BETZE-POST (GOLDSTRIKE)

A drill program at Goldstrike was focused on near term resource additions on targets north of the Betze-Post pit. The results from the program were very positive and drilling will continue during the first half of 2004.

Preliminary exploration drill results were very encouraging. Immediately north of the Goldstrike Pit, five of six initial holes contain mineralization. In 2002, production declined 9% due to lower grades processed. In 2001, production for the year was 6% lower than the previous year, as mining of high-grade ore in the 7th West Layback was completed in the second quarter of 2001. Total cash costs were USD220 per ounce, compared to USD195 in 2000. Recovery rates were 2.4 percent lower than the prior year, due to a significant amount of transitional ore (1.5 million tons) processed primarily in the third quarter. The Mine is expected to experience lower recovery rates of approximately 80 percent on the planned 2 million tons of transitional ore to be encountered over the next two years.

Deep Post underground mine in Nevada is reopening following inspections by the federal Mine Safety and Health Administration and the Nevada State Mine Inspector's office. The mine was closed as a safety precaution following a slope movement on the south wall of the Betze-Post pit on August 29. Operations were to resume in Sep/01. There were no injuries and no damage to the underground mine workings and facilities at Deep Post. There was no impact on reserves and the company expects to reach its targeted gold production from Deep Post for the year. Safety is the priority and there is a continuing geo-technical program that includes the monitoring of ground conditions and establishment of a safety perimeter around the disturbed slope.