Operations - Stage 2

Stage 2 looks to build upon the first 3 to 5 years of production, by extending the Carosue Dam gold project by a further 3 to 5 years. This will be accomplished through the development of additional pits, further cutbacks on Stage 1 pits and the commencement of underground operations.

Presently Stage 1 constitutes mining only 5 of the 14 deposits currenlty included in the company’s resource statement. Most of these resources have not been reevaluated since the gold price climbed over $AUD500/oz and represent substantial resource / reserve growth potential.

Preliminary analysis indicates Stage 2 will involve mining of the following gold deposits:

• Porphyry underground mine
• Karari cut-back
• Safari Bore cut-back
• Red October cut-back and underground mine
• Whirling Dervish cut-back