CHATREE GOLD MINE, THAILAND

During the quarter, mining accessed the higher grade areas in “C” North and mining continued in areas of A Hill. Ore mined was 1,404,485 tonnes at a strip ratio of 2.5:1 (previous quarter 3.9:1). Mine production was higher in the quarter due to the lack of rainfall. Mining of the low grade A Stage 2 continued to advance when access to higher grade areas was not available.

The higher grade section in “C” North was reached in March. Mining has progressed well during the dry conditions and it is anticipated that “C” North will be completed in the next quarter and positively impact production once again in the fourth quarter.

The process plant treated 1,557,392 tonnes of ore at an average plant head grade of 0.94 grams per tonne gold to produce 38,721 ounces of gold. Silver production was 279,813 ounces. Gold recovery of 84.9% was higher than the prior quarter of 83.5%.

Stockpiled ore at close of quarter was 8,201,620 tonnes at 0.66 grams per tonne containing 173,467 ounces of gold.

CHATREE NORTH PLANT EXPANSION

The plant has been constructed as a separate 2.7 million tonnes per annum (Mtpa) ore processing plant located besides the current 2.3 Mtpa Chatree processing plant. This has resulted in a combined total ‘name-plate’ ore processing capacity of over 5 Mtpa. The Chatree North Expansion is now operating at throughput rates of +20% over design. This results in the combined plants currently operating at an annualised throughput rate of approximately 6.2 Mtpa.

Construction of Tailings Storage Facility #2 (TSF2) continued with around 70% of the HDPE liner in place at quarter end. Installation of the decant tower, power supply and pipelines continues. TSF2 is planned to be completed in the September quarter.

REGIONAL EXPLORATION - THAILAND

Exploration drilling, outside of the mining leases at Chatree, remains on hold until the new Special Prospecting Licence (SPL) applications and renewals are approved.