December 2013 Quarterly Report

KEY POINTS

• Strong Group operating performance with a 7% increase in quarterly gold production to 54,539 ounces, and a 12% reduction in total cash costs to US$918/ounce, when compared to the September quarter.
• Challenger’s performance highlights the benefits of the restructuring plan. Gold production of 20,318 ounces was at the highest level for seven quarters, and total operating costs were 17% lower than the September quarter.
• Continued optimisation at Chatree delivered a strong quarter with 34,221 ounces of gold produced and operating costs 8% lower than the previous quarter.
• Group debt repayments of approximately A$17 million were made during the quarter and corporate borrowing facilities were restructured.
• The definitive feasibility study (DFS) for Nueva Esperanza is nearing completion.