WEST AFRICA’S NEWEST LARGE GOLD PRODUCER Corporate Governance Statement Principle 7: Recognise and manage risk Assurances from the managing director and the chief  financial officer (7.3) Risk management (7.1, 7.2) 38 Listing Rule disclosure requirements and accountability  for compliance. All price sensitive matters are handled  by directors, each of whom is aware of the listing rule  requirements for disclosure of price sensitive information  on a timely basis. issues and specific risks associated with the proposal.  Where necessary, the board draws on the expertise of  appropriate external consultants to assist in dealing with  transferring or mitigating risk. The Company’s main areas  of risk include: All stock exchange announcements including all financial  reports are posted to the Company’s website.  The Company encourages effective participation at general meetings through a policy of open disclosure  to shareholders, regulatory authorities and the broader  community of all material information with respect to the  Company’s affairs. All company announcements, media  briefings, details of company meetings, press releases  and financial reports are available on the Company’s  website. Shareholders and interested investors are  encouraged to subscribe to the Company’s database,  through which participants are made aware of news  releases as soon as possible after such releases have  been issued to the ASX and TSX. Hard copies of financial  reports and news releases are made available on request. The full board has the responsibility for the risk management, compliance and internal controls systems  of the Company. The Company’s size and activities do  not, at this stage, warrant the formation of a separate  committee of the board for this purpose. Group management, through the managing director, is  responsible for designing, implementing and reporting  on the adequacy of the Group’s risk management and  internal control system. The Group’s risk management  policy is designed to provide the framework to identify,  assess, monitor and manage the risks associated with  the Company’s business. The Group adopts practices  designed to identify significant areas of business risk  and to effectively manage those risks in accordance with  the Group’s adopted risk profile. The risks involved in  operating a resources sector company and the specific  uncertainties faced by the Group continue to be regularly  monitored and the managing director regularly appraises  the full board of the Company as to the effectiveness  of the Company’s management of its material business  risks. All investment proposals reviewed by the board  include a consideration of the  The Company’s internal control system is monitored by  the board and assessed regularly to ensure effectiveness  and relevance to the Company’s current and future  operations. Procedures have been put into place to  ensure the managing director and the chief financial  officer state in writing to the board that the integrity of  the financial statements is founded on a sound system  of risk management and internal compliance and control  and that the Company’s risk management and internal  compliance and control system is operating efficiently  and effectively. Regular consideration is given to all these matters by  the board. The Company has in place an internal control  framework to assist the board in identifying, assessing,  monitoring and managing risk.  It is the responsibility of the board to regularly assess  the adequacy of the Company’s risk management and  internal control systems and that its financial affairs  comply with applicable laws and regulations and professional practices. a)  Price of Gold b)  Potential changes to the regulatory regime of host  countries c)  Political stability in host countries d)  Security of tenure  e)  Exploration and development risk f)  Uncertainty in the Estimation of Mineral Resources  and Mineral Reserves g)  Production risks h)  Increased cost of working including inflation risk i)  Environmental risks and hazards j)  Occupational health and safety risks k)  Community dissatisfaction risks l)  Labour and associated employment risks m)  Financial risks including foreign exchange, interest  rate, metal price fluctuations n)  Dependence on key executives and personnel o)  Stability of debt and equity capital markets p)  Key counterparty risks