TESORO GOLD LTD — Capital/Financing Update 2007

Sep 12, 2007

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TO: COMPANY ANNOUNCEMENTS OFFICE

COMPANY: AUSTRALIAN SECURITIES EXCHANGE LIMITED

FROM: VAN EYK THREE PILLARS LIMITED

DATE: 13 September 2007

NO. OF PAGES: 2

Current capital management strategy and rationale for recent placements

The primary consideration of the VTP Board in undertaking the recent share placements is to provide a benefit to our existing shareholders. The aim of the board in increasing the scale of VTP and adding to the shareholder base is to:

1. increase the liquidity of VTP shares for all shareholders;

2. maintain a favourable share price to NTA; and

3. reduce the MER of the company by increasing the capital base over which the fdfixed operating costs are spread.

Without corporate activity of the likes of placements and rights issues the board would not be progressing the business on behalf of all shareholders. There are a number of positive externalities that fall out from a public offer as a result of their public nature. As such, the increased profile and new information in the market is of significant benefit to all shareholders.

The placement in August 2006 was done when the share price was at a discount to post tax NTA of around 4%. Following the placement this discount has narrowed, as shown in the table below.

	Average of VWAP	NTA After Tax	Share price (discount)/premium to NTA
July2006	1.143747	1.19	(3.9%)
August 2006	1.144265	1.19	(3.8%)
September 2006	1.152891	1.20	(3.9%)
October 2006	1.203255	1.24	(3.0%)
November 2006	1.251443	1.25	0.12%
December 2006	1.254965	1.24	1.21%
January2007	1.269326	1.27	(0.05%)
February2007	1.283915	1.28	0.31%
March 2007	1.270793	1.32	(3.73%)
April 2007	1.285716	1.36	(5.46%)
May2007	1.372523	1.34	2.43%
June 2007	1.432316	1.35	6.10%

van Eyk Three Pillars Limited ABN 91 106 854 175 Level 7, 20 Hunter St, Sydney NSW 2000 GPO Box 5482, Sydney NSW 2001 P (02) 8236 7701 F (02) 9221 1194

www.vaneyk.com.au www.threepillars.vaneyk.com.au

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Current capital management strategy and rationale for recent placements (continued)

Since the July 2007 placement VTP has maintained a strong share price to NTA, considering market conditions. The directors balance the importance of liquidity and ongoing demand for VTP shares from new shareholders with the desire to provide placements to existing shareholders.

Until the recent change in law, placements have been a low cost way for the Board to increase capital. From 28 June 2007, when the Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 received Royal Ascent, rights issues are allowed without the need for a Product Disclosure Statement or prospectus. This allows pro rata offers to all shareholders at significantly less cost than was required in the past. This may mean that the past practice of placements may not be the practice in future.

The renounceable 1 for 4 rights issue just completed, provided an opportunity for existing shareholders to increase their holding at low cost. The directors considered that the placement was necessary to support the rights issue, as the new shareholders created additional demand for rights that existing shareholders do not wish to take up.

Importantly, the board is adopting a multi-pronged strategy to achieve our aim to keep the share price close to the asset backing. Increasing the shareholder base and the size of the pool is one of the strategies being employed by the board. In particular, attracting shareholders who have an ongoing demand, such as SMSFs, makes sense for LIC operators. Other strategies that we have adopted include a sensible approach to buy backs, an attractive dividend policy and an active disposition towards communicating with the market.

To date the board has been happy with the results of these strategies and will continue to be vigilante executing these moving forward with the aim of maximising shareholder wealth.

Mark Thomas Managing Director

van Eyk Three Pillars Limited ABN 91 106 854 175 Level 7, 20 Hunter St, Sydney NSW 2000 GPO Box 5482, Sydney NSW 2001 P (02) 8236 7701 F (02) 9221 1194 www.vaneyk.com.au www.threepillars.vaneyk.com.au