ann out

Siana gold project
- senior debt financing mandate awarded.
Société Générale Corporate & Investment Banking
has been mandated to arrange a US dollar denominated
Project Development Facility for the development of the
Siana Gold Project.
Société Générale, as Arranger, has provided an
indicative term sheet comprised of a total US$42M
for the Project Development and Working Capital Facilities
and US$5M Cost Overrun Facility.
Draw down of a senior debt package will be available
subject to credit approval and completion of various
conditions precedent, including the prior commitment
to project development of US$22M in equity and/or
subordinated debt, and gold hedging.
The hedge commitment will be determined in accordance
with the prevailing gold prices at the time of execution
predominantly in the form of purchased put options effective
through the term of the Project Development Facility.
It is expected that two other banks will join Société Générale
in due course. Société Générale has visited the site, been
associated with the project for over two years and is the
provider of a A$2M facility drawn in the last twelve months
to finance the long lead time SAG mill and crusher.
Formal discussions with equity and subordinated debt
providers have commenced.
Colin G Jackson
Chairman
16 October 2007.