TANAMI GOLD NL — Annual Report 2004

Oct 24, 2004

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• 1 2002 191 191 192 192 192 1
• Directors Reports
• an di Comporate Covernance Statement
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• E TO Note, folhe manaal Salandos
• E. Dieskos Dechantor
• E. Indigendent Andre Repert
• F Shardnahler Information,
• 醫學 Scheinle of Mineral Tenements

BARGUIN VIZORATIWAN Dans : Waadi

MANAGING DIRECTOR Gravit Gamb

NON-PATCUTIVE DIRECTOR Marthell Kavangar

GONFANY SEGREEMEN Kinskoga

REGISTRED CENTER iern A menintista Wasgerick Water Austala GOV. Telephone: +61 8 9212 5999 Facsimile: +61 8 9212 5900 Email: tanamigold@tanami.com.au Willife www.namikonani

AUDITORS KTENCE

SESSION CONTAINER 152-158 St George's Rimor Peril, Western Australia 6000

STANDRINGENING Security Ransfer Registract Pry Lid 770 Comme Howey Applement, Wang, a paralle als s 16kman - 61 S9315 2333 Raginale: 461 8,961 3,2235

STOCK EXCHANGE Australian Sroek Byddenge Bintred Lythange Dlagt, 2 Hat Einhange Renie Western Anseella 6000

ASX CODES DAM Orthmax Shares TAMCA - Contributing Shares

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Dear Shareholder

On behalf of the Board of Directors, I am pleased to present to you the 2004 Annual Report.

During the past twelve months, there have been significant developments aimed at Tanami Gold becoming a gold producer in 2005. As such, the Company is well positioned for strong growth as it will, for the first time, internally generate cash flow to fund aggressive exploration programs and thereby gain significant leverage from the Company's major ground position established in the Tanami-Arunta Province over the past ten vears.

In July 2003, AngloGold-Ashanti Australia Limited announced the divestment of its Western Tanami Project which included the Coyote Gold Deposit. On 24 November 2003 the Company announced that it was the successful bidder for the Project which had been competitively bid for by numerous companies.

Importantly, the Company is of the view that a strong synergy can be achieved through combining the Western Tanami Project resources and tenements with the Company's existing resources and tenements in the Tanami-Arunta Province and that the combined resources of 572,000 ounces of gold will provide a strong hase for Tanami Gold to commence production. In February 2004, the Company commenced a Bankable Feasibility Study (BFS) targeting an initial 60,000 ounces per year operation based on the combined Coyote-Larranganni resources.

The Company believes that results from the various drill programs completed between May and September 2004 together with an increased confidence in outlining the extent of the high grade ore zones at Coyote will lead to an increase in the total resource base for the project. In addition, the increased tenement package is considered highly prospective for new discoveries at depth and along strike from Coyote.

Another step in the corporate objective to move from explorer to producer was announced on 14 August 2003. At that time, Tanami Gold took a 15% placement in Jabiru Metals Limited

Gaban tismeth Piliar Mars Limited) made up of 12.34 milion shares at 9 cents each (\$1,110,600) to enable Jabiru to fund ongoing resource definition drilling and to continue the feasibility study of the high grade Jaguar Project (1.81 million tonnes at 3.3% Cu, 10.8% Zn and 116 g/t Ag equivalent to 8.2% Cu) located 60 kilometres NNW of Leonora in Western Australia and 30 kilometres SSE of LionOre's Thunderbox (gold) and Waterloo (nickel) deposits. The labitu tenements are considered highly prospective for further VMS, gold and nickel discoveries.

The Jaguar drill programs have returned excellent results with the resource now at approximately +85% in the indicated category. The Jaguar Project is moving to the final stage of the Bankable Feasibility Study which is progressing very well. The Directors are of the view that the Jaguar Project will be developed and that it has significant upside potential. As such, Tanami Gold's strategic shareholding in Jabiru provides excellent leverage and diversification.

In addition to the successful Coyote/Larranganni drill and exploration programs completed to date, the highly prospective Coyote/Larranganni areas will continue to be systematically explored for new discoveries. The Company has also commenced drilling at the Yuendumu JV Project located in the Northern Territory Tanami Province, where first-pass regional programs have led to the discovery of the Dodger Prospect with surface sampling returning numerous results up to 0.5 metres at 8.7 g/t Au within an anomalous zone of over 3 kilometres strike. In addition to the drilling at the Dodger Prospect, numerous targets elsewhere in the Province have and will be drilled out through to December 2004 by the Company or our Joint Venture partner Barrick Gold. Exploration is also scheduled to commence in early 2005 on the highly prospective Reynolds Range Project 200 kilometres northwest of Alice Springs which will be followed by exploration programs on numerous other prospects located in the Province.

Importantly, cash flow from the Coyote Gold Project will enable the Company to achieve significant leverage from its very large and highly prospective land package located in Central Australia.

The Board wishes to express its thanks to our supportive shareholders and its appreciation to the Company's hard working employees and consultants for their ongoing dedication and commitment.

Yours faithfully

Davids for factor

Denis Waddell Chairman

Highlights

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TANAMI GOLD - EXPLORER TO PRODUCER 2005

• Completion of the Coyote Bankable Feasibility Study targeting 2005 production will be the primary focus of the 雛 Company.
• Tanami Gold holds a major ground position in the Province with granted tenements and tenement applications 雛 covering 63,000 km².
• Exploration of the Western Tanami tenements targeting new resources for the Coyote Gold Project is underway. ▓
• Exploration in the Northern Territory will focus on drill targets identified in 2003 and 2004 with drilling at the 鼺 Dodger Prospect completed in the December 2004 quarter.
• The Company holds an 18.3% interest in Jabiru Metals Limited which is completing a Bankable Feasibility Study ▩ on the high grade Jaguar Cu-Zn-Ag deposit.
• The Company is focused on generating cash flow from the Coyote Gold Project and gaining significant exploration ▓ leverage from its very large prospective land holdings in the Tanami-Arunta Province.

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OPERATIONS SUMMARY 2004

With the objective of moving from explorer to producer in 2005, the Company's 2004 exploration programs continued to target gold mineralisation in the Tanami-Arunta Province through a combination of:

drill programs associated with the Coyote Gold Project Bankable Feasibility Study; W.

383

• brownfields exploration for new deposits in the Western Tanami Project tenements centred on the Coyote and ▓ Kookaburra/Sandpiper deposits;
• ₩. greenfields exploration throughout the Western Tanami Project tenements covering 5,178 km²;
• 殲 the Barrick Gold Joint Venture programs in the Western Australian and Northern Territory Tanami Province;
• ▓ exploration of priority targets developed on 57,642 km³ of 100% owned tenements in the Northern Territory Tanami-Arunta Province; and

Figure 1: Project Locality Mag

The Company has built an extensive database of previous exploration and has compiled a Province-wide geological metallogenic interpretation from which new targets are identified for testing or acquisition. A.

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The Company has also built up a strong working relationship' with the Central and Kimberley Land Councils, which are the representative bodies for the Traditional Aboriginal Owners on whose ground the Company has extensive tenement holdings. With numerous land access agreements in place, the Company is in a strong position to access large areas of prospective terrane with very low sovereign risk.

The Tanami Province is underlain by highly prospective Proterozoic terrane similar to the Homestake (+40 million o2s) and Ashanti (*35 million ozs) districts. The Tanami Province's prospectivity is also highlighted by its increasing gold inventory now totalling +11 million ounces in past production and current. reserves at an estimated discovery cost of AUD\$18 per ounce.

The Company estimates that a minimum of AUD\$6 million will be spent on exploration of its 100% owned and joint ventured tenements in 2004. Ongoing programs will be results driven with further funding being allocated with positive results.

MAIOR PROTECTS

Within the Company's extensive tenement holdings in the Province the following high priority Project areas will be tested by drill programs. ing. $\label{eq:2} \mathcal{F}^{(n)}{\mathcal{F}} = \mathcal{F}{\mathcal{F}{\mathcal{F}}} \left( \mathcal{F}{\mathcal{F}{\mathcal{F}}} \right) \mathcal{F}{\mathcal{F}{\mathcal{F}}} \left( \mathcal{F}{\mathcal{F}_{\mathcal{F}}} \right)$ In Western Australia:

REAL PROPERTY AND RELEASED

• III Western Tanami Project Coyote Gold Project Bankable Feasibility Study including resource delineation drilling and exploration of advanced prospects with the aim of increasing the regional resource inventory.
• III Barrick Joint Venture's Killi Killi and Bloodwood Projects - first pass surface sampling and regional geochemical drill traverses.

In the Northern Territory:

• III Yuendumu Joint Venture (Dodger Prospect) RC percussion drilling and first pass regional drill programs.
• III Lake Mackay Project follow-up/infill surface sampling of extensive gold and arsenic anomalies.
• III Reynolds Range Project finalise access agreement and carry out first pass mapping and sampling programs.
• III Barrick Joint Venture, Supplejack and Birrundudu Projects - first pass regional drill traverses and follow-up infill drilling.

Figure 2: Prospect Ranking

WESTINN TAN AMERIKANICT

The Wesser Linnin Processingers reasons traviting 5.178km held as follows (see Figure 3):

• Tanami Gold 100% 3637 km
• Earranganni Joint Venture (Tanami Gold 92.5% and Glengarry Resources NL 7.5%) - 1,036 km²
• Killi Killi Joint Venture,(Tanami Gold 41.5%, Glengarry 7.5% and Barrick* 51%) - 243 km²
• Bloodwood Joint Venture, (Tanami Gold 49% and Barrick* $51\%) - 262$ km².

* Barrick Gold of Australia Ltd, Manager of Joint Venture

The Company consolidated its land position in the Western Australian Tanami Province with the acquisition of the Coyote Gold Project and associated 1,500km³ of tenements from AngloGold Ashanti Australia Limited (AngloGold) in January 2004. Prior to that date, the Company owned 92.5% of the Kookaburra and Sandpiper deposits (160,000 ozs Au) and had joint ventured all of its Western Australian tenements to Barrick Gold of Australia Ltd (Barrick).

In Jane 2004 Barrick withdrew from the majority of the joint ventured tenements retaining only the Bloodwood and Killi Killi Projects. Under the withdrawal agreement Tanami Gold agreed to pay Barrick a 1.5% Net Smelter Royalty on production from any future discoveries within the tenements handed back. Barrick can elect to bay back 65% equity in the tenement(s) and resources by paying Tanami Gold two times the expenditure incurred in delineating that resource and by free carrying Tanami Gold through to a Bankable Feasibility Study. In addition, Barrick will pay Tanami Gold a 1.5% Net Smelter Royalty on Tanami Gold's share of production.

The Company has now consolidated contiguous majority equity ownership of almost the entire Proterozoic Tanami Inlier within Western Australia. Within the Western Tanami Project area the high grade Coyote deposit acquired from AngloGold together with the Company's Kookaburra and Sandpiper gold deposits (Tanami Gold 92.5% and Glengarry 7.5%) and associated mining hess, applications contain 572,000 minces of gold as indicated and interred resources which together form the Coyote Cadd Project.

Since late January 2004 when the Company gained access to the Project area, exploration programs have been focused on increasing the resource base and production profile by:

• drill programs associated with the Coyote Gold Project Bankable Feasibility Study;
• brownfields exploration for new deposits in the Western 雛 Tanami Project tenements centred on the Coyote and Kookaburra/Sandpiper deposits; and
• 鑿 greenfields exploration throughout the Western Tanami Project tenements.

COYOTE GOLD PROJECT

On 24 November 2003 the Company announced that it was the successful bidder for AngloGold's Western Tanami Project which hosts the high quality Coyote gold deposit. The acquisition took the Company's total resources in the Western Tanami to 572,000 ounces of gold (see Table 1). In addition to the Coyote gold deposit, the Project comprises a number of exploration licences and applications together with an established exploration camp and associated equipment.

Tanami Gold is strongly of the view that there is significant potential to add to the Coyote resource given the presence of high grade intersections, particularly at depth. In addition, numerous ore grade intersections returned at prospects outside the main resource provide immediate drill targets which could lead to additional ounces.

Importantly, strong synergy is achievable through combining the Western Tanami Project resources and tenements with the Company's existing resources at Larranganni and its large tenement holdings in the Tanami-Arunta Province. The combined Coyote and Larranganni resources provide a strong base for the Company to commence gold production in the Tanami Province.

Tropic		ELQARA CARDINAL			Internet		im minimum total
	Manu s		Grade L Dunce Au	Tomas		Grade ? Chinese An		Teamers' Course	TRUES PERSONAL
Coyote	2,240,000	5.4	389,000	130,000	5.5	23,000	2,370,000	5.4	412,000
Kookaburra	1.010.000	2.5	81,000	60,000	3.4	6.500	1,070,000	2.6	88,000
Sandpiper	500,000	3,4	54.500	140,000	4.0.	18,000	630,000	3.5	72,000
Total	3,750,000	4.4	524,500	330,000	4.5	47,500	4,070,000	4.4	572,000

TABLE I: Tanami Gold NL Mineral Resource Summary

Note: Mineral Resources have been estimated using a nominal 1 g/t Au lower cut-off grade.

Various top cuts were applied throughout the Coyote Mineral Resource ranging from 25 g/t to 100 g/t. A top cut of 20 g/t Au was used for both the Kookaburra and Sandpiper deposits.

Figure 3: Western Tanami Project

Cash flow from aparations will also enable Tatami valid in further explore the depth extensions to identified resources to continue regional exploration and to contribute to its some venture with Barnck Cold.

In summary, the acquisition of Coyote and related tenement package is a major development for the Company as the resources acquired combined with the Company's existing resources at Larranganni, located 35 kilometres to the north of Coyote, will enable the Company to complete a bankable feasibility study aimed at commencing production in 2005.

The Company considers the Coyote Gold Project has significant upside based upon its assessment of the resource and the prospectivity of the tenement package acquired as highlighted by the following drill intersections.

At shallow depths within the Coyote Deposit, there are a number of intercepts which will provide high-grade ore blocks to the mill shortly after start up. Some typical downhole intersections are given below:

Coyote - Significant Shallow Intercepts *

▩		8 metres $\circledR = 32.4$ g/t Au	from 31 metres
▓		11 metres $\circledR$ 7.9 g/t Au from 52 metres
▓		7 metres @ 132.0 g/t Au	from 44 metres
擨		17 metres $\omega = 4.2 g/t$ Au from 34 metres
鹽		13 metres $\circledR = 10.3$ g/t Au from 52 metres
▓		14 metres $@ = 8.9$ g/t Au	from 23 metres
▓		10 metres $\omega = 4.3 \text{ g/t}$ Au from 42 metres
羉		6 metres $\emptyset$ 18.8 g/t Au from 28 metres
灩		4 metres $\qquad \qquad @ \qquad 15.5 \text{ g/t Au}$	from 60 metres
灩		3 metres $\qquad \qquad @ \qquad 20.7 \text{ g/t Au}$	from 31 metres
▓		3 metres $\circledR$ 24.0 g/t Au	from 64 metres

* All holes drilled at -60°, intercepts are downhole depths

Within the remarks at depth, significant intersections provide down plume potential for additional ounces to be delineated. The depth extension potential is highlighted by the downhole intersections below:

Covote - Significant Intercepts at Depth®

▩	8 metres	龜	20.5 g/t Au	from	170 metres
▩	5 metres	慾	10.6 g/t Au	from	220 metres
▩	3 metres	鍃	28.4 g/t Au	from	188 metres
▩	11 metres	龜	75.6 g/t Au	from	204 metres
▩	19 metres	龜	21.2 g/t Au	from	194 metres
▓	5 metres	狨	18.1 g/t Au	from	134 metres
▩	8 metres	錜	20.5 g/t Au	from	170 metres
▩	3 metres	慾	16.8 g/t Au	from	269 metres
▩	4 metres	翁	111.4 g/t Au	from	239 metres
蹨	3 metres	龜	8.8 g/t Au	from	248 metres
▩	2 metres	慾	27.4 g/t Au	from	172 metres
▩	i metre	鍃	34.2 g/t Au	from	208 metres
	3 metres	翁	17.5 g/t Au	from	233 metres
▩	3 metres	龜	8.9 g/t Au	from	434 metres
▩	L metre	慾	11.6 g/t Au	from	294 metres
	4 metres	翁	17.9 g/t Au	from	168 metres
▩	3 metres	翁	106.0 g/r Au	from	211 metres
▩	L metre	龜	12.4 g/t Au	from	242 metres
▩	i metre	龜	38.3 g/t Au	from	381 metres
▩	l metre	龜	42.0 g/t Au	from	234 metres
▓	19 metres	慾	21.2 g/t Au	from	174 metres
▩	i metre	鍃	33.2 g/t Au	from	190 metres

* All holes drilled at -60°, intercepts are downhole depths

The Coyote deposit is a very significant undeveloped high quality resource based upon extensive RC percussion and diamond drilling which has allowed over 90% of the resource to be classified in the indicated resource category under the [ORC Code.

KEVIEW THE CENTRAL CONTROL STATE OF A REAL PROPERTY

Figure 4: Coyote Cross Sections

CONOTE COLD PROJECT BANKABLE FLASIBILITY STUDY

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The Covore Gold Project Bankable Feasibility Study is progressing based upon treatment of both the Coyote underground and open pit ores through a CIP treatment plant located at Coyote. The Coyote ore is to be complemented with feed from the Larranganni resources located 34 kilometres north of Covote (see Figure 3).

The Coyote resource will be mined from two open pits with underground ore being mined after completion of open pit mining. The Larranganni resource will be mined from two open pits, Kookaburra and Sandpiper. Underground potential of the Larranganni deposits will be assessed following comprehensive metallurgical testwork.

The metallurgical testwork of the Coyote oxide and fresh material has been completed with gold recoveries in both materials being greater than 93% and indications in some of the oxide samples of +96%. Metallurgical testwork of the Kookabarra/Sandpiper ores is in progress.

The depth of oxidation at both Coyote and Larranganni is typically 100 metres from surface providing entirely oxide plant feed for the mill other than the Coyote underground ore.

The metallurgical testing has also confirmed high gravity gold recovery at Coyote in both oxide and fresh ores. In both ore types, more than 50% of the gold should be recovered through the gravity circuit. The Larranganni ores contain finer grained gold than Coyote, resulting in +20% recovery through the gravity circuit.

The Company purchased the Brocks Creek plant from the Harmony Gold/Northern Gold Joint Venture in August 2004. The Brocks Creek plant treated ores at 1-1.5 million tonnes per annum, however because of the plant's configuration, it is readily scaleable to suit the Coyote Project's projected 350,000 to 450,000 tpa throughput. The location of the Brocks Creek

gains as a time their in the Northern Territory also provides a liwer mainlisation cost to the Coyote site when compared to similar plants focated in Western Australia.

Hydrological surveys have also been conducted over both sites. resulting in sufficient water for treatment being located within the Coyote open pit area. Water quality is also adequate for Carbon in Pulp (CIP) processing without the use of any additional reagents beyond those normally expected for gold nem i vze ny.

A CIP plant site immediately adjacent to the Coyote open pit has been selected to provide minimal haulage distance of the open pit and underground ores. The tailings dam is contained within the Coyote waste dump to minimise environmental impact and hence environmental bonds to the Department of Industry and Resources. The waste dump location, while being close to the Coyote open pit, has sufficient flexibility for expansion if open pit mining is extended.

The Company is conducting flora and fauna surveys in the vicinity of both resources in order to demonstrate that there are no environmental issues which could impact on mine development.

The Company is currently negotiating with the Tjurabalan People, the Traditional Owners of the land encompassing the Coyote and Kookaburra/Sandpiper resources. These discussions have demonstrated positive intent by both the Tjurabalan People and Tanami Gold, which both parties believe will result in a mutually advantageous agreement to begin mining. A Work-Program Clearance Survey recently completed by the Kimberley Land Council and Traditional Owners identified no cultural impediment to the proposed mine development.

The development and exploration drilling at both Coyote and Larranganni during the period from May to September 2004 is being incorporated into new resource models. These new models will allow optimisations and mining resources to be calculated providing the final element to the cash flows and project forecasts. These optimisations will be completed during the December 2004 quarter.

$2004$ Drill $P$ r o g r a m s

COYOTE AREA

The various drill programs carried out at Coyote since May 2004 were primarily designed to provide information for the completion of a Bankable Feasibility Study (BFS) for the mining of the Coyote deposit.

At Coyote, to the end of September 2004, the following drill programs have been undertaken:

• III RC resource drilling to maximise the open-pitable resources.
• III Diamond core drilling associated with metallurgical and geotechnical studies.
• III Aircore sterilisation drilling in the area of the proposed waste dump, processing plant, tailings dam and other associated infrastructure.
• III Percussion drilling of water hores associated with hydrogeological studies.

Recent Drill Results

The drilling at Coyote, aimed at incremental increases to the open-pitable resource returned numerous encouraging intersections providing confidence in the location, width and tenor of mineralisation. Advances in geological understanding have led to greater confidence in the 'envelope' approach to interpretation of the mineralisation and intersections can now be projected in continuity along strike and dip planes (see Figure 4).

below in Table 2.

TABLE 2. Assay Results Returned 2004

Fressa

Significant intercepts from drilling in the Coyote area are given.

Coyote RC

Resource Drilling

CYRC0455	94	98	4m @ 24.69 g/t Au
CYRC0479	182	189	7m @ 13.96 g/t Au
CYRC0471	146	152	6m @ 16.07 g/t Au
CYRC0471	154	160	6m @ 15.22 g/t Au
CYRC0449	50	62	12m @ 7.13 g/t Au
CYRC0467	54	-58	4m @ 16.74 g/t Au
CYRC0467	60	64	4m @ 11.70 g/t Au
CYRC0457	88	91	3m @ 14.47 g/t Au
CYRC0451	53	62	9m @ 3.64 g/t Au
CYRC0453	64	75	11m @ 2.54 g/r Au

Coyote Diamond

Core Drilling*

CYDD0125	85	94	9m $\circ$ 43.06 g/t Au
CYDD0125	178	179	1m @ 68.80 g/t Au
CYDD0125	131	133	2m @ 33.95 g/t Au
CYDD0124	55	50	4m @ 13.47 g/t Au
CYDD0124	43	52	9m @ 4.42 g/t Au
CYDD0125	162	រស	3m @ 12.10 g/t Au
CYDD0124	1 S	16	1m @ 31.50 g/t Au
CYGT0001	47	49	7m @ 15.4 g/t Au

* Diamond Core metallurgical and geotechnical drilling.

Current and Future Work Program

Work continues to understand the controls on localisation of high-grade mineralisation with the aim of identifying additional targets. It is anticipated that deep diamond drill targets will be developed from this work, with drilling planned for 2005.

LAHRANGANNI JOINT VENTURE AREA

新闻

The Krakabires and Sandpiper and depreses in Livrangiana are owned 92.5% Tanami Gold and 7.5% Glengary Resources NL (Glengarry). Glengarry has a free carried interest to commencement of production. The deposits, located 34 kilometres north of the proposed Coyote Mill Site, are an integral part of the Coyote BFS mining plan.

Drilling has focused to date on the completion of the Coyote Gold Project Bankable Feasibility Study, which comprises the following programs at Larranganni:

• RC-percussion drilling to maximise the open-pitable resources at Kookaburra and Sandpiper
• Diamond core drilling associated with metallurgical and geotechnical studies.
• Aircore sterilisation drilling in the area of the proposed wastedump.
• M Percussion water bore drilling associated – with hydrogeological studies.

Recent Drill Results

Significant assay results received to September 2004 are given below in Table 3. Results from the drilling of satellite prospects will be available in late October 2004.

From 1 De Participation Pleid Kookaburra LGD0003 6 23 17m @ 7.01 g/t Au LGGT002 127 17m @ 3.29 g/t Au 110 LGC0028 125 144 19m @ 2.58 g/t Au 15m @ 2.62 g/t Au LGC0024 $74^{1}$ 89 38 LGC0026 $24$ 14m @ 2.57 g/t Au LGC0018 $\bf{l}$ $12\,$ 11m @ 3.26 g/t Au LGD0001 66 78 12m @ 2.77 g/t Au LGD0001 94 99 5m @ 5.45 g/t Au LGGT001 74 84 10m @ 2.53 g/t Au Sandpiper LGC0006 13 22 9m @ 7.54 g/t Au

William Wind Results

LGC0015	70	38	9m @ 6.89 g/t Au
LGGT004	75	89	14m @ 4.00 g/t Au
LGC0032	54	74	20m @ 2.80 g/t Au
LGD0002		59	12m @ 4.20 g/t Au
LGD0002	60	80	11m @ 4.58 g/t Au
LGC0003	78	Q1	13m @ 2.34 g/r Au

30

7m @ 9.45 g/t Au-

$23 -$

LGC = RC Percussion

LGC0012

LGD = Diamond Core metallurgical and exploration drilling LGGT = Diamond Core geotechnical drilling

Current and Future Work Program

The current Bankable Feasibility Study and exploration program at Kookaburra-Sandpiper is based on oxide and transitional open-pitable ore.

BROWNFIELDS PROSPECTS

state. July 2004 exploration commenced on potential issumifields discoveries to complement the existing deposits.

• The prospects to be drilled form two district clusters:
• in the Coyote area the Fremlin, Road Runner, Pebbles, Rabies, Hutch's Find and Camel Prospects.
• Kt Kookaburra-Sandpiper, the Finch, Albatross, Osprey, Hawk and Cuckoo Prospects.

COYOTE AREA

.
بالانتشار المسابق العراقية المسابق المتحدة

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Advanced prospects in the Coyote area including Road Runner. Pebbles, Fremlin and Rabies are currently being assessed as potential satellite open-pitable resources (see Figure 5). Step-out and infill drilling has commenced with encouraging results returned.

The Road Runner area is considered to be highly prospective given the known metallogeny and proximity to major structures. A program of Aircore drilling was completed in July 2004 aimed at infilling on a shallow alluvial resource. The drilling returned a best result of 1 metre @ 17.35 g/t. Au from 14 metres depth in drillhole RRAC 414. Additional step-out drilling is planned to follow-up on previously identified geochemical anomalies and unrested conceptual targets in the area.

Encontaging results have been returned from the Fremlin North area, including 55 intersections >100ppb Au, and 4 intersections >0.5g/t with a max result of 3m @ 2.1g/t An from 79 metres (FRB34). Fremlin North lies north of the Fremlin Prospect.(Im @ 63.3g/t Au) within a strike extensive corridor of anomalous gold. Further RAB infill drilling is planned to defineate RC-percussion drill targets.

2004 101 111 12 13 14 15 16 17 18 19 19 19 19

LARRANGANNI AREA

Exploration has focused on five advanced prospects - Hawk, Cuckoo, Finch, Osprey and Albatross - with the aim of identifying additional open pitable resources (see Figure 6). Drilling has comprised RAB/Aircore step out drilling, RCpercussion prospect definition drilling and a short program of diamond core drilling to provide vital geological data at Hawk, Cuckoo and Osprey.

• the test team coursed to dre todo ima mm the Ram Prospect turksdug
• 13m @ 1.09 pk from 75m in 1.0 (39)
• 12m @ 2.01 g/t from 93m in LGC56
• Sm @ 1.93 g/t from 81m in LGD4

Further infill drilling is currently in progress at Hawk with the aim of completing resource estimation in late 2004.

REGIONAL PROGRAMS

31

Regional (greenfields) exploration programs following up preexisting surface and shallow drilled geochemical anomalies will commence in 2005. A major target is the Bramall Trend (see Figure 3) where previous exploration by Barrick (as joint venture partner) has outlined a +40 kilometre corridor of highly anomalous gold-arsenic values in both shallow transported cover and bedrock lithologies.

The Western Tanami Project area is considered to be highly prospective in that correlations can be made with the major gold deposits in the Northern Territory Tanami terrane.

The Coyote style of mineralisation has been correlated with the Callie deposit (+5 million 02s) whilst the Kookaburra-Sandpiper area has similarities with the Tanami Mine area (1.5 million ozs).

Importantly, the major deposits comprise clusters of smaller resources usually with one or two larger deposits. The Granites Mine comprised seven pits and two underground operations to aggregate 1.35 million ozs. The Tanami Mine comprised over 30 pits for 1.5 million 02s. Dead Bullock Soak comprised 6 pits for I million ozs.

The Callie Mine remains a standout target with a very small surface footprint (100 x 50 metres) within a cluster of smaller deposits at Dead Bullock Soak.

NORTHERN TERRITORY PROJECT

The Northern Territory tenements stretch from the Western Australian border over 800 kilometres to the southeast covering 57,642km² (see Figure 1).

Approximately 53% of the Northern Territory tenements lie within Aboriginal Land Trust (ALT) areas. In the last ten years the Company has gained access for exploration to the ALT land by negotiating or being party to, ten Deeds for Exploration.

The remaining tenements occupy Pastoral Leases. The Company has entered into two Indigenous Land Use Agreements (ILUA's) giving access for exploration and mining over Pastoral Lease areas. A third ILUA is currently being negotiated over the highly prospective Reynolds Range Prospect.

The Company's extensive tenement holdings in the Northern Territory cover a broad range of Proterozoic terranes. Within the Tananic American region the Company is cargeting.

• ven hosted vid deposits such as the Covote-Callie-Groundrush-style;
• stratiform gold deposits such as The Granites and Tennant Ŵ Creek-style; and
• iron oxide copper-gold deposits such as Prominent Hill and Ernest Henry-styles.

The major projects include:

• ▓ Yuendumu Joint Venture - Dodger Prospect - 400 kilometres NNW of Alice Springs.
• Lake Mackay Project 450 kilometres WNW Alice 獵 Springs.
• Reynolds Range Project 200 kilometres NW of Alice Springs.
• Barrick Joint Venture Supplejack and Birrindudu 蹨 Projects - 700 kilometres NW of Alice Springs and 150 kilometres NE of the Coyote Gold Project area.

In addition, the Company's tenements in the Alice Springs region cover a highly anomalous polymetallic terrane and have the potential to host metamorphosed VMS and Broken Hill type base metal deposits. Other forms of mineralisation such as magmatic Pt-Pd (Mordor), magmatic Ni-Cu (Barrow Creek), and W-Mo-REE (Molyhil-Nolains Bore) occurrences are also known in the area although exploration for these commodities is not a current focus for the Company.

YUENDUMU JOINT VENTURE

The Company has earned an 80% interest in the Yuendumu Joint Venture tenement EL 8434 from the Yuendumu Mining Company (YMC) by spending \$500,000 on exploration over a 3year period.

In 2003, first time access to the northern half of the tenement returned anomalous surface lag samples from a regional program.

A first-pass lag sampling program in October 2003 returned 703 ppb Au and 4 rock chips collected in November 2003, returned +1 g/t Au, including one sample at 8.7 g/t Au. These samples defined a 160 metre long mineralised zone along the southeastern side of a small exposed outcrop of metasedimentary rocks of the Lander Group.

In April 2004, detailed rockchip sampling along the outcrop identified:

• disseminated gossanous mineralisation at the northern end of the outcrop (4 m @ 2.8 g/t Au, 6 m @ 2.2 g/t Au);
• a gossanous unit up to 0.5 m wide returning up to 10.8 g/t Aut and
• mineralisation extending over the 480 mettes strike of the outcrop.

Figure 6: Larranganni Area Prospects

Macratisation as related for a nive of alsociations quite reprints with the car there is noted by notice three reacy reck-and to is associated with very high lead yalnes Att 12.2 MHY The metal association and identification of possamms material is markedly different from known mineralisation in the Tanami (high As) and Tennant Creek (high Bi) regions, suggesting that the Dodger Prospect represents a previously unrecorded mineralisation style in the region.

Current Work Program

Work Area Clearance for follow-up drilling was granted by the Central Land Council (CLC) in September 2004 and drilling commenced immediately aimed at further evaluating the strike extent, width and tenor of mineralisation at Dodger.

A 'slimline' RC percussion drill program, comprising 12 holes for 1164 metres, returned highly encouraging assay results, indicating a continuous zone of mineralisation over a strike extent of 500 metres. Best intercepts include:

• 3 metres @ 2.32g/t from 18 metres in NKC 006 瓣
• 3 metres @ 0.93g/t from 48 metres in NKC 004 ■
• 1 metre @ 1.49g/t from 57 metres in NKC 009

A RAB drill program has also been completed to in-fill on the previous RAB program to further evaluate the lateral strikeextent of mineralisation at Dodger. Results from the RAB percussion drill program will be available in late October 2004.

LAKE MACKAY PROJECT

In 2003, Newmont Mining Corporation (Newmont) carried out surface lag sampling and regional RAB drill traverses which resulted in the discovery of the Taupo, Te-Anau and Manipouri Prospects. Notwithstanding the very broad regional nature of their exploration program together with successful prospect delineation, Newmont decided to withdraw from the Joint Venture in March 2004.

Tanami now owns the Lake Mackay Project tenements 100% and the CLC and traditional Aboriginal owners have commenced clearance programs over the remaining ungranted exploration licences.

Exploration Summary 2002 - 2003

Newmont's exploration program included first-pass regional surface sampling. The best prospect identified was Taupo, where a 1.2 g/t Au rockchip was collected. Other identified prospects include Manipouri (66 ppb Au lag) and Te Anau (15 km long arsenic anomaly). Anomalous areas were tested by vacuum and RAB drilling (228 vacuum, 235 RAB holes).

The Project area is considered highly prospective due to similarities in the geology and magnetic signature with the Granites-Tanami region. Moreover, the extensive transported cover (<5% of the area has exposed bedrock), lack of continuous modern exploration and the anomalous first-pass results received to date provide encouragement to continue exploring this area.

A short reconnaissance program was undertaken by the Company in August 2004.

The Company believes that the first pass geochemical sampling programs undertaken by Newmont have outlined several gold and gold+arsenic anomalous areas at a regional scale that require follow-up.

REYNOLDS RANGE PROJECT

San Magalanda San San A

The Reynolds Range Project area is located 200 kilometres northwest of Alice Springs (see Figure 1). Previous exploration by Normandy (now Newmont) identified over 100 kilometres strike of anomalous gold, gold-copper and gold-arsenic-antimony.

Following negotiations in June 2004, the Company entered into an Option Agreement to acquire 100% equity in EL 23888 from Newmont. The tenement hosts the Sabre and Falchion gold prospects from which best intercepts of 30 metres $@$ 2.5 g/t Au and 12 metres $\circledast$ 3.9 g/t Au have previously been returned.

The tenement is underlain by Proterozoic Lander Rock Beds, which are correlated with the Killi Killi Beds, host to the Groundrush and Coyote Gold Deposits in the Tanami district and intersected by a major Trans Tanami structural corridor.

The Company has negotiated access to the Project area under an Indigenous Land Use Agreement (ILUA), which will be signed in late-October, 2004. The Company aims to commence firstpass mapping and sampling programs at the start of the 2005 field season.

BARRICK JOINT VENTURE

The Northern Territory Barrick Joint Venture (Barrick 51% and manager, Tanami 49%) comprises the Supplejack and Birrindudu Project areas located approximately 100 kilometres north of the Tanami Mine Site (see Figure 1).

At Supplejack, first pass surface lag sampling completed late in the 2003 field season returned a number of encouraging assays up to 55pph Au. Follow-up mapping and rockchip sampling identified outcropping mineralised quartz veins at the 'Old Soldier Prospect' which returned four +1 g/t Au assays peaking at 2.2 g/t Au. The quartz veins are hosted within metasedimentary rocks analogous to the highly prospective Dead Bullock Formation which is host to the Callie and The Granites gold deposits.

A follow-up Aircore drilling program completed at Old Soldier in June 2004 intersected extensive low level gold anomalism associated with quartz veining in Dead Bullock Formation sediments and dolerite. The best intercept was I metre @ 401pph from 14 metres depth in drillhole SUAC 38.

At Birrindudu, first pass surface geochemical sampling and reconnaissance mapping returned a peak tockchap value of 347ppb Au. A Vacuum drilling program completed in August 2004 returned results up to 34ppb Au associated with folded Dead Bullock Formation sediments. Further drilling is planned to be completed in October 2004 to complete first pass geochemical testing of this prospective terrane.

e de l'alguna de l'alguna de l'alguna de l'alguna de l'alguna de l'alguna de l'alguna de l'alguna de l'alguna

NORTHERN TERRITORY OTHER PROJECTS

Ledan Corridor

First-pass reconnaissance over the Company's 100% held tenements within the Home of Bullion -Alcoota - Hackitta Projects has highlighted the Ledan Corridor (see Figure 1), a major structural feature over 250 kilometres strike, as being highly prospective and significantly under-explored for epigenetic gold mineralisation.

A number of anomalous gold and gold-copper rockchip samples have been returned from limited outcrops along the corridor peaking at 480ppb Au in a gossanous shear zone. At the Wapiti Prospect, in the northern section of the Ledan Corridor, previous exploration achieved rockchip assays of up to 5.52 g/t Au.

The Company has commenced negotiations with the CLC with a view to gaining access to andertake systematic geochemical sampling and drilling programs in 2005.

The Winnecke Project comprises numerous tenements located approximately 70 kilometres nottheast of Alice Springs (see Figure 1). The Company has been operating in the general areafor over five years and is now in the process of consolidating its tenement holdings over areas of known mineralisation and/or areas considered to be prospective for a range of commodities.

The most prospective areas are:

• Winnecke Goldfield for vein-related shear zone-hosted Au IIII
• Turners for Cu-Au INU

Virginia Projek

• Gecko-Rankins for metamorphosed VMS base metals (Cu-Zn) INII
• Glancroif for vein-related epigenetic polymetallic deposits INII $(Au-Ag-Cu-Pb-Zn)$
• III Mordor for mafic intrusive hosted reef-style PGE mineralisation

TABIRU METATS LIMITED

On 14 Agent 28.0 Lining Old thek a filly classical m Jabira Metals Limited (Jabira) (formerly Pilbara Mines Limited) made up of 12.34 million shares at 9 cents each (51,110,600) to allow Jabiru to fund ongoing exploration and to continue the feasibility study (including drilling) of the high grade Jaguar Project (1.81 million tonnes at 3.3% Cu, 10.8% Zn and 116 g/t Ag) located 60 kilometres NNW of Leonora and 30 kilometres SSE of LionOre's Thunderbox (gold) and Waterloo (nickel) deposits (see Figure 7).

W

On 2 December 2003 the Company increased its equity in Jahira to 18.3% by exercising an option to purchase a further five million shares at 20 cents each in Jabiru. With Jabiru's re-focus on exploration and developing the Jaguar Project, the Company decided to divest its telco interest in Request Broadband Pty Ltd (Request) and apply the sale proceeds towards progressing the Jaguar Project. The Request interest was divested during April and May 2004 which realised \$3.4 million.

In July 2004 Jabira completed the placement of 30 million shares at 17 cents to raise \$5.1 million. Tanami Gold maintained its 18.3% equity in Jabira by taking up \$1.0 million of the issue.

The funds raised during the year and from the recent \$5.1 million placement, have been used to advance the Jaguar Project Bankable Feasibility Study primarily through further diamond drilling, geotechnical and metallurgical testwork together with mine and plant design studies. In addition, the Cadjebut Plant was purchased for \$1.4 million and is in the process of being dismantled and transported from the Kimberley District to the Jaguar site north of Leonora in Western Australia.

As a result of Tanami Gold's shareholding in Jahira, Tanami Director Denis Waddell joined Gary Comb (Tanami Gold Managing Director) on the Jabiru Board which now comprises:

Denis Waddell	Executive Chairman
Gary Comb	Managing Director
Ross Kestel	Non-Executive Director

Daring the past 12 months Jabiru has drilled a further 7,420 metres of diamond core into the Jaguar mineralised zone. The dtill program was designed to infill on earlier drilling in order to take the resource to an indicated category for mine planning, to test for extensions to the wider parts of the orebody, and to define the edges of the ore envelope.

MARCHANDER AND LOCAL

In February 2004, following encouragement from the August-December 2003 drill campaign (holes TBD 241 to TBD 245) and positive outcomes from the Pre-Feasibility Study, the Company committed to a Bankable Feasibility Study targeting a December 2004 completion date.

The drill program has returned excellent results with the resource now at approximately +85% in the indicated category. The internal thickness of the orehody has been increased by infill drilling and by recent metallurgical drilling. Extensions to the mineralised zone have also been achieved.

Resource modelling is currently in progress to quantify the anticipated increased tonnage of the deposit.

Jaguar Project Status

• High-grade Jaguar VMS deposit owned 100% Jabiru Metals Limited
• 1.81 Mt $\circledast$ 3.3% Cu, 10.8% Zn, 116 g/t Ag 龖
• Final stage of Bankable Feasibility Study ▓
• Cadjebut plant purchased and transported to site 臘
• 龞 Regional infrastructure includes sealed highway, gas pipeline, railhead and numerous operating mines
• Native Title Agreements in place ▓
• ▒ Mining planned to commence 2005
• Treatment planned to commence 2006 蹨

2004 Taxing People Aws complement

Figure 7: Jaguar Locality Map

$D$ in equation is $R$ equal to $T$ to $T$

The Directors present their Report together with the financial report of Tanami Gold NL ("the Company") and the consolidated financial report of the consolidated entity, being the Company and its controlled entity, for the year ended 30 June 2004 and the auditor's report thereon.

Directors Ί.

TANAMENTAL

The Directors of the Company at any time during or since the end of the financial year are:

Executive Chairman - Denis Patrick Waddell, ACA, FAICD (appointed 21 July 1995)

Mr Denis Waddell, aged 47, is a Chartered Accountant with extensive experience in the management of exploration and mining companies. Prior to establishing Tanami Exploration NL in 1994, he was the Finance Director of the Metana Minerals NL group. During the past 20 years, he has gained considerable experience in corporate, finance and operations management of exploration and mining companies. He was appointed Executive Chairman of the Company in January 2004, having been Managing Director of the Company prior to that since 1994, and will focus on corporate development and growth opportunities in his new role.

Managing Director - Gary Ernest Comb, B.Sc.(Mech), Dip. Ed., M.B.A. (appointed 21 July 1995)

Mr Gary Comb, aged 52, is an engineer with more than 20 years' experience principally in mine operations and project development. Prior to his appointment as Managing Director in January 2004, he was the Chief Executive Officer of the largest privately owned Western Australian based mining and civil contracting company, BGC Contracting Pty Ltd. He gained extensive mining operations experience from 1983-1990 through responsibilities principally as Operations Director with Metana Minerals NL which included management of the Mount Magnet, Reedy, Youanmi and Rothsay (underground) mines in Western Australia and as Mining Operations Manager for MacMahon Contractors from 1992 to 1999.

Non-Executive Director - Martin Ellis Kavanagh, B.Sc(Hons) Geology, F.Aus.IMM, Member AIG (appointed 21 July 1995).

Mr Martin Kavanagh, aged 57, has worked widely within the exploration and mining industry throughout Australia and offshore in Indonesia and the Southwest Pacific regions. Mr Kavanagh is an exploration geologist with extensive knowledge of the regional and deposit scale controls of Archaean, Lower Proterozoic and younger epithermal gold mineralising systems acquired through fieldwork, research and management of Australia-wide and offshore programs.

Effective 1 July 2003, Mr Kavanagh resigned as an executive director and continues in the capacity of a non-executive director.

2. Results

'20

The result of the consolidated entity for the year ended 30 June 2004 was a loss after income tax of \$2,953,076 [2003: \$1,993,052].

Principal Activity з.

The principal activity of the consolidated entity during the course of the financial year was mineral exploration.

Review of Activities ้4.∸

Tanami Gold NL underwent a significant transformation during the year when the Company was the successful bidder for the Coyote Gold Project from AngloGold Ashanti Australia Limited.

The Coyote resource, when combined with Tanami Gold's Larranganni resources, provides a base for the establishment of a new mine approximately 30 kilometres on the Western Australian side of the WA/NT border on the Tanami Highway.

Tanami Gold completed the acquisition from AngloGold in January 2004, and has subsequently been committed to a drilling program designed to infill, extend and fund new resources in the vicinity of both Coyote and Larranganni.

In addition to the drilling program, Tanami Gold has proceeded down the path of developing a Bankable Feasibility Study (BFS) into the establishment of the Coyote mining project.

The Brocks Creek treatment plant was purchased in August 2004 with the intent of moving the plant from Pine Creek to Coyote when project funding has been committed. Although the Brocks Creek plant is larger than required for the planned mitial throughput at Coyote (350,000 tpa) it will provide considerable throughput flexibility.

Review of Activities continued.

The BFS is currently being finalised with each element being closely reviewed to confirm or re-estimate the assumptions employed in the original scoping study before acquisition. No adverse outcomes have been identified at this time, with a number of positive variances giving the project considerable upside.

DE CENTRO DE MARINA A TILIMA DE PINATA

Following delays in drilling, delays in technical consultants' availability and extended drill programs due to positive drill results, the Company expects to complete the BFS during the December 2004 quarter with project funding and statutory approvals to follow allowing commencement of construction in May 2005. Production is now likely to commence in December 2005.

In addition to resource and exploration drilling at Coyote and Larranganni, the Company has continued with regional exploration and drill programs on its large ground holdings in the Northern Territory Tanami.

During the year, prior to acquiring the Coyote Project, the Company identified a high grade, high quality VMS copper, zinc, silver project owned by Jahiru Metals Limited (formerly Pilhara Mines Limited) which was considered to have the potential to generate significant cashflow. To secure an interest in the Jaguar Project, Tanami Gold took a 15% placement in Jabiru in August 2003 which funded further resource drilling at Jaguar and advancement of the Jaguar BFS. Tanami Gold's Chairman Denis Waddell and Managing Director Gary Comb are also Directors of Jabiru.

The Jaguar BFS should be completed in December 2004 with progress to date being very positive.

Oiven Tanami Gold's confidence in the Jaguar Project, the Company has increased its interest in Jahiru to 18.3%.

5. State of Affairs

1.

2.

3.

-6.

2.

8.

Significant changes in the state of affairs of the consolidated entity during the financial year were as follows:

• On 14 August 2003, Tanami Gold NL announced it had taken a 15% placement in Jabiru Metals Limited ("Jabiru") (formerly Pilbara Mines Limited) made up of 12,34 million shares at 9 cents each (\$1,110,600) to allow Jabiru to fund ongoing exploration and to continue the feasibility study (including drilling) of Jabiru's high grade Jaguar Project. On 2 December 2003 the Company increased its equity in Jabiru to 18.3% by exercising an option to purchase a further five million shares at 20 cents each, taking its overall holding to 17.34 million shares. On 30 August 2004, the Company acquired a further 5,882,354 shares at a cost of \$1 million through participation in a share placement...
• On 17 November 2003, the Company issued 24,800,000 ordinary fully paid shares at an issue price of 14 cents per share to raise \$3,472,000. Costs of the issue totalling \$149,870 were incurred.
• On 24 November 2003 the Company announced that it was the successful bidder for AngloGold Ashanti Australia Limited's ('Anglogold'). Western Tanami Project, which hosts the high quality Coyote gold deposit... On 16 January 2004, settlement of the acquisition of the Western Tanami Project was completed. In accordance with the terms of the agreement with AngloGold, Tanami Gold NL made a cash payment of \$3.75 million (in addition to the \$0.25 million deposit paid prior to 31 December 2003) and issued 25 million fully paid ordinary shares in the Company to AngloGold on that date, making AngloGold the Company's largest shareholder with 10.2% of the Company's ordinary shares. Subsequently, on 14 May 2004, the terms of the agreement for the acquisition were completed with a further cash payment of \$5 million to AngloGold.
• On 4 December 2003, the Company issued 340,000 ordinary fully paid shares at an issue price of 20 cents per share, as a result 4. of the exercise of options by employees.
• On 7 January 2004, the Company issued 28,000,000 ordinary fully paid shares at an issue price of 20 cents per share, to raise 5. \$5,600,000. Costs of the issue totalling \$265,200 were incurred.
• On 20 April 2004, the Australia and New Zealand Banking Group provided the Company with a \$5 million bridging facility for the purpose of funding the final payment of the Western Tanami Project to AngloGold, with the maturity date of the facility being 30 October 2004.
• On 1 June 2004, Tanami Gold NL issued 36,000,000 ordinary fully paid shares at an issue price of 18 cents per share, to raise \$6,480,000. Costs of the issue totalling \$163,084 were incurred.
  • In accordance with the Company's accounting policy relating to exploration and evaluation expenditure, the Directors resolved to write off the carrying value of exploration expenditure relating to project areas on which active and significant operations are not currently in progress or planned. The total amount written off during the financial year was \$1,918,515.

Environmental Regulation 6.

The consolidated entity's operations, in particular its exploration activities, are subject to environmental regulations under Commonwealth and State legislation. The Directors believe that the consolidated entity has adequate systems in place for the management of the requirements under those regulations, and are not aware of any breach of such requirements as they apply to the consolidated entity.

ANNUAL REPORT 2004

REPORT CONTINUED $D \perp R \oplus C \oplus O \oplus R$ $S^{-1}$

TANAMI CONT

Options

$7.$

獵

The following options to subscribe for ordinary fully paid shares are outstanding at the date of this report:

1005 .... 5,650,000 options exercisable at 20 cents each on or before 29 November 2005 (UNLISTED)

-1,500,000 options exercisable at 20 cents each on or before 27 November 2008 (UNLISTED)

The following options were granted by the Company during the year:

$\text{#}$ $\cdots$ 1,500,000 options exercisable at 20 cents each on or before 27 November 2008 $\cdot$ (UNLISTED)

The following options to subscribe for ordinary fully paid shares were exercised during the year-

340,000 options exercisable at 20 cents each on or before 29 November 2003 ... (UNLISTED)

The following options to subscribe for ordinary fully paid shares lapsed during the year:

490,000 options exercisable at 20 cents each on or before 29 November 2003 (UNLISTED)

These options do not entitle the holder to participate in any share issue of the Company.

Events Subsequent to Balance Date 8.

On 30 August 2004, Tanami Gold NL acquired a further 5,882,354 shares in Jabiru for a cost of \$1 million, increasing its total shareholding to 23,222,354 shares, representing 18.5% of the issued capital of Jabiru.

On 5 August 2004 the Company announced that it had purchased the Brocks Creek gold processing plant for \$800,000 from the Harmony Gold Mining Company Limited and Northern Gold NL Joint Venture. The CIP plant is complete from crushing station to CIP gold recovery circuit and includes laboratory, spare parts inventory, store and workshop.

Other than the matters noted above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity, in future financial years.

Likely Developments 9. .

22

The consolidated entity will continue to progress the bankable feasibility study to develop the Coyote Gold Project and to secure project funding to progress to mining operations once the study has been completed. It will also continue to conduct exploration activities on its tenement interests in the Tanami-Arunta Province located in Central Australia, and actively seek opportunities to acquire further prospective ground and pursue joint venture possibilities for selective areas of its tenement portfolio.

10. Directors' and senior executives' remuneration
Details of the nature and amount of each major element of the remuneration of each Director of the Company and the specified officers of the Company are:
	Gase remaineration Nonveash Super [salary & fever constitutions assessed to Total 11 [1] [1] [1] [1] [1] [1] [1] [1] [1] [1] .		MARINE CONTRACTOR
Directors $\sim$ - Executive -
111 Mr D P Waddell	-251,902 -	-22,300.		274,202
Mr G E Comb	94,850	- 8.962 -	79.079	182,891
11 Non-executive 2
' Mr M E Kayanagh #	199.712	5.429		205,141
Executive officers (excluding directors)

The Company did not employ any executive officers during the year.

Mr Kavanagh resigned as an executive director on 1 July 2003 and received a termination payment of \$169,712. The fair value of the options is calculated at the date of grant using the Black-Scholes model for attributing a theoretical value to these options. The following factors and assumptions were used in determining the fair value of options on grant date:

ING WAS SERVED AT A	Example Data	Park Valor COMMANDER	Exercise COMMENT	Thum on sharewom STADS DATE	Eartman MUSTERY	Kisk free RELEVERED VALUE	Orkur discourse RAWDIO TIS	Dividend SALES AND STATE OF THE REAL PROPERTY.
$-27$ Nov 2003	27 Nov 2008	\$0.079	\$0.20	\$0.22	69.282%	5.365%	And All And Art 25%/25%	N/A
$-27$ Nov 2003	27 Nov 2008	\$0.053	\$0.20	\$0.22	69.282%	5.365%	125%/50%	N/A
$127$ Nov 2003	27 Nov 2008	'SO.026	\$0.20	\$0.22	69.282%	5.365%	25%/75%	N/A

Each option entitles the holder to purchase one ordinary share in the Company. All options expire on the earlier of their expiry date or 6 months after cessation of the holder with the Company.

Further details of Directors' remuneration are contained in Note 22 to the Financial Statements. Further details of options granted are set out under "Options" below.

Options granted to directors

During or since the end of the financial year, the Company granted options for no consideration over unissued ordinary shares in Tanami Gold NL to the following director as part of his remuneration:

	Contractive in an analysis email and the	ENGINEERING CARD TO BE SERVED ASSAULT	South Communication of the Communication of the Communication , and the proposition of annumerical proposition of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contr
	.	the South Control of the South Control of the Contract Contract Contract	. .
-Mr Gi			' 27 November 2008 -

1. Directors' Meetings

The number of Directors' meetings, including meetings of committees of Directors, held in the period each Director held office during the financial year and the number of meetings attended by each Director are:

		Deerd Meethigs and the	Andre Committee Mecanics Maria Ma	EXTRACTE		Remanceston Committee Mechaes
. $CGE$ Comb .	and the group and the car The company of the com-	. The company consideration	The contract three concerning concernings.	for the company when the company company	strandardo e quindiciones	Contractor
------ $\triangleright$ D $\mathbb P$ Waddell . 1	The Supplementary	of the second contract contracts	The concerning concerning [	and the season of المتمادي والمنتقب	state and government.	in a straight of the transition of the transition of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the
ME Kavanagh	- 2007년 8월 6일	The State Control الرابيبية لأستندا and the state of the state of the state of	إيديمينك والتنبيذينية	ha kacamatan المتمنين فيونيني Sales	Contractor and Protection of the protection of	a Provincia e n

ANNU AL REPORT 2004

Directors' Interests. $\mathbf{12}_{\star}$

TANAMI COND

The relevant interest of each Director in the shares and options of the Company, as notified by the Directors to the Australian Stock Exchange in accordance with S205G(1) of the Corporations Act 2001, at the date of this report is as follows:

	Callison Park Staanse	Relevant interests of Directions in Securities of Panami Capid Ni Contributing n a bhliain 1970.	Options executions at 20 cents cards on use the annual 23-7 Illustration	Dinizna azarcisand at 20 cervis cauti on 14.14
and the state of the Mr D P Waddell	3,435,001	8,612,501	3,500,000
[Mr M E Kayanagh] 24.14	. -83.750	. . 3,023,750	-57.777 ------- 1,000,000
. TMr G E Comb	$\sim$ The Story . 1,058,299	and a property of November 8.399.596	800.000

13. Indemnification and Insurance of Officers

Indemnification

The Company has agreed to indemnify the following current directors of the Company: Mr.O E Comb, Mr M E Kavanagh and Mr D P Waddelf and former directors against liability incurred to a third party (not being the Company or any related company) that may arise from their positions as directors of the Company and its controlled entities, unless the liability atises out of conduct involving a lack of good faith.

The Company has also agreed to cover liability for costs and expenses incurred in successfully defending civil or criminal proceedings, or in connection with a successful application for relief under the Corporations Act 2001. It also provides indemnity against costs and expenses in connection with an application where a court grants relief to a director under the Corporations Act 2001.

Insurance Premiums

Since the end of the previous financial year, the Company has paid insurance premiums in respect of directors and officers liability insurance for the directors of the controlled entity. In accordance with subsection 300(9) of the Corporations Act 2001 further details have not been disclosed due to confidentiality provisions of the insurance contracts.

Dated at Perth, Western Australia this 30th day of September 2004.

Signed in accordance with a resolution of the Directors:

Abordo L. Land

D P. Waddell Executive Chairman

24

$G$ over nance $C$ or $p$ or a t $e$ Statement

The Board of Directors of Tanami Gold NL is responsible for the corporate governance of the entity. The Board guides and monitors the business and affairs of Tanami Gold NL on behalf of the shareholders by whom they are elected and to whom they are accountable. The format of the Corporate Governance Statement has changed in comparison to the previous year due to the introduction of the Australian Stock Exchange Corporate Governance Council's (the Council's) "Principles of Good Corporate Governance and Best Practice Recommendations" (The Recommendations). In accordance with the Council's recommendations, the Corporate Governance Statement must now contain certain specific information and must disclose the extent to which the company has followed the guidelines during the period. Where a recommendation has not been followed, that fact must be disclosed, together with the reasons for the departure. Tanami Gold NL's Corporate Governance Statement is now structured with reference to the Corporate Governance Council's principles and recommendations, which are as follows: $\Box$

1988 - Frans Andrew Martin Martin Martin Martin Martin Martin (f. 1988). Principle $1$ $\cdots$ Lay solid foundations for management and oversight.
1989 - Andrea Stadt Galler, Amerikaansk filosof (d. 1989) . Principle 2 $\degree$ "Structure the Board to add value $\degree$ ""
Principle 3 Promote ethical and responsible decision making
1980 – Karl Harakard Karl Harakard Harakard Harakard Harakard Harakard Harakard Harakard Harakard Harakard Har 1980 – Karl Harakard Harakard Harakard Harakard Harakard Harakard Harakard Harakard Harakard Harakard Harakard Principle 4 1111 Safeguard integrity in financial reporting
Principle 5 [111] Make timely and balanced disclosure
records the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the st Principle 6 The Respect the rights of shareholders
Tago ya Mandali wa Tanzania m . A seu a comparador de la calendar de la calendar de la calendar de la calendar de la calendar de la calenda Principle 7 The Recognise and manage risk The Community Principle 7
Tanzania de la provincia de la provincia de la provincia de la provincia de la provincia de la provincia de l 'Principle 8 777' Encourage enhanced performance
-------------------------------------- —————————————————————————————————————— Principle 9 * * * Renumerate fairly and responsibly
. Principle 10 TRecognise the legitimate interests of stakeholders

Tanami Gold NL's corporate governance practices were implemented during the year ended 30 June 2004 and were fully compliant with the Council's best practice recommendations other than as follows:

a nomination committee has not yet been established as this function is carried out by the full Board,

the majority of the Board are not independent.

Structure of the Board

The skills, experience and expertise relevant to the position of director held by each director in office at the date of the annual report is included in the Directors' Report. Directors of Tanami Gold NL are considered to be independent when they are independent of management and free from any business or other relationship that could materially interfere with - or could reasonably be perceived to materially interfere with - the exercise of their untertered and independent judgement.

In the context of director independence, "materiality" is considered from both the company and individual director perspective. The determination of materiality requires consideration of both quantitative and qualitative elements. An item is presumed to be guantitatively inimaterial if it is equal or less than 5% of the appropriate base amount. It is presumed to be material (unless there is qualitative evidence to the contrary) if it is equal to or greater than 10% of the appropriate base amount. Qualitative factors considered include whether a relationship is strategically important, the competitive landscape, the nature of the relationship and the contractual or other arrangements governing it and other factors which point to the actual ability of the director in question to shape the direction of the company's loyalty.

CORPORATE OOVERNANCE STATEMENT OONTINGED

In accordance with the definition of independence above, the materiality thresholds set, the following director of Tanami Gold NL is considered to be independent:

		,我们的时候,我们的时候,我们的时候,我们的时候,我们的时候,我们的时候,我们的时候,我们的时候,我们的时候,我们的时候,我们的时候,我们的时候,我们的时候,我们
M Kavanagh Albert Herrich Mon-Executive Director Albertum

There are procedures in place, agreed by the Board, to enable directors, in furtherance of their duties, to seek independent professional advice at the Company's expense.

The term in office held by each director in office at the date of this report is as follows:

	allenger bezang a Sales Provincia de P			แล้วสอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมตอนดูเกมต
.				. .
---------------------------				,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ********
∵M Kavanagh .				. .
the trade of the control of the con-	The company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the company		and the company of the company The second con-	The State

The performance of the Board and key executives is reviewed regularly against both measurable and qualitative indicators. Each Board member's and key executive's performance is assessed against specific and measurable qualitative and quantitative performance criteria. The performance criteria against which directors and executives are assessed is aligned with the financial and non-financial objectives of Tanami Gold NL. Directors whose performance is consistently unsatisfactory may be asked to retire.

There is currently no Nomination Committee as all issues relating to corporate governance are dealt with by the full Board of Directors, due to the size of the company, and ensuring arrangements are in place to adequately manage those risks.

An Audit Committee comprising M Kavanagh (Chairman), D. Waddell and the Chief Financial Officer was established on 26 August 2004.

Remuneration

26

Performance

It is the Company's objective to provide maximum stakeholder benefit from the retention of a high quality Board and executive team by remunerating directors and key executives fairly and appropriate with reference to relevant employment market conditions. To assist in achieving this objective, the Board links the nature and amount of executive directors' and officers' emoluments to the Company's financial and operational performance. The expected outcomes of the remuneration structure are:

Retention and motivation of key executives 鱜

Attraction of quality management to the company

Performance incentives which allow executives to share the rewards of the success of Tanami Gold NL ■ ■

For details on the amount of remuneration and all monetary and non-monetary components for all directors, refer to the Directors' Report. In relation to the payment of bonuses, options and other incentive payments, discretion is exercised by the Board, having regard to the overall performance of Tanami Gold NL and the performance of the individual during the period.

There is no scheme to provide retirement benefits, other than statutory superannuation, to directors.

The Board is responsible for determining and reviewing compensation arrangements for the directors themselves.

$S$ tatements of $F$ tancial

$P$ e $r$ f o $r$ m a $n$ c e

for the year ended 30 June 2004

				PANSA
Revenue from ordinary activities	301,308	$117,018 -$	650,912	323,295
Exploration and evaluation expenses	(1,918,515)	$-(1,546,635)$		$-(21)$
Administration expenses	(1,181,369)	(563, 435)	(391, 947)	(207, 785)
Carrying value of investments sold	(167, 332)		(167,332)
Provision for non-recovery of loan to controlled entity.			(3,057,541)	(2,108,541)
Share of net profit of associates accounted	12,832
for using the equity method. Loss from ordinary activities before related income tax benefit.	(2.953,076)	$(1,993,052)$ .	(2,965,908)	(1,993,052)
Income tax benefit related to ordinary activities Net loss	(2,953,076)	Province (1,993,052)	(2,965,908)	(1,993,052)
26 Basic earnings per share	$(1.38$ cents)	$(1.20 \text{ cents})$

Potential ordinary shares are not considered dilutive and accordingly diluted earnings per share is not disclosed for this reason.

The statements of financial performance are to be read in conjunction with the accompanying notes to the financial statements.

Statements of Financial $P$ o s i t i o n

as at 30 June 2004

28

TANAMI COLOR

				00000000650000000000000000000000000000
CURRENT ASSETS Cash assets		4,727,098	2,458,398	42,439	2,416,110
Receivables.		412,411	$-30,181$		$-3,547$
Inventories		70,027
Total current assets		5,209,536	2,488,579	42,439	2,419,657
NON-CURRENT ASSETS
Receivables.		230,917	(19, 250)	19,605,006	2,312,450
Investments accounted for using the equity method.		2,173,432
Other financial assets	10	159,691	159,691	5,333,523	3,172,923.
Property, plant and equipment	$\mathbbm{1}$	594,519	$-33,462$
Exploration and evaluation expenditure	12	23,377,174	5,496,274
Total non-current assets		26,535,733	5,708,677	24,938,529	5,485,373
TOTAL ASSETS		31,745,269	8,197,256	24,980,968	7,905,030
CURRENT LIABILITIES
Interest-bearing liabilities	13	5,000,000
Payables	14	1,675,559	228,226
Provisions	Ί5	75,910	64,000
TOTAL LIABILITIES		6,751,469	292,226
NET ASSETS		24,993,800	7,905,030	24,980,968	7,905,030
EQUITY
Contributed equity	$.16$ .	50,430,432	30,388,586	50,430,432	30,388,586
Reserves	17	95,906	95,906	95,906	95,906
Accumulated losses	18	(25, 532, 538)	(22, 579, 462)	(25, 545, 370)	(22, 579, 462)
TOTAL EQUITY		24,993,800	7,905,030	24,980,968 79 B.A	7,905,030

The statements of financial position are to be read in conjunction with the accompanying notes to the financial statements.

$S$ tatements of $C$ as $h$ $F$ $1$ $\circ$ ws

for the year ended 30 June 2004

Cash Flows from Operating Activities
Cash payments in the course of operations		(1,321,286)	$(554, 854)$	(1,709)	(1, 223)
Cash payments for exploration expenditure.		(3,919,374)	(1, 559, 674)		(21)
Interest received		103,345	113,470	98,637	113,186
Net cash provided by/(used in) operating activities	27(b)	(5,137,315)	(2,001,058)	96,928	111,942
Cash Flows from Investing Activities
Payments for acquisition of tenements		(9,962,490)
Payments for property, plant and equipment.		(324, 144)	(33, 913)
Proceeds from sale of plant and equipment		24,818
Payments for exploration security deposits		(83,926)	(14,250)
Payments for equity investments		(2,327,932)		(2,327,932)
Proceeds from sale of equity investments		165,584		165,584
Loans to other entities.		(1,010,000)		(1,010,000)
Loans repaid by other entities		1,010,000		1,010,000
Loans to controlled entity				(16, 205, 752)	(2,209,000)
Loans repaid by controlled entity				855,655	$-12,392$
Performance bond reclassification		(127, 741)
Net cash used in investing activities.		(12, 635, 831)	(48, 163)	(17,512,445)	(2,196,608)
Cash Flows from Financing Activities
Net proceeds from issue of shares and options		15,041,846	4,062,729	15,041,846	4,062,729
Proceeds from borrowings		5,000,000
Net cash provided by financing activities		20,041,846	4,062,729	15,041,846	4,062,729
Net increase/(decrease) in cash held		2,268,700	$-2,013,508$	(2,373,671)	1,978,063
Cash at the beginning of the financial year		2,458,398	444,890	2,416,110	438,047
Cash at the end of the financial year	27(a)	4,727,098	2,458,398	42,439	2,416,110

The statements of cash flows are to be read in conjunction with the accompanying notes to the financial statements.

$\begin{tabular}{l|cccccc|cccccc|cccccc|} A & N & N & U & A & L & \mbox{\scriptsize \color{green} \color{black} \color{black} \color{black} \color{black} \color{black} \color{black} \color{black} \color{black$

-the-Financial $\mathrm{N}$ otes to $\cdot$ Statements

Summary of Significant Accounting Policies

The significant policies which have been adopted in the preparation of this financial report are:

Basis of preparation (a)

1.

TANAMI CONT

The financial report is a general purpose financial report which has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

It has been prepared on the basis of historical costs and except where stated, does not take into account changing money values or current. valuations of assets.

The financial report has been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary course of business.

For the year ended 30 June 2004, the consolidated entity recorded a loss of \$2,953,076 (2003: \$1,993,052). At 30 June 2004, the consolidated entity had a net working capital deficit of \$1,541,933 (2003; working capital surplus of \$2,196,353).

Net current liabilities include a \$5.0m ANZ Bridging Facility which was drawn down to pay the final \$5.0m tranche to AngloGold Ashanti Australia Limited for the acquisition of the Western Tanami Project which includes the Coyote gold resource.

The reported loss for the year and the net working capital deficit at 30 June 2004 have been affected by:

Exploration and evaluation expenses written off totalling \$1,918,515.

The acquisition of the Western Tanami Project which included cash payments of approximately \$10.0m of which \$5.0m was drawn down from the ANZ Bridging Facility.

Exploration and evaluation expenditure relating to the Coyote Gold Project Bankable Feasibility Study (BFS).

Plant and equipment relating to the Coyote Gold Project.

Additional drilling expenditure based on positive drill results returned at Coyote and Larranganni.

Investment in Jabiru Metals Limited which owns the Jaguar Project (VMS, Cu, Zn, Ag) - \$2.11m. ٠,

.
Although the Company has a working capital deficiency at 30 June 2004, it has acquired two significant assets during the year being the Western Tanami Project (\$15.0m) and the investment in Jabiru Metals Limited (\$2.11m) both of which are classified as non-current assets.

The ANZ Bridging Facility was established on the basis that it would be converted to a Project Finance Facility upon completion of the Coyote Project BFS or be repaid from other sources including equity funding, other debt funding or asset sales,

The Board of Directors is aware of the Company's cash flow requirements and is taking appropriate action to secure the Company's short term cash requirements. The Board is evaluating and negotiating sources of finance to meet the Company's known commitments and provide working capital for the next twelve months. Options being considered by the Board include:

• ۰ Debt facilities including convertible notes
• Equity raisings if required ė

30

Non core asset sales if required

The Directors are confident of raising funds when necessary to meet the Company's obligations as and when they fall due particularly given the Company's strong institutional, corporate and private investor shareholder support as evidenced by a history of capital raisings. including raisings completed during the year being \$3.47m in November 2003, \$5.6m in January 2004 and \$6.48m in June 2004.

Given the above, the Directors believe the going concern basis of preparation of the financial report is appropriate.

Summary of Significant Accounting Policies (continued)

Exploration and evaluation expenditure $(b)$

Exploration and evaluation costs are carried forward as an asset in the statement of financial position where right to tenure in the area of interest is current and:

• $(i)$ such costs are expected to be recouped through successful development and exploitation of the area of interest, or by its salet or
• (ii) exploration activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in relation to the area are continuing.

Where a project or area of interest has been relinquished or abandoned, the costs incurred thereon are written off.

$\langle c \rangle$ $\sim$ Principles of consolidation

The consolidated financial statements of the consolidated entity include the financial statements of the Company and the entity it controlled ("the controlled entity") at the end of the financial year and the results of the Company and the controlled entity during the year. The controlled entity is noted in Note 10. Where an entity either began or ceased to be controlled during the year, the results are included only from the date control commenced or up to the date control ceased.

The balances, and effects of transactions, between controlled entities included in the consolidated financial statements have been gliminated. Where applicable, outside equity interests in the results and equity of controlled entities are shown separately in the consolidated financial statements.

Where necessary, dissimilar accounting policies adopted by controlled entities have been amended to ensure consistent policies are adopted within the economic entity.

Associates are those entities over which the consolidated entity exercises significant influence and which are not intended for sale in the near future. In the consolidated financial statements, investments in associates are accounted for using equity accounting principles. Investments in associates are carried at the lower of the equity accounted amount and recoverable amount. The consolidated entity's equity accounted share of the associates' net profit or loss is recognised in the consolidated statement of financial performance from the date significant influence commences until the date significant influence ceases.

$\langle d \rangle$ Taxation

The consolidated entity adopts the income statement liability method of tax effect accounting.

Income tax expense is calculated on operating profit adjusted for permanent differences between taxable and accounting income. The tax effect of timing differences, which arise from items being brought to account in different periods for income tax and accounting purposes, is carried forward in the statement of financial position as a future income tax benefit or a provision for deferred income tax, except where realisation of the asset is not assured beyond reasonable doubt. Future income tax benefits relating to entities with tax losses are only brought to account when their realisation is virtually certain,

$\langle e \rangle$ . Employee entitlements

Wages, salaries and annual leave

The provisions for employee entitlements to wages, salaries and annual leave represent the amount which the consolidated entity has a present obligation to pay resulting from employees' services provided up to the balance date. The provisions have been calculated at nominal amounts based on remuneration wage and salary rates that the consolidated entity expects to pay as at reporting date.

Employee incentive scheme

The consolidated entity operates an employee incentive scheme known as the Tanami Gold NL Employee Share Incentive Scheme. Other than the costs incurred in administering the Scheme, which are expensed as incurred, the Scheme does not result in any expense to the consolidated entity...

({} Recoverable amount of non-current assets valued on cost basis

The carrying amounts of non-current assets valued on the cost basis, other than exploration and evaluation expenditure, are reviewed to determine whether they are in excess of recoverable amount at balance date. If the carrying amount of a non-current asset exceeds its recoverable amount, the asset is written down to the lower amount. The write-down is recognised as an expense in the net profit or loss in the reporting period in which it occurs.

Where a group of assets working together supports the generation of cash inflows, recoverable amount is assessed in relation to that group of assets.

In assessing recoverable amounts of non-current assets the relevant cash flows have not been discounted to their present value, except where specifically stated.

Summary of Significant Accounting Policies (continued)

• 30

Acquisition of assets $(g)$

ļ.

$(i)$ .

TANAMI GED

All assets acquired, including plant and equipment and intangibles other than goodwill, are initially recorded at their cost of acquisition at the date of acquisition, being the fair value of the consideration provided plus incidental costs directly attributable to the acquisition. When equity instruments are issued at consideration, their market price at the date of acquisition is used as fair value. Transaction costs arising on the issue of equity instruments are recognised directly in equity subject to the extent of proceeds received, otherwise expensed.

Depreciation of property, plant and equipment $(h)$ .

Property, plant and equipment, other than freehold land, are depreciated over their estimated useful lives using the straight line method. The depreciation rates used are:

15-33% plant and equipment

motor vehicles 33%.

Joint ventures

The consolidated entity's interest in unincorporated joint ventures is brought to account by including its interest in the following amounts in the appropriate categories in the Statement of Financial Position and Statement of Financial Performance:

• each of the individual assets employed in the joint ventures;
• liabilities incurred by the consolidated entity in relation to the joint ventures and the liabilities for which it is jointly and/or severally liable; and
• expenses incurred in relation to the joint ventures.
• $()$ . Investments

Investments in controlled entities are carried in the Company's financial statements at the lower of cost and recoverable amount. Dividends and distributions are brought to account in the Statements of Financial Performance when they are declared by the controlled entities.

Investments in listed companies are measured at fair value, being the current quoted market prices.

(k) Payables

Liabilities are recognised for amounts to be paid in the future for goods or services whether or not billed.

Goods and services tax (1):

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATQ). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the item of the expense.

Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Statement of Financial Position. Cash flows are included in the Statement of Cash Flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

$\langle m \rangle$ . - Earnings per share

32

Basic earnings per share ("EPS") is calculated by dividing the net profit attributable to members of the parent entity for the reporting period by the weighted average number of ordinary shares of the Company.

Adoption of International Accounting Standards. ${n}$ . $\sim$

The Australian Accounting Standards Board (AASB) is adopting International Financial Reporting Standards (IFRS) for application to reporting periods beginning on or after 1 January 2005. The AASB has issued Australian equivalents to IFRS and the Urgent Issues Group will issue abstracts corresponding to IASB interpretations originated by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee. The adoption of Australian equivalents to IFRS will first be reflected in the consolidated entity's financial statements for the half-year ending 31 December 2005 and the year ending 30 June 2006. Information about how the transition to Australian equivalents to IFRS is being managed and the key differences in accounting policies that are expected to arise are set out below.

Entities complying with Australian equivalents to IFRS for the first time will be required to restate their comparative financial statements to amounts reflecting the application of IFRS to that comparative period. Most adjustments required on transition to IFRS will be made, retrospectively, against opening retained earnings as at 1 July 2004.

Suppnary of Significant Accounting Policies (continued)

The consolidated entity has commenced an internal analysis of key financial reporting differences as well as planning for the conversion to IFRS in relation to accounting policies and procedures, reporting systems, business processes and business structures.

Major changes identified to date that will be required to the consolidated entity's existing accounting policies include the following:

Exploration and evaluation expenditure on mineral resources

Uncertainty remains in relation to accounting for extractive industries within the IFRS regime with no specific standard finalised. If the stated "grandfathering" approach embodied in Exposure Draft 6 "Exploration for and Evaluation of Mineral Resources" is implemented, then the consolidated entity's existing policy of accounting for exploration and evaluation activity will comply with IFRS requirements and therefore no difference is expected to result either from the recognition of exploration and evaluation assets or from impairment testing.

- Income tax

Under AASB 112 Income Taxes, deferred tax balances are determined using the balance sheet method which calculates temporary differences based on the carrying amounts of an entity's assets and liabilities in the statement of financial position and their associated tax bases. In addition, current and deferred taxes attributable to amounts recognised directly in equity are also recognised directly in equity. This will result in a change to the current accounting policy, under which deferred tax balances are determined using the income statement liability method (see Note (d) above). No immediate impact is likely as deferred tax balances are not currently recognised.

- Equity-based compensation benefits

Under AASB 121 Share-based Payment, equity-based compensation to employees will be recognised as an expense in respect of the services received. This will result in a change to the current accounting policy, under which no expense is recognised for equity-based compensation.

- Financial instruments

Financial instruments must be recognised in the statement of financial position and all derivatives and most financial assets must be carried at fair value, which differs from the current policy.

The above should not be regarded as a complete list of changes in accounting policies that will result from the transition to Australian equivalents to IFRS, as not all standards have been analysed as yet, and some decisions have not yet been made where choices of accounting policies are available. For those reasons it is not yet possible to quantify the impact of the transitions to Australian equivalents to IFRS on the consolidated entity's financial position and reported results.

A DI RELINO, ILLELLA A NOLA E ILLELA E LO CA A DI RI LO ILLA O

. С быть совменно совменно совменно совменно совменно совменно совменно совменно совменно совменно совменно со
$\sim$ ******
.
																			Expandidated 2004

			กการการกำหนับใจกลบดับดังใส่สะที่ที่ระบบและสะที่กรรมเหมื่อโทรการกา ร
Revenue from Ordinary Activites
From operating activities:
Management fees charged by parent entity			390,239	-206,562
Interest received from other parties	110,906	117,018	$-95,089$	$-116,733$
Proceeds from sale of fixed assets	$-24,818$
Proceeds from sale of investments	165,584		165,584

301,308

117,018

$(1,314)$

$(595, 175)$

$(917, 262)$

$(632, 562)$

650,912

323,295

Total revenue from ordinary activities

3. Loss from Ordinary Activities before Income Tax Benefit

$\rm (a)$ Loss from ordinary activities before income tax benefit has been arrived at after:

Charging as Expense

34

Depreciation - plant and equipment.	89,791	$\cdots$ 18,503 $\cdots$
Less capitalised depreciation expense	(76, 562)	(15,022)
	13,229	3,481
Provision for employee entitlements	11,910	2,010
Net profit on sale of fixed assets	(24, 818)
Net loss on disposal of investments	1,748		1,748
$(b)$ . Individually significant items included in
the loss from ordinary activities before income tax benefit:
Exploration expenditure written off	1,918,515	$-1,546,635$		21
Provision for non-recovery of loan to controlled entity			3,057,541	2,108,541
Taxation. 4.
Prima facie income tax benefit calculated at.
30% (2003: 30%) on the loss from ordinary activities	885,923	597,916	889,772	597,916
Decrease in income tax benefit due to:
- sundry items.	$(11,294)$	$-(1,427)$

$\sim$ net increase in provisions Increase in income tax benefit due to: 3,849 share of associate's net profit Future income tax benefit not brought to account $(878, 478)$

Transfer of losses from controlled entity 27,490 34,646 Income tax attributable to operating loss

Taxation (continued)

1. 2.

$3.5$

Estimated future income tax benefits attributable to tax losses carried forward net of timing differences (calculated at the rate of 30%) amounting to approximately \$6.4 million (2003: \$5.6 million) have not been brought to account at 30 June 2004 because the directors do not regard realisation of the future income tax benefits as virtually certain. These benefits will only be obtained if:

• the relevant company derives future assessable income of a nature and of an amount sufficient to enable the benefit to be realised;
• the relevant company complies with the conditions for deductibility imposed by law; and
• no changes in tax legislation adversely affect the relevant company in realising the benefit.

During the 2002/03 financial year, legislation was enacted to allow groups, comprising of a parent entity and its Australian resident wholly owned entities, to elect to consolidate and be treated as a single entity for income tax purposes. The legislation, which includes both elective and mandatory elements, is applicable to the Tanami Group. As at 30 June 2004, the directors of the Company (and the subsidiary) have not made a decision to elect to be taxed as a single entity. In accordance with UIG 39 "Effect of Proposed Tax Consolidation Legislation on Deferred Tax Balances', the financial effect of the legislation has not been brought to account in the financial statements for the financial year ended 30 June 2004.

		"WWW.YAZZEZEW PATROL MAMMUMUM.		ANTHONY HITHITI HITHITI HITHITI HITHITI AAAPSY 22 22 22 23
		JPINIST MUMMUMMUMMUM SINIST	,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
, waterious concerning the company of the company production and the company of the company of the company of the company of the company of the company of the company of the company of the company of the company of the co	-web-----------------------------------

5. Auditor's Remuneration

Amounts received, or due and receivable,. by the auditor - KPMG - for:

Audit and review of the financial statements -	$111130.000 +$			$-13,700$
Other services.	6,220	5,200	6,220	5,200
	36,220	18,900.	36,220	18,900
- Cash Assets 6.4
. Cash at bank and on hand .	$-227.098$ :	$\sim$ 1238,431 $\scriptstyle\sim$	$\cdots$ 42,439 .	196,143
. Bank short term deposits	4.500.000	2.219.967		2,219,967
	4,727,098	2,458,398	42.439	2,416,110

Receivables 7.

Current
Sundry debtors	412,411	30,181		3,547
Non-Current
Other debtors	$-230,917$	19,250
Loan to controlled entity				$19,700,832$ $-19,350,736$
Provision for non-recovery of loan			(20,095,826)	(17,038,286)
	230,917	19,250	19,605,006	2,312,450

The loan to the controlled entity is unsecured, interest free and of no fixed term. The loan is provided to fund exploration expenditure by the controlled entity. Accordingly, the ultimate recoupment of the loan and the investment in the controlled entity (refer Note 10(b)) is dependent upon successful development and commercial exploitation, or alternatively, sale of the respective areas.

1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999
Album - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 199

																かんしょう きんしょう アイアー アイアイ こうきん アクセット アイディー プー・マイン ふくしょう
																jin jiya matang masa Pangalang Tenggal may katigang may kaga Pengalang matang pang Palang tanggal may kalipan
																나는 아침을 일어 있는 것이 아니다. 그는 아니라는 사람은 아니는 사람들이 아니라 아이가 있다. 그는 사람들이 아니라 사람들이 아니라 아니라 아니라.
																LOTES 'TO 'THE 'FINANCIAL' STATEMENTS 'CONTINUED ' ' ' ' '

saaliy $\mathcal{H}_{\mathcal{A}}$

services and service

30

		Alamanangan Wasangan Pangangan Manamanangan Pangangan	eni
Inventories 8. .
Current
Raw materials and stores - at cost	70,027
9. Investments Accounted for using the Equity Method
Non-current
Associates	2,173,432
Details of investments in associates are as follows:
Jabiru Metals Ltd (ACN 060 620 751) ("Jabiru").
At 30 June 2004, Tanami Gold NL held 17,340,000 [2003: Nil] ordinary fully paid shares in Jabiru, a junior exploration company. At balance date, the shareholding represented approximately 18.1% of the issued capital of Jabiru. The investment is carried at cost, which was below
the market value of the securities of \$2,601,000 as at 30 June 2004. The entity has been equity accounted due to Board control.
			49.WJ
Results of associate
Share of associate's net profit from ordinary activities before income tax expense		12,832
Share of associate's income tax expense
Share of associate's net profit accounted for using the equity method		12,832
Share of post-acquisition accumulated profits attributable to associate Accumulated profits
Share of associate's accumulated profits at beginning of year
Share of associate's net profit accounted for using the equity method		12,832
Share of associate's accumulated profits at end of year		12,832
Movements in carrying amount of investments
Carrying amount of investment in associate at beginning of year
Investment in associate acquired during the year		2,160,600
Share of associate's net profit		12,832
Share of associate's net profit accounted for using the equity method		2,173,432
Commitments Share of associate's capital expenditure commitments contracted for at
balance but not provided for and payable:
not later than one year.		.37,219.
later than one year and not later than five years later than five years		62,937
		100,156
Contingent liabilities
Share of associate's contingent liabilities;
'environmental bond		75,945

10. Other Financial Assets

a ka 7 bila mali kacamatan s

Non-current.
Securities in listed entities – at cost [Note $10(a)$ ].	310,602	$-310,602$	2,471,202	-310,602
Less provision for diminution in value.	(150, 911)	(150, 911)	(150, 911)	(150, 911)
	159,691	159,691	2.320,291	159,69L
Shares in controlled entity - at cost [Note 10(b)]			$3,085,938$ $\sim$	-3,085,938-
Less provision for diminution in value			(72,706)	(72, 706)
			3,013,232	3.013.232
	159,691	159,691	5,333,523	3,172,923

10(a) Securities in listed entities

Glengarry Resources Ltd (ACN 009 468 099) ("GGY")

At 30 June 2004, Tanami Gold NL held 4,435,862 [2003: 4,435,862] ordinary fully paid shares and 2,217,931 [2003: 2,217,931] options, exercisable at 15 cents each on or before 31 March 2005, in OGY, a junior exploration company. At balance date, the shareholding represented approximately 3.5% [2003: 4.1%] of the issued capital of GGY. The myestment is carried at net written down value, which was below the market value of the securities of \$173,000 as at 30 June 2004.

Jabiru Metals Ltd (ACN 060 620 751) ("Jabiru")

Refer to Note 9 for details of Tanami Gold NL's investment in Jabiru, which has been accounted for on a consolidated basis using the equity method.

ANNUAL REPORT 12004

$10(b)\,$ .
Shares in controlled entity

Tanami Exploration NL

ACN 063-213-598 (Incorporated in WA)

Ordinary

100%

3,013,232 3,013,232

SCOTT CONSTITUTION

94 P. s., NOTES TO THE TERNANCIAL STATEMENTS TO NTINUED

Markatan

	N Q T B S INTO INT HIE HET BIJA A D Q LA E INSTIATIE MEI BITIS INCIO BIJE BIJE E D.
	li martirezza den le parte di di mondiale di la parte del provincia di la parte del provincia di la parte dell La parte del provincia di la parte del provincia di la parte del provincia di la parte del provincia di la par CONTRACTOR
11. Property, Plant & Equipment
Buildings at cost.	-90.000
Less: accumulated depreciation
	90,000 555555
Plant and equipment at cost.	582,474 $-356,308$ :
Less: accumulated depreciation:	(330,524) (322, 846)
	251,950 33,462
Motor vehicles at cost.	$-443,700$ $\sim 199,402.$
Less: accumulated depreciation	(191, 131) (199, 402)
	252,569
	594,519 33,462

	374,317	39,404
Reconciliations
Reconciliations of the carrying amounts for each
class of property, plant and equipment are set out below.
Buildings
Carrying amount at beginning of year
Additions.	$-90,000$
Disposals
Depreciation
Carrying amount at end of year	90,000
Plant and equipment
Carrying amount at beginning of year	133,462	19,539
Additions	264,480	32,426
Disposals
Depreciation	(45,992)	(18, 503)
Carrying amount at end of year	251,950	33,462
Motor Vehicles.
Carrying amount at beginning of year-
Additions	296,368
Disposals
Depreciation	(43,799)
Carrying amount at end of year	252,569

			AN AN AN AN AN AN AN AN AN AN AN AN AN A ACTER AND DESCRIPTION OF A RESIDENCE AND A RESIDENCE OF A RESIDENCE OF A RESIDENCE OF A RESIDENCE OF A RESIDENCE OF A
12. Exploration & Evaluation Expenditure
Exploration and evaluation tenements (at cost net of:
unounts written off) [Note 12(a)] -	23,377,174	5,496,274
$(2(a)$ - Exploration and evaluation expenditure.
Costs carried forward in respect of: .
areas of interest in exploration and/or`
evaluation phase -	$-6,256,300 \sim -3,126,264$
- acquisition costs of tenements.	17,120,874	2.370.010
	2.2.277.178	S ADE 378

The ultimate recoupment of exploration and evaluation expenditure is dependent upon successful development and commercial exploitation, or alternatively, sale of the respective areas.

13. Interest Bearing Liabilities

Current (secured)

					.	.	.
. Bank-	нэнп	the company of the company of the company of the company of the company of the company of
							---
			. $\sim$	医水杨酸 医骨折 医心脏 医内脏性 医血管反应 医单元的	and the company of the Company of the Company	the committee of the theory of the first

In May 2004 Tanami Gold NL secured a \$5 million bridging facility for the purpose of funding the final \$5 million payment due to AngloGold Ashanti Australia Limited, for the acquisition by the Company of the Coyote Gold Project. The facility has been secured by way of a fixed and floating charge over the assets and undertakings of Tanami Gold NL and Tanami Exploration NL, including all shares held in Jabiru Metals Ltd and Olengarry Resources Ltd, a first-ranking charge over any applicable licences and permits, sales contracts, mortgages over any applicable mining licences, and all rights as beneficiary of any proceeds under insurance and hedging arrangements. The loan bears interest at the bank's prime rate plus 2% per annum, payable on a three-monthly basis or other period agreed to by the bank. The maturity date of the facility was initially 30 October 2004, but was subsequently extended to 30 December 2004, subject to certain further conditions being met, including completion of the Coyote Gold Project Bankable Feasibility Study.

14. Payables

$\sim$ Current (unsecured) $\sim$
Trade creditors.	$\sim$ 1,525,047 $\sim$ $\sim$ -191,337
Other creditors and accruals	150,512	36.889
	1,675,559	228,226	and the same of the property of the concentration of the company
				The Secret Control
Provisions

Current Employee entitlements 75,910 64,000

A N N U A L TR E P O R T T 2 V 0 4

The controlled entity has 16 equivalent full time employees as at 30 June 2004 (2003: 6).

N, OFT B, S, T, T, O, T, T, B, T, F, N, A, N, C, L, A, E, T, A, T, E, M, E, R, T, E, T, C, O, N, T, E, N, U, B, D

ш
	kanaan diintambaadiin maanin kunnan ahan diintambaa ahan minimmaanin diintambaa maanin maanin maanin ahan m

• 36

16. Contributed Equity

Share capital 279,888,902 [2003: 165,748,902] ordinary shares, fully paid	49,598,942 =	$-29,557,096$	$-49,598,942$	-29,557,096.
. 85,074,451 [2003: 85,074,451] contributing shares, issued .
at 20 cents each and paid to I cent each.	831,490	831,490	831,490	831,490
	50,430,432	30,388,586	50,430,432	30,388,586
Movements in contributed equity
Balance at beginning of year	30,388,586.	26,325,857	30,388,586	26,325,857
Shares issued
- 89,140,000 (2003: 21,000,000) shares issued
for eash $[Note 16(a)]$ .	15,620,000 $\sim$	$-4,200,000$	15,620,000	4,200,00.
- 25,000,000 (2003: Nil) shares issued as -
consideration for the acquisition of mining
tenements [Note 16(b)].	.5,000,000.		-5,000,000
Transaction costs arising from issues for cash-	(578, 154)	(137.271)	(578, 154)	(137, 271)
Balance at end of year	50,430,432	30,388,586	50,430,432	30,388,586

Notes:

40

$16(a)$ Shares issued for eash during the year:

• On 17 November 2003, the Company issued 24,800,000 ordinary fully paid shares at an issue price of 14 cents per share to raise \$3,472,000. Costs of the issue totalling \$149,870 were incurred.
• On 4 December 2003, the Company issued 340,000 ordinary fully paid shares at an issue price of 20 cents per share, as a result of the exercise of options by employees, raising \$68,000.
• On 7 January 2004, the Company issued 28,000,000 ordinary fully paid shares at an issue price of 20 cents per share, to $\blacksquare$ raise \$5,600,000. Costs of the issue totalling \$265,200 were incurred.
• On 1 June 2004, Tanami Gold NL issued 36,000,000 ordinary fully paid shares at an issue price of 18 cents per share, to raise \$6,480,000. Costs of the issue totalling \$163,084 were incurred.
• [16(b) On 16 January 2004, Tanami Gold NL issued 25,000,000 ordinary fully paid shares at an issue price of 20 cents per share, to AngloGold Ashanti Australia Ltd as part consideration for the acquisition of the Western Tanami Project.

Terms and conditions of ordinary shares

Holders of ordinary shares are entitled to receive dividends that are declared from time to time and are entitled to one vote per share at shareholders' meetings. In the event of a winding up of the Company, ordinary shareholders rank after creditors.

Terms and conditions of contributing shares

Contributing shares rank equally in all respects with ordinary shares on issue. The contributing shares are a type of partly paid share and are paid to the extent of 5%. Accordingly, in the event of a poll being held at a shareholders' meeting, each contributing share has 5% of a yote.

The directors make a call upon the contributing shareholders to pay the whole or portion of the balance of the issue price. The directors have resolved that no call will be made in respect of the contributing shares before 29 February 2004. A shareholder can elect to pay a call or the shares will be forfeited. In the event of winding up of the Company, all assets which may be legally distributed amongst the shareholders will be distributed in proportion to the shares held by them, irrespective of the amount paid up on a share. Contributing shareholders participate in dividends also irrespective of the amount paid up on a share.

Courthused Equity (continued) 16.4

Options

The following options to subscribe for ordinary fully paid shares are outstanding at balance date:

5,650,000 options exercisable at 20 cents each on or before 29 November 2005(UNLISTED) 1,500,000 options exercisable at 20 cents each on or before 27 November 2008(UNLISTED)

a Cara a chann a bhna an an Chaile an tha tha

ROSE CONSTRUCTION

The following options were granted by the Company during the year.

• $-1,500,000$ options exercisable at 20 cents each on or before 27 November 2008(UNLISTED). The following options to subscribe for ordinary fully paid shares were exercised during the year:
• 340,000 options exercisable at 20 cents each on or before 29 November 2003(UNLISTED)
• The following options to subscribe for ordinary fully paid shares lapsed during the years
• 490,000 options exercisable at 20 cents each on or before 29 November 2003(UNLISTED).

$17.$ Reserves

	. .	.
Capital reserve :	. -906	ODE	.	95.906
Nature and purpose of reserve
Cabital Reserve

Upon disposal of revalued assets, any related revaluation. increment standing to the credit of the asset revaluation. reserve is transferred to the capital reserve.

18. Accumulated Losses

.
Accumulated losses at the beginning of the year $\mathbb{I}$			$(22,579,462)$ (20,586,410) (22,579,462) (20,586,410)
Net loss for year $\sim$	(2.953,076)	(1,993,052)	(2.965.908)	(1,993,052)
		Maria de la propincia de la propincia de la propincia de la propincia de la propincia de la propincia de la p
Accumulated losses at the end of the year			$(25,532,538)$ $(22,579,462)$ $(25,545,370)$	(22,579,462)

19. Contingent Liabilities

Department of Industry & Resources B)

Performance Bonds totalling \$126,000 (2003: \$36,000) have been granted in favour of the Department of Industry & Resources by the National Australia Bank Limited. Security given by the parent entity for these bonds is a right of indemnification from term deposits totalling \$126,000 (2003: \$36,000) which is included in Note 7.1

• Financial Support of Controlled Entity $\left{ i\right}$ .

The Company has agreed to financially support its controlled entity Tanami Exploration NL.

iii) [ Claims of Native Title]

In Western Australia, Native title has been applied for over most vacant crown land and pastoral leases. Tanami Exploration NL's tenements are subject to the procedures of the Native Title Act 1993.

20. Commitments

$N$ , $O$ , $T$ , $E$ , $S$ , $S$

$\langle i \rangle$ Exploration Expenditure

TANAMI COMPANY

The consolidated entity has certain obligations to perform minimum exploration work on mineral leases held. These obligations may vary over time, depending on the consolidated entity's exploration program and priorities. These obligations are also subject to variations by negotiation, joint venturing or relinquishing some of the relevant tenements. As at balance date, total exploration expenditure commitments of the consolidated entity which have not been provided for in the financial statements amount to \$5,269,025 per annum (2003: \$2,029,000).

TO UT HE SEENAN CLALS TATEMENTS LOONTINUED

$(i)$ Financial support to subsidiary

Tanami Gold NL has provided an undertaking to continue providing financial support to its controlled entity, Tanami Exploration NL.

$(iii)$ Management contracts

The Company has entered into a management agreement with Mr Waddell for his services as Executive Chairman. Under the contract, a termination notice period of twelve months is required, which based on current renumeration rates would amount to a termination payment of \$275,000.

eni

$\sim$ $17.500$

$131.359...$

$(iv) >$ Operating lease commitments

Future operating lease rentals for premises not provided

for in the financial statements and payable:
Not later than one year. $\sim$

	.
Later than one year but not later than five years
		. the property of the con-
	.

$21.$ Employee Share Option Plan

The consolidated entity operates an employee incentive scheme known as the Tanami Gold NL Employee Share Incentive Scheme ("Scheme").

During the year, 340,000 options exercisable at 20 cents each on or before 29 November 2003 were exercised under the Scheme. A further 490,000 options exercisable at 20 cents each on or before 29 November 2003 lapsed.

No options were issued under the Scheme during the year.

Unissued ordinary shares of the Company under option under the Scheme are:

	Expiry Data Charles Expected Fried Charles Nittaker of Charlotte
	. 29 November 2005 …………………………………………………………………………………………

The market value of shares under these options at 30 June 2004 was 20 cents (2003; 11.5 cents).

22. Director and Executive Disclosures.

42

Remuneration of specified directors and specified executives by the consolidated entity

Executive Directors and key executives are remunerated by way of a salary or consultancy fees, commensurate with their required level. of services. Non-executive directors receive a fixed monthly fee for their services.

The Company does not have any scheme relating to retirement benefits for non-executive directors.

Refer to Note 20 for details on the financial impact in future periods resulting from firm commitments arising from non-cancellable contracts for services with specified directors.

Director and Executive Disclosures (continued) 22.

The following table provides the details of all directors of the Company ("specified directors") and the nature and amount of the elements of their remuneration for the year. The Company did not have any "specified executives" at balance date.

THE RUNNER

		Salary & fuse		от оставляющим миним	Tanza Compensation Value of Ormans 2		muses 1
	2.964	▒ na 10.	$-20.019$	THE REAL PROPERTY	TANGER	-210186	Kamananan 2902	WADARE
Specified directors. Executive ~ ∵D P Waddell	251,902	193,625	22,300	16,500			274,202	210,125
$\sim$ O E Comb $*$	94,850	19,260	8,962	$-3,340$	79.079		182,891	22,600
Non-executive ~ -M E Kavanagh `*	199,712	165,907	5,429	15,355			1205,141	181,262
Specified executives
- Total	546,464	378,792	36,691	35,195	79,079		662,234	413,987

Mr G Comb became an executive director as from 1 January 2004.

Effective 1 July 2003, Mr M Kavanagh resigned as an executive director of Tanami Gold NL and has continued in the capacity of a non-executive director. In accordance with the terms of Mr Kavanagh's employment agreement, a gross payment of \$140,000 was made, together with other entitlements.

@ The fair value of the options is calculated at the date of grant using the Black-Scholes model for attributing a theoretical value to these options,

Equity holdings and transactions

The movement during the reporting period in the number of shares held, directly, indirectly or beneficially by each specified director and $\sim$ specified executive, including their personally-related entities, is as follows: $\sim$ . . . . . . . . . . . . . . . . . . .

Criticary publy paid startes	RABAH WAS Thain Piato			ARRIVERSHIPS 30 Jane 2009
Specified directors	The and
Mr D P Waddell	3,225,001	210.000		3,435,001
Mr G E Comb	. 1,017,599. .	. 40.700.	.	1 DSS 299
. Mr M E Kayanagh	Profession IZ 500.	. . 36.250.		የዩ ንዳስ

klaid sti TAR HURE Ритскамся neri udan saares 50 June 2004 JULIAN PARTIES
Specified directors
∐Mr D P Waddell 8,612,501 . . 8,612,501
- Mr G E Comb 8,399,596 8.399.596
a mengajar 777 H G L The property of it Peace each the control 3,023,750 13,023,750 - Mr M E Kavanagh

ANNUAL REPORT 12004

Director and Executive Disclosures (continued). 22.

TANAMI STATISTICS

Equity instruments

Option holdings

Unlisted Director Options

The movement during the reporting period in the number of options over ordinary shares exercisable at \$0.20 on or before 27 November 2008 held, directly, indirectly or beneficially by each specified director and specified executive, including their personally-related entities, is as follows:

	Therefore an accommodate THE REAL PROPERTY	Grabbac as TERMINING AND kalaman katakatan di kambin mbin musik da atau manandi d		******** AD BBW 2004
manifesti il kontonen mendibentan ili kaj produktanski keratik (kralj di konto The company and any angle of a product Specified directors with a contract in a contract in a control and the state of the state of the state of the ≅Mr D P Waddell	a wage and the theory of and the case of the concert. .	group from a law and a sea the state of the component control of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of th . The concentration of the contract of the the communication of the part	The Council .	and a filter show who was a title way .
≅ Mr G E Comb	The component control The second control of the property of the	1.1111 . 1 1,500,000	CONTRACTOR $\mathcal{L}{\mathcal{M}}$ . The contract $\mathcal{L}{\mathcal{M}}$ is the contract of	San Francisco The County of $-1.500,000$
the financial component in the contract of the contract of the first state of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of Mr M E Kayanagh	MARKET WIND ACCOUNT AND The experience of the second distribution of	i Personalista eta Anglica (m. 19 i Serbia da da da da Maria de 1	$1 - 2000000000000000000000000000000000000$ ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, in Secondo Marcologie	.

e digitale ferral en Tanja (Samarang) The options were granted on 27 November 2003, have an expiration date of 27 November 2008 and an exercise price of 20 cents per share. They were provided at no cost to the recipient, and their fair value is calculated at the date of grant using the Black-Scholes model for attributing a theoretical value to options. The following factors and assumptions were used in determining the fair value of the options on grant dates...

Nua harma	Tanh Valus per USES FRIGHT	2.1220 ADAMS Maria Maria Services Services	BASKARA HILLIGA The concern	Rusk free MEMORIAN MARKET	Orfier discourt.
-500,000	\$0.079	\$0.22	69.282%	5.365%	25%/25%
and the carrying of 500.000	Tallet Ave \$0.053 Service State	. Support Ford the service service	. The reader . 69.282%	$\cdots$ 5.365%	25%/50%
TENTIAN 500,000	---- Charles \$0.026 .	.	-------------------------------------- The County of Northeast Art Allen 69.282%	$\cdots$ 5.365%	25%/75%

Each option entitles the holder to purchase one ordinary share in the Company. All options expire on the earlier of their expiry date or 6 months after cessation of the holder with the Company.

Unlisted Employee Plan Options

44

The movement during the reporting period in the number of options over ordinary shares exercisable at \$0.20 on or before 29 November 2005 held, directly, indirectly or beneficially by each specified director and specified executive, including their personally-related entities, is as follows:

	- Ideil ann 4 Bultz 2003	The Contract Communist Communist Communist Communist Communist Communist Communist Communist Communist Communis TEMAN TANA	Harry	Fredeline WARD TRACK COMPANY
. Specified directors
$\mathbb{A}\mathrm{Mr} \to \mathbb{P}$ Waddell	3,500,000 .		.	3,500,000
$Mr$ G E Comb	. No. 2010 11:53 800,000		and the company of The contract of The security of	and the company of the - 111111111800.000
Mr M E Kavanagh	. . 1,000,000		The Secretary of	The second control

Director and Executive Disclosseres (continued) 22.

Other transactions with the Company or its controlled entities

Two of the specified directors hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities.

Both of those entities transacted with the Company or its subsidiaries during the financial year. The terms and conditions of those transactions were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to unrelated entities on an arm's length basis.

The aggregate amounts recognised during the year relating to specified directors or their personally-related entities, were total expense of \$133,535. Details of the transactions are as follows:

Specified directors	the services. .	$\cdots$ the common
Mr G E Comb	Technical consultancy fees .	A.A.A.A.A.A.A.A.	777 - 177 - 178 150
The contract of the contract of the Mr M E Kayanagh	Service Address Technical consultancy fees	7. is in sance contractors / sp3 contractors	. a Thomas na 1953 a 1955.

(i) The Company engaged the services of Wildsouth Pty Ltd, a company associated with Mr Comb, to provide technical services in the period prior to Mr Comb's appointment as an executive director. Amounts were billed based on normal market rates for such services, and were due and payable under normal payment terms.

(ii) The Company engaged the services of Conway Bay Pty Ltd, a company associated with Mr Kayanagh, to provide geological services during the year. Amounts were billed based on normal market rates for such services, and were due and payable under normal payment terms.

23. Non-Director Related Parties

Wholly-Owned Group

Details of the Company's interest in a wholly-owned controlled entity are set out at Note 10. Details of dealings with this entity are set out below.

Loans

The loan to the controlled entity is unsecured, interest-free and of no fixed term. The loan is provided primarily to fund exploration. expenditure by the controlled entity. Accordingly, the ultimate recoupment of the loan is dependent upon successful development and commercial exploitation, or alternatively, sale of respective tenement interests.

Other Transactions

The Company charges the controlled entity a management fee for services provided. The fee is in the normal course of business.

Balances with Controlled Entity

The aggregate amount receivable from the wholly-owned controlled entity by the Company at balance date is \$39,700,832 [2003; \$19,350,735].

Associate

In August 2003, the Company announced that it had taken a 15% placement (\$1,110,600) in Jabiru Metals Limited ("Jabiru"), made up of 12.34 million shares at 9 cents each, to fund ongoing exploration and to continue the feasibility study of Jabiru's high grade base metal Jaguar Project located 60 kilometres NNW of Leonora. As a result of the placement, Tanami Gold's Managing Director, Denis Waddell was appointed Managing Director of Jabiru.

In January 2004, the Company entered into an arrangement with Jabiru to provide a short-term loan facility of up to \$1,000,000 to that company, based on normal commercial terms. The facility was fully drawn and was subsequently repaid in full, together with interest payable.

From time to time, the Company may purchase various goods and services which are subsequently used by Jabiru, and vice versa. The entities also share facilities such as leased premises and administrative overheads. Inter-entity charges are raised to recoup costs incurred on behalf of each other.

Interest in Joint Ventures $24.$

NOTES TO THE FINANCIAL

TANAMI COLONI

Current joint venture equities are as follows:

Hann Vintures	Managers	Anniencas	UM TERRES EN ANTIGA DE L'ARTI
1.11111111111111111111111111111111111 ∴Larranganni	TGNL	92.5% (2003: 41.5%)	Gold Exploration
- Western Australian	BGAL**	ta a sh 49.0% (2003: 49%)	Gold Exploration
. Northern Territory	Support BGAL**	Sales 49.0% (2003: 49%)	Gold Exploration
Mt Solitary	FGNL	The company $\sim$ Earning 60% (2003: 60%)	Gold Exploration
- Yuendumu	TGNL	-80% (2003: Earning 80%) - 75.	Gold Exploration

$S_{\mathbb{C}}(T_{\mathbb{C}}(A),T_{\mathbb{C}}(E_{\mathbb{C}}(M),E_{\mathbb{C}}(N_{\mathbb{C}}(T),S_{\mathbb{C}}))$

$\Box Q\sqcup Q\sqcup N\sqcup T\sqcup I\sqcup N\sqcup U\sqcup E\sqcup D$

5,983,138

5,153,350

BGAL = Barrick Gold of Australia Limited

• GRNL = Glengarry Resources NL
• $\operatorname{TONL}$ = Tanami Gold NL
• * GRNL retain 7.5% free carried interest
• the BGAL have earned a 51% interest

Included in the assets and liabilities of the consolidated entity are the following items, which represent the consolidated entity's interest. in the assets and liabilities employed in the above joint ventures:

IN STRAIGHT
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, District Control Department of the Control WEIGHALLOOD COMMUNISTIES FOR DEVELOPMENTS
season of the back as	.

Non-Current Assets

46

• Exploration and evaluation expenditure.
• $25.$ Segment Information
• The consolidated entity operates predominantly in the gold exploration industry in the Tanami region of Australia.

Earnings Per Share 26.

Weighted average number of ordinary shares used as the 213,401,533 165,745,091 denominator in the calculation of basic earnings per share

Potential ordinary shares are not considered dilutive and accordingly diluted earnings per share is not disclosed for this reason.

	E MATERIAL ETA ETA EZAN D		Koleyskepres
		IZVAR	ED SY	DAYSK
Notes to the Statement of Cash Flows. 27.
Reconciliation of cash $\langle x \rangle$
For the purposes of the statements of cash flows, cash includes cash on hand and at bank and short term deposits at call, net of outstanding bank overdrafts. Cash as at the end of the
financial year as shown in the statements of cash flows is creconciled to the related items in the statements of financial position as follows:
Cash assets	4,727,098	2,458,398	42,439	2,416,110
$\langle b \rangle$ Reconciliation of net cash flow from operating activities to loss from ordinary activities
Loss from ordinary activities		$(2,953,076)$ (1,993,052) (2,965,908).		(1,993,052)
Add/(less) non-cash items:
Exploration expenditure written off	1,918,515	1,546,635		21
Provision for non-recovery of loan			3,057,541	2,108,541
Depreciation	89,791	18,503
Share of associate's net loss	(12, 832)
Add/(less) items classified as investing/financing activities:
Profit on disposal of fixed assets	(24, 818)
Loss on disposal of investments	1,748		1,748
Net cash (used in)/provided by operating activities before changes in assets and liabilities	(980, 672)	$-(427,914)$	$-93,381$	$-115,510$
Changes in assets and liabilities during the financial year:
(Increase) in capitalised exploration expenditure	(5,048,551)	(1,618,426)		(21)
(Increase)/Decrease in receivables	(382, 230)	$(20, 273)$ .	3,547.	(3, 547)
(Increase)/Decrease in inventories	(70, 027)
(Decrease) / Increase in provisions.	11,910	12.010
(Decrease) / Increase in payables.	1,332,255	63,545
Net cash provided by/(used in) operating activities	(5,137,315)	(2,001,058)	96,928	111,942
Non-cash financing and investing activities {¢}.∸

e
Milia

On 16 January 2004, Tanami Gold NL issued 25,000,000 ordinary fully paid shares at an issue price of 20 cents per share, to AngloGold Ashanti Australia Ltd as part consideration for the acquisition of the Western Tanami Project. This transaction is not reflected in the statements of cash flows.

Financial Instruments Disclosure 28.

Intereșt Rate Risk Exposure $(a)$

TANAMI GOLD N

Cash includes funds held in commercial bills and in cheque and business management accounts, which during the year earned interest at rates ranging between 0% and 5.36% (2003; 0% and 4.90%), depending on account balances.

Interest-bearing liabilities comprise a bank loan which attracted interest during the year at 7.52%.

All other financial assets and liabilities are non-interest bearing.

(b) Credit Risk Exposures

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.

N O T E S - T O . T I E - F I N A N C I A L . S T A T E M E N T S - C O N T I N U E D

The credit risk on financial assets of the consolidated entity which have been recognised in the statement of financial position, is the carrying amount, net of any provision for doubtful debts.

The consolidated entity's exposure to credit risk arises primarily from the mining industry.

The consolidated entity is not materially exposed to any individual overseas country or individual customer.

Net Fair Values

(c)

48

The financial assets and liabilities included in assets and liabilities in the statement of financial position are carried at amounts that approximate net fair values. The fair value of investments in listed companies is disclosed at Note 10(a).

29. Events Subsequent to Balance Date

On 30 August 2004, Tanami Gold NL acquired a further 5,882,354 shares in Jabiru Metals Ltd ("Jahiru") for a cost of \$1 million, increasing its total shareholding to 23,222,354 shares, representing 18.5% of the issued capital of Jabiru.

On 5 August 2004 the Company announced that it had purchased the Brocks Creek gold processing plant for \$800,000 from the Harmony Gold Mining Company Limited and Northern Gold NL Joint Venture. The CIP plant is complete from crushing station to CIP gold recovery circuit and includes laboratory, spare parts inventory, store and workshop.

The financial effect of these transactions have not been brought to account in the financial statements for the year ended 30 June 2004.

$D$ irectors $D$ eclaration

In the opinion of the Directors of Tanami Gold NL:

• the financial statements and notes, set out on pages 27 to 48, are in accordance with the Corporations Act 2001, including:
• giving a true and fair view of the financial position of the Company and consolidated entity as at 30 June 2004 and of their $\langle i \rangle$ . performance, as represented by the results of their operations and their cash flows, for the year ended on that date; and
• (ii) complying with Accounting Standards and the Corporations Regulations; and
• as set out in Note 1(a), there are reasonable grounds to believe that the Company will be able to pay its debts as and when they $(b)$ have become due and payable.

$\begin{tabular}{l|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c$

Dated at Perth this 30th day of September 2004.

Signed in accordance with a resolution of the directors:

Grande Ladian

D P Waddell Executive Chairman

$\langle a \rangle$

Independent Audit Report

Independent audit report to members of Tanami Gold NL

EANAMI

Independent audit report to members of Tanami Gold NL

Scope

The financial report and directors' responsibility

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements, and the directors' declaration for both Tanami Gold NL (the "Company") and the Consolidated Entity, for the year ended 30 June 2004. The Consolidated Entity comprises both the company and the entity it controlled during that year.

The directors of the Company are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Audit approach

50

We conducted an independent audit in order to express an opinion to the members of the $\cdot$ Company. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional. judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001, Australian Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the Company's and the Consolidated Emity's financial position, and of their performance as represented by the results of their operations and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

• sellexamining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
• 8 assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001

Audit opinion

In our opinion, the financial report of Tanami Gold NL is in accordance with:

a) the Corporations Act 2001, including:

L Sgiving a true and fair view of the Company's and Consolidated Entity's financial position as at 30 June 2004 and of their performance for the financial year ended on that date, and

ANNUAL REPORT 12004

IN DEPLANCENT AND DET REFORMED BY LAD COMMUNIS

• it Complying with Accounting Standards in Australia and the Corporations Regulations 2001; and
• b) other mandatory professional reporting requirements in Australia.

Kand

KPMG

ir Cause

D P McCOMISH Partner

Perth 30 September 2004

$S \hbox{~a~} r \hbox{~e~} h \hbox{~o~} 1 \hbox{~d~} e \hbox{~r~} 1 \hbox{~n~} f \hbox{~o~} r \hbox{~m~a~} t \hbox{~i~o~} n$

Distribution of Equity Securities as at 27 September 2004:
	Griffner: Shares Allen and Communist	1924 - Roman Louisiaux, Italia 2000an - Paulon Maria III, primeira eta politikaria
1,000
$1,001$ $3,000$	546
1985 - San Timerando 15,001 112 111 10,000 1
$-10,001$ matrix $-100,000$ and	-900	- 173
:100,001 and 21 over
Tantan di Kabupaten Ba Total number of holders	2115	-646
a kama a jiya kasar wasan ing kasa t the come of the technology and a complete the complete of a constant of the following special complete ${1}$ Holders of less than a marketable parcel as at 27 September 2004:
- Ordinary Shares -	362 (538,858 shares)
Tantara Manazarta (j. 1878) - Contributing Shares -	331 (1,062,410 shares)
Substantial Shareholders as at 27 September 2004:
The details of substantial shareholders as set out in notices given to the Company are:

• AngloGold Ashanti Australia Limited - 27,000,000 Ordinary Shares.

M&G Investment Management Limited - 2019,605,000 Ordinary Shares.

Voting Rights

52

On a show of hands, every holder of ordinary shares present or by proxy, shall have one vote. Upon a poll, each share shall have one yote.

On-Market Buy Back

There is no current on-market buy back.

TANAMI GOOD

蕊

		Units Aidd	44 Ories Resear
	National Nominees Limited	41,284,226	14.75%
2.	JP Morgan Nominees Australia Limited	38,798,098	13.86%
3.	AngloGold Ashanti Australia Limited	27,000,000	9.65%
$\ddot{4}$ .	HSBC Custody Nominees (Australia) Limited	18,295,559	6.54%
5.	Westpac Custodian Nominees Limited	18,000,000	6.43%
6.	Citicorp Nominees Pty Limited	14,726,217	5.26%
7.	Barrick Gold of Australia Limited	12,275,000	4.39%
8.	Chanrich Properties Pty Limited	7,300,000	2.61%
9.	Yandal Investments Pty Ltd	6,500,000	2.32%
10.	ANZ Nominees Limited	5,522,500	1.97%
11.	Hugh Green Properties Limited	3.926.000	1.40%
12.	Tamey Holdings Pty Ltd	3,325,001	1.19%
13.	EDM Asset Management Pty Ltd	3,000,000	1.07%
14.	Newport Securities Pty Ltd	2,500,000	.89%
15.	Berne No 132 Nominees Pty Ltd	2,486,334	.89%
16.	RBC Global Services Australia Nominees Pty Limited	2,450,000	.88%
17.	PAPL EBSCO Pty Ltd	2,250,000	.80%
18.	Troy Resources NL	1,800,000	.64%
19.	Faustus Nominees Pry Ltd	1,593,752	.57%
∙20.	Nutsville Pty Ltd	1,475,000	.53%

214,507,687

76.64%

53

3004 AUR BONDLON 2005 EUR OOKING

Top 20 Shareholders - Ordinary Fully Paid 20 Cent Shares

Contributing Shares issued at 20 cents per share and paid to 1 cent each

TOP 20 TOTAL $\,$

		Unis Nobl	of Ones Issued
-1.	Tarney Holdings Pty Ltd	8,612,501	10.12%
2.	Chanrich Properties Pty Limited	7,214,142	8.48%
3.	Bluedale Pty Ltd	5,899,596	6.93%
4.	Citicorp Nominees Pty Limited	4.718.973	5.55%
-5.	Yandal Investments Pty Ltd	3,248,000	3.82%
6.	Westpac Custodian Nominees Limited	2,700,000	3.17%
7.	Conway Bay Pty Ltd	2,523,750	2.97%
8.	Bluedale Pty Ltd	2,500,000	2.94%
-9.	Faustus Nominees Pty Ltd	2,266,876	2.66%
-10.	Hugh Green Properties Limited	2,088,000	2.45%
11.	JP Morgan Nominees Australia Limited	2,000,000	2.35%
$-12.$	Clodene Pty Ltd	1,675,000	1.97%
$-13.$	Fortis Clearing Nominees Pty Ltd	1,550,188	1.82%
$-14.$	Ms Francine Louise Waddell	1,500,000	1.76%
$-15.$	Newport Securities Pty Ltd	1,450.000	1.70%
16.	I E Properties Pty Ltd	1,355,654	1.59%
$-17.$	R P & D Hansen Pty Ltd	1,038.000	1.22%
18.	lemaya Pty Ltd	1,000,000	1.18%
$-19.$	Mr Robert Archer Black & Dr Ann Carolyn Black	1,000,000	1.18%
$-20.$	Ms Nola Ann Comb	772,748	.91%
	TOP 20 TOTAL	55,113,428	64.77%

Schedule of Mineral Tenements

Western Australia

54

TANAMI SARA

																	$\hat{\mathbf{M}}$

Expire Date

WA (TGNL 100%)
E80/1481*	Balwina	05/10/93	04/10/04	$2\,4$
E80/1482	Watts Rise	16/04/92	15/04/05	$2\bullet$
E80/1483	Bold Hill	16/04/92	15/04/05	33
E80/1484	Larranganni	16/04/92	15/04/05	$4\mbox{O}$
E80/1512* *	Oasis	28/07/93	27/07/04	$7\circ$
E80/1515	Billiluna East	09/12/93	08/12/04	$3\mathbb{G}$
E80/1518 *	Schultz Cairn	23/12/93	22/12/04	$64\,$
E80/1526 #	Tent Hill	03/12/93	02/12/04	$70\,$
E80/1677	Slatey Creek	15/03/94	14/03/05	$32\,$
E80/1678	Drumway	15/03/94	14/03/05	$48\,$
E80/1679	Southside	15/03/94	14/03/05	$42\,$
E80/1735 #	Slatey Creek	15/03/94	14/03/05	$70\,$
E80/1737	Camel Hump	22/03/94	21/03/05	$\boldsymbol{28}$
E80/1738	Lewis	09/05/94	08/05/05	$53\,$
E80/1802	Afghan Extended	09/05/94	08/05/05	$5\,\mathrm{L}$
E80/1993	Bandicoot	03/01/95	02/01/05	$18\,$
E80/1994 #	Camel	03/01/95	02/01/05	50
E80/1995	Schultz East	03/01/95	02/01/05	6
E80/2214	Little Afghan	Application		Ť
E(A)80/2238	Blue Tongue	Application
E80/2391	Selby Hills	19/10/00	18/10/05	Ĩ
E80/2452	Pritz	19/10/00	18/10/05	19
E80/2453	Gardner	19/10/00	18/10/05	8
E80/2456	Moloch	19/10/00	18/10/05	22
E80/2513	Leghorn	19/10/00	18/10/05	16
E80/2514	Daffy	19/10/00	18/10/05	$46\,$
E80/2515	Buggsy	19/10/00	18/10/05	$6\,\mathrm{I}$
E80/2528	Afghan East	29/01/01	28/01/06	Ί
E80/3132	Selby North	23/09/03	22/09/08	18
E(A)80/3237		Application
E(A)80/3238		Application		8
E(A)80/3275	Mt Junction	Application		54
E(A)80/3334	Mulgara	Application		67
E(A)80/3335	Numbat	Application		46
E(A)80/3336	Bilby	Application		8

County of County of County Of County

														いきんしきんしきんしきんしきんしきんしきんしきんしきんしきんしきんしきんしきんしき
														.
														.
														.

Nestern Anstralia		Contact Constituted Provident United States Oane		Mircks
WA (TGNL 100%) continued
E(A)80/3378	Tent Hill East	Application		10 °
E(A)80/3379	Bramall Hills East	Application
M(A)80/559	Coyote 1	Application
M(A)80/560	Coyote 2	Application
M(A)80/561	Coyote 3	Application
P80/1329-35	Schultz East	Application		1,325 hectare
	Larranganni JV Project (TGNL 92.5%/GRNL 7.5% +)
E80/1905* #	Larranganni Central	06/09/94	05/09/04	62
E80/1976 *	Watts Rise	21/10/94	20/10/04	$70\,$
E80/1986 *	Bramall Hills	21/10/94	20/10/04	50
E80/2036 *	Larranganni North	17/02/95	16/02/05	$\, 8$
E80/2037 #	Larranganni South	17/02/95	16/02/05	21
E80/2091 #	Watts Rise East	31/10/95	30/10/04	62.
E80/2509	Watts Rise South	19/10/00	18/10/05	49
M(A)80/562 *	Larranganni I	Application
$M(A)80/563$ #	Larranganni 2	Application
$M(A)80/564$ *	Larranganni 3	Application
WA Joint Venture (Manager - Barrick)	Killi Killi JV (TGNL 41.5%, GRNL 7.5%+, Barrick 51%)
E80/2133	Killi Killi Hills	11/08/04	10/08/09	24
E80/2390	Killi Killi South	19/10/00	18/10/05	52
Bloodwood JV (TGNL 49%, Barrick 51%)
E80/2274	Bloodwood Bore	12/08/04	11/08/09	36
E80/2298	Pussycat Bore	12/08/04	11/08/09	24
E80/2371	Nora Range	12/08/04	11/08/09	$2\sqrt{2}$
WESTERN AUSTRALIA TOTAL				5,178 km
Extension of term applied for.
	& Subject to royalty/claw back agreement with Barrick Gold of Australia
	* Glengarry Resources Ltd retain a 7.5% free carried interest.
Nurfacer familie
NT Joint Venture (tgnl 49%, Barrick 51%)
EL5888	Supplejack	22/08/02	21/08/08	155
EL5889	Birrindudu	22/08/02	21/08/08	197
EL8809	North Breade	17/10/02	16/10/08	25
EL9788	Six Block	22/08/02	21/08/08	6
EL22965	Bluebush	13/02/03	12/02/09	68
EL23472	Birrindudu Tw	28/01/03	27/01/09	62
Eastern Tanami Projects (TGNL 100%)
EL10139	SW Pargee	17/10/02	16/10/08	110
EL(A)23523	Supplejack North	Application		120

$\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c$

$\tilde{2}\tilde{2}$

TANAMI CONTRACTO

S.C. REDULETOFTMINERALTTENEMENTS TOONTINUED

Dary

wenn

$31/05/10$

39

01/06/04

Mula

$80$ hectares $\,$

1989 - Andrea Britain, amerikan bizi bizi bizi bizi bizi bizi bizi biz
Mertholi Terrisory - 1999

$\mathbb{I}$

EL 23990

$56\,$

Mt Hardy East

Tanami-Arunta Projects		Northern Australian and Australian and Australian and Australian and Australian March 2000 (1999) (1999) (1999) Telesisessä kaupuna saajalla suurin suurin suurin suurin suurin suurin sekkeekeekeen totottottottottottottotto .
Lake Ruth (TGNL 100%)	.
- MCS(A)233/4	Lake Ruth-	Application
Chilla Well Project (TGNL 100%)

EL(A)23641	Singleton North	Application		203
EL(A)24139	Wild Car Bore	Application		434
EL(A)24140	Lone Rock	Application		434
EL(A)24141	Yurundju Hill	Application		435
Solitaire Project (TGNL 100%)
EL10216	Solitaire	27/09/00	26/09/06	60
Walkeley Project (TGNL 100%)
EL(A)22554	Stud Hohne	Application		500
EL(A)22555	Walkeley	Application		500
EL(A)23487	Lander	Application		$178\,$
EL(A)23488	Mt Barkly	Application		$75\,$
EL(A)23926	Ngadiri	Application		487
EL(A)23927	Yinabalbu	Application		486
Lake Mackay Projects Highland Rocks Project (TGNL 100%)
EL(A)10306	Russet SW	Application		109
SEL(A)22156	Nardudi 2	Application		475
EL(A)23898	Russet Ridge	Application		185
Lake Mackay (TGNL 100%)
EL8694	Sandord	22/08/02	21/08/08	$110\,$
EL(A)8695	Sandford Cliffs	Vetoed (5 years)	5. 02/06/03	433
EL8696	Redvers	22/08/02	21/08/08	296
EL8697	Redvers North	22/08/02	21/08/08	$21\,\mathrm{I}$
EL(A)9343	Egerton	Vetoed (5 years)	02/06/03	$331\,$
EL9442	Superior	22/08/02	21/08/08	324
EL9449	Victoria	22/08/02	21/08/08	$92\,$
EL(A)10305	McEwin Hills	Vetoed (5 years)	12/06/03	$26\,$
EL(A)23964	Placid	Application		384
EL(A)24299	St. Claire	Application		64
Mt Doreen Project (TGNL 100%)
ELICO63	Mt Singleton	30/10/01	29/10/07	222
EL10064	Buger Creek	30/10/01	29/10/07	393
ELIQ169	Saltbush Bore	30/10/01	29/10/07	29
EL10407	Silver King	30/10/01	29/10/07	75
EL22771	Mt Hardy	30/10/01	29/10/07	218
EL23460	Yaloogarrie Creek	12/03/03	11/03/03	114
EL 23925 EL(A)23968	Atlee Creek	19/02/04	18/02/10	153
	Rock Hill	Application		333.

$\begin{array}{l} \mathbb{E}\left[\mathbb{V}^{\mathcal{A}}\right] \oplus \mathbb{E}\left[\mathbb{V}^{\mathcal{A}}\right] \oplus \mathbb{V}^{\mathcal{A}}\left[\mathbb{V}^{\mathcal{A}}\right] \oplus \mathbb{V}^{\mathcal{A}}\left[\mathbb{V}^{\mathcal{A}}\right] \oplus \mathbb{V}^{\mathcal{A}}\left[\mathbb{V}^{\mathcal{A}}\right] \oplus \mathbb{V}^{\mathcal{A}}\left[\mathbb{V}^{\mathcal{A}}\right] \oplus \mathbb{V}^{\mathcal{A}}\left[\mathbb{V}^{\mathcal$

Romer and Communication			Ciranted Prono Brown Date
	Yuendumu Joint Venture (TGNL 60% - earning upto 80%)
EL8434	Nicker	18/04/00	17/04/06	302
Kainesi Asistesilmin jossistemi kannon kuni		. Gezansa fresz	Expiry Date	Kemes
Alcoota Project (TGNL 100%)
EL9801	Spinifex Bore	28/07/03	27/07/09	500
EL9802	Kuraljin Bore	28/07/03	27/07/09	472
EL9803	Alcoota	28/10/02	27/10/08	470
EL9804	Waite River	28/10/02	27/10/08	144
EL9805	Woodgreen	28/07/03	27/07/09	462
EL9806	Delmore Downs	18/11/02	17/11/08	202
EL9836	Bangtail Bore	13/08/03	12/08/09	127
EL22924	Delny	23/12/02	22/12/08	325
EL(A)24119	Ledan Peak	Application		114
Burt Plain Project (TGNL 100%)
EL10401	Yambah	06/12/01	05/12/07	$83\,$
EL22921	Titra	28/10/02	27/10/08	207
EL22922	Burt	23/12/02	22/12/08	315
EL22923	Strangways	28/08/02	27/08/08	236
Harts Range Project (TGNL 100%)
EL10078	Mt Riddoch	05/09/01	04/09/07	$2\mathbb{O}$
EL10142	Brumby Dam	21/05/02	20/05/08	59
EL10158	Mt Ruby	21/05/02	20/05/08	$181\,$
EL10302	Mt Chapman	31/01/02	30/01/08	43
EL22917	Eldorado	10/07/02	09/07/08	6
EL22919	Indiana	01/10/02	30/09/08	86
EL23185	Mt Coghlan	28/02/03	27/02/09	$15\,$
EL23193	$M\mathfrak{c}$ Murief	23/12/02	22/12/08	8
EL23194	Ambulbinya	23/12/02	22/12/08
EL23195	Inkamulla Creek	23/12/02	22/12/08
EL23365	Spriggs Creek	23/12/02	22/12/08	15
Home of Bullion Project (TGNL 100%)
EL9799	Home of Bullion	07/01/03	06/01/09	49
EL10050	Millionaire's Well	06/02/03	05/02/09	Ю
EL10051	Hoquara	06/02/03	05/02/09	46
EL23122	Krakatos	06/02/03	05/02/09	232
Huckitta Project (TGNL 100%)
EL23636	Yam Creek	26/05/03	25/05/09	30
EL23637	Mt Baldwin	11/04/03	10/04/09	86
Napperby Project (TGNL 100%)
EL9814	Anningie	04/03/03	03/03/09	33
EL22387	Hanson	26/03/03	25/03/09	74

57,

TANAM

ra a C

a sa Sa

58

1. . . . . . . . . . . . . . . . . . . KANAN r
   Bara to sa s kita iliku Kongressi e.
   Geografia an sa SCHEDULE OF MINERAL TENEMENTS CONTINUED se film anno anno anno anno anno anno anno ann

Napperby Project (TGNL 100%) continued Ti Tree	Application
Mt Judith	23/12/02	22/12/08
Ti Tree West	Application
		01/04/08
Arltunga
Mt Solitary
Mt Skinner
Mt Liebig	Application
Рарипуа	Application
Derwent Downs	28/10/02	27/10/08
Epenarra	04/03/03	03/03/09
			57,642 km 3
	Woodforde Ingallan Creek Reynolds Range Project (TGNL 100%) Stafford Mt Treachery Anmatjira Beantree Winnecke Project (TGNL 100%) Turners Randalls Ambalindum Mordor Hale River Gecko Harry Creek Golden Goose Depot Creek Southern Arunta Projects Mt Solitary Joint Venture (TGNL earning 60%) Highway Ti Tree East Mt Liebig Project (TGNL 100%) Tennant Creek Inlier Project Epenarra Project (TGNL 100%) NORTHERN TERRITORY TOTAL	Application 23/12/02 12/08/04 01/06/04 01/06/04 01/06/04 14/05/02 06/12/01 06/12/01 21/05/02 06/12/01 02/04/02 02/04/02 26/04/02 05/03/03 11/04/03 08/07/03 Application Application 08/07/03	22/12/08 11/08/10 31/05/10 31/05/10 31/05/10 13/05/08 05/12/07 05/12/07 20/05/08 05/12/07 01/04/08 25/045/08 04/03/09 10/04/09 07/07/09 07/07/09

This page left blank intentionally.

$\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c$

59.

DANA WI
KOOLD NI

Level 4, 50 Colin Street, West Perth, Western Australia 6005
PO Box 1892, West Perth, Western Australia 6872 - Telephone: 61 (8) 9212 5999 Facsimile: 61 (8) 9212 5900
Email: tanamigold@tanami.com.au - Website: www.tinami.com.au