great quarterly

QUARTERLY HIGHLIGHTS

Phu Kham Copper‐Gold Operation, Laos

• The Operation was cash flow positive for the quarter

• 33,974t of concentrate containing 8,568t copper, 9,471oz gold and 54,879oz silver was produced in the quarter, in line with ramp-up expectation

• Mill feed for the quarter was 2,652,192t

• Design throughput of 12Mtpa was achieved two months ahead of schedule in late July and was sustained through August and September. Copper recovery rate is steadily improving

• Positive reconciliation of ore mined and processed versus the ore reserve

• Long term concentrate sales contract agreed with Tongling Nonferrous Metals, China’s largest copper smelter

o PanAust has now agreed sales for 40% of Phu Kham’s copper‐gold concentrate production to 2010 at competitive TC/RCs below the current benchmark

• Scout drilling intersects copper‐gold mineralisation over a strike length of 800m adjacent to the currently defined northern limit of the deposit

Growth Projects

Phu Kham Copper‐Gold Expansion (of the process plant to 16Mtpa)

• Delivery of a new 6.5MW ball mill for the expansion is on track for the June quarter 2009 Ban Houayxai Gold‐Silver Deposit, Laos

• Pre-feasibility study identifies the potential for a low-cost operation producing annually 100,000oz to 130,000oz of gold and 700,000oz to 800,000oz of silver over a minimum six year mine life

Puthep Copper Project, Thailand

• Drilling intersects plus‐200m near surface zones of copper-gold mineralisation; indicates the potential to increase the tonnage of the current mineral resource

• Broad zone of high-grade copper‐gold mineralisation confirmed