QUARTERLY REPORT September 2004

PHONE: 08 9327 0900 FAX: 08 9327 0901 WEB PAGE: www.tennantcreekgold.com.au

HIGHLIGHTS FOR THE QUARTER

Molyhii Molybdenum-Tungsten Project, Northern Territory

Development plans well advanced with positive results from all facets of prefeasibility work to date. Plans to fast-track production designed to take advantage of strong market conditions.
JORC Code compliant Indicated and Inferred Resource estimated for Molyhil deposit of 2.03 million tonnes grading $0.30\%$ WO₃ and $0.18\%$ MoS₂ to 150 metres vertical depth.
Excellent results from pilot scale metallurgical test work with 60-tonne bulk sample excavated from pit floor at 18 metres vertical depth indicating an average grade of 1.18% WO₃ and 0.7% MoS₂ - significantly higher than the drill indicated grade.
Diamond and RC drilling programs completed during the Quarter resulting in the JORC compliant resource estimate and confirming the potential to substantially expand the initial resource inventory at depth.
Final feasibility study due for completion by the end of the December Quarter 2004.

Spring Hill Gold Project, Pine Creek Gold Field, Northern Territory

Work commenced to upgrade 2003 scoping study to pre-feasibility with McDonald Speijers engaged to demonstrate the viability of a mining operation from a resource estimate to an ore reserve with all capital cost, environmental, mining and permitting issues included.
Indicated Resource of 3,600,000 tonnes @ 2.4 g/t Au for 274,000 ounces of contained gold.
2003 scoping study positive for toll treatment of Spring Hill ore at nearby Union Reefs treatment plant.
Excellent potential for 2005 mine start-up at current gold price of US\$420.

New Acquisitions

Tenement holdings significantly increased in Northern Territory to over 18,000 square kilometres, with applications for 5 exploration licences containing advanced iron ore, base metal, magnesite and gold prospects.
Negotiations commenced with Central Lands Council for grant of highly prospective Tanami East (Goddards) copper prospect and Hatches Creek tungsten prospect.

EXPLORATION REPORT

MOLYHIL

The Molyhil tungsten-molybdenum project is located 220 km north-east of Alice Springs in the Proterozoic Eastern Arunta Province of the Northern Territory.

The Molyhil deposit was mined in the 1970s and 1980s at a grade of 0.5% molybdenite and 0.8% scheelite and represents an excellent high-grade open cut mining opportunity with the potential to be fast-tracked into production within 6-12 months at a relatively low estimated capital cost.

Development of the project is a key focus for Tennant Creek Gold, with strong demand for molybdenum and tungsten from the carbon steel materials industries. Molybdenum is a refractory metallic element used principally as an alloying agent in steel, cast iron and super alloys to enhance hardness, strength and toughness and wear and corrosion resistance. Tungsten is used in tool steels and specialist industrial applications.

Molybdenum prices have more than trebled in the past year to the US\$15-17/lb range while the world supply of tungsten has been impacted by the recent closure of the three largest tungsten mines in China.

Extensive field exploration work comprising drilling, pit dewatering, mapping and surveying, bulk sampling and environmental studies has been undertaken at Molyhil during the September 2004 quarter with the goal of fast tracking the project to final feasibility.

In conjunction with the field work, the Company has implemented preliminary and advanced metallurgical studies and process design, geotechnical studies, JORC Code compliant resource estimations, pit optimisation studies and conducted negotiations for off-take agreements with potential buyers of molybdenum and tungsten concentrates.

The Company is pleased to report that all facets of the pre-feasibility work to date have generated positive results. Current expectations are that a final feasibility study will be completed by the end of the December 2004 quarter, which would enable Tennant Creek Gold to move to a development and production phase at Molyhil in 2005.

Drilling

In June and July 2004, Tennant Creek Gold completed 5 diamond drill holes at Molyhil for 675.59 metres and 23 Reverse Circulation (RC) holes for 3,146.7 metres. The diamond holes provided geotechnical data and confirmation of RC assay returns. The RC drilling was designed to provide a JORC compliant resource to approximately 150 metres vertical depth. The drilling was based on a 30 metre (north-south) by 40 metre (east-west) grid. Holes were angled $60^0$ W.

Quality check on the samples and assays were routinely performed. 77 sample re-splits with varying weights of 5-10kg were taken and returned assays very similar to the original samples. Approximately 1 in 10 assay results were also repeated by the laboratory with excellent reconciliations. Further samples were then sent to an independent laboratory which confirmed the original results. The RC drill was able to keep all the ore samples dry.

The drilling outlined 2 major offset lodes, the Southern Lode and Yacht Club Lode. Together, these lodes span about 150 metres, with a width varying from 10-40 metres and both dip steeply to the east. The bulk of the ore is contained in the top 95 metres, however there is potential to delineate deeper (underground) resources as indicated by 3 high grade W-Mo holes, still open at depth (marked by $*$ in the table below):

Hole ID	East	North	EXTERNAL	Commune	83	RACTAVEL	Wex	Mossy
TMRC002	10000.773	19969.883	400.969	22.0	60.0	38.0	0.16	0.37
TMRC003	10000.609	19999.909	401.025	5.0	51.0	46.0	0.21	0.19
TMRC004	10000.709	20029.723	401.310	14.0	34.0	20.0	0.87	0.33
TMRC005	10066.291	20061.796	410.665	16.0	45.0	29.0	1.14	0.13
TMRC010	10044.039	20064.174	410.970	12.0	20.0	8.0	0.22	0.18
TMRC013	10095.436	20019.918	412.247	56.0	120.0	64.0	0.25	0.36
TMRC016*	10078.079	19940.285	409.853	113.0	182.0	69.0	0.17	0.21
includina				113.0	129.0	16.0	0.52	0.25
$TMRC017*$	10136.741	20049.976	412.228	88.0	106.0	18.0	1.13	0.19
TMRC019	10106.435	20053.008	412.651	78.0	106.0	28.0	0.96	0.30
$TMRCO22*$	10005.812	20015.126	401.218	109.0	117.0	8.0	0.54	0.05
				134.0	158.0	24.0	0.25	1.00
TMDH004	10102.689	20052.949	412.593	79.9	101.0	21.1	0.74	0.15

Table 1: Significant Intersections at Molyhil

All holes drilled -60 $^0$ to grid west, except TMRC022 - drilled grid south to assess grade variability.

Resource estimation

Continental Resource Management (CRM) has completed an estimation of the resources at the Molyhil Project. The Molyhil deposit consists of two adjacent outcropping skarn bodies that contain scheelite and molybdenite mineralisation. The mineralisation is coarse-grained and its distribution is irregular. CRM used information from a recent Tennant Creek Gold drilling program to carry out the estimation.

The Molyhil scheelite-molybdenite deposit is estimated to contain an Indicated Resource of 1,530,000 tonnes @ 0.32% WO₃ and 0.19% MoS₂ and an Inferred Resource of 500,000 tonnes $\circledcirc$ 0.25% WO₃ and 0.15% MoS₂. These resources have been estimated with no lower cut, as previous mining showed that mining the entire width of the iron-rich skarn returned higher grades than anticipated from earlier drilling.

The resources have been estimated to a depth of 150 metres RL and contain 6,300 tonnes of $WO₃$ and 3,750 tonnes of MoS₂.

To a depth of 95 metres (315 metres RL) the estimations are: an Indicated Resource of 1,130,000 tonnes @ 0.38% WO₃ and 0.21% MoS₂ and an Inferred Resource of 200,000 tonnes @ 0.45% WO₃ and 0.20% MoS₂.

Quarterly Report September 2004

Wajd Chum Communities	dassification	metri aquivalent Jouvernal	EXECT LEADER	Mo mm equivalent	MoS ₂	$W\mathbf{e}_n$	OCO	ECOLOGY
		C251 THE	m	[Co]	1220 WW	( 625)	œw	COOL
Southern	Indicated	0.20	250,000	0.32	0.40	0.38	0.086	33
		0.15	400,000	0.26	0.32	0.34	0.080	33
		0.10	600,000	0.22	0.26	0.31	0.073	32
		0.05	810,000	0.18	0.21	0.27	0.062	31
		0.02	970,000	0.16	0.18	0.23	0.056	30
		0.00	1,070,000	0.14	0.17	0.21	0.053	30

Southern	Inferred	0.20	50,000	0.35	0.43	0.46	0.084	33
		0.15	80,000	0.28	0.34	0.36	0.076	$\overline{32}$
		0.10	120,000	0.23	0.28	0.29	0.064	32
		0.05	190,000	0.17	0.21	0.22	0.049	$31\,$
		0.02	280,000	0.13	0.16	0.17	0.039	$\frac{29}{28}$
		0.00	320,000	0.11	0.14	0.15	0.035

Yacht Club	Indicated	0.20	220,000	0.48	0.44	1.08	0.111	33
		0.15	260,000	0.42	0.39	0.96	0.105	33
		0.10	310,000	0.38	0.35	0.85	0.099	33
		0.05	380,000	0.32	0.30	0.70	0.090	35
		0.02	440,000	0.29	0.27	0.62	0.087	36
		0.00	460,000	0.27	0.26	0.59	0.083	$\overline{35}$

Yacht Club	Inferred	0.20	60,000	0.45	0.34	1.25	0.12	30
		0.15	70,000	0.39	0.31	1.02	0.10	30
		0.10	100,000	0.32	0.27	0.78	0.096	33
		0.05	140,000	0.24	0.21	0.56	0.085	36
		0.02	180,000	0.20	0.18	0.46	0.079	$\frac{37}{37}$
		0.00	210,000	0.17	0.16	0.39	0.081

Details of the resources at various lower cut-offs are tabulated below:

The Mo equivalent lower cut in the table above is the total of Mo % and 0.25 x W %.

The resources were estimated by geostatistical interpolation using the inverse distance squared method. Block sizes were $15m \times 5m \times 5m$ . The resources were estimated within three wireframes, constructed to contain the significant bodies of iron-rich skarn (>18% Fe₂O₃).

Resources were also estimated by the same method within a set of wireframes supplied by Tennant Creek Gold. These were an Indicated Resource of 930,000 tonnes @ 0.40% WO₃ and 0.21% MoS₂ and an Inferred Resource of 700,000 tonnes @ 0.25% WO₃ and 0.20% MoS₂.

The above resources were estimated on uncut analytical analyses Resources are also presented using cut analyses, but it is the opinion of CRM that cuts are not appropriate.

Metallurgy & Bulk Sampling

Feasibility studies by Petrocarb, the previous owner of the Molyhil Project, indicated that metallurgical recoveries in the order of 65% for scheelite and 80% for molybdenite were achievable. More recently, Tennant Creek Gold has initiated further metallurgical work.

About 72.4kg of split diamond core was submitted to Independent Metallurgical Laboratories (IML) in Perth for initial "sighter work", which indicated metallurgical avenues for commercial processing of the W-Mo ore. This involved crushing and grinding, magnetic separation of the magnetite from W-Mo ore, gravity separation and floatation. This testwork indicated that a grind size was optimised at about 300 micron, and recoveries in the order of 50-60% for scheelite and 55-75% for molybdenite could be achieved.

However, given the nature of the "nuggety" Mo mineralisation and the difficulty there is in isolating a representative sample, it was decided to dewater the pit and extract a bulk sample of approximately 60 tonnes. 34 samples of the crushed ore indicated an average grade of $1.18\%$ WO₃ and 0.7% MoS₂. This sample was taken in September 2004, with 10.6 tonnes delivered to Nagrom & Co in Kelmscott. This company has extensive experience in tantalite processing and a factory ideally equipped to treat bulk samples.

The work completed to date includes crushing, sizing and magnetic separations of a small 4kg sub-sample. The results to date confirm the grind size predicted by IML, with a range of 200-500 micron. Coarse 250 micron scheelite and molybdenite both reported to non-magnetic dry fractions in the order of 90% and 70%, all size ranges weighted together averaged 71.4% and 57.6% respectively. The magnetic fractions are also being analysed for potential Fe-magnetite sales.

Current work includes rod milling a 250kg sample to <500micron size, and further screening to achieve the constituted size fractions. This will undergo magnetic separation within parameters established by the initial sub-samples. Gravity and floatation work to remove sulphides and copper will be completed in the subsequent stages. Once these processes have been finessed, then a bulk sample will be put through the entire process for evaluation.

SPRING HILL GOLD PROJECT

The Spring Hill Woolgni Gold Project is located in the historic Pine Creek gold field in the Northern Territory. It includes a JORC compliant Indicated Resource of 3.6 million tonnes at 2.34 g/t for 274,000 ounces of contained gold. Additional non-JORC compliant resources are located in the area which are capable of being converted relatively quickly with early exploration.

During 2003. McDonald Speijers completed a Scoping Study on the Spring Hill Project which examined the project viability in terms of operating cost, excluding consideration of capital cost and environmental and permitting issues.

In order to progress the Spring Hill Project from a scoping study to pre-feasibility status, Tennant Creek Gold has engaged McDonald Speijers to demonstrate the viability of a mining operation from a resource estimate to an ore reserve with all capital cost, environmental, mining and permitting issues included.

NEW ACOUISITIONS

During the quarter. Tennant Creek Gold substantially increased its tenement holdings in the Northern Territory to over 18,000 square kilometres after securing five exploration licence applications containing advanced iron ore, base metal, magnesite and gold prospects.

The Company has reviewed five potential project exploration and development opportunities within this ground package, all located in relatively close proximity to Darwin. These project areas are under exploration licence application status with negotiations for granted tenure underway with the Northern Land Council and the Northern Territory Government. They include:

Cella Magnesite Deposit (ELA 24414):

Located 4km ENE of the township of Bachelor (approximately 95km south of Darwin). Significant outcropping magnesite was identified in this area by the Bureau of Mineral Resources in 1977. Exploration during the late 1970's identified magnesite mineralisation exceeding a strike length of 1,000 metres by 400 metres in width.

In the early 1980s, a small trail sample of magnesite was sent to a research company in Germany for beneficiation tests. The floatation tests indicated that a low silica product could be obtained which might be suitable for refractory grade magnesite production.

In September 1981, diamond drilling was completed to obtain core samples for further metallurgical test work. Approximately 115kg of magnesite core from the deposit was extracted. Results from the tests indicated that high density low silica magnesite bricks were suitable for refractory purposes.

The potential of open-pittable reserves of magnesite in the area is high. Further exploration is required to test the mineralisation at depth.

LC Iron Ore Prospect (ELA 24394):

Located 7km south of Darwin. The LC iron ore prospect is hematite rich lens approximately 335 metres long and up to 30 metres wide, with an average width of 12 metres. Two surface samples of this material were assayed by Nissho in 1962 with results of 67.06% iron and 62.35% iron.

The associated quartz hematite breccia contains 20% to 40% iron. Costeans were dozed on the deposit to follow up surface indications of high grade iron. These indicated the presence of numerous quartz veins and some fragments of country rock. No further systematic exploration has been completed over the area since the late 1960's.

Surface sampling indicates that the lens contains significant high grade iron ore, with further follow-up exploration warranted.

Giants Reef Gold Prospect (ELA 24393):

Situated some 60km south east of Darwin. Mineralisation was identified during follow-up of Bulk Leach Extractable Gold drainage anomalies in the range of 1.5-2.3 ppb Au. Rock chip samples over 10 metres from outcropping quartz breccia returned up to 48.2 g/t Au (other assays returned 27.3 g/t Au, 46.8 g/t Au, 4.14 g/t Au, and 7.2 g/t Au) from a mineralised zone exposed over a strike length of 300 metres, averaging 20 metres in width within the regional Giants Reef Fault zone.

Ouarterly Report September 2004

A Reverse Circulation drilling program indicated that gold occurs in what was previously thought of as barren shear zone. Mapping conducted at the time and subsequent field checking by Newcrest has demonstrated that the gold bearing breccia zone is partially masked by surface cover.

Potential economic gold mineralisation warrants further investigation to determine additional gold occurrences in an area once presumed to host no gold mineralisation.

Daly River Road Iron Ore Prospect (ELA 24391):

Located 25km south of Adelaide River Township. Iron ore in the area was first explored by Wanderoo Mining in 1966-1967. Resources were estimated to be over 15-20 million tonnes at an average grade of 23.51% iron. Phosphorus was generally less than 0.1%. The area was tested again by Kratos in 1970, with a work program included drilling, plane table mapping, RC and diamond drilling.

There is considerable potential to delineate commercial iron ore resources with extensive areas not adequately explored.

Sandy Creek Base-Metal Prospects (ELA24395):

Located approximately 450km SSW of Darwin. Tennant Creek Gold has initiated discussions with the Northern Territory Government requesting approval for exploration over the Sandy Creek Deposit. Approval must come from the Minister of Mines and Energy to override the Reserve from Occupation Act that is current over the area. The Company is confident that this approval will be granted. The exploration licence application covers an area approximately 15km in length of untested base-metal mineralisation by 3km in width.

The base metal mineralisation at Sandy Creek has a similar style to the Cadjebut Pb-Zn mine in Western Australia.

The main high grade component of Sandy Creek deposit has a potential for an open-pittable resource, including possible extensions immediately to the north and south. The potential of the area has been increased substantially by the gravity survey carried out in 1996 which highlighted concealed denser rock bodies interpreted as buried carbonate (mainly dolomite) reefs considered being favourable for lead-zinc mineralisation.

A further 14km NE from the Sandy Creek Deposit, the Ochre Mine prospect has been drill tested, with a best intersection of 6 metres @ 8.45% zinc. A vertical diamond hole was also drilled to test a geophysical anomaly situated near a gravity ridge. This hole intersected small amounts of zinc within the upper portion of the drill hole. Further geophysical anomalies in the area have not been tested. Mineralisation within this major corridor has the potential of yielding high grade and large tonnage base metal deposits.

Tanami East Area:

Situated approximately 370km west of Tennant Creek (also known also as Goddard's Prospect). Significant copper mineralisation in the form of malachite outcrops over a strike length of 1,200 metres. Numerous values over 1% Cu and 100 ppb Au were obtained from carbonate hosted rock chip samples from prior exploration. The strike length of copper mineralisation represents significant exploration potential for copper-gold deposits in the area (never been drilled tested). Application for Consent to Grant was given to Tennant Creek Gold by the NT Government and the Central Land Council. This approval allows Tennant Creek Gold to enter into negotiations with the central desert traditional land owners for exploration on the licence. The final negotiation date is still pending.