fantastic announcement, page-5

Major concentrate sale contracts for Phu Kham
�] Production reaches design levels
PanAust Limited is pleased to announce that it has entered into an agreement with a leading
metals trader to deliver on spot market terms 110,000 dry metric tonnes (dmt) of
concentrate containing over 27,000t of copper and nearly 30,000oz of gold. Shipments
under the agreement have already commenced and will continue through 2009.
In addition to the spot sales contract, PanAust will enter into a long�]term frame contract
with the trader to deliver 70,000dmt/annum of concentrate from 2010 onwards.
The spot sales finalise arrangements for the sale of 90% of concentrate scheduled to be
produced at Phu Kham from now through to the end of 2009.
Managing Director, Gary Stafford, said this latest agreement sits well with previous contracts
entered into by PanAust with copper smelters and concentrate trading houses.
�gPanAust has arranged contracts with a number of buyers over the last 18 months which
have secured competitive treatment and refining terms for 2008 and 2009 and developed
several markets for Phu Kham concentrate,�h he said.
At the Phu Kham Copper�]Gold Operation, successive records for copper�]gold concentrate
production were achieved in October and November as throughput exceeds design and
recoveries continue to improve. Mill throughput for November was a record at 1.16 million
tonnes of ore significantly exceeding the annualised design capacity of 12 million tonnes per
annum.
During November, over 19,000dmt of concentrate was produced containing approximately
5,000t of copper, 3,600oz of gold and 28,000oz of silver.
�gThe Phu Kham Operation is cash�]flow positive with copper production at design levels and
ramping�]up to meet our recently revised 2009 production target of 65,000t copper at an
average C1 cash cost1 of US$0.90/lb,�h Mr Stafford said.