ounces silver), which at a gold/silver equivalent ratio of 45 (Eq45) are 1.81 million gold equivalent ounces at 2.0g/t AuEq or 82 million silver equivalent ounces at 89g/t AgEq. The draft feasibility study is due in early 2012.

CORPORATE

At the end of September, Kingsgate had total cash at bank and bullion on hand of A$36 million. The Thai debt facility was fully drawn to US$100 million and the Kingsgate A$60 million revolving credit facility was drawn to A$40 million. In addition, Kingsgate entered into a five year A$35 million convertible loan facility to provide funding for the Bowdens acquisition.

Following the retirement of the Chief Financial Officer, Mr Peter Warren, at the end of August, Mr Duane Woodbury was appointed Chief Financial Officer and Mr Ross Coyle was appointed Company Secretary.

OUTLOOK

While Kingsgate is still expecting production for the year to 30 June 2012 to be significantly higher than 2011, the Company is currently reviewing the impact of the continuing high rainfall and flooding in Thailand on production at Chatree. Kingsgate will release a further update once the review is complete.

At Challenger, despite the lower than expected gold production in the September quarter due to water restrictions, the forecast for the year remains between 95,000 and 105,000 ounces.