HELIX RESOURCES LIMITED — M&A Activity 2003

MEDIA RELEASE

5 JUNE, 2003

HELIX MOVES ON TUNKILLIA GOLD PROJECT AFTER ACQUIRING 100% INDEPENDENT STUDIES CONFIRM PROJECT POTENTIAL

Helix Resources Limited (ASX: HLX) has taken the first definitive step towards its strategy of developing a viable gold operation in South Australia's Gawler Craton after today acquiring 100% of the Tunkillia Gold Project and announcing the imminent commencement of a comprehensive resource definition and extension-drilling program.

The Perth-based Company said today (Thursday) it had finalised the acquisition of AngloGold Limited's 49% interest in the Gawler Craton Joint Venture, including the Tunkillia gold resource – its primary short-term focus for exploration and development – and surrounding exploration tenements.

The acquisition follows the completion of a due diligence period and the satisfaction of other conditions, as well as an independent assessment and valuation of the Tunkillia gold resource by Snowden Mining Industry Consultants Pty Ltd.

Snowden confirmed a global resource estimate for Tunkillia in the order of 600,000 ounces at an average grade of 2.3 g/t (at a 1 g/t cut-off) and concluded that there is further potential to define new gold occurrences in close proximity to the main mineralised zone.

Preliminary in-house engineering studies have shown that Tunkillia will need to produce at least 350,000 ounces of gold at grades over 2 $g/t$ to be a viable development option.

The terms of the acquisition comprise a A\$1 million upfront payment to AngloGold made up of A\$750,000 cash, 1.25 million fully-paid Helix shares issued at 20 cents and 1.25 million options exercisable at 25 cents before 30 November 2005. Additionally, there will be a deferred payment of A\$500,000 on delineation of a mineable resource of 350,000 ounces.

The proposed acquisition of AngloGold's rights to the Tarcoola Project, 60 kilometres to the south. was excluded from the final agreement. This was because of the greater complexity of this joint venture and Helix's decision to focus its available resources on the Tunkillia Project. This resulted in a restructure of the original agreement terms, as announced on 8 April 2003.

Helix's Managing Director, Mr Rob Mosig, said Tunkillia was an exciting project which had now been independently confirmed as having potential to develop an economically viable resource with further drilling, as well as having significant exploration upside.

"The acquisition of 100% of the Tunkillia Project marks a very important milestone for Helix and represents the first tangible step forward in the Company's focused strategy to develop a new gold operation in the Gawler Craton," Mr Mosig said.

"This will be followed by a two-stage drilling program, set to commence in late June 2003, focused on resource definition and extension," he added.

Snowden concluded that the central 500 metre zone of the Tunkillia mineralisation, which is contained in a gold mineralised zone extending over 2.1 kilometres of strike length, could possibly be JORC compliant subject to completion of satisfactory due diligence. There is additional resource potential along the immediate strike extent of this zone and at depth.

Snowden also concluded that there was potential to identify additional near-surface resources with drilling directed towards the supergene zone and to identify additional open pittable gold deposits in the immediate vicinity.

The new \$1.5 million drilling program is designed to in-fill drill the existing resources to upgrade them to JORC compliant status, extend the known resources and test a number of new conceptual targets within a 5 kilometre radius of the main mineralised zone.

"We are confident based on the work carried out to date that this will pave the way for the potential development of a profitable small-scale mining operation producing around 70,000 ounces of gold per annum at competitive cash operating costs," Mr Mosig said.

Phase 1 of the drilling program (June – August 2003) will comprise drilling on 100 metre spacings to test four primary target areas surrounding the central resource zone and the supergene blanket. Phase 2 (September – October 2003) will comprise infill drilling of the mineralised portions of these areas at approximately 50 metres by 50 metres.

"This will allow resource calculations to be completed by the end of November, in parallel with preliminary metallurgical testwork, geotechnical studies and hydrological studies," Mr Mosig added. "Our target is to commence a Bankable Feasibility Study by the end of this year."

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Released by: Jan Hope / Nicholas Read Jan Hope & Partners Telephone: (+61-8) 9388-1474 On behalf of: Mr Rob Mosig Managing Director Helix Resources Limited Telephone: (+61-8) 9321-2644 www.helix.net.au