Commissioning of the Chatree plant expansion and first gold are also expected in September, subject to final
regulatory approvals. The US$100 million expansion is currently expected to come in approximately 5%
under budget.

Exploration and resources definition drilling will continue both within the mining and exploration licences in
Thailand to further evaluate both the open pit and underground potential.

At Challenger, the operation is expected to be in-line with fiscal year 2011 with on-going exploration drilling
to upgrade resources to reserves and add to the overall resource inventory.

Significant progress has been made at the Nueva Esperanza project (Kingsgate 70%) in Chile, formerly the
Arqueros project. Stage 1 of the feasibility study was completed in July 2011 with completion of the final
feasibility study and the decision to mine scheduled for the end of March 2012.

On 1 August 2011, the Company announced that it had entered into an agreement to acquire the Bowdens
Silver project in New South Wales. The Company is currently undertaking a review of all drilling and other
technical data relating to the project and is in the process of finalising a Mineral Resource in line with JORC
guidelines. It is planned to initiate a full feasibility study once the review is finalised and the purchase
transaction completed. Kingsgate has entered into financing facilities to fund the Bowdens acquisition. The
Investec existing US$50 million three year revolving facility will be increased to A$60 million and Investec
will also provide an A$35 million five year convertible loan facility.

Following the settlement with Sinphum Co Ltd, the holder of the preference shares in the Group’s Thai
operating subsidiary Akara Mining Limited, the Group can recommence preparations for an IPO of Akara on
the Stock Exchange of Thailand.

For Financial Section Click Here