TANAMI GOLD NL - Capital/Financing Update 2002

20 December 2002

The Manager Company Announcements Office Australian Stock Exchange Limited PO Box H224 Australia Square SYDNEY NSW 2000

Dear Sir

MORDOR DRILL RESULTS

The Directors are pleased to announce that assays have been received for the recently completed diamond drill program at the Mordor Project 65 kilometres northeast of Alice Springs.

A four hole program (for 886 metres) targeted the platinum group elements (PGEs) platinum and palladium and associated gold mineralisation. The drilling successfully delineated a number of zones containing platinum+palladium+gold mineralisation $(Pt+Pd+Au)$ with a best intersection of 2 metres (a) 1.1 g/t PGE (3E) within a zone assaying 8 metres (a) 0.67 g/t PGE (3E)¹. The Company believes that this mineralisation represents the first recognised occurrence of stratiform PGE mineralisation in a layered mafic intrusion in the Northern Territory.

The Mordor Project targets the rocks of the Mordor Alkaline Igneous Complex (MAIC), an unusual intrusive body with a distinctive magnesium- and potassium-rich geochemistry. The MAIC comprises two main components, a syenite pluton and a layered mafic-ultramafic complex which hosts PGE mineralisation.

The diamond drilling program has established the presence of cyclic layering of mafic-ultramafic lithologies and highlighted the potential for reef-style PGE mineralisation. PGE mineralisation is associated with up to 1% disseminated magmatic sulphides adjacent to the contact of differentiated mica-pyroxenites with overlying peridotite. Drilling has tested a small section of the mafic-ultramafic layered sequence which has up to 2 kilometres thickness and 6 kilometres radial strike length.

Drilling at the Mithril prospect was designed to test under Pt+Pd+Au surface geochemical anomalies located in close proximity to the basal section of the Mt Doom Ultramafics (Figure 2), where numerous rock chip samples assaying in the range $0.30$ to $0.93g/t$ PGE (3E) are associated with extensive soil geochemical anomalies.

Hole	Prospect	Depth	Azimuth	Inclination	Easting	Northing
		(metres)			(MGA)	(MGA)
MOD001	Mithril	247	$320^\circ$	$-50^\circ$	446931	7407906
MOD002	Morannon	254	$301^\circ$	$-51.5^\circ$	446926	7408386
MOD003	Mithril	140	$140^{\rm o}$	$-52^\circ$	446843	7408041
MOD004	Mithril	245	$335^{\circ}$	$-52^\circ$	446868	7407856

DRILL HOLE SUMMARY TABLE 1:

$^{-1}$ 3E refers to three elements being platinum+palladium+gold, where individual element assays in grams/tonne are totalled to give a value in $g/t$ PGE (3E).

Hole MOD1 intersected a zone of fine-grained, disseminated magmatic sulphides (primarily chalcopyrite with lesser pyrrhotite and pentlandite) in a pyroxenite unit immediately adjacent to an overlying olivine-bearing unit. Coincident with the sulphides is a zone of anomalous Pt+Pd+Au results from 202 to 219 metres downhole assaying 8 metres $\overline{a}$ 0.67 g/t PGE (3E) from 204 metres, including 2 metres $(a)$ 1.1 g/t PGE (3E) from 205 metres.

Hole MOD3 was collared to scissor MOD1 and encountered anomalous PGE- bearing sulphides from 36 to 44 metres, with a best intersection of 1 metre $(a)$ 0.84 $g/t$ PGE (3E) from 40 metres. Localised faulting has made it difficult to correlate between the two drill holes.

MOD4 was drilled 80 metres south-west of MOD1. The hole intersected three zones of finely disseminated magmatic sulphides with coincident Pt+Pd+Au anomalism located in pyroxenite adjacent to an overlying peridotitic unit. The best zone of PGE mineralisation assayed 3.5 metres $@$ 0.51 g/t PGE (3E) from 92.25 to 95.75 metres, including 1 metre @ 0.84 g/t PGE (3E) from 93.75 metres. This zone possibly correlates with the sulphide zone encountered in MOD1.

MOD2 was drilled north of the Mithril prospect at the Morannon prospect, and intersected Pt+Pd+Au anomalism (100-160 ppb PGE 3E) associated with fine-grained disseminated sulphides in pyroxenite beneath a peridotite unit.

The spatial association of mineralisation with the contacts between pyroxenite and peridotitic units suggests that interaction between differentiated magma and an influx of more primitive (olivinebearing) magma is responsible for the development of the disseminated PGE-bearing magmatic sulphides. This style of mineralisation is analogous to the stratiform reef-style PGE mineralisation developed in large mafic-ultramafic complexes such as Bushveld, Stillwater or the Great Dyke deposits. This suggests that the processes responsible for stratiform PGE reef mineralisation in maficultramafic intrusions also occurs in the Mordor Complex.

The drilling results show that the Mordor Complex is a legitimate exploration target for stratiform reef-style PGE mineralisation. The Company has so far only tested a small part of the igneous stratigraphy and numerous surface geochemical anomalies remain untested.

The diamond drilling also determined that ultramafic units represent a far more significant portion of the total igneous stratigraphy than previously recognised, greatly increasing the prospectivity of the Mordor Complex. Recognition of the contact positions between the evolved pyroxenites and peridotites as the most likely location for the development of stratiform PGE mineralisation will enable the Company to directly target the relevant portions of the igneous stratigraphy in future exploration programs.

The Mordor data will be reviewed in detail over the wet season break with further exploration planned to commence in March-April 2003 to determine the continuity, tenor and additional reef development within the ultramafic intrusion.

Yours faithfully Tanami Gold NL

Martin Kavanagh Exploration Director

Attachments (2) Mordor ASX Dec02