REGIS RESOURCES LIMITED — Capital/Financing Update 2008

May 19, 2008

Not For Distribution in the United States or over US Newswires

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20 May 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,

Proposed Private Placement

Regis Resources Ltd (ASX:RRL) announced to the market on 9 May 2008 that it is seeking shareholder approval for the issue of new securities at a general meeting to be held on 11 June 2008.

The Company intends to raise capital through a marketed best efforts private placement (the “Offering”) of special warrants that will be automatically convertible into units in the capital of the Company (the “Units”) to be issued to North American and European institutional investors. Each Unit will convert into one ordinary share in the Company and one half of one ordinary share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one ordinary share in the Company for a period of 24 months from the closing of the Offering.

The Company must meet certain requirements under the terms of the special warrants, which include a listing of the Company's ordinary shares on a North American stock exchange. If these requirements are not met within four months of the issuance of the special warrants, the special warrants will convert at a rate of 110%.

Regis has retained a syndicate of agents led by CIBC World Markets Inc. for this purpose.

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.

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