CHAIRMAN�fS ADDRESSLadies and Gentlemen,This is my first Annual...

CHAIRMAN�fS ADDRESS
Ladies and Gentlemen,
This is my first Annual General Meeting as Chairman of PanAust board of directors and I
would like to take this opportunity to say that I am proud to join PanAust. The Company has
an excellent management team and a future that presents many opportunities for growth.
I would also like to take this opportunity to pay tribute to the leadership, support and
commitment that former Chairman, Bob Bryan, has provided to the Company over the past
12 years. His vision helped to create and shape the Company we are today, and his
entrepreneurial spirit and determination to succeed will forever be part of the PanAust
culture as we work hard to meet the challenges and make the most of opportunities that
come our way.
I am delighted to note that Bob continues to provide that support as a proactive and
significant shareholder in the Company.
2008 was a defining year for PanAust as the company made a seamless transition from an
explorer with a small gold operation, to a leading producer of copper�]gold concentrate in
Southeast Asia.
In June of last year, commercial concentrate production commenced at our flagship Phu
Kham Copper�]Gold Operation in Laos and by the end of the year over 100,000t of coppergold
concentrate had been produced for export to custom smelters in the region.
The successful implementation of the Project is a credit to the leadership and dedication of
the management team and workforce.
The ramp�]up to full production has exceeded expectations, reflecting the significant
investment made in a high quality process plant and the success of our strategy to recruit
experienced operators and managers to key positions. The Operation is on track to meet its
production targets for 2009 and is already achieving globally competitive costs.
PanAust�fs share price through 2008 mirrored the buoyant commodity prices at the
beginning of the year and then the steep fall in the copper price at the end of the year.
The fall in the Company�fs share price was extenuated by the collapse of the debt and equity
markets and the market�fs concern about any company with significant short�]term debt on
the balance sheet.
In this extraordinarily tight credit market, PanAust successfully negotiated a 13�]month
extension to its US$80 million subordinated debt facility with Goldman Sachs JBWere to the
end of March 2010. In addition, PanAust entered into a new US$8.1 million revolving
working capital facility with three of the senior lenders to the Phu Kham Project debt facility.
Further funding was secured in early 2009 through a private placement, largely to existing
institutional shareholders, and a very successful Share Purchase Plan aimed at our retail
shareholder base. Together these initiatives raised A$48 million, which put the Company on
a stable financial footing.
During the year, there was a significant focus on improving our safety performance to reach
our goal of Zero Harm. Progress in this regard is demonstrated by the Phu Kham Operation
running for over 300 days without a Lost Time Injury. This is an outstanding performance for
a new operation in a country with limited mining experience.
Notwithstanding this excellent record, there have been a number of serious haulage and
transport incidents involving contractors and there is a concerted effort to mitigate risk of
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further incidents by implementing more stringent contractor vehicle checks, contractor
training (where appropriate), a road improvement program and progressively reducing the
reliance on contractors for haulage to and from the Operation.
Regrettably, a lightning strike at a remote exploration camp construction site in April 2008
caused one fatality and several Lost Time Injuries among the construction crew that had
been employed on a casual basis from a local village.
PanAust recognises the need to develop and maintain strong relations with local
communities where we operate, maintaining a focus on delivering sustainable outcomes in
the management of community affairs and protection of the environment. Mr Chanpheng,
the Chairman of PanAust�fs Lao subsidiary, Phu Bia Mining, is here today and will later outline
some of the benefits that mining has brought to Laos in a presentation.
I am pleased to report that the Company�fs community development initiatives are
significantly enhancing the quality of life and economic well�]being of local communities close
to the Phu Kham Operation and near our exploration sites.
Particularly noteworthy was the joint initiative with the Mater Hospital, here in Brisbane, to
deliver surplus medical equipment to the Phonsavan Hospital in the north of our Contract
Area in Laos and the contribution from several of PanAust�fs Brisbane�] and Laos�]based
employees in donating their personal time to assist in the logistics, including loading and
delivery, of that equipment.
PanAust is also committed to limiting the environmental impact of its operations. The single
most important part of the Phu Kham Operation with regard to environmental protection is
the tailings storage facility. The facility is designed to impound all potential acid generating
material mined from the open pit and tailings from the process plant and to contain rainfall
from a 1:250 year wet season. Construction to date has met all quality specifications and is
monitored by an �gEngineer of Record�h with regular quality control checks from an
independent engineer who reviewed the process and facility as �eindustry best practice�f.
PanAust remains committed to progressing capital efficient organic growth opportunities
(within the Company�fs Contract Area in Laos and at Puthep in Thailand), supported by the
Company�fs flagship Phu Kham Copper�]Gold Operation. Gary will discuss these opportunities
in his presentation.
As we move into 2009, one thing is clear: despite the global economic crisis, the very
positive supply demand fundamentals of the copper industry remain unchanged. The
medium to long�]term outlook for copper prices remains very positive, with consensus
amongst analysts that demand for the red metal will continue to grow, especially in China
and other countries that are developing urban infrastructure. The performance of the
mining industry to meet this demand continues to be challenged by ageing mines and
declining grades, thereby placing PanAust in a very strong position as one of the few new
sources of copper production globally.
I extend my thanks to the PanAust employees, our most valuable asset, for their outstanding
performance, ongoing commitment and support. The achievements of the Company
through 2008 are largely due to their skills, determination and experience.
I also thank you, our loyal shareholders, who supported PanAust through the difficulties
posed by global financial events.
[Chairman�fs address ends]