copper production to increase to over 65,000 t

Guidance for 2009

Copper production to increase to over 65,000 tonnes and
cash costs to fall to less than US$0.90/lb
PanAust Limited is pleased to announce that, following preparation of a detailed mine
schedule based on the 2008 ore reserve estimate, forecast copper production for 2009 has
increased by nearly 10% to over 65,000 tonnes contained in 260,000 dry metric tonnes (dmt)
of concentrate. Gold production, in concentrate and in dor¨¦ from the heap leach, is
expected to be between 70,000oz and 80,000oz and silver production to be between
400,000oz and 600,000oz.
A further review of operating costs has been conducted to, in part, reflect some of the
recent falls in oil and steel prices and therefore lower input costs for diesel fuel and grinding
media. It is now expected that cash costs (C1) after precious metal creditsi will be below
US$0.90/lb for 2009.
During the last two weeks of October the Phu Kham Copper©\Gold Operation attained design
production levels of copper concentrate equivalent to 260,000 dmt on an annualised basis
(i.e. at forecast levels for 2009). Copper recoveries continue to ramp©\up ahead of the
predicted schedule, averaging 71% during this same period versus a budget of 63% and a
steady state expectation of 73% on transitional ores. Once steady state concentrate
production levels and copper recoveries have stabilised at sustainable levels the emphasis
will move to ramp©\up of precious metal recoveries. Gold recoveries averaged 44% during
the latter part of October versus the feasibility study life©\of©\mine estimate of 49%.