RAMELIUS RESOURCES LIMITED — Capital/Financing Update 2004

Aug 18, 2004

Ramelius Resources Limited

ACN 001 717 540

140 Greenhill Road, Unlev 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 19 August 2004

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

Dear Sir/Madam.

EXTENDED GOLD ZONE INDICATED BY SECOND ROUND OF RESOURCE DEFINITION DRILLING AT WATTLE DAM PROJECT

HIGHLIGHTS

• The gold mineralised system at the Wattle Dam 7800N prospect has been extended 60 $\bullet$ metres to the south and 40 metres to the north for a total increase in the strike length from 120 metres to 220 metres.
• Drilling has confirmed and further defined the extent of the potentially economic gold $\bullet$ mineralisation within the immediate locality, and significantly the anomalous gold "envelope" remains open along strike, particularly to the south.
• The shallow, high grade gold zone along the eastern side extends a further 20m south of $\bullet$ the previous drilling with drill hole WDRC027 returning from 29 metres depth, 3 metres at 9.2q/t gold (cut) that includes 1 metre at 28.2 g/t gold.
• The Company believes that a mining operation will be established at Wattle Dam within $\bullet$ six months.

SUMMARY

Ramelius has completed a second round of reverse circulation drilling totalling 1702m in 23 holes at its 7800N prospect at Wattle Dam Project at Spargoville, approximately 50 kilometres south east of Coolgardie.

This drilling was to extend the drilling coverage along strike to the north and south and to determine the nature of the mineralised system at depth. 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 drilling appears to have outlined the extent of the potentially economic gold mineralisation within the immediate locality. The gold mineralised system has been extended 60m to the south and 40 m to the north for a total strike length of 220 metres. However, the associated anomalous gold "envelope" remains open atong strike, particularly to the south. Significantly, the shallow, high grade gold zone along the eastern side was demonstrated to extend a further 20m south of the previous drilling with drill hole WDRC027 returning from 29m depth, 3 metres at 9.2g/t gold (cut) that includes 1m at 28.2 g/t gold.

Tabulated below is a listing of drilling details from this second round of drilling, including those intercepts greater than 2 gram metres down hole length. Unless otherwise commented upon grades greater than 20g/t have been cut to 20g/t to determine the average grade for the reported intervals.

WATTLE DAM 7800N PROJECT
COLLAR DETAILS						RESULTS				COMMENT
Hole No	North	East	Az	Dip	Depth	From	To	Length	Gold
					$\mathsf{m}$			m	g/t
WDRC026	6527700	356120	90	$-60$	70
WDRC027	6527700	356100	90	$-60$	70	29	32	3	9.2	$>$ 20g/t gold cut to 20 g/t
					includes	29	30	1	28.2	uncut
						35	$\overline{37}$	$\overline{2}$	1.6
						40	42	2	1.8
WDRC028	6527700	356080	90	$-60$	70	$\ddot{\phantom{1}}$	Ĭ.
WDRC029	6527700	356060	90	$-60$	80	50	54	4	1.5
WDRC030	6527700	356040	90	$-60$	70	58	60	2	$\overline{2.3}$
WDRC031	6527680	356140	90	$-60$	70	÷.	Ĭ.	$\bar{\phantom{a}}$
WDRC032	6527680	356120	90	$-60$	$\overline{70}$	$\ddot{\phantom{1}}$	÷,	$\overline{\phantom{a}}$
WDRC033	6527680	356100	90	$-60$	70	$\overline{30}$	$\overline{32}$	$\overline{2}$	$\overline{1.2}$
WDRC034	6527680	356080	90	$-60$	$\overline{70}$	63	65	$\overline{2}$	9.1
WDRC035	6527680	356060	90	$-60$	$\overline{74}$	30	$\overline{32}$	$\overline{2}$	1.8
WDRC036	6527660	356125	90	$-60$	66		$\overline{a}$
WDRC037	6527660	356085	90	$-60$	70	$\overline{23}$	$\overline{25}$	$\overline{2}$	1.4
						÷	÷	$\overline{\phantom{a}}$
WDRC038	6527860	356040	90	$-60$	70	$\overline{\phantom{a}}$	$\blacksquare$	$\blacksquare$
WDRC039	6527860	356020	$\overline{90}$	$-60$	$\overline{70}$	38	52	14	1.9	includes<1g/t gold intercepts
				includes		$\overline{38}$	40	$\overline{2}$	4.7
				includes		42	43	$\overline{\mathbf{1}}$	1.7
					includes	50	52	$\overline{2}$	5.4
WDRC040	6527860	356000	90	$-60$	70			$\overline{a}$
WDRC041	6527880	356040	90	$-60$	$\overline{70}$			$\mathbf{r}$
WDRC042	6527880	356020	90	$-60$	$\overline{70}$
WDRC043	6527878	356000	90	$-60$	$\overline{70}$	58	60	$\overline{c}$	1.7
WDRC044	6527905	356000	90	$-60$	$\overline{70}$	$\overline{\phantom{a}}$		Ĭ,
WDRC045	6527900	356080	90 90	$-60$	70 $\overline{122}$
WDRC046 WDRC047	6527720 6527760	356070 356070	90	$-60$ $-60$		$\overline{53}$ $\overline{72}$	55 74	$\overline{2}$ $\overline{2}$	1.9 1.8
WDRC048	6527760	356100	90	$-60$	120 50	21	23	$\overline{2}$	1.1
						30	$\overline{32}$	$\overline{2}$	$\overline{1.2}$
						34	$\overline{39}$	5	2.9

Drilling, Sampling and Analytical

The drilling was conducted using reverse circulation drilling methods with the samples being collected at 1m intervals using a cyclone, prior to riffle splitting to extract a sample of approximately 2 kilograms for submission to Genalysis Laboratory Services Pty Ltd. At the laboratory the entire sample was dried and pulverised prior to a sub-sample being taken for analysis for gold. The analytical method used was a 200gram Leachwell digestion and solvent extraction with AAS analysis. No duplicate or check samples have been taken at this stage. All the drill holes were geologically logged.

OUTLOOK

• A resource estimate is currently being undertaken and is expected to increase the level of $\bullet$ confidence of the previously inferred resource of 150,000 tonnes at 4.6g/t gold (cut)
• The Company believes it will establish a mining operation at Wattle Dam within six $\bullet$ months.

For further information please contact:

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