TANAMI GOLD NL — Capital/Financing Update 2004

Jun 21, 2004

22 June 2004

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

Dear Sir

HIGH GRADE DRILL RESULTS AT COYOTE

The Directors of Tanami Gold NL (Tanami Gold) wish to update shareholders and the market on the Covote Gold Project (Coyote) resource delineation and extension drilling program.

As stated in previous announcements the Company's development plans for the Coyote Gold Project include a priority objective of increasing resources and reserves. An initial infill RC percussion drilling program has been completed at Coyote comprising 42 holes for 4,712 metres.

Drilling has targeted extensions to existing mineralised lodes within the current resource model with the aim of maximising the open pitable resource. The drill program returned numerous ore grade intersections, and included a number of highly significant intercepts as outlined in Table 1.

Hole Number	Easting (AMG)	Northing (AMG)	Dip (degrees)	Azimuth (degrees)	From (metres)	Tо (metres)	Length (metres)	Αu (grams/tonne)
CYRC0479	482275	7799650	-60	180	182	189		19.1
CYRC0455	482600	7799694	$-60$	180	94	98	4	24.7
CYRC0471	482125	7799615	-60	180	146	160	14	13.5
CYRC0449	482650	7799685	-60	180	50	62	12	7.1
CYRC0467	482075	7799515	-60	180	54	64	10	11.4
CYRC0457	482575	7799685	$-60$	180	88	91	3	14.5
CYRC0451	482625	7799685	-60	180	53	62	9	3.6
CYRC0453	482625	7799735	-60	180	64	75	11	2.5

TABLE 1: Significant RC Drill Results from Coyote Drilling April-June 2004

The drilling program has led to additional confidence in continuity of the ore zones within the Coyote mineralised system and incremental extensions to the current resource.

A program of infill RC percussion drilling has recently commenced at the Kookaburra and Sandpiper Deposits at Larranganni, 35 kilometres north of Coyote. The program is similarly aimed at maximising the open pitable resources.

Remodelling and re-estimation of the Coyote and Larranganni Mineral Resource is planned to be completed by the end of July 2004.

Drilling programs associated with the ongoing Bankable Feasibility Study (BFS) have also been completed at Coyote, and are nearing completion at Kookaburra-Sandpiper. The drilling comprises geotechnical and metallurgical Diamond Core Drilling and sterilisation Aircore drilling beneath the planned plant infrastructure, waste dumps and tailings dam sites.

Following completion of the Coyote and Larranganni resources and BFS drilling programs, drilling of numerous new targets along strike and near Coyote, Kookaburra and Sandpiper will commence. Although drilling delays have been experienced due to the extended wet season and recent unseasonal rains, the Company is working towards completion of the BFS during the September 2004 quarter with production commencement planned by mid 2005 at a minimum 60,000 ounces per annum.

Yours faithfully Tanami Gold NL

Langles 2

Gary Comb Managing Director

ASX_TAM_Coyote_22June2004

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.

TANAMI'S COYOTE DEVELOPMENT PLANS BOOSTED BY HIGH-GRADE GOLD HITS

EXCELLENT RESULTS HIGHLIGHT LIKELIHOOD OF FURTHER RESOURCE EXPANSIONS

Tanami Gold NL's (ASX: TAM) unfolding development plans for the Covote Gold Project in the Northern Territory have received a major boost with new drilling to increase the existing 412,000-ounce resource inventory vielding excellent high-grade gold intersections.

The Perth-based Company said an initial in-fill RC percussion drilling program comprising 42 holes for 4,712 metres had been completed at Coyote, increasing confidence in the continuity of the ore zones within the mineralised system and the likelihood of incremental extensions to the resource. Best results included:

• 7 metres at 19.1 g/t from 182 metres ۰
• 14 metres at 13.5 g/t from 146 metres
• 4 metres at $24.7$ g/t from 94 metres ۰
• 12 metres at 7.1 $g/t$ from 50 metres ۰
• 10 metres at 11.4 $g/t$ from 54 metres
• 3 metres at $14.5$ g/t from 88 metres $\bullet$

"These excellent results confirm the quality of the Coyote deposit and highlight the significant potential to increase the resources at and along strike from Coyote," said Tanami's Chairman, Mr Denis Waddell. "Our development plan is focused on increasing the reserves and resources at Coyote in the short-term as the basis for establishing a significant production profile for the Company."

"With ongoing feasibility work, resource extension and in-fill drilling at Coyote and a program of in-fill RC percussion drilling recently commenced at our Kookaburra and Sandpiper deposits, 35km to the north, we currently have four drill rigs active in the Western Tanami region," he added.

Tanami acquired the Coyote Project from AngloGold last year in a A\$14 million scrip and cash transaction, increasing its total resource inventory in the Western Tanami to 572,000 ounces including its Larranganni resources to the north.

The Company immediately commenced a Bankable Feasibility Study based on a project scoping of a minimum of 60,000 ounces annual production through a 350-450,000tpa plant at a cash cost of approximately A\$300/ounce.

"Exploration success, both through the delineation of new resources and through regional exploration targeting new areas, will underpin plans to lift annual production with our objective to achieve first gold production by mid-2005," Mr Waddell said.

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Released by: Jan Hope / Nicholas Read Jan Hope & Partners Telephone: (+61-8) 9388 1474

On behalf of: Mr Denis Waddell Executive Chairman Tanami Gold NL Telephone: (+61-8) 9212 5999

Background Information

Tanami Gold NL (ASX: TAM) is a successful Australian gold exploration and development group. Since listing on the ASX in 1994. Tanami has acquired a major ground position in the Tanami-Arunta Province, gaining access to large areas through negotiating agreements with the traditional Aboriginal owners, and completing successful regional early stage exploration programs in its own right and through joint venture partners.

Tanami currently holds granted tenements and tenement applications in the region covering 77,000 square kilometres.

On 24 November 2003 the Company announced that it was the successful bidder for AngloGold's Coyote Project in the Western Tanami. The high quality Coyote gold deposit together the Company's existing Kookaburra and Sandpiper deposits took the Company's total resources in the Western Tanami to 572,000 ounces of gold.

The combined Covote and Larranganni resources provide a strong base for Tanami Gold to commence gold production. In January 2004 the Company commenced a Bankable Feasibility Study targeting mid-2005 gold production.

Tanami also has a strategic 18.3% stake in base metals group Pilbara Mines Ltd (ASX: PIL), which is developing the high-grade Jaguar Project (1.7 million tonnes at 3.7% copper, 11.9% zinc and 127 g/t silver), 60km north of Lenoroa in Western Australia. A decision to commence a Bankable Feasibility Study for the project was made in February 2004 with a mid 2005 production start date

For further information, refer to www.tanami.com.au

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