MANAGEMENT’S DISCUSSION & ANALYSIS  For the period ended June 30, 2010  Form51-102F  1.2.2 Projects Update  Selinsing Gold Project Mine Development  Production  The Selinsing Gold Project (“Selinsing Project”) is located at Bukit Selinsing near Sungai Koyan, approximately 65 km north of  Raub and 40 km west of Kuala Lipis on the lineament known as the Raub Bentong Suture, at approximately 04015’00”N  latitude, 101047’10”E longitude. The resources of the Selinsing Gold Project are comprised of an indicated mineral resource of 3,630,000 tonnes at 1.76 gpt,  using a cutoff of 0.75 gpt for contained ounces of 205,000 ounces of gold, and an inferred mineral resource of 7,690,000 tonnes  at a grade of 1.34 gpt for contained ounces of 330,000 ounces of gold at a similar cutoff grade. It is a near surface open pitable  resource that metallurgical test work indicates and subsequent mill production records confirm recovery of between 92% and  95%. Subsequent to the year ended June 30, 2010, the Company initiated an exploration program including 22 drill holes comprising  1,000m RC drilling and 3,000m diamond drilling budgeted at $0.6 million. The drill program is aimed to increase the reserves by  converting the 388,000 ounce inferred gold resource below the present Selinsing open pit outline and is projected to be  completed by March 2011. The Company commenced the Selinsing gold mine development in October 2008 for a total budget of $17 million. The project  includes the mine site and camp development; the 1,200 tpd gold treatment plant construction comprised of the Phase I gravity  circuit and the Phase II CIL circuit, and the tailing storage facility development capable to store a 16 month tailing discharge  from the processing plant. During the year, 96% of the project has been completed costing $17.4 million except the commissioning of the CIL circuit which  was delayed due to the late delivery and replacement of the faulty CIL agitators. The gravity circuit poured the first gold in October 2009 and was placed into production in January 2010. The 650kW ball mill  was running at the designed capacity since December 2009 at an average 30,000 tonnes per month. Total mill through put of  272,120 tonnes for fiscal 2010 contained 26,942 ounces of gold, of which 15,892 ounces of gold was transferred into the gravity  circuit. Discharged ore materials were pumped to the cyclone cluster, and cyclone overflow in turn was temporarily stored in  the tailing pond for further leaching process through the CIL circuit in the future. The CIL circuit was fully commissioned in August 2010, subsequent to the year end. The commercial production of the Selinsing  Gold Mine commenced at the beginning of September 2010.  Mining and gravity plant operating results as at June 30, 2010 are provided as the following:  The cash cost per ounce is calculated based on a partial production under the pre-commercial production stage. It neither  represents costs incurred under a normal course of production, nor indicates future cash cost per ounce for the gravity  production. Q1  Q2  Q3  Q4  Total  Ore Mined (tons)  69,524  165,823  229,495  197,488  662,330  Ore Processed (tons)  3,524  82,828  95,022  90,746  272,120  Ore Stockpiled (tons)  64,533  145,034  280,737  387,545  387,545  Q1  Q2  Q3  Q4  Total  Gold produced (oz)  - 1,400 4,127 8,266 13,793 Gold Sold (oz)  - 660 3,716 9,417 13,793 Revenue (in 000' US$)  - 764 4,135 11,416 16,316 Cash Cost/oz (US$/oz)  - 371 234 198 226 8 | P a g e