let the good times roll!

The company is definitely on a firmer track. This latest announcement re the CEO appointment adds to the positive news that keep comming. What I particularly like about the CEO's employment contract is the options renumeration package, the new CEO will certainly have to perform for his reward.

I guess the Chairman (Ross Smyth-Kirk) has a strong vested interest that he does perform, (he owns about 5 million shares)!

$4 sooner than later

APPOINTMENT OF CHIEF EXECUTIVE OFFICER (CEO)
The Directors of Kingsgate Consolidated Limited are very pleased to announce that Mr GavinThomas has been formally appointed as the CEO of the Company. Negotiations for theappointment have now been finalised and it will be effective from 1 April 2005.Mr Thomas was appointed as the Acting CEO on 22 November 2004. He has had extensiveexperience in mining and exploration companies in numerous countries, significantly inThailand, South America and Papua New Guinea.
The Company believes that this appointment has the potential to add significant value for theshareholders of Kingsgate based on Mr Thomas’s history of project delivery; his executive management experience within the resource sector; his business development successes in a number of environments; and his significant commercial and geological experience.The agreement with Mr Thomas is for a period of three years which can be terminated with three months notice from either party. The annual salary package for Mr Thomas as CEO is the
same as for the former managing director and comprises a fixed total salary including superannuation and all benefits of $500,000. Mr Thomas has also been granted 2,500,000 options to acquire shares in the Company as follows:
Number of
options
Exercise price Vesting date Expiry date
180,000 $4.00 1 July 2006 1 July 2010
180,000 $4.00 1 July 2007 1 July 2010
140,000 $4.00 1 July 2008 1 July 2010
180,000 $5.00 1 July 2006 1 July 2010
180,000 $5.00 1 July 2007 1 July 2010
140,000 $5.00 1 July 2008 1 July 2010
180,000 $6.00 1 July 2006 1 July 2010
180,000 $6.00 1 July 2007 1 July 2010
140,000 $6.00 1 July 2008 1 July 2010
360,000 $7.00 1 July 2006 1 July 2010
360,000 $7.00 1 July 2007 1 July 2010
280,000 $7.00 1 July 2008 1 July 2010
The directors consider that the share price of the Company’s quoted securities is an appropriate measurement against which Mr Thomas’s performance should be measured. Accordingly, the directors consider that the staggered vesting dates and various high exercise prices of the options are appropriately levelled to reward and encourage Mr Thomas over the next three years. During his period as Acting CEO from November 2004 to 31 March 2005 MrThomas earned 60,000 options to acquire shares in the Company at an average exercise price of $2.69. The options have been issued today, are now vested and will expire on 1 April 2010. The exercise price was calculated using 110% of VWAP of the Company’s share price for the last five days in December 2004 and January, February and March 2005. 15,000 options were earned at the end of each of those months.
An Appendix 3B – New Issue Announcement – covering the above issues of options is let the ggod times rollattached.
Yours faithfully
John Falconer
Director/Company Secretary