REGIS RESOURCES LIMITED — Capital/Financing Update 2005

Aug 16, 2005

Reais Resources N.L

ABN 28 009 174 761

Level 8, 580 St Kilda Road, Melbourne Victoria 3004. Australia

PO Box 6315. St Kilda Road Central Melbourne, Victoria 8008, Australia

Telephone: +61 3 8532 2830 Facsimile: +61 3 8532 2805 Email: regis@axisc.com.au

17 August 2005

Manager Announcements Company Announcements Office Australian Stock Exchange Limited 4th Floor, 20 Bridge Street Sydney NSW 20000

Dear Sir

Regis Commences Nickel Exploration Program

Summarv

Regis has initiated a nickel exploration programme over the extensive Duketon joint venture holdings. initially focussing on the prospective Collurabbie block of tenements. Results from previous drilling in the western Collurabbie area by MIM in 1995 which were released to the market at that time are now interpreted to occur in a similar stratigraphic position to nickel mineralisation discovered by WMC/Falcon in the adjoining tenement to the north. Key results from MIM's 1995 drilling program are:

• 17m at 1.36 % nickel and 0.03% copper from 39m in hole RB 1363 $\bullet$
• 8m at 1.32 % nicket and 0.05% copper from 74m in hole RB 1363 (ended in mineralisation) $\bullet$

Background

Regis Resources NL ("Regis") and Newmont Australia Ltd ("Newmont") are partners in two Duketon joint ventures covering over 2,000 sq km of tenements prospective for gold and nickel, north of Laverton in Western Australia. The partners are currently completing a restructure of the joint venture agreements after which Regis will become manager of all exploration and have a direct and indirect equity of 59.2% equity in the joint ventures and Newmont will hold 47% equity in Regis.

Nickel Exploration Program

Regis, on behalf of the joint venture partners, has commenced a nickel exploration program over the Duketon tenements with an initial focus on the Collurabbie area. In particular, the program will focus on the western ultramafic sequence which is an extension of the terrain known to contain massive nickel sulphides at the Olympia prospect on the adioining tenement to the north, owned by BHP Billiton (formerly WMC) 70%/Falcon Minerals 30%. The program consists of the following elements:

• Data compilation and sample re-assaying $\bullet$
• Geochemical sampling $\bullet$
• 150 line km of ground TEM and downhole EM $\bullet$
• 12,000m of AC, RC and diamond drilling

The nickel exploration program is forecast to cost approximately \$1.3 million, and will be reprioritised from the existing \$3.3 million budget and be funded by the joint venture partners from existing cash balances. Further exploration beyond this program is proposed.

Nickel intersection, Hermans Prospect, Collurabbie (Newmont 64%, Regis 16%, Falcon 20%) Regis has commenced a review of all previous exploration data over the Duketon joint venture tenements. This review has located a significant number of nickel assays in excess of 0.5% Ni in both drill results and geochemical samples which were detected during previous exploration programs for gold. In addition, many of the anomalous nickel results have significant copper grades, but little if any assaying for platinum group elements has been undertaken. The Collurabbie block of tenements has not been systematically explored for nickel or other base metal mineralisation, but the area is known to contain the extension of the Archaean ultramafic sequences which host nickel-copper massive sulphide mineralisation further north.

Following a preliminary review of the historical exploration data, Regis has concluded that the nickel mineralisation in the Hermans area (see attached plan) is the western ultramafic sequence is of greater significance that previously thought. At the Hermans prospect, previous RAB drilling by MIM in 1995 has recorded significant nickel and copper mineralisation associated with ultramafic and mafic volcanics in what Regis has termed the Western Ultramafic Sequence. Results from selected holes are shown in the table below:

Hole No	Northing	Easting	From	Τо	Int	Ni	Сu
			m	m	m	%	%
Hermans Zone
l MIMRB 1362	7011641	422990	40	45	5.	0.82	0.02
			47	63	16	0.70	0.01
MIMRB 1363	7011641	423025	39	56	17	1.36	0.03
		incl	41	44	3	2.00	0.04
			74	82 EOH	8	1.32	0.05

Holes drilled at 090 azimuth, -60° dip. EOH - end of hole

The mineralisation was intersected above the base of weathering, and occurs in association with an olivine cumulate within a thick ultramafic sequence including possible komatiitic lithologies. Further follow-up drilling below these intersections recorded a maximum of 1.15% nickel and 0.04% copper, although no sulphides were observed. The zone has not been tested to the north or south or below approximately 110m vertical depth.

Although these results do not indicate economic mineralisation, they occur in a similar stratigraphic position to nickel mineralisation discovered at the Olympia and Leros prospects by BHP Billiton/Falcon, in the tenement adjoining Regis' Collurabbie block to the north.

The current exploration program will focus closely on the nickel results at Hermans and at a number of other nearby historical locations within the Collurabbie ultramafic sequences.

Yours sincerely

David Walker Managing Director

For further information contact:

Mr David Walker Managing Director Regis Resources NL 03 8532 2830

Mr Michael Folie Chairman Regis Resources NL 03 8532 2830

The technical information contained in this report has been reviewed by Mr. David Walker who is a member of the Australasian Institute of Mining and Metallurgy and has more than 20 years experience in the exploration industry.