TIVAN LIMITED — Interim / Quarterly Report 2006

Jul 30, 2006

Tennant Creek Gold LIMITED

QUARTERLY REPORT 30 JUNE 2006

HIGHLIGHTS

• Field work commences at flagship Manbarrum Lead-Zinc-Silver e.
  Mar Project in the Northern Territory
• Drilling to commence in September quarter
• Two RC drilling rigs contracted to complete 10,000m of drilling during September and December quarters

Tennant Creek Gold LIMITED

(ABN 12 000 817 023)

Level 3 30 Richardson Street West Perth Western Australia 6005

Telephone:	$+61893270900$
Facsimile:	+ 618 9327 0901
Website:	www.tennantcreekgold.com.au
Email:	corporate@tennantcreekgold.com.au
Contact:	Neil Biddle, Managing Director

EXPLORATION REPORT

Manbarrum Lead-Zinc-Silver Project

Manbarrum is located 70 kilometres north-east of Kununurra in the Northern Territory. The granted tenements consist of an Exploration Licence and an Authority to Prospect under Section 178 covering a combined area of over 200 square kilometres. An additional Exploration Licence ELA 4762 has been applied for and completes coverage of the Bonaparte Shelf Margin where numerous gravity anomalies have identified stratigraphic and structural targets within the prospective Burt Range Formation.

Exploration

Field work commenced in early June in preparation for a drilling program scheduled to commence during the September Quarter. An Aircore/RC reconnaissance rig and a larger RC drill rig are committed to the project until the end of this year and approximately 10,000 meters of drilling is planned for completion over the September and December quarters.

An initial exploration model for selection and prioritising of drill targets has been generated from a detailed review of historical data. Numerous prospects have been identified along a 25 km strike length within the Project tenements and will be systematically explored as outlined below, followed by drill testing if warranted. Gravity, IP and structural data used in conjunction appears to provide the best method for defining targets. Geochemistry has been of limited value due to the extensive cover of transported sandy soils which dominate the project area.

Remodelling of Induced Polarisation (IP) and Gravity data from the historical data base has been completed with several anomalies identified in favourable structural and stratigraphic settings.

Detailed ground IP and Gravity surveys will be undertaken prior to commencement of drilling to confirm and enhance the reliability of modelling from historical data and to optimise location and orientation of drill holes. The gravity survey will be extended beyond the limit of previous work to provide detailed coverage of the entire project area. Gravity modelling, supported by historical structural and drill hole data has been demonstrated to provide a reliable method for predicting the location of concealed carbonate reefs considered to be favourable for Pb-Zn-Ag mineralisation.

IP anomalies generated from close spaced data at Sandy Creek have been demonstrated by supporting drill hole data to indicate the presence of high grade Pb-Zn-Ag mineralisation. Close spaced IP surveys will therefore be completed over gravity anomalies prior to drilling.

Significant IP and Gravity anomalies overlie drill indicated high grade Lead-Zinc-Silver mineralisation at the Sandy Creek Main Zone and NE prospects, the most advanced prospects in the project area. The mineralisation is hosted by Upper Burt Range Formation carbonate (primarily dolomite) reefs and is both stratigraphically and structurally controlled. Previous drilling has not defined the limits of mineralisation in

Ouarterly Report June 2006

any direction at either prospect. A detailed review of the Sandy Creek data indicates the potential for these prospects to host significant tonnages of high grade mineralisation. Previous resource estimates predate and don't comply with JORC Code standards as they rely too heavily on open hole percussion drilling utilised by Aquitaine in the 1970s.

TNG has appointed CSA Australia, geological consultants and specialists in MVT style mineralisation to assist in project management and resource estimation as drilling proceeds.

An exploration base-office-accommodation has been established in Kununurra and local indigenous field staff employed. TNG Chief Geologist David O'Farrell is managing field exploration.

GEOLOGY and MINERALISATION

The Manbarrum Project is located on the eastern margin of the Bonaparte Gulf Basin where Devonian-Carboniferous marine sediments unconformably overlie faulted Proterozoic basement. Three Palaeozoic units are recognised in the area: Devonian Cockatoo Group, Lower Carboniferous Burt Range Formation and Milligans formation.

Milligans Formation black shales and siltstones locally cap the dolomitised Burt Range Formation carbonates and in conjunction with north-south trending syn-depositional growth faults provide a prospective setting for Mississippi Valley Type (MVT) base metal sulphide deposits.

Burt Range Formation dolomites reflect a regressive sedimentary cycle that became progressively more arenaceous. Two Members are recognised locally: Clb2 the younger dolomite and aranaceous dolomite and ; CIb1 the older silty dolomite.

The younger CIb2 Member is the better host to mineralisation as it is more subject to brittle failure and associated vuggy porosity, and is closer to the impervious Milligans Formation caprock.

BACKGROUND

The Manbarrum Project area was previously explored by major mining companies Aquitaine (1972-82), BHP Billiton-St Joe then BHP-Triako (1982-93) and BHP-Triako-Delta Gold (1994-98).

Aquitaine carried out a substantial exploration program during the 1970s after the early discovery of significant Pb-Zn-Ag mineralisation at Sandy Creek. Because of the comparative ease of locating mineralisation at Sandy Creek, there was a lack of systematic grass-roots geochemical and geophysical exploration elsewhere particularly in the extensive areas of sandy soil cover surrounding the very limited outcrop.

While a considerable amount of reconnaissance drilling was completed much of it was planned with inadequate geological control and a high percentage of the holes were drilled in unprospective footwall rocks or were not deep enough to reach the prospective mineralised target zone.

There has been no major exploration conducted since Aquitaine, however valuable additions to the regional grass-roots data were made by BHP-St Joe 1982-84 and Delta Gold, 1994-98.

LOGISTICS

The Manbarrum Project is located 70km north-east of Kununurra via a regularly maintained road and in a logistically favourable area.

The Project is only 110km from the Port of Wyndham by the shortest road haul distance and 180km from Wyndham by the principal roads in the area.

The Weaber gas field is located 8km from the Sandy Creek mineralisation and is a potential source of cheap mine power.

LAND ACCESS

The Project lies within the Legune Station Pastoral Lease and within a regional Registered Native Title Claim by the Miriuwung and Gajerrong peoples.

Land Access in the Northern Territory is constrained by the requirements of the Aboriginal Heritage Act whereby a current Clearance Certificate must be obtained prior to commencement of exploration. A Clearance Certificate was issued to TNG by the Aboriginal Areas Protection Authority (AAPA) in February 2006. The Certificate conditions allow access to the entire project area for the initial exploration program but constrains future drilling activities in broad areas around the hills.

Field work since early June has confirmed all exploration targets lie beneath the pervasive sandy soil cover and are well clear of the hills which occupy only a limited area. Consultation with the Traditional Owners has further confirmed the soil covered areas of the Project have no special cultural or heritage significance.

The Traditional Owners of Manbarrum have unanimously supported exploration proposals by TNG and jointly with TNG have requested AAPA to amend the conditions of the Clearance Certificate to provide a less restrictive protective zone around the hills. This process is expected to be finalised shortly but in any case will not impede the 2006 exploration and drilling program.

Spring Hill Project

Spring Hill is located approximately 200 kilometres south of Darwin in the historic Pine Creek gold field in the Northern Territory.

In April TNG sold the Spring Hill tenements to Pan Resources Ltd for \$2,850,000. This sale is conditional upon Pan Resources Ltd gaining admission to the London Stock

Ouarterly Report June 2006

Exchange before 31 December 2006. The consideration is for \$600,000 in cash and the balance in shares in Pan Resources Ltd upon listing.

Tennant Creek Gold-Copper-Bismuth Prospects

TNG has an interest in several granted mining and exploration tenements in the immediate vicinity of the town of Tennant Creek. These tenements contain first order Tennant Creek-style magnetic ironstone targets with the potential to host gold, and gold-copper-bismuth deposits.

An offer for these tenements is currently under consideration.

Explorer, Rover and McClaren Creek Gold-Copper-Bismuth Prospects

TNG has an interest in a granted exploration licence 50km south of the Tennant Creek Township in Central Australia. The exploration licence covers an area of in excess of 1,354 square kilometres and contains 38 first order Tennant Creek-style magnetic ironstone targets with the potential to host gold, and gold-copper-bismuth deposits.

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 in the Tennant Creek Inlier.

During the quarter the Desertex JV was terminated and 3 exploration licence applications named Rover and McClaren Creek East and West were returned to TNG. These tenements adioin the Explorer tenement.

TNG will seek to expedite the grant of the Desertex tenements which together with Explorer will form a large acreage exploration project in a highly prospective and under explored area

No exploration has been conducted during the Quarter.

Mount Peake

Mount Peake is located in the Arunta Province 80 kilometres north east of Alice Springs. Subject to a farm-in agreement, Discovery Nickel may earn up to 80% interest in this project.

Airborne magnetic surveys have indicated possible ultramafic intrusion hosted nickel targets.

No exploration was carried out in the quarter.

Tanami East

Tanami East, also known as Goddard's Prospect, hosts significant malachite mineralisation outcropping over a strike length of 1,200 metres. Numerous values over 1% Cu and 100 ppb Au were obtained from rock chip samples carried out during the 1970s and the area is considered to have exploration potential for copper-gold deposits.

No exploration was carried out in the quarter.

Other Northern Territory Tenements

TNG holds several other prospects in the Northern Territory. These prospects are in various stages of exploration and have not been specifically mentioned as only minor or nil work was completed during the quarter.

Cawse Extended

The OM Group Inc. (OMG) owns and manages the Cawse Nickel-Cobalt Operation with OMG and TNG jointly owning the adjacent Cawse Extended Project. TNG's interest in the Cawse Extended Project is 20% free-carried to production, convertible at TNG's election to a 2% net smelter return.

TNG has also entered into a separate agreement with OMG for a wet tonne royalty payment, which replaces the current agreement only for ore mined from the Unicorn Pit and transported to the Cawse ROM pad. The Agreement has been structured to allow for variations in the nickel price and the AUD/USD exchange rate such that the wet tonne payment is variable within the range AU\$0.50/wt and AU\$0.90/wt.

TNG has been advised by OMG that mining at the Unicorn Pit had been severely disrupted due to a shortage of tyres for the mining equipment. TNG has since been informed that it is likely there will be only limited mining at Cawse extended for the remainder of 2006.

The royalty payment for the June quarter was \$9,000.

Other Western Australian Tenements

TNG holds an interest in other tenement groups, however, in each case, the Company does not contribute towards exploration expenditure as the projects are subject to joint venture or options for sale. These projects include Kintore East and McTavish.

After the end of the quarter the Duplex Hill tenements, which were subject to an option were sold for \$80,000.

CORPORATE

Investments

TNG holds investments in Thor Mining PLC (Thor - listed on the Aim market of the London Stock Exchange) and Batavia Mining Limited (Batavia - listed on the ASX). TNG continues to focus on these two investments.

Thor Mining PLC (AIM code "THR")

TNG holds 45 million shares in Thor, representing approximately 23% of the issued capital. The value of this investment at the quarter end was approximately \$3.4 million.

Thor has completed a scoping study on the Molyhil Project which predicts a capital cost of \$20million and cash flow generated over four years of in excess of \$120 million.

Ouarterly Report June 2006

The Thor web page is:

MINING PLC

www.thormining.com.

Batavia Mining Limited (ASX code "BTV")

TNG holds 75,616,175 million shares in Batavia representing approximately 13% of the issued capital. The value of this investment at the quarter end is approximately \$4 million.

Batavia has recently completed a major infill and extensional drill program at its 100% owned Deflector Gold-Copper project. A resource upgrade is expected t be completed in the September quarter and a Bankable Feasibility Study is expected to be completed during the December Quarter.

The Batavia web page is:

www.bataviamining.com.au.

Yours faithfully TENNANT CREEK GOLD LTD

Noil Biddle

Neil Biddle

Managing Director

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Neil Biddle, who is a Member of The Australasian Institute of Mining and Metallurgy. Neil Biddle is a Director of Tennant Creek Gold Limited. Neil Biddle has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the `Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Neil Biddle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

٦

Directors

Directors		Australian Stock Exchange Listing
John W Barr	Chairman	Shares:		TNG
Neil Biddle	Managing Director	Options		TNGO
Michael Bowen	Non-Executive Director	European Stock Exchange Listings
Terry Smith	Non-Executive Director	Frankfurt		A0B60K
		Berlin		A0B60K
Chief Financial Officer		Munich		A0B60K
Damian Delaney		Stuttgart		A0B60K
Shareholder Enguiries Damian Delaney
Contact		Major Shareholders
Telephone:	$(08)$ 9327 0900	RAB Special Situations (Master) Fund l imited		19.9%
Facsimile:	$(08)$ 9327 0901	ANZ Nominees Limited		19.5%
Email:	corporate@tennantcreekgold.com.au	Biddle Partners Pty Limited		5.3%
Website:	www.tennantcreekgold.com.au	Kensington Consulting Pty Limited		4.5%
		Khumbu Pty		2.5%
		Ashton Drilling Services		2.5%
Share Registry		Capital Structure	TNG
	Computershare Investor Services Pty Ltd	Ordinary Shares		100,628,983
PERTH WA 6000	Level 2, 45 St George's Terrace	Options: 30/4/07 Options: 31/5/07	(Unlisted) TNGO	7,000,000 62,463,422
Telephone:	$(08)$ 9323 2000	Options: 31/5/07	(Unlisted)	2,000,000
Facsimile:	(08) 9323 2033

Appendix 5B

$Rule 5.3$

٦

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Name of entity

TENNANT CREEK GOLD LIMITED

ACN or ARBN

000 817 023

Quarter ended ("current quarter") 30 June 2006

Consolidated statement of cash flows

Cash flows related to operating activities			Current quarter \$A'000	Year to date 12 months
				\$A'000
1.1	Receipts from customers
1.2	Payments for (a)	exploration and evaluation	(258)	(912)
	(b)	development
	(c)	production
	(d)	administration	(637)	(1,983)
1.3	Royalties received		9	116
1.4		Interest and other items of a similar nature received	48	113
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other		107	130
	Net Operating Cash Flows		(731)	(2,536)
1.8	Cash flows related to investing activities Payment for purchases of:	(a) prospects
		(b) equity investments	(858)	(54)
		(c) controlled entity (net of cash
		aquired)	(34)
		(d) other fixed assets		(54)
1.9	Proceeds from sale of:	(a) prospects
		(b) equity investments		288
		(c) controlled entity
		(d) other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other
	Net investing cash flows		(892)	180
1.13		Total operating and investing cash flows (carried forward)	(1,623)	(2,356)

$+$ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(1,623)	(2,356)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc. (net of expenses)	1,368	4,139
1.15	Payment for shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings	(1)	(7)
1.18	Dividends paid
1.19	Other
	Net financing cash flows	1,367	4,132
	Net increase (decrease) in cash held	(256)	1,776
1.20	Cash at beginning of quarter/year to date	3,513	1,481
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	3,257	3,257

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter \$A'000
	85

• 1.23 Aggregate amount of payments to the parties included in item 1.2
• 1.24 Aggregate amount of loans to the parties included in item 1.10
• 1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

⁺ See chapter 19 for defined terms.

4

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities	-
-3.2	Credit standby arrangements	–

Estimated cash outflows for next quarter

	Total	600
4.2	Development
4.1	Exploration and evaluation	600
		\$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	3,187	3,114
5.2 Deposits at call			329
5.3	Bank overdraft
5.4	Other – security deposits	70	70
Total: cash at end of quarter (item 1.22)		3,257	3,513

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	E26/64 M26/782 P26/2899 P26/2900 P26/2901	Beneficial Beneficial Beneficial Beneficial Beneficial	100% 100% 100% 100% 100%	0% 0% 0% 0% 0%
6.2	Interests in mining tenements acquired or increased

$+$ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per note 3) security (see
					(cents)
7.1	Preference +securities
	(description)
7.2	Changes during quarter
	(a) Increases through issues
	(b) Decreases through returns of
	capital, buy-backs,
	redemptions
7.3	+Ordinary securities	100,628,983	100,628,983
7.4	Changes during
	quarter (a) Increases	500,713	500,713
	through issues
	(b) Decreases through returns of
	capital, buy-backs
7.5	+Convertible debt securities
	(description)
7.6	Changes during quarter
	(a) Increases
	through issues (b) Decreases
	through securities
7.7	matured, converted Options			Exercise Price	Expiry Date
	$A -$ Directors,	2,000,000		\$0.15	31 May 2007
	Employeess and Consultants Options
	$B - Other$	7,000,000		\$0.12	30 April 2007
	$C - TNGO$	62,463,422	60,496,760	\$0.15	31 May 2007
7.8	Issued during quarter - TNGO	62,964,135	62,964,135	\$0.15	\$0.15
7.9	Exercised during quarter - TNGO	500,713	500,713	\$0.15	\$0.15
7.10	Expired during quarter
7.11	Debentures
	(totals only)
7.12	Unsecured notes (totals only)

⁺ See chapter 19 for defined terms.

Compliance statement

• $\begin{array}{c} \hline \end{array}$ This statement has been prepared under accounting policies, which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX.
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here:

Date: 31 July 2006

(Company Secretary)

Print name: DAMIAN DELANEY

$+$ See chapter 19 for defined terms.