TANAMI GOLD NL — Capital/Financing Update 2007

Oct 21, 2007

TANAMI GOLD NL

22 October 2007

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

Dear Sir

COYOTE GOLD PROJECT HIGH GRADE GONZALES LODE EXPOSED IN OPEN PIT MINING

The Directors are pleased to announce that with the deepening of Pit 2 at Coyote, the top of the high grade Gonzales Lode has been exposed with high grade ore being mined.

The Gonzales Lode, has a resource grade of 18.5g/t gold and strikes over 600 metres with a shallow westerly plunge. Ongoing open pit mining in Pit 2 (Main Pit) has recently exposed the upper eastern end of the Gonzales Lode from approximately 45 metres below surface.

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Grade control drill holes and trench sample assays from the 347.5m RL in Pit 2 demonstrate a close correlation between the location, width and strike extent of the Gonzales Lode against the 3D model used in resource estimation.

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

In addition, when compared against adjacent RC Percussion Exploration and Development drill holes, assays at the 347.5m RL returned for RC Percussion Grade Control drilling actually demonstrate an increase in grade, including many high grade assays of up to 150g/t Au and 119g/t Au (see Table 1 below).

Table 1. Coyote Gold Project, Gonzales Lode Drilling Significant Intercepts, Pit 2 347.5m RL

Hole Number	From (metres)	To (metres)	Width (metres)	Estimated True Width (metres)	Gold Assay (grams/tonne)
Grade Control Drilling
CG1795	6	8	2	0.9	12.7
CG1797	11	12	1	0.5	150
CG1798	7	9	2	0.9	15.2
CG1800	11	12	1	0.5	3.0
CG1801	6	7	1	0.5	35.9
CG1804	6	8	2	0.9	59.4
CG1806	0	2	2	0.9	119
CG1808	7	8	1	0.5	7.4
CG1810	3	5	2	0.9	55.7
CG1812	10	12	2	0.9	45.9
RC Percussion Exploration & Development Drilling
CYRC0070	70	71	1	0.5	6.9
CYRC0314	90	93	3	1.2	25.8
CYRC0318	126	129	3	1.8	26.4
CYRC0009	91	92	1	0.5	10.8
CYRC0440	89	91	2	0.9	9.1

Exposure of the Gonzales Lode in Pit 2 continues to reflect the higher gold grades being achieved as the open pit deepens, which has also been reflected in the Pit 2 Main Lodes mined to date.

The majority of the Gonzales Lode will be mined from underground following development of the portal and decline which is on schedule to commence by the end of November 2007.

Yours faithfully

Tanami Gold NL

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Denis Waddell Executive Chairman

Note:

The information in this report is compiled by Mr Tim Smith, MAIG, a full time employee and Exploration Manager of Tanami Gold NL. Mr Smith has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Smith consents to the inclusion in the report of the matters based on his information in the form and content in which it appears.