REGIS RESOURCES LIMITED — Capital/Financing Update 2005

Jun 7, 2005

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

8 June 2005

Scoping Study for Moolart Well Gold Project Commences

Key Points

• Commencement of a Scoping Study on the Moolart Well gold project in the Duketon $\bullet$ joint venture, north Laverton area, WA.
• Moolart Well has the potential to host at least 1 million ounces of gold down to a vertical depth of 100m, with 458,000oz already in a shallow laterite resource down to an average depth of 8m.
• The scoping study will evaluate the technical parameters and the broad economic $\bullet$ options for development of a gold mining operation based on the Moolart Well project;
• A 25,000m drilling program at Moolart Well has commenced in conjunction with the $\bullet$ Scoping Study:
• The cost of the Scoping Study and associated drilling will be approximately \$1.4 $\bullet$ million (100% basis) and Regis' share will be met from existing cash reserves:
• The results of the Scoping Study are expected to be reported to the market early in the December quarter.

Summary of Announcement

On 26 May 2005 Regis Resources NL ("Regis"; ASX code RRL) announced that it had elected to move to management of the Rosemont Duketon and the Duketon Region joint ventures ("Duketon joint venture") in the north Laverton region of Western Australia. The Directors of Regis are now pleased to further announce the commencement of a Scoping Study over the Moolart Well gold project within the Duketon joint venture area. The Moolart Well property currently contains a resource of 458,000 oz of gold in laterite over a 4km strike length down to an average depth of 8m. Only broad spaced exploration has been undertaken on the mineralisation known to exist beneath the laterite zone. The Scoping Study will run concurrently with an extensive RC drilling program targeted to explore these significant zones of oxide and sulphide mineralization. This drilling program is currently underway.

Background

The Moolart Well project is located within the Duketon Region Joint Venture approximately 100 kilometres north of Laverton in the Eastern Goldfields of Western Australia. Following completion of the transaction with Newmont Australia Ltd ("Newmont") expected in the third quarter of this year, the project will be effectively owned 59.2 % and managed by Regis.

With the creation of the Duketon joint venture in 1998, exploration activities increased predominantly focused on the existing gold projects in the area, in particular the Rosemont deposit. Newmont became manager in 2002 and subsequently discovered the Moolart Well mineralisation during a regional air core drilling program. Since that time exploration has focused predominantly on the Moolart Well project and the gold potential of the broader tenement package.

Laterite Resource

Previous manager Newmont established a JORC-compliant inferred resource in the Laterite zone over a north-south extent of 4km and down to an average vertical depth of 8m.

Cut-Off Grade g/t Au	Mt	g/t Au	Contained gold koz
0.3	15.9	0.9	460
0.5	14.1	1.0	458
0.8	92	1.2	355
	6.0	4	260

Table 1 Moolart Well Laterite, Inferred Resource at October 2003

Source: RSG report 2003

Oxide and Sulphide Intersections

Significant oxide and sulphide zone gold intersections exist beneath the laterite resource. None of these zones have been defined in detail, but the Directors believe several of these zones have the potential to be economic and the current drilling program is designed to test continuity to verify this assessment. Potential exists for a total resource of at least 1 million ounces of gold down to a depth of 100m vertical, including the 458,000oz already in the laterite zone. The resource potential of the project below 100m vertical depth is largely unknown and will be examined in selected areas during the current drilling program.

The oxide zone extends to 50-60m vertical depth, and broad spaced drilling on 100m sections has identified as many as seven potentially continuous mineralized zones striking obliquely through the property over a 4km strike. At least three of these oxide zones each have interpreted strike lengths approaching 1 kilometre (see attached figure). Significant oxide zone intersections are summarized in Table 2 below (all previously reported):

Hole No	northing	easting	From	То	Intersctn	Grade
			m	m	m	g/t
MWAC 630	6 947 100	435 450	51	56	5	19.31
MWAC 039	6 947 000	435 700	57	60	3	14.58
MWRC 081	6 946 299	435.397	13	19	6	4.10
MWAC 541	6 944 900	435 250	70	79	9	25.49
MWRC 211	6 944 900	435 360	67	71	4	13.22
MWAC 278	6944600	435 750	52	73	21	4.11
MWAC 519	6 944 500	435 800	50	54	4	10.21
MWAC 290	6.944.400	435 300	42	47	15	4.70
MWAC 487	6 944 300	435450	39	42	3	14.35
MWAC 495	6 944 300	435 850	27	35	8	10.46
			39	56	17	2.73
MWAC 496	6 944 300	435 900	64	74	10	11.89
MWAC 674	6 944 200	435 350	70	77		8.95
MWAC 473	6 944 100	435 900	38	46	8	14.88

Table 2 Moolart Well Significant Oxide zone intersections

intercepts calculated using a 0.5g/l lower cut, no upper cut, maximum 2m internal dilution

Only very limited drilling has been undertaken in the primary sulphide zone beneath the laterite and oxide mineralization. Notwithstanding this limited exploration, this drilling has discovered a number of mineralized gold zones at depth some of which are summarized in the table below. In addition, the drilling has delineated a broad zone of primary, low grade sulphide gold mineralisation which so far extends over nearly 1.5km of strike. This zone is open-ended, and will be important in understanding the origin of the gold mineralization in the area. The last three holes in Table 3 below indicate the tenor of this low grade zone.

northing	easting	From m	Тο m	Intersctn m	Grade g/t
6 947 400	435 600	104	109	5.	15.71
6 947 400	435 550	97	111	14	4.88
6 947 300	435 650	89	99	10	3.27
6946900	435 650	95	105	10	2.57
6 946 402	435 545	141	147	6	3.38
6 946 202	435 770	234	249	15	2.29
6 944 700	435810	198	203	5	4.18
6 944 200	435 915	190	195	5	3.61
6 946 300	435 620	142	196	54	0.60
6 945 800	435 774	140	233	93	0.17
6 944 900	435 360	179	250	71	0.37

Table 3 Moolart Well Significant Sulphide zone intersections

intercepts calculated using a 0.5g/l lower cut, except for the last three holes, no upper cut, maximum 2m internal dilution

Scoping Study Detail

The Scoping Study will examine the technical parameters and the economic potential of a mining development based on the Moolart Well gold project. The study will examine the various processing options for the existing laterite resource, and will include any oxide or sulphide resources that are defined from the current drilling program. In addition, the study will also look at the possible inclusion of known satellite resources into any development plan. The study will cover the following element headings:

• Laterite, oxide and sulphide resource evaluation and update; $\bullet$
• Conceptual open pit design; $\bullet$
• Crushing, screening parameters and $\bullet$
• Metallurgical characterisation of all ore types: ٠
• Conceptual process and plant design;
• Site engineering, hydrological and logistical evaluations; $\bullet$
• Financial modeling and option evaluation of development alternatives.

Moolart Well Drilling Program

A drilling program designed to further evaluate the Moolart Well mineralization has commenced, and consists of 25,000m of reverse circulation, aircore and diamond drilling. This program is part of a larger 70,000m program underway over the Duketon joint venture's extensive tenement holdings. In the Moolart well area this drilling is designed to test the continuity and attitude of the oxide and sulphide mineralization zones down to a vertical depth of 100m, as well as infill and extend the laterite resource. In addition, deeper drilling will seek to further outline the broad low-grade mineralized zone in the basement, known to have widths in excess of 50m and nearly 1.5km in length.

Cost

The cost of the Scoping Study and the associated resource/exploration drilling at Moolart Well are estimated to be \$1.4 million (100% level) and Regis' share will be funded from existing cash reserves. This expenditure will form part of Regis' obligation under the Heads of Agreement with Newmont to spend \$10 million on the Duketon joint venture properties.

Timing

Elements of the Scoping Study will commence immediately, and run concurrently with the drilling program referred to above. It is estimated the scoping study will be completed following the completion of the current project drilling, and is expected to be reported to the market early in the December quarter.

David Walker Managing Director

For further information contact:

Mr David Walker Managing Director Regis Resources NL +613 8532 2830

Dr Michael Folie Chairman Regis Resources NL +613 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.

RESOURCE STATEMENT

	type	RRL	m			cut-off
		interest '	tonnes	grade	koz.	g/t	category	source
Moolart Well	laterite	59%	14.1	1.00	458	0.5	$ind+inf$	RSG
Rosemont	ox+sulph	59%	14.7	1.72	815	0.5	$ind+inf$	RSG
Rosemont
Satellites
Dogbolter	ox+sulph	59%	0.9	2.91	87	1.0	$ind+inf$	NEWM
King John	ox+sulph	59%	0.7	3.19	72	1.0	$ind+inf$	NEWM
Baneygo	ox+sulph	59%	0.8	1.67	43	0.5	ind+inf	NEWM
Erlistoun	ox+sulph-	59%	1.4	4.34	193	1.0	$ind+inf$	NEWM
Russells Find	ox+sulph	59%	0.5	3.86	56	1.0	$ind+inf$	NEWM
Reichelts Find	ox+sulph	59%	0.1	3.69	17	1.0	$ind+inf$	NEWM
Sub-Total		59%	4.4	3.32	468
TOTAL
RESOURCES			33.2	1.63	1.741
RRI enuity					1.028

Source: RSG=RSG Global 2003; NEWM = Newmont Australia Ltd 1 subject to completion of the MOU with Newmont Australia Ltd