication of the ligs, trommel, and other components has been completed at the Balcatta Mineral Dressing Facility.

Plant and personnel were mobilised to the Gascovne in mid August. A nine-man camp was constructed using buildings transported from TA's Dalgaranga site. Erection of the lig plant commenced in late August utilising in house labour. Completion of the plant and commencement of commissioning is expected early November.

Tantalum and niobium concentrates produce from the project will be uporaded at Balcatta for export and delivered into existing contracts. Shipments are expected to commence during the December quarter.

CORPORATE

During the quarter the following ASX announcements were released regarding the company's projects:

• 16 July 2003 Tantalum Australia exercised its Option for a worldwide exclusive licence to the SOM Process with Boston University in the fields of tantalum, niobium, tungsten, gallium, germanium, thallium and yttrium.
• 31 July 2003 Tantalum Australia acquired the exclusive world licence agreement with Boston University for the manufacture of rare metals including nickel.
• 15 Aug 2003 Iron Duke RC drilling results on the Norseman Project
• 18 Aug 2003 Boston University advised of a research breakthrough that puts Tantalum Australia on the world stage of metal refining technology.
• 21 Aug 2003 Further Iron Duke RC drilling assays on the Norseman Project.
• 3 Sep 2003 Final results from the first phase of Iron Duke RC drilling assays on the Norseman Project.
• 25 Sep 2003 Final results from the second phase of Iron Duke RC drilling on the Norseman Project indicate significant high-grade mineralisation.

Yours faithfully.

Michael Fotios Managing Director

NOTE:

The information on mineralisation contained in this report accurately reflects information compiled by Tantalum Australia NL Managing Director Michael Fotios who is a Competent Person as defined in the Australasian Code for reporting of Identified Mineral Resources and Ore Reserves.

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/98. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Name of entity

ALUM AUSTRALIA NL

ACN or ARBN

009 127 020

Quarter ended ("current quarter")

tember 2003

Consolidated statement of cash flows

		Current quarter	Year to date
	Cash flows related to operating activities	\$A'000	$(3$ months)
			\$A'000
1.1	Receipts from product sales and related debtors -	455	455
	Receipts from product sales - prepaid
1.2	Payments for (a) exploration and evaluation	(124)	(124)
	(b) development & R&D	(506)	(506)
	(c) production	(264)	(264)
	(d) administration & corporate	(290)	(290)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	14	14
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(715)	(715)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a)prospects
	(b) equity investments
	(c) other fixed assets	(107)	(107)
1.9	Proceeds from sale of: (a)prospects
	(b)equity investments
	(c)other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	(107)	(107)
1.13	Total operating and investing cash flows (carried
	forward)	(822)	(822)

Appendix 5B Form

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(822)	(822)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	997	997
1.15	Proceeds from sale of forfeited shares
1.16	Payment for borrowings/environmental bonds
1.17	Repayment of borrowings	(231)	(231)
1.18	Dividends paid
1.19	Other (provide details if material)	59.	59.
	Net financing cash flows	825	825
	Net increase (decrease) in cash held	3	3
1.20	Cash at beginning of quarter/year to date	304	304
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	307	307

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	67
1.24	Aggregate amount of loans to the parties included in item 1.10
1.25	Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Appendix 5B Form

⁺ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities (Note 6)	225	108
3.2	Credit standby arrangements	NIL	NIL

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation	150
4.2	Development	150
	Total	300

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	307	304
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	307	304

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note $(2)$ and note $(7)$ )	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or increased

Appendix 5B Form
$+$ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	price Issue per security (see note $3)$ (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference + securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
7.3	+Ordinary securities	220,495,378	220,495,378
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	11,781,481	11,781,481	9 cents
7.5	+ Contributing shareas(description)	NIL
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	3,250,000 1,345,000		Exercise price 20 cents 25 cents	Expiry date 31/03/2004 28/02/2005
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter	NIL
7.11	Debentures (totals only)	NIL	$\overline{\phantom{a}}$
7.12	Unsecured notes (totals only)	$\overline{\text{NIL}}$

Appendix 5B Form

⁺ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
• $\mathcal{D}_{\mathcal{L}}$ This statement does give a true and fair view of the matters disclosed.

Sign here: . . . . . . . . . . . . . . . . . . . . (Company Secretary)

Date: 31 October 2003

Print name: Peter Farrah

Notes

• $\mathbf{1}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• $\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• $\varsigma$ Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
• 6 During the March 2003 quarter, a loan facility was completed by the company with Austminex NL (the latter company being associated with Michael Fotios,

Appendix 5B Form

• See chapter 19 for defined terms.

Managing Director of Tantalum Australia NL) to provide working capital totalling \$225,000. As at 30 September 2003 these funds were drawn down to \$108,768.

The loan facility is secured over tantalum concentrate currently held by the company and a large ballmill in Norseman
currently owned by the company. The interest rate is 7.5% per annum, with the facility becoming due and 30 September 2003, this facility has been extended to 31 December 2003.

Appendix 5B Form

• See chapter 19 for defined terms.

Areas of interest	Tenements	Economic Entity's Interest	Joint Venture Partners
WESTERN AUSTRALIA
	G16/11	100	Kinross Option
l's Dam
	G16/12	100	Kinross Option
	G16/13	100	Kinross Option
	G16/14	100	Kinross Option
	M16/88	100	Kinross Option
	G24/14	100
1 Arrow
	G24/15	100
	G24/16	100
	L24/131	100
	L24/132	100
	M24/104	100
Dalgaranga	E59/969	100
	E59/970	100
	E59/967	100
	M59/106	100
	MLA59/553	100	Part E59/967
	MLA59/554	100	Part E59/967
Meekatharra	E51/319	100
	E51/361	100
	MLA51/691	100	formerly E51/319
	MLA51/692	100	formerly E51/319
	MLA51/693	100	formerly E51/319
	MLA51/708	100	formerly E51/324
	MLA51/701	100	formerly E51/361
	MLA51/702 ELA51/984	100 100	formerly E51/361
	ELA51/985	100
	E51/290	$75.76 -$	{Barrick Gold of Australia Ltd,
			Murchison Resources Pty Ltd}
	MLA51/695	75.76	formerly E51/408
	MLA51/696	75.76	formerly E51/408
	MLA51/697	75.76	formerly E51/409
	MLA51/689	75.76	formerly E51/290
	MLA51/690	$75.76 -$	formerly E51/290
Mt Gibson South	ELA59/875	$\overline{75}$	Mawson West
	ELA59/876	75	Mawson West
	ELA59/890	75	Mawson West

SUMMARY OF MINING TENEMENTS AND AREAS OF INTEREST Note 7

Areas of interest	Tenements	Economic	Joint Venture Partners
		Entity's
		Interest
Norseman	L63/46	100
	P63/719	100
	P63/749	100
	P63/798	100
	P63/799	100
	P63/800	100
	P63/801	100
	P63/911	100
	M63/172	100
	M63/225	100
	M63/226	100
	M63/247	100
	M63/262	100
	M63/229	100
	MLA63/369	100	Formerly P63/749
	MLA63/347	100	Formerly P63/719
	MLA63/374	100	Formerly P63/800
	MLA63/375	100	Formerly P63/801
	MLA63/376	100	Formerly P63/798
	MLA63/377	100	Formerly P63/799
	MLA63/475	100	Formerly P63/911
Binneringie	M15/217	100
	M15/468	100
Mt Deans	P63/740	100	Tantalum Australia Operations Pty
			Ltd
	P63/741	100
	P63/758	100
	P63/945	100
	P63/946 P63/947	100 100
	P63/948	100
	P63/949	100
	P63/950	100
	MLA63/397	100	Formerly P63/740,741,758
	MLA63/513	100	Formerly P63/945-950
	MLA63/541	100	Formerly P63/1074, 1075
Gascoyne	ELA09/1099	100	Tantalum Australia Operations Pty
			Ltd
	ELA09/1100	100	Tantalum Australia Operations Pty
			Ltd
	ELA09/1136	100	Tantalum Australia Operations Pty
			Ltd
	ELA09/1137	100	Tantalum Australia Operations Pty
			Ltd
VICTORIA
Walwa	E4431	0	JM Brady Option
QUEENSLAND
Clermont	MDL28	100	Savannah Gold NL Savannah Gold NL
	MDL103	100
	MDL106 MDL143	100 100	Savannah Gold NL Savannah Gold NL
SOUTH AUSTRALIA
Arkaroola	E3047	80	R&R Thomson

$Appendix 5B Form$
+ See chapter 19 for defined terms.