WEST AFRICA’S NEWEST LARGE GOLD PRODUCER Notes to the Consolidated Financial Statements For the year ended 30 June 2011 17. FINANCIAL RISK MANAGEMENT – continued Capital Management 18. ISSUED CAPITAL AND RESERVES  74 CONSOLIDATED 2011 2010  $ Number $  Number Balance at the beginning of the year  346,615,812 418,032,088 152,220,729 298,457,088 Shares issued pursuant to exercise of options  9,230,250 7,585,000 3,990,000 5,975,000 Shares issued to Vendor on 13 August 2009 as part  consideration for purchase of the Company’s interest  in the Central Ashanti Gold Project.  - - 1,850,000 2,000,000 Share placements at issue price of $1.50 on 4 November 2009  - - 23,400,000 15,600,000 Shares issued following exercise of Subscription Receipts  - - 36,402,770 23,400,000 Share placements at issue price of $1.94 on 4 May 2010  - - 97,998,877 50,600,000 Share placements at issue price of $1.94 on 31 May 2010  - - 3,728,000 1,921,663 Share placements at issue price of $1.94 on 3 June 2010  - - 29,100,000 15,000,000 Shares issued pursuant to Share Purchase Plan at issue  price of $1.94 on 11 June 2010  - - 9,851,974 5,078,337 Transaction costs arising from issue of securities for cash  (86,861) - (11,926,538) - Balance at the end of the year  355,759,201 425,617,088 346,615,812 418,032,088 CONSOLIDA TED 2011  2010 $  $ (a) Issued and paid-up share capital  425,617,088 (2010: 418,032,088) ordinary shares, fully paid  355,759,201  346,615,812  Management controls the capital of the Group in order to ensure that the Group can fund its operations on an efficient and  timely basis and continue as a going concern. There are no externally imposed capital requirements. Management effectively manages the Group’s capital by assessing the Group’s cash projections up to twenty four  months in the future and any associated financial risks. Management will adjust the Group’s capital structure in response  to changes in these risks and in the market. There have been no changes in the strategy adopted by management to control the capital of the Group since the prior  year.