TANAMI GOLD NL — Capital/Financing Update 2007

Oct 25, 2007

TANAMI GOLD NL

26 October 2007

The Manager Company Announcement Office ASX Limited Exchange Centre, Level 4, 20 Bridge Street SYDNEY NSW 2000

Dear Sir

COYOTE GOLD PROJECT UPDATE

Development of Underground on Target

The development of the Coyote Gold Project is progressing very well with the commencement of the underground portal and decline on schedule to commence within the next few weeks. Gold production has been steadily increasing in recent months as the main Coyote pit has deepened. A significant lift in gold production will be achieved when the much higher underground ore (+13g/t Au) is mined and treated following development of the underground mine over the next six to nine months. As the underground mine is developed, gold production will ramp up to a minimum 50,000 ounces per annum by June 2008 with a target production rate of 70,000 ounces per annum by June 2009.

Over $50m has been spent during the past eighteen months on establishing the treatment plant and mining the main open pit to its current level to enable access to the high grade underground ore.

The treatment plant is now fully operational with high recoveries being achieved and the major upgrade of three new leach tanks on schedule for completion by December 2007. In addition, a significant amount of open pit mining has been completed to date with the pit floor depth only 7.5 metres above the underground portal depth.

Installation of protection fencing for the portal, on the berm at 345mRL above the portal position, is underway. The underground mining Contractor is currently making arrangements to mobilise equipment and personnel to site to commence portal and decline development, as scheduled, during November 2007.

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RL 342.5
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Pit 2

Level 4, 50 Colin Street, West Perth, Western Australia, 6005 � P.O. Box 1892, West Perth, Western Australia, 6872 Tel: +61 (8) 9212 5999 � Fax: +61 (8) 9212 5900 � Email: tanamigold@tanami.com.au � Website: www.tanami.com.au. � ABN: 51 000 617 176

Tanami Gold NL

2

Progress at Sandpiper and Kookaburra Open Pits

Preparations are also being made for the mining of the Sandpiper and Kookaburra pits in the Bald Hill area located 35 kilometres north of the Coyote treatment plant. The open pit ore from Sandpiper and Kookaburra will provide supplementary mill feed to the high grade Coyote underground ore after mining of the Coyote open pits is completed.

All approvals have recently been received for the mining of the Sandpiper and Kookaburra open pits. These approvals include the Environmental Protection Statement approved by the Minister for Environment, Works Approval from the Department of Environment and Conservation and the Project Management Plan from the Department of Consumer and Employment Protection, Resources Safety. The bonds relating to Sandpiper and Kookaburra (totalling $646,000) as required by the Department of Industry and Resources have been put in place.

Site preparation for the first program of grade control drilling has commenced and drilling will start next week as the first stage in preparation for mining.

With all approvals now in place, construction of the 35 kilometre haul road between the Coyote treatment plant and Bald Hill and mining will commence during the December 2007 Quarter.

Tanami Gold NL is debt free and is highly leveraged to the rising gold price with no gold hedging in place.

Yours faithfully

Tanami Gold NL

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Denis Waddell Executive Chairman