RAMELIUS RESOURCES LIMITED — Capital/Financing Update 2004

Sep 16, 2004

Ramelius Resources Limited

ACN 001 717 540

140 Greenhill Road, Unley, SA, 5061 GPO Box 1373, Adelaide, SA 5001 DX 52003, Unley Telephone (08) 8373 6473 or (08) 8373 5588 Facsimile (08) 8373 5917

ASX RELEASE

For Immediate Release 17 September 2004

General Manager The Company Announcements Office Australian Stock Exchange Limited PO Box H224 Australia Square Sydney NSW 1215

Dear Sir/Madam.

WATTLE DAM RESOURCE ESTIMATE

HIGHLIGHTS

• A total resource of 155,000 tonnes at 3.3 g/t gold fcut) for 16,500 ounces gold has been estimated to a depth of approximately 70 metres at the Company's Wattle Dam 7800N prospect near Coolgardie in Western Australia.
• Mining and Metallurgical studies are to commence immediately on the 7800N prospect and it is expected that a decision about mining will be made by the end of October 2004.
• Drilling at additional targets with potentially economic gold intersections identified both north and south of the 7800N prospect to commence shortly.

SUMMARY

Ramelius has completed two reverse circulation drilling programs of 3602m in 48 holes at its 7800N prospect at Wattle Dam Project at Spargoville, approximately 50 kilometres south east of Coolgardie.

This drilling was to evaluate and better define the resource that had been previously estimated at the 7800N prospect. The drilling was conducted on lines spaced 20m apart with drill hole collars generally spaced at 20m intervals along the drill lines. All the holes were inclined at 60° to the east.

This work has defined a lensoid shaped gold mineralised system that extends 200m along strike and is up to 80m wide that contains wide zones of gold mineralisation within which potentially economic gold intercepts were returned. Of particular interest is the continuous body of gold mineralisation that hosts a number of shallow high grade gold intercepts along a strike length of 100m strike length and to a depth of approximately 50m along the eastern side of the prospect.

The 7800N prospect is hosted by ultramafic rocks that have been variably weathered to a depth of 60 metres. There is a noticeable lack of variation in the geology throughout the prospect. It is thought that the mineralisation is associated with shear zones however these are not reliably recognisable within the powdery drill cuttings. In addition, zones of quartz are rare as is the presence of sulphides, both of which commonly associate with gold. Accordingly the geological relationships at this prospect are not yet well understood, which reflects on the confidence with which the numerous gold intercepts may be related to each other.

The deposit has been interpreted to contain an Eastern zone, a Western zone that includes a South Western portion and a Central zone that links between the other two zones. For the most part the mineralised zones appear to be vertical to sub-vertical.

A total resource of 155,000 tonnes at 3.3g/t gold has been estimated to a depth of approximately 70 m which for the most part is the limit of drilling. 80,000 tonnes at 3.6 g/t gold has been assigned an Indicated Resource Status with the balance, 75,000 tonnes at 3.0 a/t gold being assigned Inferred Resource Status.

RESOURCE ESTIMATE METHOD

The resource estimate is based on assay cross sections prepared from the recent Ramelius drilling and earlier drilling where applicable.

The estimate used a 2 gram metre cut off with a minium down hole length of 2 metres and maximum down hole length of 2 metres for included dilution. The gold grades used in the estimate were the initial reported grade for each interval as opposed to an average of the initial grade and any check or repeat analysis on the interval. A top cut of 20g/t gold was applied to those individual intervals that returned grades in excess of 20g/t gold. The grade of each intersection was determined by averaging the grade of each individual interval within the intersection.

The resource was estimated by deriving a cross sectional area around each intersection and applying a length of influence being midway to the adiacent cross section. As the deposit was drilled on 20m line spacings the length of influence is 20m. Tonnes were determined by applying density to the derived volume.

Density measurements have not yet been made at the 7800N prospect and densities of 1.9 am/cc for near surface increasing to 2.5 am/cc for bedrock intercepts have been assumed.

RESOURCE ESTIMATE

A total resource of 155,000 tonnes at 3.3q/t gold has been estimated to a depth of approximately 70 m which for the most part is the limit of drilling. 80,000 tonnes at 3.6 g/t gold has been assigned an Indicated Resource Status with the balance, 75,000 tonnes at 3.0 g/t gold being assigned Inferred Resource Status. This inferred status is an indication that both the geology and hence the correlation within the deposit is not well understood and that although mineralised zones may be interpreted hole to hole and between sections, they are not continuous at the 2 gram metre cut off.

This resource is tabulated below.

	INDICATED		INFERRED		TOTAL
Zone	Tonnes	Grade	Tonnes	Grade	Tonnes	Grade
		g/t gold		g/t gold		g/t gold
Eastern	44,000	4.3	9,000	3.9	53,000	4.3
South Western			13,000	2.7	13,000	2.7
Western	31,000	2.1	20,000	2.5	51,000	2.3
Central	5,000	5.9	24,000	3.6	29,000	4.0
Other			9,000	1.9	9,000	1.9
TOTAL	80,000	3.6	75,000	3.0	155,000	3.3

OUTLOOK

The Company is to immediately commence Mining and Metallurgical studies on the 7800N prospect. The Company expects that a decision will be made about mining by the end of October $2004.$

Additional targets with potentially economic gold intersections, that have been identified both north and south of the 7800N prospect, are to be drilled shortly.

The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by G.J.Dunbar of Dunbar Resource Management, who is a Fellow of the Australasian Institute of Mining and Metallurgy and who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent person as defined in the 1999 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". G.J.Dunbar consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

For further information please contact:

Mr. Joe Houldsworth Managing Director Ramelius Resources Limited Ph. 08 9250 6644