Nigel (E Rand)

Reported results for the Mar/08 quarter. Total East Rand production for the quarter totaled 21,107 oz gold. The East Rand operations showed a decrease of only 4,9% in gold production during a quarter that production was affected by the power restrictions imposed in January as well as labour not returning after the seasonal December break. Shaft call factors are improving from previous quarters and face length is increasing allowing additional operational flexibility in the near future. Systems have been established to ensure future production targets are achieved.

The company reported results for the December quarter and the financial 2007. For the quarter these operations produced 690 kilograms (22 202 ounces) of gold from 525 078 tons milled at a recovered grade of 1.32g/t. Total operating cost for the quarter amounted to R148 411 per kilogram (Quarter 3 – R177 994 per kilogram) ($685/oz), a reduction of 16% from Quarter 3. Total operating cost for the year ending 31 December 2007 amounted to R155 223 per kilogram ($687) and revenue received before accounting for the hedge loss amounted to R156 678 per kilogram for the year.

The company reported September quarter results. At its East Rand operations the recovered grade was lower as the additional tons were mainly sourced from the lower grade surface material. Face length is increasing allowing additional operational flexibility. For the quarter these operations produced 669 kilograms (21 511 ounces) of gold from 501 911 tons milled at a recovered grade of 1.33g/t. Total operating cost amounted to R177 994 per kilogram ($782/oz) and revenue received before accounting for the hedge loss amounted to R155 208 per kilogram. The East Rand operational results were worse than expected in terms of gold output mainly due to the shortage of mineable face length and labour strikes. During April and May various sporadic contract labour stoppages and an unprotected contract labour stoppage on three of the major producing shafts for 10 days resulted in a loss of 90 kilograms (13%) of gold production for the quarter. All labour issues were resolved in June. In April all underground development was ceased as a result of substandard conditions and 635 metres (36%) of planned development for the quarter was affected. Development was systematically reassessed and in June all planned development ends have been restarted. 636 metres (53%) of the on-reef development achieved in June returned as pay metres. Capital has been deployed to increase development to ensure availability of sufficient mineable face length. For the quarter these operations produced 580,84 kilograms (18 674 ounces) of gold from 406 011 tons milled at a recovered grade of 1.43g/t. Total cash operating cost amounted to R155 865 per kilogram ($686/oz) and revenue received before accounting for the hedge loss amounted to R150 669 per kilogram. (Jun30/07)