ROX RESOURCES LIMITED — Capital/Financing Update 2006

Mar 2, 2006

ABN 23 106 294 106

3nd March 2006

ASX RELEASE

Regal to Acquire Menzies Gold Project

Highlights

• Resources of 171,000oz Au including optimized reserves of 39,192oz Au
• Most are granted Mining Leases with NOI, bonds, etc in place
• Near-term production opportunity
• Mine and cart to a toll milling facility
• Significant upside for underground high grade gold resources
• Significant laterite nickel potential in ultramafics

Regal Resources Ltd is pleased to announce that it has entered into a Heads of Agreement with Rox Resources Ltd ("Rox") where by Regal may acquire a 100% interest in the Menzies Project. The terms of the acquisition are $400,000 cash and 3.0m shares in Regal payable upon settlement and the payment of $200,000 six months from settlement. The agreement is subject to a number of conditions including due diligence and obtaining required regulatory approvals for both parties. Regal is in advanced discussions on a number of initiatives to provide additional funding for this project acquisition in addition to cash reserves already on hand.

The Menzies Project covers approximately 36.5 sq km over 20km of strike of the historic Menzies Mining Centre. The tenements are all granted Mining Leases except for two which are under application. The bitumen Goldfields Highway from Kalgoorlie runs through the eastern part of the tenements. The tenements have Notice of Intents (NOI's) in place which will allow production to commence within a short time frame.

The project contains JORC compliant resources of 2,128,433t @ 2.5g/t Au for 170,853 oz in a number of separate deposits. A detailed resource estimate is contained in the table below. The resources also contain a number optimised reserves estimated at a gold price of A$700 totalling 39,192oz. The optimisation studies were completed by independent resource specialists and indicated that cut backs at 5 of the open pits could give margins of up to $229/oz (pit shells based on an Australian dollar gold price of $700/oz) and generate production of 342,031t @ 3.87g/t Au for a net cashflow of $8.96 million. The optimisation model assumed that ore would be trucked and treated at a nearby plant (four exist within economic trucking distance).

			Menzies Project - Resource Estimates
--	--	--	---------------------------------------------

Prospect	Measured		Indicated		Inferred		Total		Ounces
	Tonnes	.g/tΑu	Tonnes	g/tΑu	Tonnes	`g/tAu	Tonnes	gitΑu
Lady Irene	5,027	321	54,362	3.29	35.044	474	94.433	3.82	11.610
Selkirk			4,015	3.30	$-14,041$	7.09	18,056	6.25	3,627
Lady Sherry	11800	170.	13.011	229	6,000	1.40	30.811	189	1873
First Hit			70,492	3.23	69,036	3.08	139,528	$-3.16$	14,157
Aspacia			7.000	3.40	12,000	3.20	19.000	3.27	2,000
Lady Shenton			260,626	2.99	20,929	4.17	281,555.	-3.08	27,860
Golden Age	24.500	2.10	9,474	1.65	4.000	1,20	37974	1.89	2,311
Unknown	22,000	$^{\circ}2.30$	5,654	$-2.78$	3.500	1.90	31,154	2.34	2,346
South Dump	12,000	270	7.500	2.92	2,000	$2.30 -$	21.500	274	1.894
Warrior			50,150	$-1.84$			50,150	$-1.84$	2,967.
Lady Hamet			132.305	3.08	13,420	2.82	145/25	306	14.318
Yunndaga			944.604	$^{\circ}2.20$	313,943	-1.89	1,258,547.	2.12	85,890
Total	75,327	$227 -$	1,559,193	2.49	493.913	255	2,128,433	2.50	170,853

Totals may not add up due to rounding.

High-grade cuts were applied at different values for different deposits depending on grade distribution statistics.

From 1997 to 2002 some 1.68 million tonnes @ 2.64a/t Au for 142.700 oz were mined and trucked to nearby plants for treatment (see table below). This mining was from 6 small open pits. In 2004 Rox Resources purchased the tenements from the previous owners.

In addition to the open pit potential, there remains a significant underground potential. Apart from the historic Yunndaga mine that was developed to 600 metres depth, the remainder were mined to only about 200 metres depth (or less). Only a few of the more recent drill holes have tested the down dip and down plunge projected extensions of the lodes. Regal considers that there is excellent potential to increase the current 171,000 oz resource through testing of strike, depth and plunge projections. Intersections from deeper drilling include 2m @ 9.1g/t (from 140 metres), 4m @ 10.5g/t (from 141 metres), 2m @ 23.7g/t (from 132 metres) and 2m @ 16.0g/t (from 150 metres) have been encountered. Near surface strike extensions adjacent to current pits include 6m @ 24.8g/t, 10m @ 5.95g/t, 4m @ 12.9g/t, 10m @ 8.58g/t, 8m @ 8.21g/t, 7m @ 9.41g/t, 3m @ 32.98g/t and 6m @ 2.25g/t.

There are some early stage targets defined through soil sampling and shallow RAB drilling that remain largely untested. These include 5m @ 1.1g/t, 5m @ 1.76g/t, 2m @ 8.59g/t, 5m @ 18.3g/t, 5m @ 6.61g/t, 5m @ 12.81g/t and 5m @ 2.49g/t.

The tenements also have lateritic nickel mineralisation at the Acacia Ridge Deposit which has the potential to produce large tonnages of potentially economic nickel/cobalt mineralization. Intersections of 14 metres grading 0.91% Ni and 0.17% Co. 15 metres grading 0.776% Ni and 0.17% Co have been encountered.

The Menzies Project acquisition is part of a strategy by Regal to consolidate resources in the region in pursuit of Regal's aim of sustainable gold production. Regal's strategy with this project is to commence mining of the open pit cutbacks as soon as possible with a view to using some of the net cashflow to fund exploration to generate further mining targets and test extensions of the underground resources previously mined. The cash flow may also be applied to fund exploration on its existing projects elsewhere in the region.

Yours faithfully

Matthew Sullivan Managing Director

Information in this report pertaining to mineral resources and exploration results was compiled by Mr MP Sullivan who is a member of Aus.I.M.M. with not less than five years experience in the relevant fields and who consents to the report appearing in the form and context in which it appears.

1171 Hay Street, West Perth WA 6005 PO Box 1922 West Perth WA 6872

Menzies Project Past Production

Mine	learUndergroundProduction	7. ViCH	Ounces	ReteantOpen PitProduction	LVI)ΩÜ	Ounces	ann!Ounces
Yunndaga	526,000	16.00	270,580	800,000	2.50	64,301	334,881
LadyShenton	185.000	32.00	190 332	314.000	2.62	26.164	216 496
First Hit	165,000	32.00	169,756	325,000	2.40	25,078	194,834
LadyHamet	12,000	22.00	8,488	160,000	2.80	14:404	22.892
Selkirk	5.000	24.00	3,858	42,000	4.60	6.212	10,070
Aspacia	9000	37.10	10.781				10731
LadyIrene				42,721	4.77	$-6,552$	6,552
srofan	902.000	PPA 30	Gernze	153. papel	74.73	62 Z PAZZO	706ZH.

Menzies Project Tenement Schedule

nenentan	Holcer	Granted	Expiry	Arealia
M29/14	Rox	14/05/84	13/05/26	103
M29/88	CCPL	28/07/88	27/07/09	35
M29/153	GGPL	18/11/92	17/11/13	990
M29/154	GGPL	18/11/92	17/11/13	345
M29/184	Rox	13/03/97	12/03/18	640
MLA29/223	GGPL			45.
L 29 /41	Rox	25/10/88	24/10/03	334
1 29/42	Rox	22/02/89	21/02/04	111
L 29 /43	Rox	22/02/89	21/02/04
129/44	Rox	22/02/89	21/02/04	11
L29/58	Rox	15/10/96	14/10/06	4
M29/212	Rox	27/82/01	26/02/22	930
MLA29/225	JGPL			581
iio An				kay I.

Key to Tenement Schedule

M: Mining Lease; JGPL: Julia Gold Pty Ltd; MLA: Mining Lease Application; GGPL: Goongarrie Gold Pty Ltd; L: Miscellaneous Licence; Rox: Rox Resources Limited