Corporate

Objectives for 2010

•   Enhance remote mining method to reduce development costs
•   Improve gold production rate and reduce costs at Tasmania mine
•   Extend reserves at the Tasmania mine
•   Drill to expand copper resources in Victoria and progress development studies

 Highlights for 2009

Financial
•    Company reported a net profit of $9.1 million
•    Strong cash flow of $17.0 million allowed repayment of all bank debt by July 2009
•    All production was unhedged, leading to a 29% increase in the average gold price for the year

Operational
•    Gold production rose to 70,178 ounces for year
•    Record mill throughput of over 76,000 tonnes was achieved in the June quarter
•    New F21 Zone accessed and mining commenced
•    An independent peer review cited the mine’s geotechnical procedures as “best practice in Australia for rockburst risk management”

Exploration
•    Demonstrated high grade depth extensions at the Tasmania Mine down to 1360 metres below surface, confirming the deposit remains open at depth
•    Achieved 100% ownership in July of Stavely copper project in western Victoria
•    Obtained right to earn a 75% interest in the high grade Mt Ararat copper deposit in the same region
•    High grade, shallow copper mineralization was discovered at Junction 1, located 3km south of Thursdays Gossan at Stavely