REGIS RESOURCES LIMITED — Capital/Financing Update 2006

Oct 17, 2006

18 October 2006

Manager Announcements Company Announcements Office Australian Stock Exchange Limited 4th Floor, 20 Bridge Street Svdnev NSW¹ $\frac{1}{2000}$

Level 11, 461 Bourke Street Melbourne Victoria 3000 Australia

Telephone: +61 3 8602 6500 Facsimile: +61 3 8602 6560

Dear Sir

Regis moves to 100% of Duketon joint ventures

The Directors of Regis Resources NL (ASX:RRL) are pleased to announce that Newmont Australia Ltd (Newmont) has exercised a put option over the remaining 25% of the shares in Newmont Duketon Pty Ltd (NDPL). The put option exercise follows the announcement of Regis exercising its call option over 26% of NDPL on 29 September 2006.

The put option exercise will result in Regis increasing its ownership of NDPL to 100%, and increasing its economic interest in the two Duketon joint ventures to 100%. The Duketon joint ventures contain the Moolart Well gold deposit and the prospective Collurabbie properties.

Background

In March 2005 Regis reached agreement with Newmont to restructure the Duketon Region and the Rosemont Duketon joint ventures. Final terms were agreed on 14 December 2005, and Regis purchased an initial 49% of NDPL on 3 February 2006. Included in the revised arrangements was the grant to Regis of a call option over a further 26% of the shares of NDPL. In addition, Newmont was also granted an option to put up to 51% of the shares in NDPL to Regis.

Put Option Exercise

Newmont has formally provided notification to Regis of the exercise of the put option today. Newmont have also agreed to fund their equity component of ongoing exploration and feasibility costs prior to completion. This amount will be refunded to Newmont by Regis upon completion. Consideration for the purchase of the 25% of NDPL, as a result of the exercise of the put option, is based on a formula linked to Regis' share price, and totals approximately \$22.1 million. The transaction can be settled by a further issue of 187.9 million ordinary shares in Regis which will be conditional on Regis securing shareholder approval under the Corporations Act and ASX Listing Rules which will be sought at the Company's Annual General Meeting, expected in late November 2006, or by a cash payment of \$22.1 million, or a mixture of shares and cash. Completion will occur within 5 days of that meeting.

Yours sincerely

David Walker Managing Director

For further information contact:

Mr David Walker Managing Director Regis Resources NL 03 8602 6500

Dr Michael Folie Chairman Regis Resources NL 03 8602 6500