Operations Report 17 Operations Report CHATREE EXPLORATION Chatree Geologist examining drill core With the approvals of the Special Prospecting  Licence ("SPL") applications still awaiting the  Minister of Industry’s consent, exploration  attention over the past 12 months has focused  on new exploration opportunities and Mineral  Resource enhancement targets within the  Chatree Mining Leases. This exploration formed  part of a strategic exploration program within  the mining leases that commenced in late 2012  and was designed to investigate a number of  specific areas that had the potential to upgrade  both Mineral Resources and ore reserves at  Chatree and included: Highlights from this drilling program were most  notable at A Prospect and Q Prospect.  Exploration drilling within the Mining Lease  north of A Pit identified a new area of broad high  grade gold mineralisation confirming the contin- uation of the A East Structure north of the  existing resource.  Significant results from these two holes include: At Q Prospect, immediately to the north of A Pit,  exploration drilling encountered broad high  grade gold mineralisation at surface that was  not identified in previous campaigns. Significant  results include: The success from this discovery of near surface  gold mineralisation at Q Prospect allowed for  commencement of mining activities in the area  which has in turn had a positive impact on the  Chatree operations in the latter half of the year. Guided by this exploration strategy, drilling  activity has successfully defined several new  areas of mineralisation within the Mining Lease,  most notably at Q and A North Prospects, and  has also upgraded several larger areas of Inferred  Resources to the Measured and Indicated  Mineral Resource category. This activity sees an  additional 30,300 metres of reverse circulation  and diamond drilling included into the estima- tion of a new Mineral Resource and Ore Reserve  at Chatree. As at the end of April 2013, the Mineral Resource  estimate at Chatree using 0.30 g/t cut-off grade  totals 4.03 million ounces of gold and 32.8  million ounces silver in 188.3 million tonnes of  rock. The upgraded resource, including deple- tion from production to the end of April 2013,  represents an increase of 356,000 ounces of  gold and 2,162,000 ounces of silver when  compared to the June 2012 Mineral Resource  estimate for Chatree at the same cut-off grade. With the sharp fall in the gold price during April  2013, exploration drilling focus shifted to near  surface oxide gold targets within the mining  lease. Discovery of additional oxide gold miner- alisation would have immediate benefits to the  operation. Longer term exploration targets were  temporarily suspended whilst the drilling  focused on shorter term oxide targets in the  early part of the new year.  〉 Upgrading Inferred Resources for optimal  long term mine planning; 〉 Targeting extensions to currently known  areas of mineralisation; and 〉 Exploring deeper higher grade structures  that may have the potential to extend the pit  deeper or potential for underground mining. 〉 07559DD – 49.4 m @ 4.3 g/t Au from 227 m  (including 29.8 m @ 6.25 g/t Au from  246 m); and  〉 07575RD – 35.8 m @ 5.3 g/t Au from 235 m  (including 3 m @ 45.30 Au g/t from 255 m). 〉 4715RC – 24.0 m @ 5.6 g/t Au from surface  (including 8 m @ 11.3 g/t Au from 14 m); 〉 4718RC – 34.0 m @ 1.7 g/t Au from surface; 〉 4720RC – 26.0 m @ 0.9 g/t Au from surface; 〉 4636DD – 7.4 m @ 5.5 g/t Au from 219 m;  and 〉 4732RC – 21.0 m @ 2.2 g/t Au from 111 m. continued u