TIVAN LIMITED — Capital/Financing Update 2005

Apr 7, 2005

A\$1.35M PLACEMENT TO UK INSTITUTION TO UNDERPIN NORTHERN TERRITORY BASE METAL, GOLD-COPPER-BISMUTH EXPLORATION

8 April 2005

HIGHLIGHTS

• Proposed placement to a leading UK-based specialist funds management group, managed by RAB Capital plc, comprising 13.5 million shares at 10 cents plus one free attaching option for each share issued.
• A\$1.35M in funds to be raised from the placement to underpin intensive exploration and development programs at TNG's base metal and gold-copperbismuth projects in the Northern Territory.
• Strategic 16.3% investment by RAB Special Situations LP to underpin TNG's ongoing activities following proposed spin-off of its specialty metals projects on London's AIM market, announced last week.
• * Extensive exploration and evaluation programme to commence immediately at Sandy Creek base metals project to upgrade historic resource data to JORC compliance and target additional large-tonnage, high-grade zinc-lead-silver deposits.

Tennant Creek Gold Limited (ASX: TNG) ("TNG") today announced a proposed A\$1.35 million placement to London-based hedge fund RAB Special Situations LP ("RAB"), managed by investment management company, RAB Capital plc, to fund ongoing exploration and development activities at its base metal and copper-gold-bismuth projects in the Northern Territory, Australia.

The proposed placement, representing 16.3% of TNG's issued capital, will result in the introduction of a substantial strategic investor to the Company to support its ongoing activities in the Northern Territory following its recently announced plans to spin off its specialty metals projects through the proposed listing of a new dedicated specialty metals company, THOR MINING PLC, on London's Alternative Investment Market (AIM).

TNG's asset portfolio at completion of this transaction will comprise a 36% stake in THOR MINING PLC, a 17% stake in ASX listed Batavia Mining Ltd, the Sandy Creek base metal project and Tennant Creek gold-copper-bismuth project in the Northern Territory, the 274,000oz Spring Hill Gold Project (also in the NT), and a long-term income stream from a rovalty on the Cawse Extended nickel laterite project.

TNG announced today that it had agreed in principle a subscription with RAB, under which the London-based fund will subscribe for 13.5 million shares in TNG at an issue price of 10 cents each. In addition, under the proposed agreement TNG will issue one free attaching option to RAB with each new share issued. The options are exercisable at 12 cents on or before 30 April 2007.

The placement is subject to completion of formal documentation and shareholder approval as it will exceed the maximum 15% placement allowed under the ASX Listing rules. TNG will hold a General Meeting of shareholders within the next 8 weeks to seek shareholder approval for the transaction and to refresh the Company's placement facility to support its ongoing exploration and development activities in Australia.

The funds raised through this placement will be used to aggressively commence a significant exploration and evaluation program at TNG's Sandy Creek and Tennant Creek Projects, located in the Northern Territory of Australia.

Background Sandy Creek Base Metal Project

The Sandy Creek Project is located 70 kilometres north-east of Kununurra in the Northern Territory and was previously explored by a number of major mining companies including Aquataine and BHP-Billiton, Sandy Creek is regarded as being highly prospective for the discovery of multiple Mississippi Valley-Style large-tonnage, high-grade zinc-lead-silver deposits.

Previous resource estimates for the project predate the JORC Code and will be updated by TNG pending a planned comprehensive audit of the existing geological database and uparade to digital format.

Regional drilling by previous explorers defined numerous occurrences of high-grade, nearsurface lead-zinc mineralisation along a 23 kilometre long corridor immediately north of the main Sandy Creek zone. Geophysical surveys conducted by Delta Gold in the period 1992-1996 further increased the prospectivity of the region, resulting in the definition of first order gravity high anomalies in conjunction with Induced Polarisation trends along two structural corridors embracing the regional drill-defined mineralisation.

On completion of the database review and upgrade. TNG plans to carry out drilling to upgrade the existing resource estimates to current JORC compliance and to commence regional exploration outside of the main Sandy Creek zone with a view to further increasing the project's resource base.

Tennant Creek Magnetic Gold-Copper-Bismuth Prospects

TNG has a 100% interest in granted mining and exploration tenements in the immediate vicinity of the Town of Tennant Creek, Central Australia. These tenements contain numerous first order Tennant Creek-style magnetic ironstone targets which have excellent potential to host significant gold, and gold-copper-bismuth deposits.

Many of the prospects are hosted within the Warramunga Formation and have the same magnetic trend and magnitude as some of the world-class gold and gold-copper-bismuth deposits mined in the Tennant Creek Inlier (eq. Warrego, White Devil, Nobles Nob). Over 30 first order magnetic anomalies still remain untested and represent excellent drill targets.

TNG's proposed exploration activities include a comprehensive review of the existing geological database and prioritisation of short-term drill targets, with a view to commencing drilling at the highest priority magnetic anomalies as rapidly as possible.

Summary

TNG's Directors believe that the proposed investment by RAB Special Situations LP, a leading UK-based institutional investor, represents a significant vote of confidence in TNG's asset base in the Northern Territory and proposed exploration and development activities at Sandy Creek and Tennant Creek.

Following the proposed spin-off of TNG's specialty metals projects, the Company will have a portfolio of advanced base metal, gold and copper-gold-bismuth projects in the Northern Territory with near-term development potential - in particular the Sandy Creek base metals project.

TNG will update the market on progress with both the proposed listing of THOR MINING PLC and completion of the transaction with RAB Special Situations LP over the next 1-2 months.

Yours faithfully TENNANT CREEK GOLD LIMITED

NEIL BIDDLE Managing Director