WHARF MINE (ANNIE CK & FOLEY RIDGE)

Gold production at the Wharf mine for the second quarter of 2009 was 25%, or 3,700 ounces, more than in the second quarter of 2008 mainly due to improved plant efficiencies which include higher recovery onto carbon columns resulting from higher carbon loading in the plant and the commissioning of the effluent enrichment system in the first quarter of 2009. In addition, Wharf has improved pad management which includes actively monitoring solution flows onto the pads. In comparison to the second quarter of 2008, Wharf experienced 4% higher recoveries, offset by 31% lower grades.

The Wharf mine produced 15,900 ounces of gold in the third quarter compared with 12,200 ounces in the corresponding period in 2007. The higher production is attributed to the increased efficiency in the plant recoveries and stripping circuits and increased ore tonnes placed under leach, partially offset by lower grade. Despite the increase in production, cash costs have increased by 21% due to an increase in the cost of diesel, labour, explosives and other consumables and higher state production taxes.

The Wharf mine produced 15,000 ounces of gold in the second quarter compared with 12,600 ounces in the corresponding period in 2007. The main reason for the higher production is the increased efficiency in the plant recoveries and stripping circuits. Despite the increase in production, cash costs have increased by 23% due to inflation associated with petroleum products, diesel and other consumables. Diesel costs, which represent 21% of Wharf’s total mining costs, have increased by 35% year over year. During the quarter, plant efficiency was influenced by higher silver recoveries. The mine plan was modified to send ore that had less silver and allow the plant to achieve a higher gold to silver ratio. The change in the mining plan and the plant modifications accounted for the increase in gold production compared to the first quarter of 2008. The 25% increase in grade relates to higher grade ore being mined in the Deep Portland pit. The cash costs have decreased as a result of the higher production rates. The Wharf mine received County and State regulatory approval to expand the processing facility by adding a fifth leach pad. The new pad construction is underway and expected to be completed in the fourth quarter.