TIVAN LIMITED — Capital/Financing Update 2006

Mar 5, 2006

PLACEMENT OF \$1 MILLION

6 March 2006

Tennant Creek Gold Limited (ASX: TNG) ("Company") today announced that it has raised \$1,000,000 by the issue of 4,000,000 shares each at \$0.25 to sophisticated investors. The placement has been on the basis that the subscribers may participate in the announced pro-rata offer of 2007 Options ("2007 Option Issue") to shareholders.

The Directors consider the placement a good opportunity for the Company and as such have decided to proceed immediately with the placement.

The effect and consequence of the placement are as follows:

• Completion of the placement has to occur prior to the Entitlement Date for $\mathbf{1}$ . the 2007 Option Issue.
• $2.$ On completion of the placement there will be 91,628,270 shares on issue which will raise \$916,282 (prior to costs) from the 2007 Option Issue. There are 27,450,000 options on issue which if exercised prior to the Entitlement Date will raise up to an additional \$274,500 (prior to costs).
• $\mathbf{3}$ . Notwithstanding that the 2007 Option Issue could be done without shareholder approval under Exception 1 of ASX Listing Rule 7.2 directors as a matter of good governance sought and obtained shareholder approval on 1 March 2006. However, so that the subscriber for the placement can participate the 2007 Option Issue will now be done under Exception 1 of ASX Listing Rule 7.2. Terms and conditions of the 2007 Option Issue will be identical to those approved by shareholders on 1 March 2006.
• $\overline{4}$ . To facilitate the placement the Company has also revised the indicative timetable for the 2007 Option Issue as follows:

Lodgement of prospectus with ASIC and ASX	15 March 2006
Shares quoted on an "ex" basis	17 March 2006
Record date for determining entitlements	23 March 2006
Prospectus and entitlement and acceptance form	24 March 2006
dispatched to eligible shareholders
Closing date	7 April 2006
Anticipated date for allotment and issue of listed	10 April 2006
options
Completion of placement of shortfall (if any)	13 April 2006

The funds raised from the placement and 2007 Option Issue will be used to advance exploration on the Company's Manbarrum Lead-Zinc-Silver Project in the Northern Territory, including activities leading to the planned commencement of drilling designed to upgrade existing drilling data and resource estimates to JORC compliance as rapidly as possible, and to supplement working capital.

Yours faithfully TENNANT CREEK GOLD LIMITED

Damian Delaney Company Secretary