C Service agreements (audited)
Remuneration and other terms of employment for the Chief Executive Officer and the other key management personnel are formalised in service agreements. Each of these agreements provide for the provision of performance-related cash bonuses, other benefits including car allowances and car parking, and participation, when eligible, in the Employee Option Plan. Other major provisions of the agreements relating to remuneration are set out below.

Gavin Thomas - Chief Executive Officer

• Term of agreement – 3 years ending 1 April 2008
• Base salary, inclusive of superannuation, as at 30 June 2007 of $500,000 to be reviewed annually by the Remuneration Committee
• No termination or bonus payments

Stephen Promnitz - Corporate Development Manager

• Term of agreement – No fixed term
• Base salary, inclusive of superannuation, as at 30 June 2007 of $375,000 to be reviewed annually by the Remuneration Committee
• No termination or bonus payments

Peter Warren - Chief Financial Officer / Company Secretary

• Term of agreement – No fixed term
• Base salary, inclusive of superannuation, as at 30 June 2007 of $330,000 to be reviewed annually by the Remuneration Committee
• No termination or bonus payments

Phil MacIntyre – Chief Operating Officer, General Manager, Akara Mining Limited

• Term of agreement – 3 years ending 16 July 2007
• Base salary, inclusive of superannuation, for the year ended 30 June 2007 of $327,036 (net of tax) to be reviewed annually by the remuneration committee

Ron James - General Manager, Exploration and Resource Development

• Term of agreement – Renewable on an annual basis at the discretion of the Board of Directors
• Base salary, inclusive of superannuation, for the year ended 30 June 2007 of $227,599 (net of tax) to be reviewed annually by the remuneration committee

Arthur Ellis - Group Financial Controller

• Term of agreement – No fixed term
• Base salary, inclusive of superannuation, as at 30 June 2007 of $213,000 to be reviewed annually by the remuneration committee

D Share based compensation (audited)
Options
Kingsgate Employees and Contractors Option Plan

On 28 November 2001, shareholders at the Annual General Meeting approved the special resolution to establish the Kingsgate Employees and Contractors Option Plan 2001. Under this plan 2,500,000 options may be issued to employees and contractors of the Group (excluding Directors of the Company). This plan has similar option terms as the option plan established in 1998 which authorised the Directors to issue up to 500,000 options to employees and contractors of the Group (excluding Directors of the Company).

The terms of the options issued pursuant to the plan are as follows:

a) The exercise period for the options is three years from the date the options are granted

b) Each option will entitle the holder to subscribe for one ordinary share of the Company and the exercise price for each option will be 10% above the average closing sale price of the Company’s ordinary fully paid shares on the Australian Stock Exchange over the five trading days preceding the day on which options are issued (but in any event not less than 20 cents)

c) Options are granted under the plan to eligible employees and contractors for no consideration

d) Options granted under the plan carry no dividend or voting rights

e) Set out over the page are summaries of options granted under the plans

Full details of the Employee Option Plan are disclosed in the Share Option Plan rules which were approved by shareholders in November 2001, a copy of which can be obtained from the Company. No options have been issued by the Company from this plan in the current year.