GOLDEN SUNLIGHT MINE

Placer Dome approved the development of Stage 5B of the open pit at the Golden Sunlight Mine. Production from Golden Sunlight will be suspended in Dec/03 until ore is delivered from Stage 5B. Pre-stripping of Stage 5B started in Sep/03 with production scheduled to commence in mid 2005 and continue until 2008. Stage 5B is expected to produce over 520,000 ounces at estimated cash and total costs per ounce of $252 and $263, respectively. Capital costs, principally overburden removal for Stage 5B, are estimated at $39 million.

Production was 220% greater than in the prior year period with a commensurate decrease in unit cash costs due primarily to the processing of higher grade ore in the current period and the fact that mine feed was supplemented by lower grade stockpile material in the prior year period. Mining from the open pit ceased in August of this year and Golden Sunlight is expected to source ore from underground until Dec/03. As a result of the extension of mining activities to the end of the year, the mine’s 2003 production forecast has been updated to 215,000 ounces from the 143,000 ounces disclosed in the Placer’s Jun30/03 Second Quarter Report. In the half-year ended Jun30/02, with the mine approaching the end of its mine life, gold production in the first half of 2002 was 65% lower than the 2001 period. Milling of stockpiled ore will essentially be completed by Jul/02 when the pit ramp will then go into production. Also, a proposal for underground mining was approved in the quarter. Work commenced in June and the project is expected to contribute ore over a six to twelve month period.

Vancouver-based International gold miner Placer Dome earned USD64 million, or 16 cents a share, on sales revenue of USD409 million for the first quarter, significantly higher than USD37 million on sales revenue of USD329 million for the corresponding 2002 quarter. Stronger earnings were attributed to increased production and an increased realized gold price of USD358 per ounce. Placer posted weaker operational earnings for its gold and copper mining operations, of USD82 million and USD13 million, respectively. Placer produced 903,000 ounces of gold at a cash production cost of USD205 per gold ounce, up from 666,000 ounces at a cash production cost of USD165 per gold ounce, for the 2002 first quarter. Increased production benefited from the acquisition of AurionGold's properties as well as increased production from Golden Sunlight, Cortez and Porgera. Increased cash costs were attributed to the appreciation of the South African rand, Canadian and Australian dollars against the US dollar and energy costs. Placer produced 101.2 million pounds of copper for the quarter at a cash cost of 51 cents per pound, down from 106.5 million pounds at 41 cents per pound for the corresponding 2002 quarter. Placer reduced its maximum and derivative program by 1.1 million ounces to 11.5 million ounces or 22% of gold reserves as of 2002-year. Placer plans to reduce its committed ounces to below 10 million by the end of this year. Placer also announced a mark-to-market value of USD113 million for the program at the quarter's closing gold price of USD336 per ounce. Placer expects to produce 3.5 million ounces of gold at a cash cost of USD205 per ounce and 400 million pounds of copper this year.