Exports Initial Tantalum Concentrate

The tantalum shop is open for business.
<< demand for tantalum is expected to recover.
<< significant increase in the demand for semiconductors
<< manufacturing facilities returning to full production.

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ATE Exports Initial Tantalum Concentrate

AUSTRALASIAN GOLD MINES NL 2002-05-31 ASX-SIGNAL-G
HOMEX - Perth

The Directors of Australasian Gold Mines NL (the "Company") are
please to announce that the Company has delivered and has been paid
for its initial shipment of tantalum concentrate to an overseas
customer. This shipment was followed by a second shipment this week
of 12,000 lbs of concentrate for a total shipped of 22,000 lbs. These
shipments will be followed by monthly shipments of up to 5,000 lbs of
contained Ta2O5 until December 2002.

In the meantime, the Company expects to finalise another supply
contract within the next few months for the supply of concentrates to
Japan.

Being awarded further contracts will determine the timing of the
development of the Binneringie and Mt Deans projects to meet the
demand for concentrate. The Company has commenced the feasibility
studies of both projects which are expected to be completed in the
last quarter of this year.

The demand for tantalum is expected to recover late 2002 and in the
first half of 2003. There has been significant increase in the demand
for semiconductors in Europe, Japan and US over the last few months
with manufacturing facilities returning to full production.

The initial shipment has reinforced the Company's commitment to the
tantalum industry and justifies the establishment of its own mineral
dressing plant at Balcatta that has been used to upgrade the
concentrates produced from the Company's Dalgaranga processing plant.
It is believed that this is the only independent tantalum mineral
dressing facility in the southern hemisphere outside of Sons of
Gwalia's operations. The mineral dressing plant has the capacity to
meet the expanded volume of material that will be produced from the
Binneringie, Walwa and Mt Deans projects. The plant's capacity would
also allow for the toll treatment of third party material.


P Farrah
COMPANY SECRETARY