GM 2013

Managing Director’s update

The way forward to restore cost effective,

efficient gold production

For

per

sona

l use

onl

y

GM 2013

Positives: Superior resource base Capital sunk to have de risked processing plant, Open pit, infrastructure and operating regime in place Strip ratio diminishing - enhanced cash flow Excellent exploration potential Excellent local government/people support

Challenges: Cease and Desist Order - restore credibility Implementation of new tailings dam solution

… the missing link in the production chain Re-populate the mine workforce Recommence mining

… re-engineer the project to ensure safe and efficient production

Siana Project F

or p

erso

nal u

se o

nly

GM 2013

Hopeful of nearing a resolution with growing widespread support … we have had no environmental impact and now have a clear roadmap to close the tailings facility. No valid ground remains to justify order remaining in place.

We have: Philippines certified closure report, Third-party endorsement for interim

tailings solution No environmental breaches have occurred!

Cease and Desist Order F

or p

erso

nal u

se o

nly

GM 2013

For

per

sona

l use

onl

y

GM 2013

Backfill river, install underdrains & buttress filling

TSF4 Crack

River diversion

TSF 4 remedial works F

or p

erso

nal u

se o

nly

GM 2013

Phase 1: 0 to 4 months a short term lined storage pond downstream of TSF 4.

2/3 months of construction and 4 months of tailings storage. The tailings will be stabilised by the addition of cement.

Phase 2: 4 months to 24 months plus co-disposal of cemented paste tailings with waste rock.

This will be commissioned in month 7 and operate to month 24 as a minimum.

Phase 3: month 25 onwards disposal of tailings into a new tailings facility (TSF 10).

This will provide storage for the period of the remaining mine operation and beyond.

Three stage solution for tailings storage

For

per

sona

l use

onl

y

GM 2013

Stage 1: lined dam F

or p

erso

nal u

se o

nly

GM 2013

Depositing thickened tails mixed with cement in cells, contained within a waste rock outer shell, to make a solid dump on top of TSF 3, 4 and Phase 1 dam

At closure dam area will be a water shedding feature with vegetation established progressively stabilizing an area of concern

Additional modifications to process plant required

Intrinsic benefits are surplus water removed from thickening has economic value (reagents and soluble gold) and the ability to store large amount of waste rock closer to pit rim reduces mining cost.

Stage 2: co-deposition F

or p

erso

nal u

se o

nly

GM 2013

Stage 2: co-deposition footprint F

or p

erso

nal u

se o

nly

GM 2013

Valley style facility. Conventional, accepted

South of mine pit .. close

Outside current mine area ... new ECC permit required (land acquisition, engineering studies and baseline environmental work underway.)

Readily expandable to cater for mine life extensions.

Least disruption to surrounding community

Has timing risk

Land acquisition to commence post funding

Stage 3: ultimate tailings solution F

or p

erso

nal u

se o

nly

GM 2013

A mining contractor with new equipment, a dewatering strategy that will work and a mining schedule that improves NPV - guaranteed ore supply.

Mains power connection imminent with Company-owned gen sets providing 100% redundancy.

Enhancements in processing plant, to reduce operating cost and improve recovery.

A community that values mining and what it brings.

As a Company we are well funded to withstand the challenges, debt free.

Upon establishing positive cash flow recommence exploration.

What will be better now? F

or p

erso

nal u

se o

nly