TANAMI GOLD NL — Capital/Financing Update 2004

May 24, 2004

25 May 2004

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

Dear Sir

\$6.48 Million Placement

The Directors are pleased to announce that the Company and Austock Limited have arranged the placement of 36 million fully paid ordinary shares in the Company at 18 cents each to raise \$6.48 million. The placement has been made pursuant to the provisions of section 708 of the Corporations Act 2001 and under the Australian Securities and Investment Commission Class Order 02/1180.

The shares which have been placed with institutional and private investors both internationally and in Australia, will rank pari passu with all other existing ordinary shares of the Company.

The funds raised will be used for working capital including funding to complete the Coyote Gold Project Bankable Feasibility Study, resource definition drilling to increase resources and reserves at Coyote and Larranganni and the drill testing of numerous advanced targets within the Project area. In addition, the funds raised will enable exploration programs to be undertaken on other 100% owned projects and joint venture projects located in the Tanami-Arunta Province.

Yours faithfully Tanami Gold NL

Read Water

Denis Waddell Executive Chairman

ASX TAM_Placement_May04