repay loan at white dam early, page-7

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Exco Resources repays White Dam JV financing nine months ahead of schedule
Exco Resources (ASX: EXS) has made the last repayment of the gold loan which was provided by Barclays Capital PLC (NYSE: BCS) to finance Exco?s share of the development cost of the White Dam Gold Production Joint Venture, and will now receive unencumbered cash flows for the rest of the project life.

Repayment has been completed nine months ahead of schedule, thirteen months after the project commenced and only seven months after first production.

A combination of better than expected production rates and higher gold prices has allowed the loan to be paid off two months before the first of three scheduled part-delivery dates.

The JV partners are currently completing an exploration and resource development programme for the nearby Vertigo deposit and White Dam North, White Dam South and Ambush prospects with the objective of extending the life of the mine and increasing life of mine production.

In addition to these resources, extensions to the current pit are also being investigated.

The White Dam Gold Project (Exco 75%, Polymetals Group Pty Ltd 25%) is located in South Australia approximately 80km west of Broken Hill. The project contains a resource inventory of 9.6Mt @ 1.05 g/t Au for 325,000oz contained.

38,900 ounces of gold (Exco?s share 29,175 ounces) have been produced to date at the project, exceeding expectations by approximately 30%.

With costs of A$600/oz, the project is already delivering significant revenues. The relatively short-life project is currently expected to produce a total of 120,000oz (Exco?s share 90,000oz).