C HATREE G OLD M INE O PERATIONAL P ERFORMANCE The Chatree/Chatree North mine was producing ore from four open pits during the quarter with the processing plant operating at an annualised throughput rate of 2.6 million tonnes per annum. Gold production at Chatree for the quarter was 32,646 ounces at an average plant head grade of 1.6 grams/tonne gold. Silver production was 133,649 ounces. Total cash costs were US$332/ounce (US$247/ounce before Thai royalties) for the quarter. Total production costs after tax, depreciation and amortisation are US$400/ounce. These costs continue to place the mine in the lowest quartile of global gold producers, with total production costs in the lowest 10% of gold producers (Source: GFMS 2010). Production for the nine months to end March was 102,172 ounces gold at 1.7 grams/tonne from 2.0 million tonnes ore processed at total cash costs of US$332/ounce. During February, the first millionth ounce of gold was poured since Chatree commenced production in November 2001. The average cost per ounce of gold produced for the million ounces of gold production was US$232/ounce at an average grade of 2.5g/t gold. Ore feed was sourced from two separate A Pits - across the top of the main A Hill and at the base of the hill, which will merge into a single enlarged A pit by the end of next year. Additional feed came from the C North cutback and the K West Pit. More than 80 vertical metres have been removed from A Hill since January 2009. During the quarter, 2 million tonnes of ore were mined and 672,710 tonnes treated. Mining continues at a higher rate than ore processing to maintain a number of open pits that provide ore blending flexibility and a stockpile build, prior to an expanded plant potentially being in operation. Stockpiled ore is now 5.2 million tonnes at a grade of 0.82g/t gold for 138,300 ounces gold. An underpass under the highway between Chatree and Chatree North has been completed, except for concrete abutments on the northern side and will be in use in the fourth quarter. This will allow the haul trucks to transport ore directly from Chatree North to the ROM ore feed pad next to the processing plant, which should lower the unit costs per tonne. Chatree Mine Waste Mined Ore Mined Waste to Ore Ratio Ore Mined Ore Treated Head Grade Gold Recovery Gold Poured Silver Poured tonnes tonnes Au g/t Ag g/t % ounces ounces Units bcm bcm Mar 2010 Quarter 1,840,275 840,455 2.2 : 1 2,367,465 672,710 1.6 13.3 90.5% 32,646 133,649 Mar 2010 Quarter US$/oz Gold Dec 2009 Quarter 1,403,821 783,642 1.8 : 1 1,936,120 668,804 2.0 14.0 92.3% 40,224 131,948 Dec 2009 Quarter US$/oz Gold Mar 2009 Quarter 1,196,402 648,886 1.8 : 1 1,507,947 648,970 1.7 16.7 91.8% 32,992 101,199 Mar 2009 Quarter US$/oz Gold Cost Category * Mining/Treatment Expense Refining and Transport By-product Credit Cash Operating Cost Royalty Total Cash Cost Depreciation/Amortisation Total Production Cost 298 3 (54) 247 85 332 68 400 290 3 (54) 239 73 312 76 388 337 2 (31) 308 56 364 63 427 * Gold Institute Revised Standard for Reporting Production Costs. Kingsgate reports unit costs in accordance with the Gold Institute Standard. Silver is accounted for as a by-product at Chatree whereby revenues from silver are deducted from operating costs in the calculation of cash costs per ounce. The Total Cash Cost of future production at Chatree will fluctuate due to changing grade, throughput, strip ratio and recovery outcomes. C HATREE N ORTH P LANT E XPANSION P ROPOSAL The grinding mills (SAG & Ball mills) have arrived on site for the proposed plant expansion to 5 million tonnes per annum. Ausenco has almost completed the detailed engineering designs and construction plans with contracts for the remaining equipment purchases are ready for signing. A final decision by the Thai Board of Investment is still awaited on an application for investment incentives. Meetings have been delayed mainly due to local political issues occupying the time of the key members of the panel. S AFETY , E NVIRONMENT AND L OCAL C OMMUNITY Chatree continues to be the world’s safest gold mine, based on publicly available data, with 13.2 million hours worked (7 years) since the last and only Lost Time Injury (LTI) and over 15.2 million hours worked over ten years with one LTI since the commencement of mine construction in the year 2000. There have been no reportable environmental incidents during the life of the mine and it remains in compliance with all environmental regulations under the approved EIA (Environmental Impact Assessment). F ORECAST Forecast production is expected to be in the order of 130,000 ounces gold for the year to June 2010. The Ball Mill Heads and both Mill Shells are now on-site. Kingsgate Consolidated Limited - Quarterly Report for three months ended 31 March 2010 Page 2