INVESTORS

Kingsgate's activities and focus on the gold mining and exploration sector involve certain levels of risk for the Company and its investors. These risks include commodity price risk, market risk, currency exchange risk, regulatory risk, country risk, operational and workplace risk, environmental risk and the risk of the local community withdrawing support, amongst others.

Risk management is conducted by senior management (including supervisors) both at an operational level and at the corporate head office level to minimise the magnitude and the severity of any risk, if possible, within the principles and specific policies established by the Board. Investors have regularly expressed a preference for full exposure to the commodity fluctuation (gold price) and Kingsgate provides that exposure. Regulatory, operational, environmental and local community risk is minimised by effective management of the mine and its potential impacts, as well as building constructive dialogue at all the various levels of federal, provincial andlocal government and local community groups.

This process is designed to maintain the overall 'license to operate' and provides investors confidence that the Company has a demonstrable ability to conduct business and understand the culture in other countries.