Update on Thai Media Reports on the Chatree Gold Mine

Update on Thai Media Reports on the Chatree Gold Mine

Kingsgate Consolidated (ASX:KCN) (“Kingsgate” or the “Company”) has been made aware of some alleged recent comments by the Thai Minister of Industry reported in the Thai media that relate to the premature closure of the Chatree Gold Mine on 31 December 2016.

The following is a summary of those reports:

• The Ministry of Industry is not certain that it has the power under existing Thai law to prematurely close the Chatree Gold Mine, including the non-renewal of its metallurgical licence;
• There is no conclusive evidence of hazardous waste or contamination caused by the Chatree Gold Mine. The Ministry of Industry expects a study conducted by various government authorities into this matter to be finalised in November;
• The Ministry of Industry is discussing the situation internally and will consult with the Deputy Prime Minister in relation to the resulting legal implications of the premature closure of the Chatree Gold Mine;
• The Thai Government plans to establish a Mineral Management Committee, chaired by the Prime Minister to develop mining policies including a policy for mineral exploration; and
• The Thai Cabinet has instructed the Ministry of Industry to consider the impact of the matter on the Free Trade Agreement between Thailand and Australia.

Neither Kingsgate nor its Thai subsidiary Akara Resources Public Company Limited, have received any communication from the Thai Government in relation to these matters, and accordingly are unable to assess what weight, if any, should be given to these remarks.

The media reports themselves are contradictory in certain respects, and the Thai press should not necessarily be regarded as a reliable source of information of this type.

Greg Foulis

Chief Executive Officer
Kingsgate Consolidated Limited