development overview Current Status 100 metres SYD-135 SYD-133 23450 mN Section Line Footwall Conglomerate Contact MAIN ORE ZONE (>1 g/t outline) FOOTWALL ORE ZONE (>1 g/t outline) Resolute drilling completed 2003 Drilling planned for 2004 FIGURE 4 Plan showing Resolute drilling completed and planned for feasibility 15 With further work it is expected  that additional in-pit reserves and underground resources will be established. Metallurgical test work to demonstrate the concentrate roasting process has achieved overall gold recoveries of 87%. The roasting test work and subsequent calcine leaching work has established the operating conditions for the proposed plant. The production of a carbonate concentrate from the ore has been successfully achieved and SO2 capture in excess of 70% has been demonstrated. Engineering studies by engineering consultants, Lycopodium and its sub- consultants have reviewed the proposed alternate process route and what is required to refurbish the roaster to achieve the proposed duty. In addition they have costed the capital expenditure to establish the revised flow sheet, refurbish selected equipment and to install a new sulphide flotation circuit and additional CIL tankage. Two scenarios were finally costed, 2.0Mtpa and 2.6Mtpa. The Capital  The Feasibility Study programme commenced in May 2004 with the award to Lycopodium of the engineering, capital and operating cost studies. The Feasibility Study is scheduled for completion by the end of 2004.  Financing and fiscal negotiations are being conducted in parallel with the study. Lycopodium has indicated a project schedule of 15 months to refurbish and replace existing equipment and install the new flotation plant, rehabilitate the electrostatic precipitator and refurbish the roaster. If as anticipated, there is a positive outcome to the Feasibility Study then gold production from Syama is expected to commence in the first half of 2006. For the 2.6Mtpa case, the project has a mine life of 5.5 years, annual gold production is 250,000 ounces per annum at an average grade of 3.9g/t Au. Cash costs are US$250 per ounce and operating costs at US$28 per tonne milled. Project economics indicate that for the 2.0Mtpa case the mine has a life of more than 6 years with annual gold production of 220,000 ounces per annum at an average grade of 3.9g/t Au. Cash costs are estimated to be US$270 per ounce and operating costs at US$30 per tonne milled. costs (with an accuracy of ±25%) for each case are US$47.73 and US$55.43 million, respectively. Each has a 15% contingency and owners costs of more than US$7 million. RESOLUTE MINING LIMITED 2004 ANNUAL REPORT