TALONX RESOURCES LIMITED — Capital/Financing Update 2004

Jan 6, 2004

MOUNT BURGESS MINING N.L.

ACN: 009 067 476

Level 5, 178 St Georges Terrace, Perth, Western Australia, 6000 PO Box 7200, Cloisters Square, Perth, Western Australia, 6850 Telephone: (61 8) 9322 6311 Email: mtb@mountburgess.com Facsimile: (61 8) 9322 4607 Website: www.mountburgess.com

7 January 2004

The Australian Stock Exchange Limited Company Announcements Office $10^th$ Floor 20 Bond Street Sydney NSW Australia

Dear Sir,

TELFER GOLD PROJECT

AGREEMENT TO ENTER INTO A JOINT VENTURE WITH BARRICK GOLD OF AUSTRALIA LIMITED

This is to inform you that the Company (MTB) has reached an agreement in principle with Barrick Gold of Australia Limited (BGAL) to enter into a joint venture in respect of its Telfer tenements.

A total of nineteen tenements consisting of some 222 sq kms are held within the Telfer Gold project, fourteen of which, mainly covering Tim's Dome and East Thompson's Dome, will immediately fall within the joint venture. The remaining five tenements will be subject to an option to subsequently fall within the joint venture for no further consideration.

Within the fourteen tenements, four mining leases covering East Thompson's Dome are currently subject to a joint venture between MTB (62%) and Newmont Exploration Pty Ltd (Newmont) (38%). The principle conditions of the BGAL joint venture are as follows:

• $(1)$ Newmont has agreed to abate its 38% equity in the four mining leases in which it is currently a joint venture partner to a 1% net smelter royalty, thereby leaving MTB at this point in time with 100% equity in all of the nineteen tenements in the Telfer project.
• $(2)$ BGAL then, subject to condition (4) and to the tenements being in good standing, has the right to earn 51% equity in the fourteen tenements by spending a total of \$5 million over the next five years.
• $(3)$ BGAL has the option to include for no further consideration, the remaining five tenements.
• $(4)$ BGAL will spend a minimum of \$1 million within the first year, after which BGAL can withdraw.

• $(5)$ MTB will have a one-off election to contribute pro-rata once BGAL has earned its 51% equity, otherwise BGAL can increase its equity to 75% by free carrying MTB through to a decision to mine.

• If BGAL withdraws prior to spending \$5 million it shall be deemed that BGAL has $(6)$ no further interest in the project.

• BGAL will ensure minimum project expenditure requirements are met until it has $(7)$ earned its 51%.

It is expected that work will commence on the project as soon as seasonal weather conditions permit.

Yours faithfully

N R FORRESTER Chairman and Managing Director