Ann: Quarterly Activities Report, page-13

Email from Graham today in regards to this announcement:

Fellow Shareholder and Interested Parties,

We have attached a copy of our quarterly report released to the ASX today for your consideration.

Production was steady (slightly down on the previous quarter). Drilling is advancing the Iguana deposit and we expect to release results from the diamond (8 holes) and grade control drilling (204 holes) when all information is available.

MacPhersons continues normally and with the cut back complete the waste to ore ratio will reduce and at current gold prices will reflect in surplus funds.

We are confident of our future and have announced more detail on our expansion plans, estimated capital cost (to be funded from cash flow) and a final design/costing will be released when metallurgical results from diamond drilling are available.

To advance the Jaurdi plant from an initial design/throughput of 500,000tpa in 2018 to a potential 1,200,000tpa gold processing facility by early 2026 in 7 years is a reflection of -

• Accumulating resources/reserves to justify the plan
• Ability to execute on the design

A credit to all concerned.

Graham McGarry

Managing Director