TANAMI GOLD NL — Capital/Financing Update 2003

Sep 2, 2003

Vision to Resources

3 September 2003

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

Dear Sir

JAGUAR PRE-FEASIBILITY STUDY DIAMOND DRILL PROGRAM

Pilbara Mines Ltd (ASX:PIL) is pleased to announce the commencement this week of further diamond drilling at the 100% owned Jaguar Cu, Zn, Ag deposit, located 60 kilometres north of Leonora in the NE Goldfields region of Western Australia.

The drill program has been made possible by the injection of over \$1.1 million into PIL by Tanami Gold NL (ASX:TAM) after taking a placement of 15% of PIL shares in mid August 2003 (refer ASX) announcement of 14 August 2003). The PIL Directors welcomed TAM's investment in the company, which introduces further technical and commercial expertise and a strong Australian and international shareholder base. TAM's investment in PfL will facilitate a fast-tracking of the feasibility study aimed at development of the Jaguar Project.

The drill program at Jaguar is designed to upgrade the resource classification in the lower parts of the deposit and to increase the resource tonnes (currently 1.72 million tonnes $\omega$ ) 3.6% Cu, 11.9% Zn, 127g/t Ag, classified as Inferred). Recent block modelling of the deposit has resulted in 61% of the resource being classified as Indicated under the JORC code.

The exploration program will consist of approximately 3,000 metres of diamond drilling which will provide samples of the ore body for assay, further metallurgical test work and geotechnical information for mine design studies.

Yours faithfully Pilbara Mines Limited

Read Wader

Denis Waddell Managing Director

Note:

This information, so far as it pertains to Ore Reserves or Identified Mineral Resources is based on and accurately reflects, information compiled by members of the Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists, each of whom has had at least five years relevant experience in relation to the mineralisation being reported on to qualify as a Competent Person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.