Ann: Quarterly Activities Report December 2012 , page-2

re: Ann: Quarterly Activities Report December... Saga shaft commissioning delayed by around 4 weeks, but the main positive is that it is now hauling ore and waste. It's additional 1500tpd of capacity is a major 'game changer' for the mine (as already stated by management).

Overall FY13 production guidance reduced to 80-90koz because of expected slight delays in sorting out the expanded mill capacity. But irrespective, MML are now in the ramp-up to the 200koz pa rate, so a few weeks of slip are neither here nor there in the overall life of the mine.

With the new guidance I estimate FY13 EPS at c. 63c and around 97c for the CY2013 (at current gold price!). AIMHO of course!

I was expecting 18koz for the Dec quarter so reasonably happy with that particularly as they had a mill relining which hit production.

Anoling relinquishment was a surprise, but it was only ever a small prospect. With so much other work on Co-O and with Banaghilig in prospect, one can understand management focusing on their main assets.

I note they are deepening the Baguio shaft and that the rate of underground development increased markedly in the last quarter as they prepared the necessary infrastructure to support many new stope areas. The benefits of all this development will, of course, flow through eventually with better grade material and less waste to the mill.

CPDLC