RAMELIUS RESOURCES LIMITED — Capital/Financing Update 2005

Jul 20, 2005

For Immediate Release Thursday, 21st July 2005

MAJOR CANADIAN INSTITUTIONAL INVESTOR TAKES STAKE IN NEW W.A. DISCOVERY

Major Canadian institutional investor, Sprott Asset Management ("Sprott"), has taken a key investment in the development of a Western Australian gold discovery.

Ramelius Resources Ltd (ASX:RMS) - currently assessing spectacular gold intercepts from its 100% owned Wattle Dam Gold Project in WA - today announced that it had raised A$1.3 million through a placement of shares and options with Sprott.

The successful placement involved 8,666,666 new shares at $0.15 each together with 4.333.333 free attaching listed options.

The issue price of the placement shares compares with the closing price of $0.16 for Ramelius shares on the ASX yesterday.

Project to be fast tracked

"This is a significant vote of confidence in Ramelius and its WA projects by a maior Canadian institutional investor with a proven track record in gold and precious metals investments," Ramelius' Managing Director, Mr Joe Houldsworth, said today.

"Funds raised from the issue of the Placement Shares will be used to fast track development of the high-grade Wattle Dam discovery, for working capital and to generally expand regional exploration for both gold and nickel at what is emerging as a major prospective belt covering many kilometres at Spargoville," Mr Houldsworth said.

"We are currently revising the resource calculation in anticipation of a decision on a mine plan for the Wattle Dam project." he said.

Spectacular gold intercepts

The Sprott placement follows last week's announcement by Ramelius that latest exploration results showed spectacular intercepts with grades in excess of 50 grams per tonne (g/t) and up to 950 g/t gold from an extensive drilling program just completed on the Wattle Dam project.

The latest intercepts include even higher grades across a wider cross-section compared with the bonanza grades reported in June.

The Wattle Dam Gold Project (100% Ramelius) is part of the Company's Spargoville Regional Project Area. The area encompasses approximately 280 square kilometres and over 30 kilometres strike length of a highly prospective and under explored gold and nickel belt situated only 50 kilometres south of Coolgardie and 25 kilometres west of Kambalda in W.A.

Mr Houldsworth said 30 of the 44 holes drilled in the latest program returned intersections greater than 4 gram metres, adding to the possibility of a high grade sub-zone being present at Wattle Dam.

Ramelius said the placement to Sprott Asset Management was made pursuant to the ASX Listing Rules under the Company's 15% capacity. However, the issue of the attaching options is subject to shareholder approval.

The placement was coordinated by Rundle Capital Partners Ltd (Australia) and Max Capital Markets (Canada).

Media contacts:

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

John Field Field Public Relations Ph. 0418 819 527