TANAMI GOLD NL — M&A Activity 2004

May 17, 2004

18 May 2004

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

Dear Sir

COYOTE ACQUISITION

The Directors are pleased to announce that the terms of the agreement for the acquisition of AngloGold Australia Limited's (AngloGold) Western Tanami Project which hosts the Coyote gold deposit was completed on Friday, 14 May 2004 with the payment of A\$5.0 million to AngloGold.

As previously reported on 20 April 2004, the Australia and New Zealand Banking Group provided Tanami Gold NL with a A\$5.0 million Bridging Facility for the purpose of funding the final payment with the maturity date of the Facility being 30 October 2004.

The completion of the acquisition of Coyote and related tenement package is a major development for Tanami Gold. The Company has commenced a drill program at Covote with three drill rigs currently operating on site, one RC, one Aircore and one Diamond. Drilling is focussing on the bankable feasibility study program, resource definition drilling to maximise reserves and the drill testing of numerous targets around Coyote and Larranganni.

Yours faithfully Tanami Gold NL

angles

Gary Comb Managing Director

ASX TAM 18May2004