The current half-year financial results for the period ending 31...

The current half-year financial results for the period ending 31 December 2009 are estimated to be
an overall loss of $1.1 million compared to the $4.5 million profit for the previous corresponding
period (31 December 2008). For the period the Company maintained an operating profit, albeit
reduced, of $3.1 million which is consistent with the Companys previous advice that the Que River
Mine was moving to lower grade, higher cost ore sources. This planned ore trend has contributed
to a $1.1 million drop in ore sales revenue from $11.7 million to $10.6 million for the comparable
periods.
Other aspects to contribute to the forecast loss include:
Hellyer Mill maintenance and environmental management costs during the period of
approximately $1.0 million;
Exploration expenditure write-offs of $0.8 million following review of the Companys tenement
holdings and relinquishment of several non-core tenements; and,
Hedging losses of $0.9 million due to overall higher zinc and lead prices. As only portions of
payable metal are hedged the price increases have significantly off-set the revenue reduction due
to lower mined grades.