We are very pleased to confirm the successful completion of the Gruyere Scoping Study, and the beginning of the Pre-Feasibility Study (PFS).  As the attached announcement shows the Gruyere Project has the potential to be a robust, long life, large tonnage gold project � at A$1,350/oz.  We must emphasis that this is based on a Scoping Study, and the work done is to that level of study confidence as disclosed in the attached announcement.

The reason we chose A$1,350 as a Study gold price is that we wanted to confirm that the Gruyere Project is an economic project at the low end of the five-year gold price range, which it appear to be.

At the Scoping Study gold price (A$1,350/oz) the Gruyere Project is forecast to generate net pre-tax cash flow in excess of A$550 million over the life of mine.  Using A$1600/oz (a gold price closer to the current spot price) the Gruyere Project is forecast to generate net pre-tax cash flow of over A$1 billion.

The Scoping Study looked at 5Mtpa throughput which allows for an 11 year life of mine, producing a total of 2.1Moz.  In addition to the 5Mtpa Scoping Study, larger sized operations of 7.5Mtpa and 10Mtpa were investigated, but not to Scoping Study standard.

The first stage of the PFS is to confirm the optimal size, within the range 5Mtpa to 10Mtpa, and once this is confirmed to complete the detailed PFS. Both stages are anticipated to be completed within 2015.