WHARF MINE (ANNIE CK & FOLEY RIDGE)

Gold production at Wharf mine for the second quarter of 2010 was 4%, or 700 ounces, more than in the second quarter of 2009. In comparison to the second quarter of 2009, Wharf experienced 5% higher tonnes processed and 8% higher recoveries, offset by 11% lower grades. The higher tonnes processed resulted mainly from favorable crushing conditions due to weather. The higher recoveries were mainly due to improved pad management, plant upgrades and a higher proportion of porphyry ore which has a higher natural recovery. The lower grades from the American Eagle pit were as planned. Cash costs for the second quarter of 2010 were 7%, or $40 per ounce, lower than in the second quarter of 2009 due to higher gold production.

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.