HERITAGE EMBARKS UPON URANIUM EXPLORATION INITIATIVE IN THE...

HERITAGE EMBARKS UPON URANIUM EXPLORATION INITIATIVE IN THE NORTHERN
TERRITORY

Heritage Gold has signed a binding Heads of Agreement (subject to due
diligence) in relation to an offer to enter a joint venture to explore for
uranium in the Dunmarra Basin of the Northern Territory.

Under the Agreement, Heritage Gold will pay A$10,000 to the licence
applicants before the end of the 30 day due diligence period and will have
the right to earn up to 50% interest in the tenements by the expenditure of
A$2M over three years from granting of the licences. Heritage may increase
its interest to 75% upon the expenditure of an additional A$2m, depending on
the election of the vendors to contribute or dilute.

The tenement numbers are Exploration Licence Application (ELA) 25871 covering
377sqkm, ELA 25872 covering 460sqkm, and ELA 25921 covering 419sqkm. The
licence areas are considered prospective for sandstone-hosted and roll front
uranium mineralisation.

Upon satisfactory completion of the due diligence, Heritage Gold will issue
2.5M fully paid ordinary shares to the vendors immediately, and a further
2.5M fully paid ordinary shares on granting of the licences. The minimum
expenditure commitment of the Company is A$100,000.

A placement of shares is planned to sophisticated and professional investors
to fund the investigation of the uranium proposal, advance further
exploration on Heritage Gold's current projects, and for working capital.

The Company is seeking to place up to 20M shares at a price of A3.5 cents for
each fully paid ordinary share.

The first tranche of 8.5M shares in the placement will be issued under ASX
Listing Rule 7.1, NZX Listing Rule 7.3.1, and NSX Listing Rule 6.25. The
second tranche of 8.5M shares will be issued subject to shareholder approval,
and a meeting will be called for that purpose.

The placement will be managed by Montagu Stockbrokers of Perth for a fee of
5% of funds raised.