21. DRC Government Review of Mining AgreementsThe Company has...

21. DRC Government Review of Mining Agreements
The Company has concluded negotiations with Gécamines and the DRC Government on the Kinsevere Contrat d’Amodiation (“Lease Agreement”), Mutoshi joint venture (“JV”) agreement and the Dikulushi Mining Convention. The Company has copies of signed minutes of meetings held with Gécamines and DRC Government officials during which the renegotiated commercial terms and conditions were agreed.

While the process to be followed to bring the DRC Government review of mining agreements to a formal conclusion has not been fully enunciated, the Company understands that the minutes have been approved by the Gécamines board and sent to Kinshasa for consideration by the Minister of Mines.

In relation to the Kinsevere Contrat d’Amodiation and Mutoshi JV agreement, it is anticipated that once the Minister of Mines has ratified the commercial terms and conditions contained in the minutes, this will conclude the negotiation, approval and ratification process, with only the execution of amendment agreements for attachment to the original agreements to be formalised. The Company expects to be in position to announce the final terms and conditions agreed between and amongst the parties following ministerial ratification of the minutes.

The process by which the renegotiated commercial terms and conditions agreed with Gécamines and the DRC Government will be formalised for Dikulushi under the Dikulushi Mining Convention, has not been communicated to the
Company.

Longer Term Objectives (2009 onwards)

• Completion of construction and commissioning of the Kinsevere Stage II SX-EW plant.
• Completion of feasibility study for the Mutoshi Stage II SX-EW project.

• Completion of preliminary studies on an expansion of the Kinsevere 60,000 tonnes per year SX-EW plant.

Exploration
Kinsevere

Conclusion of Phase 3 drilling has advanced the resource modelling for Kinsevere Hill and the Kinsevere Hill
extension, with optimization of an enlarged oxide pit currently underway. During the quarter, 893 metres of
Reverse Circulation (“RC”) drilling (9 holes) and 7,165 metres of diamond drilling (25 holes) was carried out as
part of the ongoing Phase 4 drilling of the sulphide mineralization at Tshifufia and Tshifufiamashi, with over 5,500 samples pre-prepared and sent for assaying.

In order to allow for completion of an updated Mineral Resource estimate and oxide Mineral Reserve statement
towards the end of 2008, the cut-off date for data to be included in the updated Mineral Resource estimate and
Mineral Reserve statement has been set at August 31, 2008.
The initial metallurgical testwork results for the sulphides indicate scope for a Stage III expansion of the Kinsevere Stage II SX-EW plant. Preliminary work on the optimisation of pit design and mining schedules as well as
preparation of an engineering cost study has been placed on hold.

The Company had previously reported that the results of bulk density tests carried out during 2008 indicate that in
the current mining areas, the bulk density may be lower than that predicted from the core measurements and
thereby represent a risk to the number of tonnes reported in the current resource estimate. The updated Mineral
Resource estimate and Mineral Reserve statement is expected to be released towards the end of 2008. While
definitive results are not yet available, the Company expects this to show a modest decrease in the number of
tonnes reported in the oxide Mineral Resource, largely offset by an increase in the number of tonnes reported in
the sulphide Mineral Resource. The updated Mineral Resource estimate and Mineral Reserve statement are expected to be sufficient to justify a Stage III expansion of the Stage II SX-EW plant.

A further updated Mineral Resource estimate and Mineral Reserve statement that includes Phase 4 drilling
carried out since August 2008 is expected to be completed during the first half of 2009.

Dikulushi
Exploration activity at Dikulushi is focused on in-mine drilling to provide a better understanding of the existing
resource for underground mine planning as well as evaluating the potential for extending the current estimated
mine life beyond the first quarter 2012.

During the quarter, geochemical sampling of targets to the north and north-east of Dikulushi mine was carried out.
Targets were generated from airborne magnetic data and follow-up of the Kaswete copper occurrence located
approximately 75km to northeast of Dikulushi mine.

A drilling program totalling 8,630 metres has commenced to infill pre-existing holes at an average across deposit
interval of about 35 metres, for which a purpose built LM75-55 drill rig was purchased. With the completion of this
programme, all Inferred resources are planned to be converted to an Indicated Resource category. A surface drill
rig and an underground drill rig will carry out the drilling program, which is expected to be completed in the fourth quarter of 2009.

Mutoshi
A scope drilling program at Mutoshi that commenced in March 2008, with up to eight RC and diamond drill rigs
being used, concluded in July 2008. Further drilling, involving 92 RC holes for 2,080 metres was carried out at
Mutoshi during the third quarter.

Drilling at Mutoshi North and Mutoshi North-west has returned consistent results, with the northern limb
mineralized in copper below a leached zone, 40 metres from surface. Strike length in Mutoshi North-west is
currently 1,200 metres and down dip width of 25 to 30 metres for a distance of more than 550 metres. Both the
Mutoshi North and Mutoshi North-west prospects contain cobalt mineralization in the same strata-bound units
where copper mineralization is observed. Four RC drill-holes were drilled at Mulusonoi intersecting significant visible copper-oxide mineralization in the lower ore-body units. The strike of the mineralized syncline has grown from 300 metres to 550 metres with a width of 300 metres and a true thickness of copper-oxide mineralization of 10 metres.

Cobalt mineralization seems to be significant in most of the fragments drilled and assays returned have shown
attractive, near surface cobalt grades. Metallurgical test-work is required on selected diamond core to assess the
ease of extraction of the cobalt from the ore types at Mutoshi.

The objective of the scope drilling program was to outline sufficient near-surface oxide copper and cobalt
mineralization, to justify development of the Mutoshi Stage II SX-EW plant. Further infill drilling and metallurgical
testwork is required in order to enable completion of a Mineral Resource estimate for the Mutoshi area.
More than 15,000 assays have been received for samples from the scope drilling program and more than 10,000 assay
results are still awaited.

From the results of the Mutoshi scope drilling program, a grade-tonnage model has been created which has
allowed for the development of preliminary mine planning and notional mining schedules for feed to the Mutoshi
Stage II SX-EW plant.

The installation of a potentially low-cost Stage I Coarse Agitated Leaching facility has been considered as an
interim option for processing material from the Kulumaziba river deposit, while a conventional SX-EW plant,
similar to that under construction at Kinsevere, for subsequent treatment of the Mutoshi oxide resource is
developed as Stage II.

In order to minimise Stage I capital expenditure, the initial proposal involves utilising the existing ROM bin and
plant feed conveyor from the existing HMS plant with location of the CAL facility at the HMS plant site. GRD
Minproc is currently completing an engineering cost study for the proposed Stage I and Stage II development.

Philippines
The Company is currently reviewing its exploration activity at the Itogon project in the Philippines and has
engaged advisors to assist in identifying options to provide for the assignment of the Company’s interest. As a
result, the Company has elected to write off $2.5 million of exploration expenditure in relation to exploration work
carried out on these properties. This represents approximately half of the total value of exploration expenditure related to the Itogon project.