Projects & Studies

Ron Douglas – EGM Projects

2

Project Portfolio – significant opportunities

3

Cost over-run impacts can be significant

PROJECT COMPANY FEASIBILITY BUDGET

ACTUAL / FEASIBILITY

RAVENSTHORPE BHP BILLITON US$1.0Bn 210%

GALORE CREEK TECK/NOVAGOLD US$1.1Bn 450%

BODDINGTONNEWMONT/

ANGLOGOLD A$2.0Bn 190%

PROMINENT HILL OXIANA (OZ) A$690m 160%

LIHIR EXPANSION LIHIR US$500-550m 140%

Source : Company & Media Reports

4

Most large-scale transformation projects fail

Why Projects / Programs Fail

11%4%

10%

20%

4%

15%

36%

Others

Technical Problems

Problems with Suppliers

Ineffective Project Planning

Poorly Defined or Missing Project

Objectives

Poor Organization and Project

Management Practices

Insufficient Project Personnel Resources

Source: Standish Group International, Survey from 2500 personnel attending project management training

Large Programs Success Rates

Cancelled

Under Perform

Successful

53%

31%

16%

5

Australian Commodities (Dec 2007) Development Projects

Cap

ital E

xpen

ditu

re

Source: ABARE Dec 07

6

Newcrest Investment Management

Gold Book Standard

Newcrest Mining Limited Gold Book

Functional Documentation

Leve

l 3

Guideli

nes &

Pra

ctice

s

Leve

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Manda

tory

Sta

ndar

ds

Leve

l 1

Manda

tory

Pol

icy

Part 4Feasibility Standard

Part 3Pre-Feasibility

Standard

Part 2Concept Standard

Part 1Investment

ManagementPolicy

Part 6Bus. Planning

Standard

Part 7M & A

Standard

Part 5Execution Standard

Post Investment

Review

Investment Evaluation Practices

Estimating Guidelines &

Practices

TemplatesGuidelines Checklists

Core Guidelines & Practices

General Guidelines & Supporting Documents

Part 8Low Risk/Com

Standard

Newcrest Mining Limited Gold Book

Functional Documentation

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Guideli

nes &

Pra

ctice

s

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Manda

tory

Sta

ndar

ds

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Manda

tory

Pol

icy

Part 4Feasibility Standard

Part 3Pre-Feasibility

Standard

Part 2Concept Standard

Part 1Investment

ManagementPolicy

Part 6Bus. Planning

Standard

Part 7M & A

Standard

Part 5Execution Standard

Post Investment

Review

Investment Evaluation Practices

Estimating Guidelines &

Practices

TemplatesGuidelines Checklists

Core Guidelines & Practices

General Guidelines & Supporting Documents

Part 8Low Risk/Com

Standard

Functional Documentation

Leve

l 3

Guideli

nes &

Pra

ctice

s

Leve

l 2

Manda

tory

Sta

ndar

ds

Leve

l 1

Manda

tory

Pol

icy

Part 4Feasibility Standard

Part 3Pre-Feasibility

Standard

Part 2Concept Standard

Part 1Investment

ManagementPolicy

Part 6Bus. Planning

Standard

Part 7M & A

Standard

Part 5Execution Standard

Post Investment

Review

Investment Evaluation Practices

Estimating Guidelines &

Practices

TemplatesGuidelines Checklists

Core Guidelines & Practices

General Guidelines & Supporting Documents

Part 8Low Risk/Com

Standard

7

Newcrest - mature imbedded delivery strategy

OPERATIONCONCEPT PRE-FEASIBILITY FEASIBILITY EXECUTION OPERATIONCONCEPT PRE-FEASIBILITY FEASIBILITY EXECUTION- OPERATIONCONCEPT PRE-FEASIBILITY FEASIBILITY EXECUTION

1. Gate the right projects (Business context)

2. Plan the path forward (Scope/contract style/schedule)

3. Build the team (Alignment and Operational Integration)

4. Monitor and Report (Scope and Change Management)

5. Manage risk (Process driven)

Principles of Newcrest “Gold” Standards

8

Newcrest Growth Pipeline

CONCEPT PRE-FEASIBILITY FEASIBILITY CONSTRUCTION

Namosi

Marsden

Cadia East Panel Cave

Telfer Trough Cave

Gosowong Expansion

Hidden Valley

Ridgeway Deeps

Wafi/Golpu

Projects In Study

Max Esparon – GM Projects

Cadia East Underground NEW SOUTH WALES

11

Cadia East – key data

GoldMineral Resource 28MozOre Reserve 15.8Moz

CopperMineral Resource 5.57MtOre Reserve 2.68Mt

Pre-feasibility study completed December 08

World record underground development rates at low cost

First Production expected in 2011

Significant positive cashflows for +30yrs from 2012

Newcrest resource & reserve estimate as at 30 June 2008

12

CADIA EAST – ore body location map

RW Subsidence RW Subsidence

Cadia HillCadia HillCadia Hill

Plant Plant

Cadia East Orebody

Cadia East Orebody

Cadia ExtendedCadia ExtendedCadia Extended

RW Subsidence RW Subsidence

Cadia HillCadia HillCadia Hill

Plant Plant

Cadia East Orebody

Cadia East Orebody

Cadia ExtendedCadia ExtendedCadia Extended

13

Cadia East – ore body diagrammatic

Ridgeway Deeps Block Cave

Cadia Hill

Cadia East Panel Cave

Resource of 83 million gold equivalent ounces (Approximation calculated at Gold: US$600 per ounce; Copper: US$1.70 per pound)

Ridgeway Sublevel Cave

14

Cadia Hill Pit

CEU Decline

Lift 2

Lift 1

Investigation Drives

400m

Current Decline Phase Position

400m

Surface

1200m

4250RL

4650RL

Lift 0

Cadia East – pictorial access and mining approach

Orebody Open

Orebody Open

Orebody Open

17

15

Cadia East – proposed project

Lift 0

Lift 1

Lift 2

Main Decline Conveyor Decline Vent Raises

Australia’s largest underground mine and first application of Panel Caving mining:

26Mtpa mining rate3 x 400m lifts220km of lateral development20km of vertical development90 extraction drives2,876 draw pointsMaterial handling by conveyor beltDepth of the extraction levels: Lift 0: 800m, Lift 1: 1,200m and Lift 2: 1,600m

16

Overview

Conveyor Decline

Main Decline

Lift 0

Lift 1

Lift 2

Investigation Drives Lift 0

Investigation Drives Lift 1

17

Conveyor System Overview

Lift 0

Lift 1

Lift 2

Portal

18

Lift 1 Extraction Level

Crusher locations

Crusher locations

19

Mine Configuration Alternatives Flowchart

UndergroundPanel Cave

3 Lifts 0, 1, 2

UndergroundSub-Level Cave

Production RateMining Method Vertical Ore Handling

Conveyor / Shaft Hybrid

Conveyor

Shaft

Lateral Ore Handling

Electric LHDsCrushers Outside

Footprint (EL)Trunk Conveyors

UndergroundPanel Cave& Open Pit

21Mtpa

13 / 21Mtpa

26 Mtpa

13 Mtpa

Automated LHDs

Sizers Inside Footprint (EL)

Panzers

Trough Cave

Cadia East PFS

UndergroundBlock Cave

Diesel LHDs

Trains/ Trucks

Benefits:Low mining costMaximise resource useHigh prod’n rate

Similarities:All based on caving

Penalties:Interaction of devp’t & mining

Benefits:Gold prod’n target 575,000 oz paHigher rates maximise NPVWithin known infrastructure limits

Similarities:All based on caving

Penalties:Interaction of devp’t & mining

Benefits:Proven technologyReduced excavation costsLower emissions

Similarities:Interaction of LHDs & crushers

Penalties:Uplift may provide more efficient/ lower cost operations

Benefits:Capacity to meet prod’n uplift 26 MtpaProven technologyLow net cost

Similarities:Functionality & reliability

Penalties:Ventilation

20

Processing and Infrastructure Configuration Alternatives Flowchart

Cadia East PFS

132kV Augmentation

Gas Power Station

WaterPower

Belubula +15m URCD +

Backbone Pipeline

Wyangala PipelineOffstream storageEffluent Supplies

Tailings Dewatering

Alternative Renewable

Energy Solutions

Tailings Disposal

Expansion of NTSF + STSF

New Tailings Dams: to extend

past 2030 or for > 27 Mtpa

ProcessingUplift Case 32 Mtpa

New 8 Mtpa Mill + Expansion LG Mill

to 18 MtpaAugment feeder

lines

ProcessingBase Case 27 Mtpa

New 8 Mtpa Mill

Expansion of LG Mill to 18 Mtpa

2 New 8 Mtpa Mills

Benefits:New Mill provides information for debottlenecking LG Mill – min disruptHPGR technology:• incr tolerance of frag. variation•Lower op costs

Similarities:Ball mills & flotation cells

Penalties:Risk of new technology

Benefits:Lower capital costInfo processing ore in New Mill used to plan expansion & debottlenecking

Similarities:Ball mills & flotation cells

Penalties:Miss savings afforded by dupl’n

Benefits:Low capital costOpportunity to work with electricity supplier

Similarities:Electricity is essentially a commodity

Penalties:Reliance on Network Service Provider

Benefits:Development of and operation of assets controlled by Newcrest

Similarities:Water processing requirements similar

Penalties:Potential to expand capacity of on-site assets is limited

Benefits:Continuation of existing operationsOpportunity to investigate new technologies such as thickened tailings

Similarities:Based on NTSF & STSF

Penalties:High cost of installing new tailings dams in 2030

21

Cadia East – proposed ore processing

22

Power

CH CE 32Mtpa

23

Water

AnnualProduction

(Mtpa)

PlantWater

Demand(ML/day)

ThickenerWater

Recovery(ML/day)

TailingsReturnWater

(ML/day)

Make-upWater

(ML/day)

Comments

22.5 110 62 28 20 Current

24 117 66 30 21 Improved water management

27 132 74 34 24 Additional on-site water storage

32 156 88 40 28 Additional storage and makeup

24

Cadia East – project milestones

Study Forecast ActualConcept Dec 2005Pre-Feasibility + Access Dec 2008

Feasibility + Access Dec 2009

Permitting Dec 2009

Project Forecast Actual

Project Approval Feb 2010Commence Undercutting 2011Ore Production 2012

25

Cadia East - world class development rates

World Record Development Rates & Costs

170

260

311

0

50

100

150

200

250

300

350

Industry Average Cadia East Average over 9months (Sept - May 08)

Cadia East May 2008

met

res

adva

nced

per

mon

th

4500

6500

0

1000

2000

3000

4000

5000

6000

7000

Industry Average Cadia East Average

A$

per m

etre

of u

nder

grou

nd d

evel

opm

ent

Industry Recognition

26

Cadia Valley - production profile

Gold Production Koz

+500 +575 +650FY 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Ridgeway

Ridgeway Deeps Ridgeway Deeps 2

Cadia East

Cadia Hill

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

28.0

30.0

32.0

34.0

Ore

Mill

ed (M

t)

Copper Production kt +75+55 +90

+750

+105

Namosi – Concept Study

28

Namosi sound basis

Tenements– Namosi Project area the subject of Special

Prospecting Licence (SPL) 1420– Joint Venture for Development– Newcrest, Mitsubishi, Nittetsu

Community– Good relations with local community – Government supportive and promoting

29

Namosi - mineral resource estimation

Waisoi - Tonnage Grade Curve

0.00

0.20

0.40

0.60

0.80

1.00

1.20

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Cutoff (Cu%)

Gra

de

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

Tonn

es

Cu (%) Au (g/t) Tonnes

30

Process Water StorageTailings Storage Facility

Waste Rock Dumps

Access Road and Infrastructure Corridor

Filter Plant and Power Station

Port

Waisoi Open Pits Concentrator

NADI

SUVA

Viti Levu IslandWAISOI

DEPOSITSBoundary of Exploration Tenements (SPL1367)50 km

Namosi - site location and layout

31

Namosi - mining study approach

Resource characterisation:

– Large tonnage porphyry copper-gold

– Shallow with a very low open pit strip ratio

– Low metal grades - bulk mining methods

– Steep terrain and very high rainfall

32

Options Evaluated

33

Process Plant Layout

34

Geothermal and hydro-electricity potential

Savu Savu areaGeo 200Mw potential

Labasa areaGeo 100Mw potential

Waisoi Deposits

Navua River75Mw H potential

Wainavadu & Sovi Areas25Mw H potential

Nadarivatu - 45Mw H project

Monasavu80Mw H existing

Wafi – Concept Study

36

Wafi – concept development

Golpu Porphyry

Block caving concept being refined

Supergene

400

600

200

0

-200

Gold Cap

Mineralised Metasediments

Wafi

Supplementary pit concept

Higher grade Link Zone low capital, starting opportunities

37

Wafi Golpu

Source: http://www.harmony.co.za/im/files/presentations/PNG_conference_30oct07.pdf

38

Wafi Golpu

Area history– Previous work concentrated on large scale entry into the area focussing

on Golpu gold/copper deposit– Significant capital expenditure

Current approach– Establish “beach head” project enabling further exploration and study of

the district whilst generating cash– Minimise upfront capital and project risk– Concentrate on “gold only” operations initially so that large gold/copper

systems can be better understood

39

Project Opportunities

Link and NRG combinations– Pit only oxide ore gold option– Pit and Underground refractory ores– CIL circuit supplemented with low cost bio heap technology for refractory

ore

Nambonga– Exploration stage– Multiple processing and mining opportunities

Telfer WESTERN AUSTRALIA

41

Telfer bulk mining studyProject scopeInvestigate bulk mining methods to apply to Telfer Deeps that will:

Project statusFinalising mining alternatives and designs Completing geotechnical investigations and modelingCommenced financial modelling and risk assessment

Target Area11Mt mine planning reserveLow grade SLC reserves and residual cave stocks

Reduce mining costsMaintain production continuity Enhance reserves ounces

42

Telfer trough cave

Conversion of Telfer SLC to Trough Cave once mining of I30 reef completed

Advantages over block cave:

30 – 40% reduction in development costsSimplified constructionFaster establishment of draw points and undercut Similar recoveries

43

Technology management is important

In Place at NewcrestMass Mining (low cost base)

Sub level Cave Block Cave Panel Cave ( Trough Cave)RWD Pre-conditioning, CEU Ore-handling, Telfer trough caving

Rapid Cave Establishment: Cadia EastAutomated mining: RWD LHD’s

Relationships: UQ MMT, CRC, CODELCO, AMIRA

Being initiatedRemote Operating Centres.Processing: Dump leaching, metal production, mine to mill sizing

Caving Expertise

German Flores – CVO Cadia East Underground Pre-Feasibility Study Manager

45

1. The mining industry could be producing more ore from underground than from open pits in the next 10 to 15 years time

2. Caving techniques offer step change, competitive advantages due to the low mining cost and high production rate

Trends in Block/Panel Caving Methods

46

Trends in Block/Panel Caving Methods

Cadia Hill Pit

Lift 2

Lift 1

Surface

1200m

Lift 0

800m

1600 m

New competitive technologies:– Rapid mining at twice Year 2000 rates– Increased Automation: factory concepts and miner-less– Continuous Mining– Factory like, underground layouts and materials handling

New applications to:– Stronger, less easily cave-able orebodies– Deeper orebodies (including “blind” deposits)– Lower grade orebodies– Larger extraction heights (from 400 to 800m)– Transitioning from large open pits

Changing demands on, and skill sets of, managers, engineers and operators

47

Caving Technology Evolution

BEFORE 1980

• BC - Fully manual operation• Small extraction layout/drives• Short round (max 1.8m)• Dynamite/Fire detonators

FROM 1980 to 2000

• PC - Diesel LHD with operators (5 to 7t) • Longer round (2.4 to 3.0m) with Anfo & Non-ED• Rock breaker with ore passes and grizzles• Truck or train/centralised underground crusher (gyro)• New US (pre and advanced undercut)• Bigger drives and extraction layout• New ground support concepts• Seismic monitoring

Weak ore

Deeper and harder

ore

48

FROM 2000 to 2012

• Panel caving/Trough caving• Automated diesel/electric LHD (9 to 20t)• Longer round (3.0 to 6.0m)• Distributed UG crusher (jaw) & conveyors• New MHS concepts/Preconditioning• Rapid Dev in a single/multiple headings• Much bigger drives and extraction layout• New explosives (emulsion) & ED

FROM 2012………

• New exploitation concepts• Mechanical excavation• Continuous mining• Full automated mine• Remote operation centre

Caving Technology Evolution

Much deeper and harder

ore

49

Preconditioning : A Step Change Enabler

Very strong and competent rock mass with a few joint sets

Preconditioned rock mass

Rock mass weakening by hydrofracturing

and/or drilling & blasting techniques

Undercut level

Extraction level

Pre-conditioning is a process implemented before the initiation of caving to alter the inherent characteristics of the target rock mass to enhance its caving and fragmentation characteristics.

Ridgeway Deeps Project & Cadia East Base Design

50

Rapid Development: A Step Change EnablerAtlas-Copco L2C30 Jumbo

Schaeff Tunnel header

20 t Toro 0011 LHD

Atlas-Copco L2C30 Jumbo

MR 620 Roadheader MR 620 Roadheader

1

2

3

Ridgeway Deeps NEW SOUTH WALES

52

Ridgeway Deeps – approved business case

Implementation Capital A$545M

Cash cost A$82/oz after by-product credits (at copper price of US$1.50/lb)

Production profile over 8 yearsGold ~ 1.6 MozCopper ~ 210 kt

Production commences mid 2009 Potential for 2nd Block Cave

53

Ridgeway Deeps – ore body and development

54

Ridgeway Deeps - extraction level layout

55

Ridgeway Deeps - extraction Drive & drawpoints

56

Ridgeway Deeps – conveyor infrastructure processing

57

Secondary crusher installation

58

Ridgeway Deeps - Horizontal Development KPI Chart

-

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500

Jul-0

7

Aug-

07

Sep-

07

Oct

-07

Nov

-07

Dec

-07

Jan-

08

Feb-

08

Mar

-08

Apr-

08

May

-08

Jun-

08

Jul-0

8

Aug-

08

Sep-

08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr-

09

May

-09

Jun-

09

Jul-0

9

Aug-

09

Sep-

09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Month

M d

evel

oped

-1,0002,0003,0004,0005,0006,0007,0008,0009,00010,00011,00012,00013,00014,00015,00016,00017,00018,00019,00020,00021,00022,00023,00024,00025,000

Cum

ulat

ive

deve

lopm

ent

CAR Baseline Actual CAR Baseline Cum Actual Cum

Ridgeway Deeps – development progress

59

Ridgeway Deeps - on schedule and budget

Project on schedule and budget– Over 90% capital committed– Design 100% complete– Mine development is over 50% complete

Definitive Estimate confirmed budget

Total Project 45% complete

60

Ridgeway Deeps - conveyor decline complete

61

Ridgeway Deeps - changing rock characteristics

Hydrofracturing – managing outcomes

Medidor de Flujo

Bomba de cebado

Estanque de Agua

Transductor de Flujo

Registro Digital Proceso de Bombeo (presión, flujo)

Bomba Inflado del Packer

Packer

Packer

Salida Agua a Presión

Sensor de Presion Packer

Bomba Triplex 200 l/m 35 MPa

Amortiguador de Pulsaciones

Valvula Alivio de Presión

Sensor de Presión de Inyección

Barra BRQ Alta Presión

Manguera Alta Presión

Manguera Packer

flujo agua

flujo agua

flujo agua

flujo agua

High pressure pipe

Water flow

Injection pressure transducer

Water tank

Flow control device (flowmeter)

Data recorder during the pumping process

(pressure, flow)

Pump to fix the packers (inflation)

Centrifug al pump

Multiple piston pump

Chamber to maintain a constant pressure

Water flow

Flow transducer

Water pressure output which generate the fracture

Straddle packer system

62

Ridgeway Deeps - moving to automation

Automated Loaders

Ore Handling from control centre

Remote monitoring

Integrated information systems

63

Ridgeway Deeps - milestones being met

Activity Planned ActualStage 1Project Approved June 2007Extraction Level Development Commences September 2007Undercut Production Commences April 2008Eastern Crusher & Conveyors commissioned July 09Stage 2Western Crusher commissioned September 2009EPCM scope complete December 2009

64

Risk Driver Key Controls Status

Project DeliveryEPCM systemDedicated & Integrated project teamDirectly doing core mining work

CommittedCommittedCommitted

Production Continuity

Specific investigations & AnalysisGenerated surplus mine production capacity.Cave Management

In progressIn progress

Committed

Cave Propagation

PreconditioningCave ManagementLarge SpanTough segment firstIndustrial Engineering

CommittedCommittedCommittedCommittedCommitted

Ridgeway Deeps - risk management is important

Gosowong INDONESIA

66

Gosowong - Kencana Location

Kencana Underground

Gosowong Pit

Toguraci Pit

Portal

67

Gosowong - geology

High grade, low sulphidation (LS) epithermal Au / Ag systemHosted in Gosowong Formation rocks. Basaltic-andesitic lavas with interbedded volcanogenic mudstone and sandstoneSame host as Gosowong and Toguraci depositsLS epithermal deposits form in “fields” – typically not in isolation

1700g/t Au, 650g/t Ag

Kencana

68

Gosowong - growth history

Gosowong District Production and Reserves Growth

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Year

Moz A

u

Gold Outside Reserves 0.77 0.09 0.12 0.10 0.01 0.10 0.11 1.20 1.44 1.94 0.80 0.47

Gold Reserves - 0.78 0.75 0.43 0.28 0.29 0.25 0.28 1.05 1.27 2.40 2.34

Cumulative Gold Production - - - 0.275 0.502 0.734 0.772 0.852 1.075 1.262 1.609 2.038

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

K1 Resource Addition

K2 / K Link Resource Additions

K2 Reserve Addition

K1 Reserve & Resource Addition

69

Gosowong - Kencana model

K1

K2

K-Link

70

Gosowong - expansion project

Key Project ParametersGold production targeting >400,000oz per annumUG mining method to remain unchanged Mineralogy and metallurgy remain the same

K1 (existing) in Yellow K2 & Klink (expansion) in red

71

Gosowong – mine design

Life of Mine Design (Feasibility Study Design)

K1

K2

KLKLink

K2

K1

Klink Decline

(End of Sept)

K1 Decline

(End of Sept)

72

Gosowong - business improvement process plant

Mill Throughput

25.0

30.0

35.0

40.0

45.0

50.0

55.0

Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08

End of Month

Tonn

age

per H

our

30 Day Moving Average Step Changes

Classification System Upgrade

(AUD$332k Capex)

Re-crushing before Mill Input & Improved Blending Strategy

Cyclone Optimisation & Additional Water

Supply/Optimisation

Trunnion Magnet Installation (AUD$285k Capex)

Ongoing Optimisation of Ball Mill, SAG feed size and

cyclone efficiency

73

Gosowong – increasing recoveries and throughput

Tertiary Mill

Will achieve 30μm @ 50tph and up to 95% recoverySecond Hand Mill Scheduled completion by March 2009

74

Gosowong - expansion project schedule

Schedule of Key Stages Schedule ActualPre-feasibility Study complete March 2008

Mining (pre commitment) March 2008

Mill Debottlenecking (Rate 45tph) June 2008

Complete Feasibility Study Jan 2009

Targeted Production Rate (50tph) March 2009

Tertiary Mill Production April 2009

High Grade Ore production from K2 May 2009

75 75

Gosowong – expansion facilities layout

Scrubbing / Screening and Crushing

New Mills

New CCD Area

Power-House

76 76

Gosowong - leach and washing Area

77

Gosowong - has geothermal potential

Hidden Valley PAPUA NEW GUINEA

79

Hidden Valley

(1) Harmony Gold Mining Company Limited. JORC compliant estimate as at 30 June 2007. For details refer to Harmony website.

1984 - CRA defined Hidden Valley resource

1987 - Hamata deposit discovered by RGC

1998 - Aurora Gold acquired and completed a pre-feasibility study

2003 - Morobe Consolidated Goldfields re-evaluation of Hidden Valley and Hamata

2005 - Licence to mine issued by PNG Govt

2005 – Construction of access road commenced

2006 - Updated feasibility study completed

2007 - Construction activities commenced

80

Hidden Valley

81

Development

New mine development in PNG’s Morobe Province

JV with Harmony Gold Mining

PNG’s first major new mine development in 15 years

Project in construction

Production scheduled mid-2009

Average annual production of 250koz Au & 3.6 Moz Ag

14 year mine lifeHidden Valley Pit

Tailings dam construction

Hamata Pit

Processing facility

82

62% capital committed

Total project construction 64% complete

Key activities to date– commenced pre-stripping of pits– constructing tailings dam– construction of village, mess and

workshops– earth works & civils for

processing facility– Construction process plant

Project Status

83

Operations

Distance to Lae: 90 km

Road travel time to Lae: 4 hr

Hidden Valley pit at 2,700m ASL

Treatment plant at 2,040m ASL

Overland pipe conveyor:

11m SAG mill (2 x 5Mw)

Initial power from 19 on-site diesel generator sets

Permanent power from Ramu river hydro-generators

84

Ridgeline village & workshops

85

Process plant progress

86

Process plant progress

87

Process plant progress

88

Successful Landowner Association

Nakuwi Landowner Association in place (Nauti, Kweembu, Winima)

Nakuwi has formed business (NKW)

NKW participants in mine related business

Strong community programmes

High National employment levels

89

Opportunity to grow

Large existing resource and high prospectively

Processing– Expansion of existing plant

Power– 19 Gensets for initial 12 month operation– 18Mw from Yonki Hydro Power Station

Tailings– Additional sites identified

Hamanta PitHamanta Pit

Hidden Valley Pit Hidden

Valley Pit

Big WauBig Wau

YafoYafo

East Mine SiteEast Mine Site

Awei TuweAwei Tuwe

PhemaPhema

Tais CkTais CkSalembaSalemba

Upper BuloloUpper BuloloApuApu

BulldogBulldog

NosaveNosavePuruwangPuruwang