REGIS RESOURCES LIMITED — Capital/Financing Update 2008

Oct 22, 2008

Regis Resources Limited ABN 28 009 174 761 www.regisresources.com

Melbourne Office Level 11, 461 Bourke Street Melbourne VIC 3000 Australia

P +61 (0)3 8602 6500 F +61 (0)3 8602 6560

Perth Office Ground Floor, 62 Colin Street West Perth WA 6005 Australia

PO Box 810 West Perth WA 6872 Australia

P +61 (0)8 9442 2200 F +61 (0)8 9442 2290

23 October 2008

Manager Announcements Company Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge St Sydney NSW 2000

Dear Sir,

Duketon Gold Project - Initial Reserve Statement

Key Points:

• Initial Laterite reserves of 442,142 ounces announced at Moolart Well
• Reserves are 96% in the proven category
• Low-cost scraper mining method adopted for Moolart Well
• Revised Project Capital cost estimates completed

Announcement Detail

Regis Resources Ltd (ASX:RRL) is pleased to announce a project development update and initial reserve statement for its 100%-owned Duketon Gold Project, located 130km north of Laverton in Western Australia. The reserve statement has been issued after the adoption of scraper mining methods for the soft ore types, re-estimation of project operating and capital costs, and re-optimisation of the existing laterite and oxide resources.

Confirmation Of Low Cost Scraper Mining Method

Mining consultants LogiKal Projects Pty Ltd (LogiKal) have confirmed that the Moolart Well laterite ore and waste and the oxide ore and waste is suitable for scraper mining, subject to suitable ore block size. The assessment was based on 33m3 scraper units assisted by D10-size bulldozers. Scraper mining has the benefit of low operating costs per tonne of material moved and advantages for stockpile management and rehabilitation procedures.

The Company plans to shortly undertake a trial mining exercise of the laterite ore to a depth on 7m to confirm the performance of the mining method. The trial open pit will be located in the Lancaster North area in close proximity to the existing 6m deep test pit.

Pit Optimisation

Following the adoption of the scraper mining method, project operating costs were revised and new pit optimisations completed for laterite and oxide ore. Optimisations were completed at a variety of gold prices, and A$1000/oz adopted for the base study. Fully engineered pit shells and mining schedules have been created for a nominal 2.5 million tonne per annum mining and processing operation, including related infrastructure.

Project Capital Costs

Engineering Consultants GR Engineering Services Pty Ltd ("GR") have completed an estimate of project capital costs based on current gold industry prices and rates. GR have considered two scenarios; 1/ relocation and re-establishment of a 2.0 mtpa plant, reflecting the purchase of a secondhand plant (excluding any purchase cost), and 2/ a new 2.5 mtpa plant. Both estimates include associated infrastructure and site works costs. The new capital cost estimates are summarised in Table 1 below.

	2nd Hand Plant	New Plant
ELEMENT	2.0 mtpa	2.5 mtpa
	$m	$m
Dismantle and transport	8.9
Refurbish Plant	2.7
Processing Plant	35.8	76.1
Civils
Site Access Roads	3.1	3.1
Airstrip	2.2	2.2
Permanent Camp	6.3	16.0
Water supply	1.7	1.7
Bulk Earthworks	1.2	1.2
Tailings SF	5.1	5.1
TOTAL Project	66.9	105.3
EPCM	5.7	8.5
Commissioning	0.6	0.7
Prelim and General	1.1	0.9
TOTAL	7.3	10.2
Owner's Costs	5.0	5.5
Contingency	7.1	11.6
TOTAL	86.3	132.6

Table 1. Duketon Gold Project Capital Cost estimates

The estimates include a fully contracted EPCM component, but excludes power and fuel supplies which are intended to be provided on a contract cost basis. Owner's costs include contractors mobilisation-demobilisation, first fill chemicals, workshop set up, site vehicles, insurances and emergency and safety equipment.

These capital cost estimates are significantly lower than those previously published for the project as a consequence of:

• 2.5 mtpa throughput vs original 3.0 mtpa throughput
• Refinements in plant design elements
• Different borefield design

Reserve Statement

The initial Ore Reserve Statement for Moolart Well laterite ore down to approximately 20 meters vertical depth is shown in Table 2. An ore reserve statement for the underlying oxide mineralisation is currently in preparation and should be announced to the market shortly.

The laterite reserves are predominantly in the proven category representing 96% of the contained ounces.

Table 2 Ore Reserve Statement

Duketon Gold Project	Proven		Probable			Total Reserves
	milliontonnes	gradeg/t	goldkoz	milliontonnes	gradeg/t	goldkoz	milliontonnes	gradeg/t	goldkoz
Moolart Well
Laterite	9.4	1.41	425	0.6	0.97	18	9.9	1.39	442
Oxide
Sulphide
Moolart Well sub-total	9.4	1.41	425	0.6	0.97	18	9.9	1.39	442
Erlistoun
Oxide
Transitional
Sulphide
Erlistoun sub-total
Dogbolter
Total Project	9.4	1.41	425	0.6	0.97	18	9.9	1.39	442
RRL EQUITY									442

Notes

• 1. The ore reserve estimate used a gold price of A$1000/oz.
• 2. All data is rounded and discrepancies in summation may occur.
• 3. Based on Moolart Well drilling to 14 January 2008.
• 1. The information in this report that relates to Moolart Well Ore Reserves is based on information compiled by Mr Anthony Stephen Lund who is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the mining method undertaken to qualify as a Competent Person as defined in the JORC Code (2004). Mr Anthony Lund is a full time employee of LogiKal Projects Pty Ltd and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
• 1. The information in the statement of Mineral Resources for Moolart Well is based on information compiled by Mr Andrew Hawker of Regis Resource Ltd and Mr Richard Gaze of Golder Associates Pty Ltd who are both members of the Australasian Institute of Mining and Metallurgy and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Persons as defined in the JORC Code (2004). Mr Richard Gaze has provided Competent Person sign-off for the resource estimation procedures and results. Mr Andrew Hawker has provided Competent Person sign-off for the quality and representativity of the drill hole data and geological interpretations.

Yours sincerely

David Walker Managing Director

For further information contact:

Managing Director Chairman Regis Resources Ltd Regis Resources Ltd 03 8602 6500 03 8602 6500

Mr David Walker Dr Michael Folie

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.