TANAMI GOLD NL — Capital/Financing Update 2003

Aug 13, 2003

14 August 2003

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

Dear Sir

PLACEMENT IN PILBARA MINES LTD

The Directors are pleased to announce that Tanami Gold NL (Tanami Gold) has taken a 15% placement (\$1,110,600) in Pilbara Mines Limited (Pilbara) made up of 12.34 million shares at 9 cents each to provide funding to allow Pilbara to continue the feasibility study (including drilling) of the high grade Jaguar Project (1.7 million tonnes at 3.6% Cu, 11.9% Zn and 127 g/t Ag), located 60 kilometres NNW of Leonora and 30 kilometres SSE of the Lion Ore/Dalrymple Thunderbox (gold) and Waterloo (nickel) deposits.

The Pilbara Directors welcome Tanami Gold's investment in the company which will bring further technical and commercial expertise and a strong Australian and international shareholder base. Tanami Gold's investment in Pilbara will facilitate a fast-tracking of the feasibility study and development of the Jaguar Project.

As a result of the placement, Tanami Gold's Managing Director, Denis Waddell will be appointed Managing Director of Pilbara and John Davis (Managing Director) and Ross Smith (Non-Executive Director) will stand down as Pilbara Directors. Mr Ross Kestel, Pilbara's Company Secretary will be appointed Non-Executive Director pending appointment of an additional Director and operational/mining experience. Gary Comb who has extensive mining operations experience, will remain Non-Executive Chairman of both Pilbara and Tanami Gold.

Pilbara wishes to thank both Ross Smith for his long term commitment to Pilbara from the original acquisition of Teutonic Bore through the establishment and listing of Pilbara and John Davis for his contribution as Managing Director over the past three and a half years.

Yours faithfully

Gary Comb Chairman