REGIS RESOURCES LIMITED — Capital/Financing Update 2008

Jul 7, 2008

Not For Distribution in the United States or over US Newswires

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8 July 2008

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

Melbourne Office

Level 11, 461 Bourke Street Melbourne VIC 3000 Australia

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

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

Dear Sir,

PRIVATE PLACEMENT OFFERING

Regis Resources Limited (ASX: RRL) (“Regis” or the “Company”) is pleased to announce today further details of its best efforts private placement of units in the capital of the Company (the “Units”) to sophisticated and institutional investors (the “Offering”). A total of 87,500,000 Units ("Units") is intended to be issued at a price of A$0.20 per Unit, for gross proceeds to the Company of approximately A$17.5 million.

Speaking today in Melbourne, Regis' Chairman Dr Michael Folie said "this financing is a significant advance towards the development of the Duketon Gold Project, and Regis is pleased with the support it has received from the broker syndicate and from investors in North America and Europe".

"The placement will be the first step in the financing of the Duketon Gold Project and the Company intends to proceed with a North American stock exchange secondary listing, which will permit further equity capital raisings. The Company is also in preliminary discussions with a number of specialist resource debt providers and intends to fully examine the opportunities for partially debt financing the development of the Duketon Gold Project."

Proceeds from the Offering will be used to fund the completion of the feasibility study over the Duketon Gold Project, acquisition of capital items for the development of the project, ongoing exploration and for working capital for the Company.

PLACEMENT DETAIL

Each Unit will consist of one fully paid ordinary share in the Company and one half of one exchangeable ordinary share purchase warrant or option (each whole exchangeable ordinary share purchase warrant, an “Exchangeable Warrant”). Each Exchangeable Warrant will entitle the holder thereof to acquire one fully paid ordinary share in the Company at an exercise price of A$0.28 (the “Warrant Exercise Price”) for a period of 24 months from the closing of the Offering. The Warrant Exercise Price is approximately 19% greater than the average market price of the Company’s ordinary shares on ASX over the 5 trading days up to and including 7 July 2008. (The issue of the Units therefore will result in the issue of 87,500,000 fully paid ordinary shares, and 43,750,000 Exchangeable Warrants exercisable into a further 43,750,000 fully paid ordinary shares).

The Offering is being placed by a syndicate of agents co-led by CIBC World Markets Inc. (“CIBC World Markets”) and BMO Capital Markets, and including Cormark Securities Inc. (collectively, the “Agents”) pursuant to an agency agreement dated July 8, 2008 between

Regis and the Agents (the “Agency Agreement”). Under the Agency Agreement, the Company has granted to the Agents, subject to compliance with the Australian Corporations Act and the ASX Listing Rules, an option (the “Agents’ Option”) to place up to an additional 37,500,000 Units on the same terms as above. If the Agent's Option is exercised and additional Units placed, a further 37,500,000 fully paid ordinary shares will be issued, along with 18,750,000 Exchangeable Warrants, raising further gross proceeds to the Company of approximately A$7.5 million.

The Offering, which is expected to close on or about July 22, 2008, is subject to various conditions, including application for the listing of the ordinary shares issued or issuable pursuant to the Offering.

The Exchangeable Warrants will be automatically exchanged for, without payment of any additional consideration, non-exchangeable ordinary share purchase warrants (the "NonExchangeable Warrants" and together with the Exchangeable Warrants, the "Warrants") at such time (the "Prospectus Qualification Time") as an Australian prospectus of the Company (the "Australian Prospectus") is filed with the Australian Securities and Investments Commission and a receipt is issued for such Australian Prospectus. The terms of the Exchangeable Warrants will provide that if the Prospectus Qualification Time has not occurred by the date that is four months from the closing of the Offering, then each Warrant that is thereafter exercised will entitle the holder to purchase 1.1 fully paid ordinary shares at the original Warrant Exercise Price.

Dalkeith Resources Pty Ltd, an entity associated with the Managing Director, Mr Walker, intends to convert A$3 million of short-term debt funding it is owed by the Company into securities on the same terms as the Offering. This debt conversion is subject to shareholder approval.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S Securities Act and applicable state securities laws or an exemption from such registration is available.

Yours sincerely,

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David Walker Managing Director

For further information contact:

Mr David Walker Managing Director Regis Resources Ltd 03 8602 6500

Dr Michael Folie Chairman Regis Resources Ltd 03 8602 6500