TESORO GOLD LTD — Capital/Financing Update 2005

Apr 25, 2005

26 April 2005

Dear Option Holder

Dividend Entitlement - Exercise of Options

It has come to our attention that the recent letter sent to option holders regarding dividend entitlement and the exercise of options (dated 6 April 2005) contained an error in relation to the date by which options must be exercised. The correct closing date for the exercise of options is 19 May 2005. For option holders who wish to exercise their options, the letter stated that

"..........you should complete the attached Notice of Exercise of Options and send it to Registries Limited, Level 2, 28 Margaret Street, Sydney NSW, 2000 to arrive before 5pm on 19 June 2005"

This should have read "before 5pm on 19 May 2005".

The directors confirm that the exercise of outstanding options by 19 May 2005 will result in an entitlement to the declared 5.5 cent per share dividends on the new shares issued. At any time until close of business on the 19 May 2005, you may exercise your options or you may sell your options.

If you do nothing by 19 May 2005, your options will lapse.

Should you require any assistance, please contact Registries Limited on 9290 9600.

Shareholder correspondence

Remember to visit www.threepillars.vaneyk.com.au, where you can download all the Company's announcements as well as quarterly updates.

In addition, Registries Limited will now be sending a quarterly report on the Company to all shareholders via mail or email (depending on your preferred contact method).

Yours faithfully

P. Roberts Secretary