Tectonic announces placement to raise $1m

Subiaco-based Tectonic Resources NL has announced a placement of up to 7.6 million shares at 13 cents each to raise $1 million to fund construction at the company's Phillips River gold project, located in the Great Southern region of WA.

The full announcement to the Stock Exchange is pasted below

Wednesday, 5 July 2006 : The Board of Tectonic Resources NL (ASX: TTR) is pleased to
announce that it has reached agreement for the private placement of up to 7,699,613 million
ordinary shares at a subscription price of $0.13 (13 cents) per share to professional and
sophisticated investors to raise $1,000,950. These new ordinary shares will rank parri passu with
the Company's existing ordinary shares.

Funds raised from the placement will be predominantly applied to progression of the
construction preparations for the Phillips River gold project, the retirement of debt and for
general working capital purposes. The company is targeting gold production from Phillips River
prior to the end of the first quarter 2007.

Managing Director Steve Norregaard commented "Tectonic is advancing the development of its
second gold operation at Phillips River which will boost combined total company production to
in excess of 65,000 ounces per annum with a further planned ramp up to around 100,000
ounces per annum within 3 years".