update on definitive feasibility study

UPDATE ON DEFINITIVE FEASIBILITY STUDY FOR SIHAYO PUNGKUT
GOLD PROJECT
The Board of Sihayo Gold Limited (ASX: SIH) is pleased to provide the following update on the progress of the
Definitive Feasibility Study (�DFS�) for its 75% owned Sihayo Pungkut Gold Project (�SPGP�) in North Sumatra,
Indonesia.
The DFS capital cost estimates are now 98% complete and the operating costs (per tonne of ore basis) are 97%
complete. All capital and operating cost estimates have been completed to the required DFS level of accuracy of
+/‐ 10%.
HIGHLIGHTS OF DFS RESULTS TO DATE
 Capital cost of US$80.4 million plus 10% contingency allowance
 Standard Carbon In Leach (�CIL�) processing plant with 1.25Mtpa capacity
 Life of Mine (�LOM�) average tonnes processed of 1.2Mtpa
 LOM average gold production of 72,000ozpa
 Estimated mine life of 7.2 years
 LOM average strip ratio of 5.4:1
 LOM average gold process recoveries of 70% ‐ 72%
 LOM average cash operating costs (including royalties, excluding corporate) of US$45.40 per tonne of
ore processed or US$752/oz gold produced (power costs based on diesel generation using Tapis oil
reference price US$115/bbl)
The key components of the capital cost estimate of US$80.4 million are:
 Owners cost to first gold pour: US$10.2 million
 1.25Mtpa CIL Processing Plant: US$24.2 million
 Infrastructure & Services: US$39.4 million
 EPCM contract: US$6.6 million
The key components of the forecast LOM average cash operating costs are:
 Mining costs: US$20.22 per tonne of ore processed
 Processing costs: US$20.77 per tonne of ore processed
 Total mine admin plus royalties: US$4.41 per tonne of ore processed
Current forecast cash operating costs are above the LOM average in the initial years of operation reflecting the
combined impact of below average head grades and the flat 70% ‐ 72% gold process recovery estimate.
25 Charles Street, South Perth WA 6151 PO Box 1013, South Perth WA 6951
WESTERN AUSTRALIA
Telephone: +61(8) 9368 4544 Facsimile: +61(8) 9368 4522
Web: www.sihayogold.com e-mail: [email protected]
ABN: 77 009 241 374
ONGOING WORK TO FINALISE THE DFS
The remaining work to fully complete the DFS is focused on the gold process recoveries on a year‐by‐year basis.
Whilst this additional work does not impact capital costs or cash operating costs on a per tonne basis, it does
potentially have a significant impact on the derived cash operating costs per ounce of production.
The current estimate of gold process recoveries is based upon three classifications of ore types within the defined
mineable resource, namely; oxidised, transitional and primary. The metallurgical test work program confirmed
process recovery estimates of 80%, 70% and 60% respectively for the three ore types via a conventional CIL gold
processing method. Based on these results an average process recovery of 70% ‐ 72% has been estimated on an
annual basis over the expected mine life.
During an independent peer review of the resource model and the metallurgical test work program it was
determined that a greater number of ore types are present within the mineable resource and each of these ore
types and the associated process recoveries should be defined and included in the overall gold process recovery
estimate. As such, the mineable resource will now be classified into approximately eight ore types, the
proportion of each ore type will be calculated, the process recovery estimate for each ore type will be validated
against the existing metallurgical test work results and a more comprehensive and definitive gold process
recovery profile will be derived.
The primary benefit of this additional process recovery work relates to the improved predictability of gold
recoveries throughout the entire mine life.
DFS IMPROVEMENT POSSIBILITIES
There are a number of areas where the results projected in the DFS to date can potentially be improved:
Mine life estimate � The current mine life estimate does not include any Inferred Resources. Planned infill drilling
at the Sambung deposit is likely to contribute to an increase in overall Indicated Resources and mine life. In
addition, drilling along the strike from the current Sihayo pit, to the northwest and southeast, has highlighted
potential to substantially increase overall resources.
Gold process recoveries � Actual metallurgical test work recoveries of 85% ‐ 95% have been achieved within
sections of the more highly oxidised shallow mineralisation at Sihayo. However, based on the existing ore
classification parameters, any benefit from above average recoveries in the early years of operation has not been
defined. The additional process recovery work may determine that recoveries above the 70% ‐ 72% average are
achievable in the early years of operation, however this will only be validated when the additional work is
complete.
Power costs � Current operating cost estimates reflect the sole use of diesel generated power across the
operation. At current Tapis oil prices of US$115/bbl, power costs are significantly impacted. Work continues on a
seperate feasibility study for a dedicated hydro power plant of approximately 6MW ‐ 8MW capacity. If the
feasibility study is successful this would have a significant positive impact on operating costs in the future.
Estimated hydro power costs are approximately 50% lower than current diesel power costs. The hydro feasibility
study is forecast to be complete by October 2011.

SUMMARY OF DFS PARTICIPANTS
Sihayo�s Chief Operating Officer, Mr. Greg Entwistle has been responsible for the overall management of the DFS.
Independent consultants have been appointed to complete components of the DFS and each consultant is
considered competent in their respective discipline and where applicable has recent experience in Asia.
Participants in the DFS include:
Runge Limited Geology and JORC compliant resources
Ozmet and AMMTEC Ltd Metallurgical test work and management
Plant and Infrastructure
Engineering (PIE) Process design
Contromation Services DFS engineering, infrastructure, capex and opex
Minesure Pty Ltd Mine design and schedule
GHD Pty Ltd Geotechnical including pit wall design
Schlumberger Water Services PtyLtd Hydrogeology and hydrology
Golder Associates Pty Ltd Environmental baseline and AMDAL scoping and mine waste dump design
PROJECT OWNERSHIP AND LOCATION
The Sihayo Pungkut Gold Project (�SPGP�) is located in Mandailing Natal, North Sumatra, Indonesia,
approximately 200 kilometres southwest of Medan, the capital city of North Sumatra.
The SPGP is held under a seventh generation Contract of Work (�COW�). The COW is a legal contract between
the Governmen of the Republic of Indonesia and PT. Sorikmas Mining (the 75% owned subsidiary of Sihayo Gold
Limited).
The COW covers an area of 66,200 hectares and under the terms of the COW this area shall be reduced to
aproximately 50,000 hectares prior to the commencement of construction activities.
The 25% minority shareholder in PT. Sorikmas Mining is PT. Aneka Tambang Tbk, the majority state owned
Indonesian mining company.

GEOLOGY AND RESOURCE

Independent expert Runge Limited (�Runge�) has estimated resources at the Sihayo and Sambung deposits.
Details of the JORC Compliant Resource were released on 21st March 2011.
The Indicated Resource at the Sihayo deposit as at March 2011 comprises 13.2Mt at 2.8g/t Au containing
1,195,600 ounces of gold (using a 1.2g/t Au cut‐off).
The Inferred Resource at the Sihayo deposit comprises 1.4Mt at 2.3g/t Au containing 106,500 ounces of gold
(using a 1.2g/t Au cut‐off).
The Inferred Resource at the Sambung deposit has not been considered in the DFS at this stage.

NEXT STEPS
Our DFS team is focused on completing the outstanding work as quickly as possible.
Aside from the DFS work, exploration drilling continues at the Tambang Tinggi copper/gold prospect, pre‐drilling
exploration work continues at the Hutabargot Julu epithermal prospect and the re‐establishment of the
exploration camp at the main Sihayo deposit will commence soon.

Yours faithfully,
SIHAYO GOLD LIMITED