Ann: Quarterly Activities Report September 2015, page-2

OVERVIEW:
Co-O MINE PRODUCTION
 Production: 31,495 ounces at a head grade 6.8 g/t gold, cash costs of
US$439 per ounce, AISC US$953 per ounce (June 2015 quarter of 26,542
ounces at a head grade of 6.01 g/t gold, cash costs of US$390 per ounce,
and AISC US$1,076 per ounce).
 Production guidance: Guidance for FY 2015-16 is 120,000 to 130,000
ounces.
 Mill performance: gold recovery averaged 94% (June 2015 quarter 94%).
 Development: A total of 7,269 metres of horizontal and vertical
development completed for September quarter.
 Shaft haulage: Haulage system de-bottle-necking continuing. L8 ore
hoisting competing with materials for increasing development at Levels 8, 9
and 10, and waste generation from Service Shaft and ventilation raises.
 Service Shaft: Service Shaft collar concrete pour completed, underground
Alimak raising completed, blind sink from surface to Level 2 underway,
stripping of raises to final dimensions to commence in early CY 2016.
 Resource drilling: Extensive underground drilling program, targeting
resource extensions from Levels 8 to 16 to commence in December
quarter.
Co-O MINE EXPLORATION
 Resources and Reserves: New estimates show Indicated Resources and
Probable Reserves remain essentially constant at 604k ozs at 12.2 g/t gold
and 427k ozs at 7.33 g/t gold respectively.
 Underground resource drilling results include 2.1m @ 295 g/t Au; 2.35m
@ 66 g/t Au; 0.8m @ 84 g/t Au; 1m @ 53 g/t Au; and 2.15m @ 19 g/t Au.
 Drilling postponed for West Road 17 veins.
 Surface exploration continuing at South Agsao veins.
TAMBIS REGION
 Bananghilig (B1) Deposit: Resource modelling commencing.
 Guinhalinan Prospect: Scout drilling commencing in December quarter.
COAL EXPLORATION
 Regional mapping of coal bearing stratigraphy nearing completion,
including locating several seams ranging up to 3.2 metres thick.
 Scout drilling to commence in December quarter.
CORPORATE & FINANCIALS (unaudited)
 Total cash and bullion on hand at the end of the quarter of approximately
US$11.6 million (approximately US$14.6 million at 30 June 2015), reduced
by net cash movements in the creditor/receivable accounts.
 During the quarter, the Board of Directors, CEO and Company Secretary
voluntarily and unconditionally agreed to reduce their fees/salaries by 15%
for the current financial year