Corporate

Objectives for 2011

•   Establish stoping production in newly discovered Western Zone
•  Confirm potential of stockwork as ore source
•  Extend enhanced remote mining method to cover most production and improve safety
•  Improve gold production rate and reduce costs at Tasmania mine
•  Extend reserves at the Tasmania mine
•  Realise value for copper resources in Victoria and progress development studies

Highlights for 2010

Financial

Company reported a net loss of $1.1 million following a profit of $9.1 million in 2009

Strong cash flow of $7.6 million

All production was unhedged, with an average gold price for the year of A$1,236

Operational

Medically referred injury frequency rate fell to a historic low.

Gold production of 57,758 ounces for the year

Record mill throughput of over 297,000 tonnes

A new lower cost mining method was successfully introduced

Stockwork resources were identified as a potential new source of low-cost bulk tonnes

Exploration

Reserves of 48,000 ounces added in the newly discovered Western Zone with stope production expected to commence in second half of 2011 financial year

Conceptual development study on Victorian copper resources shows encouraging results

Boundary of copper mineralisation extended at Thursdays Gossan resource

Encouraging metallurgical testwork completed on copper resources

Drilling confirms Stawell style gold targets at Langi Logan and Langi Logan South