ANNUAL REPORT 2009

The principle trading name of Gold Corporation is The Perth Mint.

CONTENTS

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Statement of Compliance 5

The Year in Brief 7

Gold Corporation

– More than a Century in Precious Metals 8

Mission Statement 9

Chairman's Review 10

Review of Operations 13

Activities 18

Precious Metal Investment Products 18

Commemorative and Numismatic Coins 19

Precious Metal Coin Blanks 19

Tourism 20

Gold Refining 20

Group Structure 21

Corporate Governance 22

Corporate Directory 27

Group Directory 28

Statutory Reporting Requirements 29

Senior Management 32

Auditor General's Opinion 33

Key Performance Indicators 36

Certification of Key Performance Indicators 39

Certification of Financial Statements 40

Financial Statements 41

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17 September 2009

Honourable Colin Barnett MEc MLA

Premier; Minister for State Development

24th Floor, Governor Stirling Tower

197 St Georges Terrace

PERTH WA 6000

In accordance with the Financial Management Act 2006, we hereby submit for your information and for

presentation to the Parliament, the Annual Report of Gold Corporation for the year ended 30 June 2009.

The Report has been prepared in accordance with the provisions of the Financial Management Act 2006.

STATEMENT OF COMPLIANCE

R G BOWE

Chairman Executive Director

M E HARBUZ

STATEMENT OF COMPLIANCE

5

THE DREAMING SERIES

THE YEAR IN BRIEF

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50% INCREASE IN SALES OF COINS, BARS AND MEDALLIONS ON 2007 / 2008.

PRODUCT SALES ADDED VALUE TO 13.5 TONNES OF GOLD, 229 TONNES OF SILVER AND 32 KG

OF PLATINUM.

DIVIDEND OF $16 MILLION AND INCOME TAX EQUIVALENT OF $13.1 MILLION PAYABLE TO THE

WESTERN AUSTRALIAN GOVERNMENT.

7% WORLD MARKET SHARE IN GOLD BULLION COINS ACHIEVED.

THE VALUE OF CLIENT PRECIOUS METALS ON DEPOSIT UP 33% TO $2 BILLION (FY08 $1.5b).

TURNOVER UP 108% TO $2.5 BILLION (FY08 $1.2b).

THE NEW 3 YEAR “DISCOVER AUSTRALIA – THE DREAMING” COIN SERIES WAS LAUNCHED TO

FOLLOW THE SUCCESSFUL FIRST 3 YEAR “DISCOVER AUSTRALIA” SERIES.

SIGNIFICANT DEMAND FOR AUSTRALIAN NUMISMATIC COINS:

ANZAC DAY

THE FINDING OF THE HMAS SYDNEY II

SWIMMING AUSTRALIA CENTENARY

200 YEARS OF POSTAL SERVICES IN AUSTRALIA

INTERNATIONAL YEAR OF ASTRONOMY

SOME 4.2 MILLION PRECIOUS METAL COIN BLANKS WERE SUPPLIED TO OTHER MINTS AROUND

THE WORLD.

RETAINED POSITION AS ONE OF WESTERN AUSTRALIA’S LARGEST EXPORTERS.

77,000 VISITORS TO THE PERTH MINT’S TOURIST ATTRACTION.

RECORD PRE-TAX PROFIT OF $38 MILLION.

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GOLD CORPORATION’S HISTORY STARTED WITH THE

FOUNDING OF THE PERTH BRANCH OF BRITAIN’S ROYAL MINT

IN 1899. AT THAT TIME, GOLD SOVEREIGNS AND HALF

SOVEREIGNS WERE USED THROUGHOUT THE BRITISH EMPIRE

AS EVERYDAY CIRCULATING COINS AND IT WAS THE ROYAL

MINT’S RESPONSIBILITY TO SUPPLY THEM. RATHER THAN

SHIPPING GOLD TO LONDON, MINTING SOVEREIGNS AND THEN

DISTRIBUTING THEM BACK TO BRITAIN’S COLONIES, THE

ROYAL MINT BUILT A NUMBER OF BRANCH MINTS

THROUGHOUT THE EMPIRE IN PLACES WHERE GOLD WAS

FOUND. THE PERTH MINT WAS ONE OF THESE – BUILT TO

REFINE GOLD MINED IN WESTERN AUSTRALIA AND TURN IT

INTO SOVEREIGNS.

When sovereigns were withdrawn from circulation in

1931, the Mint turned its skills to the production of base

metal coins, although it still continued to refine gold. It

remained under British ownership until 1970, when

control passed to the Western Australian Government.

Gold Corporation was created by the Gold Corporation Act

1987 to take over the operations of the Mint and launch

Australia's bullion coin program. The Australian Nugget

bullion coin was launched in 1987, and was followed by

many other successful bullion coin programs and numismatic

and commemorative coins.

The Mint's refining activities eventually outgrew the old

premises in the city of Perth and a new refinery was built in

Newburn, near Perth's international airport. This facility

commenced operation in 1990.

Gold Corporation has two wholly owned subsidiaries

– the Western Australian Mint and GoldCorp Australia. The

refining and associated activities are now carried out by

AGR Matthey, in which Gold Corporation has a 40% interest.

GOLD CORPORATION – MORE THAN A CENTURY IN PRECIOUS METALS

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Gold Corporation develops and supplies precious metal related products and services, including:

Australian legal tender investment coins and bars, which promote the ownership of precious metal for investment purposes;

Precious metal depository products which enable investors to invest in precious metals without having to deal with the

security and other issues associated with the keeping of physical metal;

Proof, numismatic and commemorative coins which are legal tender of Australia and other countries;

Storage and safekeeping of precious metals;

Coin blanks and other precious metal products.

It also operates a tourist attraction based on the themes of gold, coins and their history at The Perth Mint. Through the

AGR Matthey partnership, refining, assaying and other services are supplied to the gold industry. These enhance the value-

added and export income derived from gold production.

Gold Corporation commits to:

Supplying products, services and experiences which delight customers and users;

Promoting the history and heritage of Australia locally and internationally through its coins;

Preserving its heritage assets and history for the benefit of the community;

Providing fulfilment, development, security and reward to its employees;

Generating an acceptable financial return for its shareholder, the Western Australian Government; and

Paying a fair royalty to Australian Treasury on Australian legal tender coins issued.

It is committed to promoting high ethical standards, respect for people and the environment, and enlightened business practices.

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MISSION STATEMENT

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I am pleased to report that Gold Corporation has enjoyed an With the world’s economic crisis causing uncertainty and

outstanding year, delivering the strongest financial performance volatility in global markets, prices of shares, property, and

in its history to achieve a record operating profit before tax of other traditional investment assets plunged. Demand for

$38 million. The Corporation was able to capitalise on precious metals, traditionally a safe haven investment,

burgeoning demand for precious metals, significantly increasing increased substantially, allowing all business divisions to

its business activities to generate a return for its sole benefit from the favourable market conditions.

shareholder, the Government of Western Australia. Robust sales of bullion coins, bars and medallions enabled

Gold Corporation to achieve a global market share of 7% in

gold bullion coins and solidify its position as one of Western

Australia’s major exporters. Significant investment in

additional and improved factory equipment allowed for

streamlined production to accommodate the increases in

demand and enabled the Corporation to exploit its

established sales and distribution network.

The performance of the bullion depository business was

particularly pleasing, with the value of clients’ precious metals

on deposit reaching the $2 billion mark [for the first time].

While some customers took advantage of the gold price to

realise profits, strong inflows into the Depository allowed

Gold Corporation to expand its customer base to more than

14,500 throughout the world.

Despite poor economic conditions, the sales of collector or

numismatic coins increased. Launched to much acclaim,

‘The Dreaming’ three year coin series has generated strong

interest both in Australia and internationally and is set to build

on the success of the Discover Australia series.

CHAIRMAN'S REVIEW ROSS BOWE

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Another pleasing aspect of the year was the improved Lastly, I would like to thank the management and staff of

performance of AGR Matthey’s gold refinery business (40% Gold Corporation for rising so successfully to the special

owned by Gold Corporation) which refines Australian and challenges which this year brought and achieving the record

overseas produced gold. Following a successful restructure, result. In particular, I want to thank our Chief Executive

AGR Matthey has enhanced the profitability of its refinery Officer Ed Harbuz and our Chief Financial Officer Richard

business with flow on effects significantly contributing to Hayes for their outstanding contributions during a hectic year.

Gold Corporation’s final profit. My first year as Chairman of Gold Corporation has been

A weaker Western Australian tourism market continues to interesting and challenging. I have no doubt that the

be a concern of Gold Corporation, with visitor numbers to organisation will continue to be successful and to serve the

The Perth Mint decreasing during the year. However, interests of all its stakeholders.

considerable investment into a vibrant new design, and with

the refurbishment of the Visitor Experience progressing well,

Gold Corporation is confident it can build on visitor numbers

in the coming year.

While the global economic environment is likely to improve

over the next 12 months, and with demand for precious

metals expected to ease, Gold Corporation maintains a

positive outlook for the next financial year. The Corporation

is aiming to increase its strategic spread of businesses

geographically, with a concerted push towards strengthening

its position in the lucrative US coin market.

The continued success in Gold Corporation’s widespread and

varied activities is not possible without its business partners –

its local and international agents, distributors and dealers.

They maximised the opportunities and rose to the challenges

presented during the year and made a significant contribution

to this outstanding result.

I would like to thank the Minister responsible for Gold

Corporation, the Honourable Colin Barnett MEc MLA,

Premier; Minister for State Development, for his interest and

support. I would also like to thank my fellow Board members

for their valuable service and acknowledge the additional

efforts of those serving on Board committees. Special thanks

are due to Martine Pop who left the Board on 30 November

2008 after 12 years service.

R G BOWE

Chairman

THE DREAMING SERIES

The higher levels of activity resulted in a record financial

performance. However, at times not all the demand for

bullion coins could be satisfied – there was a period of about Gold Corporation, operator of The Perth Mint, is the sole

six months during which it was simply not possible to produce producer of Australia’s legal tender gold and silver bullion

enough coins, despite the factory working 24 hours a day. coins, which are sold worldwide and have a significant market

The flow of precious metals into Perth Mint Depository also share. The historic Mint also manufactures and markets

increased substantially and it was gratifying that sales of Australian legal tender numismatic or commemorative coins,

numismatic coins were also robust due to the successful also doing so on behalf of the issuing authorities of some

other countries. All Australian legal tender coins are produced global marketing effort of our many unique products

under an agreement with the Australian Treasury, which launched during the year. This was a particularly pleasing receives a royalty or seignorage on each coin sold.result given the uncertain economic environment.

The outcome of the increased activity was a profit before tax In total, Gold Corporation sold more than 2.7 million coins,

of $38 million compared to $3.7 million in the previous year, bars and medallions during the year, compared with 1.85

million in the previous year. The sale of these products in an increase of 900 per cent. It should be noted that the

2008 / 2009 added value to 13.5 tonnes of gold, 229 tonnes previous year’s result was impacted by restructuring costs at of silver and 32 kg of platinum. The comparable figures in the AGR Matthey which did not recur and allowed for a much previous year were 4.99 tonnes of gold, 140 tonnes of silver improved performance of the refinery business. and 13 kg of platinum. Exports accounted for 88.5% of the

Gold Corporation’s turnover increased to $2.5 billion from revenue from the sales of coins, medallions and bars,

$1.2 billion in the previous year. Payments to the Western strengthening Gold Corporation’s position as a large exporter

Australian Government in relation to the 2008 / 2009 year in Western Australia.

will include an income tax equivalent of $13.1 million and a

dividend of $16 million. Under the agreement which enables

Gold Corporation to issue Australian legal tender coins, the

royalty payable to the Australian Treasury will be $4 million for

the year.

The program to update equipment and facilities continued,

resulting in capital expenditure amounting to $4 million.

BUSINESS ACTIVITIES

Coins

REVIEW OF OPERATIONSM E HARBUZ, CHIEF EXECUTIVE OFFICER

FINANCIAL SUMMARY

GOLD CORPORATION HAD A BUSY, AT TIMES FRENETIC, YEAR AS THE UNFOLDING FINANCIAL CRISIS LED TO A SHARP INCREASE IN

DEMAND FOR PRECIOUS METALS AROUND THE WORLD. OVER THE PREVIOUS FEW YEARS, CONSIDERABLE INVESTMENT IN PLANT,

EQUIPMENT AND SYSTEMS, AS WELL AS ORGANISATIONAL DEVELOPMENT PLACED GOLD CORPORATION IN AN EXCELLENT POSITION TO

TAKE ADVANTAGE OF THE INVESTOR FLIGHT TO SAFETY.

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The heightened interest in precious metals from the world’s In addition to the Australian legal tender coins, several coins

financial crisis caused the demand for bullion coins to rise with international themes which were legal tender of Tuvalu

dramatically from September 2008, lasting almost to the end or Cook Islands were issued with success.

of the financial year. To assist in meeting the demand, Sales of numismatic coins benefited from the internet as an The Perth Mint introduced a system of product allocation for international sales channel – a channel which is currently wholesale customers which was accepted as transparent and being developed aggressively. International online sales fair. In order to supply as much product as possible to revenue was almost double that of the previous year and customers, the bullion coin product range was narrowed sales in Australia increased by 50%.down to 1 oz Kangaroo gold coins, 1 oz Kookaburra

Various process improvements to increase silver coins and 1 kilogram Kookaburra and Lunar productivity, reduce waste and increase silver coins. This simplified product range enabled

production were implemented as part of an the factory to convert much larger quantities of ongoing program. The program also includes precious metal into coins than would otherwise safety and environmental issues and continuous have been possible. The extensive program of improvement is sought in all these areas. The modernising the factory over the last five years

quality certification (ISO 9001.2008) was has positioned the Corporation to manage maintained and the quality management system demand, resulting in much higher production

continues to be a valuable resource. The capacity, better efficiency and higher yields. Three shift AS/NZS4801.2001 accreditation for safety and health operations were also introduced maximising the production management was achieved during the year.quantities and helping to produce a record 372,000 coins in

May 2009. Further improvements in capacity are on the

drawing board to enable the Mint to cope even better with The Perth Mint manufactures all precious metal coin blanks for

future demand spikes. its own needs and is an important supplier of these to other

The demand for bullion coins did not prevent the minting and mints around the world. As with the minting facility, many

issuing of a wide range of exciting commemorative or process enhancements have been implemented as part of an

numismatic coins during the year, and the local and ongoing program, and the ISO quality certification plays an

international revenue from the sales of these coins increased important role in assuring customers of the quality and

over the previous year. specifications of the gold, silver, platinum and palladium blanks

supplied. The number of blanks supplied to other mints in The Australian legal tender coins issued included:

2008 / 2009 was 4.2 million.Discover Australia – The Dreaming Series

Young Collectors Coin ProgramWithin The Perth Mint’s heritage listed building, visitors can

ANZAC Day $1 Commemorative Coinview the spectacle of 200 ounces of pure gold being poured

HMAS Sydney II Silver Proof Commemorative into a bar in the original melting house. A wide range of

historic and modern coins are also on display and in the 1966 Decimal Pattern Tribute Setoriginal vault built in 1899 they can view a selection from the

2009 Proof Sovereignworld’s largest collection of small gold bars and admire many

Celebrate Australia Series Australian natural nuggets, including the Normandy Nugget,

recently acquired on loan from Newmont Australia Limited. 100 Years of Swimming (Swimming Australia Centenary)Visitors can also shop for treasures, not only The Perth Mint’s

200 Years of Postal Services in Australiaown products, but Australian pearls, diamonds, opals

International Year of Astronomy (UNESCO) and jewellery.

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Precious Metal Coin Blanks

Perth Mint Visitor Experience

YOUNG COLLECTORS

2008 AUSTRALIAN ANIMAL $1 COINS

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1965 FIRST SPACE WALK – YURI GAGARIN

2009 1oz SILVER PROOF COIN

A total of 77,000 visitors paid to enter the exhibition during

the year, a small decline over the previous year resulting from Gold Corporation’s Westmill division holds a 10% interest in

a downturn in tourism. Sales of luxury items such as jewellery the gold tailings retreatment project in Kalgoorlie, with

and giftware in the shop also suffered but, in compensation, managing partner Newmont Australia Limited owning the

over the counter sales of bullion coins and bars increased remaining share. Activity in the past financial year has been

dramatically. limited to ongoing rehabilitation and maintenance of the site

at minimal cost. Negotiations for the sale of the Kaltails JV to Design of the shop refurbishment is almost complete and KCGM have been finalised and completion of the sale awaits should be completed during the new financial year. Design of

the fulfilment of the conditions precedent.an exciting upgrade to the exhibition area is also

progressing, and work on this should commence

shortly. These projects will give a new lease of life A number of State Batteries (Government to what has been a very successful attraction. owned minerals processing facilities) were

vested in Gold Corporation in 1986 but these

have all been closed. Westmill has inherited The financial year opened with great interest in responsibility for them and, although they are no precious metals as the gold price rose significantly

longer operating, some have been leased out at - a result of investment demand rather than demand nominal rentals for various purposes. 19 of the sites for jewellery or other uses. Continued volatility in metals

have been reported as Contaminated or Suspected prices kept investor interest at high levels resulting not only Contaminated under the Contaminated Sites Act 2003. The in strong buying, but also selling as some clients took profits. Northampton site has been identified as a priority site At the year end, there were 14,500 clients from 105 countries requiring immediate remediation. Funding for this project has entrusting precious metals to the value of over $2 billion to been provided from the Contaminated Sites Management Gold Corporation. Allocated metal is all stored in vaults, Account of the Department of Environment and Conservation. while some of the unallocated metal belonging to investors The Department of Treasury and Finance – Building is used to support the metal needs of the operations of Management and Works is currently managing the tender The Perth Mint and AGR Matthey. Perth Mint Depository’s process for the remediation project. The remaining sites are three products: Perth Mint Depository Services, Perth Mint being assessed and any requiring further investigation or Certificate Program and the Australian Stock Exchange listed remediation will be dealt with in order of priority.Perth Mint Gold all performed strongly.

The total number of permanent staff increased from Gold Corporation owns 40% of AGR Matthey whose refinery 215 to 232 due to the requirements of much higher activity at Newburn, near Perth’s international airport, refines gold levels. Of these, 224 were full-time and 8 were part-time. The and silver and produces gold and silver bars and bullion in employees were assigned to the various business entities as other forms. Almost all of Australia’s gold production was shown below:refined at AGR Matthey during the financial year, as well as

30 June 2009 30 June 2008gold produced in nearby countries. A significant quantity of Gold Corporation 42 39recycled gold, mainly from Asia, also went through the Western Australian Mint 136 121refinery. This is one of the highest throughput gold refineries GoldCorp Australia 54 55in the world. AGR Matthey’s precious metals products Total 232 215business, based in Melbourne, has now been successfully

restructured and is operating profitably. There were 155 salaried employees and 77 award staff

members employed by the organisation on 30 June 2009, AGR Matthey’s financial result was pleasing and made a

of which women comprised 46%. Of the Tier 2 managers significant contribution to Gold Corporation’s profits in the

(reporting to the CEO) 28.6% were women and of the Tier 3 financial year.

employees 31% were women.

Westmill – Kaltails

Westmill – State Batteries

Perth Mint Depository

EmployeesAGR Matthey

Gross staff turnover dropped from 15% to 10%. The The Perth Mint participated in the Australian Numismatic

average age of employees was 46.2 years and the average Dealers Association Stamp and Coin Shows in Sydney,

length of service was 7.33 years. Melbourne, Brisbane and Perth. Internationally, it took part

in the American Numismatic Association World’s Fair of

Money in Baltimore, USA; World Money Fair in Berlin,

Germany; the Beijing International Stamp & Coin Exposition,

China; and the Tokyo International Coin Convention, Japan.Gold Corporation recognises the importance of delighting

During the year, sponsorships and donations benefited its customers. As a public statement of its commitment to 32 charities and 148 schools, clubs and not-for-profit service and complaints handling, the Corporation's organisations. In the arts, The Perth Mint maintained its Complaints Policy and Customer Service Charter embodies sponsorship of the Western Australian Symphony Orchestra’s the following elements:Patron’s Program for the fifth consecutive year.

A documented and whole-of-organisation commitment Production of The Perth Mint newsletter, the Australian to the efficient and fair resolution of complaintsNumismatic Post, continued and was mailed together with

Fairness to the complainantnew product information to subscribers and members

Adequate staff resources, with a high level of delegated throughout the year.authority

Speedy and courteous responses

This was an exciting year with extremely high levels of No charges for the handling of complaints

business activity and a record financial result. The world’s A formal system to determine causes and implement financial crisis resulted in unprecedented demand for precious remediesmetals, both physical coins and bars as well as depository

Systematic recording of complaints and their outcomes products, and Gold Corporation’s people and facilities

managed to maximise these opportunities. The parts of the Regular reviews of the quality management and

business that did not benefit directly from the financial crisis complaints review process.

maintained their solid position, contributing to the overall In the coin business, a total of 34,586 orders were processed strong performance. and 79 complaints were received, representing just 0.23% of

I would like to thank the management and staff of the total number. Most of these were related to coins or

Gold Corporation for their effort and commitment – it was packaging damaged in transit. Depository processed 16,350

encouraging to see what the team could achieve under orders and there were four complaints.

sometimes extreme pressure. I would also like to thank the

Chairman and Board for their support, guidance and

encouragement.As part of the functions under the Gold Corporation Act

The new financial year has started with signs of a recovery in 1987, the Corporation is mandated to encourage interest in the world economy – the often mentioned “green shoots” precious metals and the Australian gold industry. Its Mission beginning to appear. Gold Corporation will face a different Statement also requires it to promote the history and heritage challenge, one of keeping activity levels high through a of Australia through coins.proactive and strategic marketing effort. I am confident

The Perth Mint is a member of the Perth Convention Bureau, 2009 / 2010 will be another successful year, if somewhat less

Tourism Council of Western Australia, Tourism Australia, frenetic than the one which has just passed.

Tourism WA Network, Association of Perth Attractions and

The Perth Regional Tourism Association (Experience Perth).

Chief Executive Officer

COMPLAINTS POLICY AND CUSTOMER SERVICE

CHARTER

CLOSING COMMENTS

INDUSTRY AND COMMUNITY PARTICIPATION

M E HARBUZ

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Precious Metal Investment Products

BULLION COINS AND BARS Perth Mint Depository Services

Perth Mint Certificate Program

Perth Mint Gold

PERTH MINT DEPOSITORY

Perth Mint Depository provides investors with the opportunity

of investing in precious metals without having to deal with Gold is regarded by investors worldwide as a trusted asset the issues related to taking physical possession. It has three and convenient method of diversifying an investment products: Perth Mint Depository Services, the Perth Mint portfolio. Certificate Program and the Australian Stock Exchange listed

Gold Corporation offers the following products to investors: product, Perth Mint Gold.

Perth Mint Depository Services (PMDS) offers a range of Gold Corporation, the operator of The Perth Mint, precious metal purchase, storage and trading facilities on is the producer of Australia's official investment or internationally competitive terms to both national and bullion coins.international investors. The service is promoted principally

Each coin is issued as legal tender under the via the internet (http://www.perthmint.com.au/

Australian Currency Act 1965. depositoryservices.aspx).

The appeal of investor coins struck by The Perth Mint The minimum investment is US$50,000 for international

is enhanced by superb artistry portraying iconic clients and $50,000 for Australian residents.

Australian animals:

99.99% pure gold Australian Kangaroo coins

The Perth Mint Certificate Program (PMCP) offers precious 99.9% pure silver Australian Kookaburra coins

metal investments via an international network of approved 99.9% pure silver Australian Koala coins

dealers. With this product, investors receive a certificate The investor program also includes the Australian Lunar Gold confirming their acquisition of precious metal stored at and Silver Bullion Coin Series. Together with a popular range The Perth Mint. The minimum investment is US$10,000 for of minted gold bars, The Perth Mint's bullion coins are overseas investors and $5,000 for Australian investors. distributed through an international network of authorised

agents, banks and dealers.

For investors who prefer the convenience of trading on

the Australian Stock Exchange, Perth Mint Gold (ASX

code: ZAUWBA) is structured as a warrant and enables

both large and small investors to have an exposure to gold

in their portfolios.

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ACTIVITIES

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Commemorative and Precious Metal Coin Blanks Numismatic Coins Gold Corporation also manufactures precious metal coin

blanks for other mints. With world-class manufacturing The Perth Mint designs, manufactures and markets precious technology and unrivalled expertise in all areas of blank metal numismatic coins that are distinguished by their:production, it can create gold, silver, platinum and

Collector and commemorative design themespalladium blanks in an almost limitless number of shapes,

Mirror-like proof quality finishes weights and sizes.

Limited mintages

Numbered Certificates of Authenticity

Luxury presentation packaging

Marking a range of popular anniversaries, people and events,

numismatic coins also celebrate the uniqueness of the

Australian continent and the heritage, history and culture of

its people. These coins are not only sold successfully in

Australia, but also throughout the world, using the Mint's

established international marketing network.

In addition to the traditional numismatists, there are

increasing numbers of collectors and gift-buyers interested in

unusual and innovative releases. As part of its strategy to

grow this sector of the numismatic market, The Perth Mint

has developed a reputation for innovative coin treatments and

pioneering coin manufacturing techniques.

As a result, the Mint has made popular coins with unusual

shapes, coloured designs, moving images, selective 24-carat

gilding and integral 'lockets' containing free-moving objects.

The majority of Perth Mint numismatic releases are issued as

Australian legal tender. However, the Mint also produces

collector coins issued as legal tender of other countries.

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Tourism Gold Refining

The Perth Mint is one of Western Australia’s most popular Gold Corporation has a 40% interest in the AGR Matthey

tourist destinations. A winner of many tourism awards, it partnership, Australia's only major gold refiner. The other two

offers a unique and exciting visitor experience. Among the partners are subsidiaries of Newmont Mining Corporation

many highlights of a guided tour of The Perth Mint are the (40%), a USA-based international gold producer; and

spectacular gold pouring demonstration, the opportunity to Johnson Matthey plc (20%), a major UK company in the

lift a gold bar, and stunning displays of gold in its many forms. business of precious metals, catalysts and chemicals.

Welcoming more than 77,000 international, interstate and The refinery in Perth refines virtually all of Australia's gold,

local visitors annually, including many educational groups, gold from Pacific countries and recycled gold, mainly from

The Perth Mint also provides an important glimpse into the Asia. It is one of the largest gold refineries in the world and

history of gold production and precious metal coining in also refines significant quantities of silver.

Western Australia since the late nineteenth century. AGR Matthey is responsible for exporting most of the gold

An elegantly appointed retail store in which visitors can that it refines, largely in the form of value-added products.

acquire coins, nuggets, jewellery and souvenirs, is an important It is one of Western Australia's major exporters.

and popular element of The Perth Mint visitor experience.

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GROUP STRUCTURE

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Retail

Tourism

Exhibition

Precious

metal blank

manufacture

Manufacturing

and marketing of

investment and

numismatic coins,

other minted

items and related

products

Gold and

silver refining,

manufacture and

marketing of

value-added

bullion bars

Precious

metal linked

investment

products

Australian GoldAlliance Pty Ltd

JOINT VENTUREPARTNERS

100%NewmontAustralia Ltd

Johnson Matthey(Aust) Ltd

ACTIVITIES

JOINT VENTURE AGR Matthey

40% 20%

40%

TRADING NAMES

SUBSIDIARIES

The Perth Mint Westmill Perth Mint Depository

GOLDCORP AUSTRALIA WESTERN AUSTRALIAN MINT

GOVERNMENT OF WESTERN AUSTRALIA

100% 100%

100%

GOLD CORPORATIONHOLDING COMPANY

BOARD OF DIRECTORS Membership

Director Status Expiry of Term

The Board of Directors is the governing body of Gold Directors are appointed by the Governor of Western

Corporation. The Gold Corporation Act 1987 empowers the Australia on the nomination of the Minister and approval by

Board to determine policies for the Corporation and its Cabinet. Dr Ron Edwards was reappointed, and Mr Ray

subsidiaries, and requires the Board to: Bennett was appointed, to the Board on 1 July 2008.

Ms Martine Pop resigned on 30 November 2008. Mr Chris promote and develop markets for gold and gold products Payne replaced Mr David Smith as the representative of the in Australia and elsewhere;Under Treasurer on 7 October 2008. At year-end the

develop and expand the Corporation's business for the Gold Corporation Board consisted of seven non-executive benefit and to the greatest advantage of the people of Directors and two executive Directors.Australia;

operate in accordance with prudent commercial

principles; and

R G Bowe (Chair) Non-executive 30 June 2011strive to earn a commercial rate of return on its capital.

R B Bennett Non-executive 30 June 2011The Board's authority is limited by the provisions in the Act

and by Ministerial direction. The Board acknowledges its R F Edwards Non-executive 30 June 2011

accountability to the Corporation's only shareholder, the D Mackay-Coghill Non-executive 30 June 2009Government of Western Australia.

G M McMath Non-executive 30 June 2010The Board is committed to sound corporate governance

C P Payne Non-executive N/A, ex-officioprinciples, high standards of legislative compliance, and

appropriate financial and ethical behaviour. The Board C S Wharton Non-executive 31 October 2010

regards directorial and managerial conduct seriously and as an M E Harbuz Executive 30 June 2012integral part of sound governance practices. In accordance

R G Hayes Executive 30 June 2010 with that, the Board has committed itself to comply, wherever

applicable, with the spirit and letter of the Australian Institute

of Company Directors Code of Conduct and Guidelines.

Additionally, Directors can seek independent professional

advice on Board matters at the Corporation's expense, with

the approval of the Chairman. No such advice was sought

during the year.

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CORPORATE GOVERNANCE

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2009 YEAR OF THE OX

GEMSTONE EDITION 1 Kilo SILVER COIN 23

Director Biographies

ROSS BOWE BEc

DON MACKAY-COGHILL

RAY BENNETT MAICD

GAYE McMATH BCom MBA (Melb) FCPA, FAICD

RON EDWARDS BEc (WA), MEd (Hons) (Syd), EdD (WA)

In 2006 Dr Edwards was awarded a Doctorate in Education

from the University of Western Australia; his topic was social

inclusion in the low fee Anglican School system in Western Ross Bowe is currently Chairman of Racing and Wagering Australia. Formerly Dr Edwards was the Member for Stirling in Western Australia and Chairman of the Metropolitan the Federal Parliament and was Chairman of the Economics Cemeteries Board. Committee for the Federal Government. Recently he has

worked on European trade matters for the Australian seafood From 1988 to 1994 Mr Bowe was Under Treasurer industry and provides strategic advice on various projects.of Western Australia and Chairman of the

Western Australian Treasury Corporation.

Don Mackay-Coghill retired as the inaugural

Chief Executive Officer of Gold Corporation Ray Bennett has had an extensive background on 30 June 2003 after leading the in finance and banking with over 25 years Corporation for 17 years. Mr Mackay-experience in the banking industry. Mr Bennett

Coghill emigrated from South Africa in was the General Manager Retail Banking for 1986 to take up the dual positions of Challenge Bank immediately prior to leaving the

Chief Executive Officer of GoldCorp Australia banking industry.and Managing Director of the Western Australian Mint.

Mr Bennett was subsequently appointed Chief Executive Before that, he had a 15-year career with International

Officer of the then Western Australian Totalisator Agency Gold Corporation (Intergold), being appointed Chief

Board in 1995. He remained as Chief Executive until the Executive, Worldwide, in 1979. During his time at Intergold,

Totalisator Agency Board was abolished in 2003, and Mr Mackay-Coghill was responsible for the introduction of

Racing and Wagering Western Australia established to the Krugerrand to world markets, which created the first

continue the operations of the Totalisator Agency Board global market for bullion coins.

and take control of the integrity and management of the In recognition of his achievements he received the South racing industry, including allocation of funds across the African Marketing Award of the Year in 1978. In 2007, three racing codes. Mr Bennett was appointed Chief Mr Mackay-Coghill received the Australian Institute of Executive of the new organisation, a position he held Export's Australian Export Hero Award. Mr Mackay-Coghill until his retirement in 2008.is Chairman of AGR Matthey.

Mr Bennett is a Commissioner with the Western

Australian Lotteries Commission and is a member of a

project committee investigating development options for Gaye McMath is the Executive Director, Finance and Resources

Gloucester Park Raceway.at the University of Western Australia. Ms McMath previously

held the position of Pro Vice-Chancellor (Resource

Management) and Chief Financial Officer at Murdoch

University. Ms McMath was employed with BHP Billiton for Ron Edwards is Chairman of Seafood Experience Australia, 23 years in a wide range of senior financial, strategic planning the promotion arm of the Australian seafood industry, and and commercial management positions in the steel, mining chairs the Rock Lobster Industry Advisory Committee for and treasury divisions. She was a BHP Billiton nominated the Western Australian Government and industry. He also director on various domestic and international Boards. is a founding member of the Graham (Polly) Farmer

Foundation committed to providing opportunities for Ms McMath is currently a Director of the Silver Chain Nursing

Indigenous youth; he is a Council Member of the Anglican Association, Western Australian Treasury Corporation and

Schools Commission and is a member of the Australian Verve Energy.

Governments Social Inclusion Board.

24

2008 DISCOVER AUSTRALIA DOLPHIN

1/2oz GOLD COIN

CHRIS PAYNE BSc (Hons), ACA (UK) RICHARD HAYES, BComm, MBA, CPA, ACIS

CHRIS WHARTON

Meeting Attendance

Directors’ Meeting Attendance

M EDWARD HARBUZ, BSc (Eng), MBL

Chris Payne represents the Western Australian Under Richard Hayes was appointed as Chief Financial Officer of

Treasurer, Mr Timothy Marney. He is currently the acting Gold Corporation in March 2003 and as non-executive

Director of the Infrastructure Division in the Western Director of AGR Matthey in July 2008. He was previously

Australian Department of Treasury and Finance. In this role the Chief Operating Officer and an executive Director of

Mr Payne heads a team that provides advice to the AGR Matthey from October 2002 to March 2003 and prior

government on the major Government-owned infrastructure to that he was Director, Finance and Deputy Managing

and commercial agencies. Director of AGR Joint Venture from December 1998 to

October 2002. Prior to that, he was Chief Financial Mr Payne has been with the Department of Treasury Officer and Company Secretary of Golden West and Finance for over 16 years in a number of

Refining Corporation Ltd, an ASX-listed roles including providing advice in respect of company controlled by N M Rothschild & Sons government trading enterprises and general Ltd which, in December 1998, merged with government agencies. Prior to joining the Gold Corporation's refining and jewellery Department of Treasury and Finance he

manufacturing business to become the AGR qualified as a Chartered Accountant with Peat Joint Venture. Mr Hayes came to Australia from Marwick McLintock in the United Kingdom before

Zimbabwe in 1987 and held a number of financial moving to Perth with the same firm.management positions with Boral Ltd prior to joining

Golden West.

Chris Wharton is Chief Executive Officer of West Australian

Newspaper Holdings Ltd, a position he has held since There were five formal meetings of the Directors of December 2008.Gold Corporation during the year ended 30 June 2009

Prior to that, Mr Wharton was Managing Director of and a number of informal meetings. The number of Channel Seven Perth Pty Ltd for nine years. His newspaper formal meetings attended by each Director is indicated career began as a journalist and he worked in every area of in the table below.newspaper management in Sydney before being appointed

as the Chief Executive Officer of Perth's Community Attended EligibleNewspaper Group in 1995.

R G Bowe (Chair) 5 5Mr Wharton’s community involvement includes membership

R B Bennett 5 5of the Telethon Trust, WA Olympic Council, WA Surf Life

R F Edwards 5 5Saving Association Trust, Committee for Perth, the Australian

D Mackay-Coghill 5 5Business Arts Foundation and the Chamber of Commerce and

G M McMath 3 5Industry of Western Australia.

C P Payne 3 3

M D Pop 3 3

D R Smith 1 2Ed Harbuz was appointed Chief Executive Officer of Gold C S Wharton 4 5Corporation on 1 July 2003. Mr Harbuz was Managing M E Harbuz 5 5Director of the South African Mint Company Pty Ltd for R G Hayes 5 5almost seven years until 2001 and Group Managing Director

of Cullinan Holdings Ltd, one of South Africa's oldest

industrial companies prior to that. Preceding this, he was

Chief Executive of Cullinan Refractories and Managing

Director of Steetley Refractories in the United Kingdom.

Mr Harbuz holds a Master of Business Leadership from the

University of South Africa and a BSc (Engineering Electrical)

from the University of Natal.

25

BOARD COMMITTEES Remuneration and Allowances Committee

Audit and Risk Management Committee

Remuneration and Allowances Committee Meeting Attendance

Audit and Risk Management Committee Meeting Attendance

The Board has established two committees, chaired by The Board of Directors delegates authority for determining

independent non-executive Directors, to assist in the conditions of employment to the Remuneration and

execution of its duties. These are the Audit and Risk Allowances Committee. The Committee's responsibilities

Management Committee and the Remuneration and include determining senior staff salary levels, alterations to

Allowances Committee. core conditions of employment and incentive bonus schemes.

Each committee member has only one vote and each The Remuneration and Allowances Committee consists of

resolution must be passed by unanimous agreement. Mr Bowe (Chair), Mr Mackay-Coghill and Mr Harbuz.

In the event that agreement cannot be reached, the matter Ms Susan Coutts-Wood, Manager Human Resources, also

is referred to the Board for resolution. attends the meetings by invitation. The Committee met once

during the financial year. Attendance at the meeting is

indicated in the table below.The title of the Audit Committee was changed to Audit and

Risk Management Committee on 8 September 2008, to

reflect its expanded role with responsibility for the risk Attended Eligible

management process. R G Bowe (Chair) 1 1

The Committee advises the Board on the quality, integrity, M E Harbuz 1 1reliability and adequacy of the Corporation's information, D Mackay-Coghill 1 1accounting and control systems. The Committee acts as a

communications interface between the Board and the

Corporation's internal and external auditors.

Membership of the Committee at year-end comprised Ms

McMath (Chair), Mr Mackay-Coghill and Mr Bennett, who

was appointed on 1 December 2008. Ms Pop held the

position of Chair until her resignation on 30 November 2008.

Attendees at meetings of the Committee were Mr Hayes

(CFO), Mr Brian Bartsh (Manager, Corporate Governance and

Risk) and Mr Tony de Nobrega (Group Accountant).

Mr Harbuz (CEO) is an invitee. Attendees and invitees do not

have voting rights. The Audit and Risk Management

Committee met five times during the financial year.

Attendance at the meetings is indicated in the table below.

Attended Eligible

G M McMath (Chair) 4 5

M D Pop 2 2

R B Bennett 3 3

D Mackay-Coghill 5 5

26

PUBLIC SECTOR STANDARDS AND ETHICAL CODES MANAGEMENT COMMITTEE

Executive Management Committee

GR MATTHEY

RISK MANAGEMENT

CORRUPTION PREVENTION

AGR Matthey Directors' Meeting Attendance

PUBLIC INTEREST DISCLOSURE

Gold Corporation is aware of the requirement to comply with

Section 31(1) of the Public Sector Management Act 1994.

The Executive Management Committee consists of the senior During the current financial year, no issues relating to managers of Gold Corporation. It meets weekly and is non-compliance with the public sector standards, or the chaired by Mr Harbuz. Committee meetings provide a forum WA Code of Ethics were raised.for senior managers to keep the management team abreast

Aof key issues in their area and to discuss strategic issues facing

the Corporation. Gold Corporation, through its subsidiary Western Australian

Mint, has a 40% interest in the AGR Matthey partnership.

This interest entitles Gold Corporation to representation on The Board actively monitors the Corporation's risk the AGR Matthey Board of Directors. The representatives management system to ensure it is robust and fully integrated were Mr Mackay-Coghill, Mr Harbuz and Mr Hayes who was with the Corporation's business processes. Regular monthly appointed on 1 July 2008.and quarterly reports are submitted to the Board on group

In addition to the above, Mr Mackay-Coghill holds the financial risk, credit risk, internal control matters, occupational position of Chairman of the AGR Matthey Board of Directors safety and health, and environmental issues. and Mr Hayes serves on AGR Matthey's Audit Committee.

There were eight meetings of the Directors of AGR Matthey Fraud and corruption controls are an integral component of during the year ended 30 June 2009. The number of Gold Corporation's Risk Management program. meetings attended by each Gold Corporation Director is

indicated in the table below.The organisation's policies and practices are reviewed

regularly and are subject to internal and external audit

programs. Staff awareness sessions including new staff Attended Eligible

inductions, are conducted. Gold Corporation is obliged to D Mackay-Coghill (Chair) 8 8

report any suspected or actual breaches to the Corruption M E Harbuz 8 8

and Crime Commission.R G Hayes 8 8

Gold Corporation is committed to the aims and objectives

of the Public Interest Disclosure Act 2003 (Whistleblower

Protection). It recognises the value and importance of

contributions of staff to enhance administrative and

management practices and strongly supports disclosures

being made by staff as to corrupt or other improper conduct.

All staff are aware of the public interest disclosure process,

and information on the process plus the appropriate forms

are available on Gold Corporation's intranet.

The Public Interest Disclosure Officer is Mr Bartsh.

No claims were submitted during the 2008 / 2009 period.

REGISTERED OFFICE MINISTER

STATUTE

DIRECTORS

COMPANY SECRETARY

BANKERS

Street Address: Honourable Colin Barnett MEc MLA

Perth Mint Buildings Premier; Minister for State Development

310 Hay Street

East Perth, WA 6004

Australia

Tel: +61 8 9421 7222 Gold Corporation was established under the

Fax: +61 8 9221 7031 Gold Corporation Act 1987.

Email: info@perthmint.com.au

Postal Address:

GPO Box M924

Perth, WA 6843 R G Bowe (Non-executive), Chairman

Australia R B Bennett (Non-executive)

Website: www.perthmint.com.auR F Edwards (Non-executive)

D Mackay-Coghill (Non-executive)

G M McMath (Non-executive)

C P Payne (Non-executive)

C S Wharton (Non-executive)

M E Harbuz (Executive, CEO)

R G Hayes (Executive, CFO)

A P Melville

Westpac Banking Corporation

CORPORATE DIRECTORY

27

EuropeGOLD CORPORATION GOLDCORP AUSTRALIATHE PERTH MINT

Australia

China

The Americas

PERTH MINT DEPOSITORY

CIS Countries

Hong Kong

WESTERN AUSTRALIAN MINT Middle East

Japan

THE PERTH MINT SHOP AGR MATTHEY

Street Address: Hildesheimerstr. 29Street Address: Perth Mint Buildings, D-38159 Vechelde, Germany310 Hay Street, East Perth, WA 6004, Tel: +49 5302 930 426AustraliaMobile: +49 160 991 41935Tel: +61 8 9421 7222 Street Address: Perth Mint Buildings, Email: guenther.wolters@dt-online.deFax: +61 8 9221 7031 310 Hay Street, East Perth, WA 6004, Contact: Günther WoltersPostal Address: Australia

GPO Box M924, Perth, WA 6843, Tel: +61 8 9421 7222Australia Fax: +61 8 9221 3812

Street Address: Perth Mint Buildings,Email: info@perthmint.com.au Email: info@perthmint.com.au 310 Hay Street, East Perth, WA 6004, Website: www.perthmint.com.au Contact: Ron Currie, Sales and AustraliaContacts: M Edward Harbuz, Chief Marketing DirectorTel: +61 8 9421 7222Executive OfficerFax: +61 8 9221 3812Bee Ng, Executive Assistant to the

Chief Executive Officer Email: info@perthmint.com.auStreet Address: Perth Mint Buildings, Contact: Ron Currie, Sales and 310 Hay Street, East Perth, WA 6004, Marketing DirectorAustralia

Street Address: Perth Mint Buildings, Tel: +61 8 9421 7222310 Hay Street, East Perth, WA 6004, Fax: +61 8 9221 3812Australia Street Address: Perth Mint Buildings, Email: info@perthmint.com.au 310 Hay Street, East Perth, WA 6004, Tel: +61 8 9421 7280Contact: Neil Vance, Wholesale AustraliaFax: +61 8 9221 7074ManagerEmail: pmds@perthmint.com.au Tel: +61 8 9421 7222

Fax: +61 8 9221 3812Contacts: Nigel Moffatt, Treasurer and Manager, Perth Mint Depository Email: info@perthmint.com.auPMHK LtdJohn Durham, Manager, Depository Contact: Andrey Ignatchenko, CIS

Street Address: Room 1401, Services Wholesale ManagerJubilee Centre46 Gloucester RoadWanchai, Hong KongStreet Address: Perth Mint Buildings, Street Address: Perth Mint Buildings, Tel: +852 2525 1130310 Hay Street, East Perth, WA 6004, 310 Hay Street, East Perth, WA 6004, Fax: +852 2810 6809Australia AustraliaEmail: dominicl@PMHK.com.hkTel: +61 8 9421 7222 Tel: +61 8 9421 7222Contact: Dominic LeungFax: +61 8 9421 7499 Fax: +61 8 9221 3812

Email: info@perthmint.com.au Email: info@perthmint.com.auContact: Justin Kees, General Manager Contact: Andrey Ignatchenko, CIS

K'dom Company LtdOperations Wholesale ManagerStreet Address: Eminence Hirakawacho 4012-12-17 Hirakawacho Chiyoda-kuStreet Address: Perth Mint Buildings, Street Address: 131 Horrie Miller Drive, Tokyo 102-0093310 Hay Street, East Perth, WA 6004, Perth Airport, WA 6105, Australia

Australia Tel: +81 3 3237 3067 Tel: +61 8 9479 9999Fax: +81 3 3237 3068Tel: +61 8 9421 7428 Fax: +61 8 9479 9909

Fax: +61 8 9221 9804 Email: koji-ishikawa@tune.ocn.ne.jp Email: admin@agrmatthey.com.auContact: Koji IshikawaEmail: info@perthmint.com.au Contacts: John Shephard, Chief

Contact: Cathy Anza, Manager, Executive OfficerVisitor Experience Emily Keenan, Personal Assistant to the

Chief Executive Officer

GROUP DIRECTORY

28

FINANCIAL ESTIMATES GOLD CORPORATION

RECORDS MANAGEMENT

FREEDOM OF INFORMATION STATEMENT

The following financial estimates for 2009 / 2010 are based Gold Corporation was established by the Gold Corporation

on Gold Corporation's budget and are included to satisfy the Act 1987 and the Minister responsible for the Corporation is

requirements of Treasurer's Instruction 953. The Honourable Colin Barnett MEc MLA; Premier; Minister for

$000 State Development. Details of the Corporation's mission

Total Revenue 4,629,573 statement, functions, structure and management are available

Total Expenditure 4,600,619 elsewhere in this report.

Operating profit before income tax 28,954 The Corporation has no policy role in government, makes no Income tax expense 8,686 laws or regulations except in relation to the conduct of its Operating profit after income tax 20,268 own affairs, and administers no schemes that confer benefits Dividend 12,161 upon or place imposts on the public.Retained earnings 54,824

Section 6 of the Act empowers the Corporation's Board of

Directors “…to determine the policy of Gold Corporation, the

Mint and GoldCorp in relation to any matter and to control Under the requirements of the State Records Act 2000, the affairs of Gold Corporation and each of its subsidiaries…”. Gold Corporation is obliged to report on its compliance with

The Corporation's Board is committed to sound corporate the Act and communicate this in its annual report. Significant

governance principles, high standards of legislative progress was achieved during the past year to complete

compliance and ethical business practice.outstanding sections of Gold Corporation's Record Keeping

Plan. In April 2007, the organisation received an approved

status from the State Records Office. The efficiency and

effectiveness of Gold Corporation's current record keeping The following Information Statement has been prepared by

plan will be reviewed every five years. Gold Corporation pursuant to Part 5 of the Freedom of

Information Act 1992 (WA) and guidelines issued by the Gold Corporation also reports on its record keeping training Office of the Information Commissioner on 13 May 1994. program and its effectiveness and efficiency. Introductory

sessions are offered to all relevant new staff which includes The Corporation keeps documents and files relating to its

their individual responsibilities under the Act. Relevant staff administration and business activities. A number of these

then receive one-on-one training in the use of the documents can be inspected only under the Freedom of

organisation's electronic document and records management Information Act 1992 (WA) [FOI].

system. Additional training sessions are offered on an ad hoc The following were published by The Perth Mint: basis or when an assessment of the current program

90 Golden Years (published in 1989); The Perth Mint determines the needs for changes to the program. All Numismatic Issues 1986 – 1996 (published in 1996); Striking inductions and training programs are reinforced by manuals, Gold: 100 Years of The Perth Mint (published in 1999); and policies and procedures. A Century of Minting Excellence – The History of Australian

Coin Production at The Perth Mint (published in 1999).

Documents which can be obtained free-of-charge include

Perth Mint brochures and catalogues, media statements,

annual reports and The Australian Numismatic Post

newsletter. Back issues of The Australian Nugget Journal,

which ceased publication in February 2001, are also available.

These can be obtained on request by mail to GPO Box M924,

Perth, Western Australia, 6843, or The Perth Mint website,

www.perthmint.com.au

STATUTORY REPORTING REQUIREMENTS

29

FOI Exemption OCCUPATIONAL SAFETY AND HEALTH

FOI Procedures and Access

A document is exempt if its disclosure would reveal Gold Corporation maintains a management system for

information about: occupational safety and health which seeks to minimise risks

to employees, customers, the public, contractors and the gold or other precious metal received by Gold environment. Policies and procedures are formulated taking Corporation from a person, or held by Gold Corporation into account legislation, standards, codes of practice and on behalf of a person, on current account, certificate of information about hazards and risks. Managers set objectives deposit or fixed deposit; orand targets, and performance is monitored and reviewed.

a transaction relating to gold or other precious Gold Corporation is committed to continuous metal received or held by Gold Corporation.

improvement and this year reached a milestone

by achieving certification

to AS/NZS4801.2001. The findings from the It is the aim of the Corporation to make certification audit summary are:information available promptly and at the least

“It was evident from this review that the possible cost, and whenever possible, documents

organisation has good safety practices in place for will be provided outside the FOI process.

its business activities with commitment from top If information is not routinely available, the Freedom of management. The safety aspects of the areas assessed Information Act 1992 (WA) provides the rights enabling the during the course of the visit were generally found to be public to apply for documents held by the Corporation. effectively managed.”

Access applications have to (i) be in writing; To achieve certification, commitment from all levels in the (ii) provide sufficient information to enable identification of organisation was obtained through consultation with the requested documents; (iii) provide an Australian address employees. Consultation was achieved primarily through to which notices can be sent; and (iv) be lodged at the toolbox meetings and Occupational Safety and Health Corporation, together with any application fee payable. committee meetings in which employee representatives play

an important role.Applications will be acknowledged in writing and the

applicant will be notified of the decision within 45 days. The Corporation adheres to the Workers' Compensation and

Injury Management Act 1981 and has an injury management Applicants who are dissatisfied with a decision of the policy and procedures in place to manage return to work Corporation may request an internal review.programs.

Application should be made in writing within 30 days of There have been no fatalities. The lost time injury frequency receiving the notice of decision. Applicants will be notified rate was slightly higher than in the previous year but is well of the outcome of the review within 15 days.below the Western Australian average.

One application was lodged to Gold Corporation under

Freedom of Information (FOI) legislation in 2008 / 2009.

FOI inquiries or applications should be made to the FOI

Coordinator, Ms Bee Ng, Executive Assistant to the

Chief Executive Officer, Gold Corporation, 310 Hay Street,

East Perth, WA 6004, telephone (08) 9421 7222, facsimile

(08) 9221 7031, email Bee.Ng@perthmint.com.au Inquiries

or applications may also be directed to the Manager,

Corporate Governance and Risk, Mr Brian Bartsh,

email Brian.Bartsh@perthmint.com.au

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30

SYDNEY 2009

WORLD MASTERS GAMES $1 COIN

Section 175ZE of the Electoral Act 1907 (WA) requires a

public agency to include a statement in its annual report

detailing all expenditure incurred by or on behalf of the

agency during the financial year in relation to advertising,

market research, polling, direct mail and media advertising:

1. Total expenditure for 2008 / 2009 was $292,757.

2. Expenditure was incurred in the following areas:

Advertising $5,925 Linx $5,925agencies Advertising

Market researchorganisations Nil Nil Nil

Polling organisations Nil Nil Nil

Direct mail organisations $225,736 Lasermail $225,736

Media advertising organisations $61,097 Media Decisions $35,498

Marketforce Productions $25,598

SECTION 175ZE OF THE ELECTORAL ACT 1907 (WA)

31

GOLD CORPORATION

GOLDCORP AUSTRALIA

WESTERN AUSTRALIAN MINT

Chief Executive Officer M E Harbuz

Chief Financial Officer R G Hayes

Treasurer and Manager, Perth Mint Depository N P Moffatt

Project Manager, Refurbishment B M Suchecki

Manager, Corporate Governance and Risk B T Bartsh

Manager, Information Systems B R Shah

Manager, Human Resources S J Coutts-Wood

Sales and Marketing Director R Currie

Manager, Visitor Experience C B Anza

General Manager Operations J K Kees

SENIOR MANAGEMENT(AT 30 JUNE 2009)

32

Front row (from left) Cathy Anza, Justin Kees, Ed Harbuz, Richard Hayes and Bindesh ShahBack row (from left) Bron Suchecki, Nigel Moffatt, Susan Coutts-Wood, Brian Bartsh and Ron Currie

AUDITOR GENERAL'S OPINION

33

34

Auditor General

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

INDEPENDENT AUDIT OPINION To the Parliament of Western Australia GOLD CORPORATION FINANCIAL STATEMENTS AND KE Y PERFORMANCE INDICATORS FOR THE YEAR ENDED 30 JUNE 2009 I have audited the accounts, financial statements, controls and key performance indicators of Gold Corporation and the consolidated entity. The financial statements comprise the Balance Sheet as at 30 June 2009, and the Income Statement, Statement of Changes in Equity and Cash Flow Statement of the Corporation and the consolidated entity for the year then ended, a summary of significant accounting policies and other explanatory Notes. The key performance indicators consist of key indicators of effectiveness and efficiency. Board’s Responsibility for the Financial Statements and Key Performance Indicators The Board is responsible for keeping proper accounts, and the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Treasurer’s Instructions, and the key performance indicators. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements and key performance indicators that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances; and complying with the Financial Management Act 2006 and other relevant written law. Summary of my Role As required by the Auditor General Act 2006, my responsibility is to express an opinion on the financial statements, controls and key performance indicators based on my audit. This was done by testing selected samples of the audit evidence. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Further information on my audit approach is provided in my audit practice statement. Refer www.audit.wa.gov.au/pubs/AuditPracStatement_Feb09.pdf . An audit does not guarantee that every amount and disclosure in the financial statements and key performance indicators is error free. The term “reasonable assurance” recognises that an audit does not examine all evidence and every transaction. However, my audit procedures should identify errors or omissions significant enough to adversely affect the decisions of users of the financial statements and key performance indicators.

35

Gold Corporation Financial Statements and Key Performance Indicators for the year ended 30 June 2009 Audit Opinion In my opinion,

(i) the financial statements are based on proper accounts and present fairly the financial position of Gold Corporation and the consolidated entity at 30 June 2009 and their financial performance and cash flows for the year ended on that date. They are in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Treasurer’s Instructions;

(ii) the controls exercised by the Corporation provide reasonable assurance that the receipt, expenditure and investment of money, the acquisition and disposal of property, and the incurring of liabilities have been in accordance with legislative provisions; and

(iii) the key performance indicators of the Corporation are relevant and appropriate to help users assess the Corporation’s performance and fairly represent the indicated performance for the year ended 30 June 2009.

COLIN MURPHY AUDITOR GENERAL 17 September 2009

KEY PERFORMANCE INDICATORS

Gold Corporation is a body corporate incorporated in terms Given the above Treasurer's Instructions and taking

of the Gold Corporation Act 1987 of Western Australia. into account the Corporation's functions under the

Gold Corporation Act 1987, its outcomes are:The purpose of Gold Corporation is to:

1 Maximisation of the Value Added to, and Income develop, manufacture and market Australian legal Derived from, Precious Metal Coins and Other tender investment coins and other products that Products and Servicespromote the ownership of physical precious metal for

investment purposes; The Australian Nugget and Lunar bullion gold coins

and Kookaburra silver coins have a noted world market design, manufacture and market proof, commemorative share. The Perth Mint's various proof, numismatic and and numismatic coins and related products;commemorative coins made of gold, silver and platinum

make available investment products that enable investors are added value precious metal products which are also

to have exposure to the value of precious metals without distributed worldwide. Coin blanks are supplied in

having to deal with the security and other issues increasing quantities to the US Mint and other mints in

associated with the keeping of the physical metal;the world.

provide storage and safekeeping facilities for precious 2 Preservation and Promotion of The Perth Mint's

metals;Heritage Assets and History

be a major supplier of precious metal blanks to the mints The Perth Mint Exhibition includes gold pouring

of the world;demonstrations, the Industry Collection of Gold Bars

operate a tourist attraction, based on the themes of gold Worldwide, historical information on the gold industry and minting, that is important to Perth and Western in Western Australia and a comprehensive range of Australia; investor and numismatic coins. It is an integral part of

The Perth Mint heritage and a premier tourist destination.supply refining and other services to the gold industry of

Australia; and

preserve the historical Mint building and artefacts that

are part of the heritage of Perth and Australia.

The Corporation is required to operate in accordance with

prudent commercial principles, to generate revenue sufficient

to meet its expenditure and to derive a profit that represents

a commercial rate of return on its capital.

Under the Treasurer's Instructions 904 and 905, a statutory

authority is required to provide appropriate key performance

indicators in its Annual Report, namely:

relevant agency level government desired outcome(s);

key effectiveness indicators which provide information on

the extent of achievement of an agency level government

desired outcome;

key efficiency indicators relating an outcome to the level

of resource input required to deliver it.

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36

THE RELATIONSHIP BETWEEN GOVERNMENT GOALS AND GOLD CORPORATION'S PERFORMANCE

FINANCIAL AND ECONOMIC RESPONSIBILITY

RESPONSIBLY MANAGING THE STATE'S FINANCES THROUGH THE EFFICIENT AND EFFECTIVE DELIVERY OF

SERVICES, ENCOURAGING ECONOMIC ACTIVITY AND REDUCING REGULATORY BURDENS ON THE PRIVATE SECTOR

EFFECTIVENESS INDICATORS

Notes:

The Goal most aligned to Gold Corporation's business operations is:

The key effectiveness indicators for outcome No. 1 are: 2005 2006 2007 2008 2009 Target

1 Global market share of Australian Nugget gold bullion coin 11.3% 11.6% 13% 8% 7% 8%(Note 1)

2 Coin programs - value added to gold, silver, platinum and

Palladium: (Note 2)

(a) Total premium income $20.5m $22.8m $26.1m $27.6m $50.4m $29.5m

(b) Total premium income expressed as a percentage of (Note 2)

precious metal value 20.0% 17.3% 16.1% 12.7% 8.3% 10.4%

3 Estimated proportion of Australian fine gold production

refined by AGR Matthey 99.9% 99.9% 99.9% 99.9% 99.9% 99.9%(Note 3)

4 Return on equity 3.9% 11.6% 14.1% 5.2% 39% 6.84%(Note 4)

5 Dividends/income tax equivalent payable to the

Western Australian Government $2.4m $3.0m $7.0m $3.2m $29.1m $3.8m(Note 5)

The key effectiveness indicators for outcome No. 2 are:

6 a) Visitors to Perth Mint Exhibition 81,000 86,000 82,000 82,000 77,000 84,000(Note 6)

b) Visitors' satisfaction level 98.6% 99.9% 99.9% 99.9% 99.9% 99.9%

1 The figures are based on Gold Fields Mineral Services data for the previous calendar year.

2 The calculation is the total premium income (amount of income received above metal cost) for all financial year legal

tender coin sales, which is also expressed as a percentage of the value of the precious metal content of the coins.

The effectiveness indicator includes all Australian legal tender coins, as well as coins produced for other countries.

Significantly increased volumes of bullion coins were sold during the year. Margins on bullion coins are lower than

margins on other coin types.

3 This calculation is based on AGR Matthey's records and an estimate of total Australian fine gold production provided

by the Australian Bureau of Agricultural and Resource Economics.

4 The percentages show Gold Corporation's return on equity at the end of the respective financial year, based on the

profit from ordinary activities before income tax. This is the performance measure referred to in the Gold Corporation

Act 1987. Provided the Corporation derives a profit, the WA Government receives the benefit of receipt of income tax

equivalents and annual dividends from the Corporation.

5 Income tax equivalent, calculated as if the Corporation were a public company, is payable to the WA Government on

profit from ordinary activities. Dividends are payable annually as a percentage of after-tax profit. These payments are

forecast annually in Gold Corporation's business plan, and included in the Financial Estimates in the annual report.

2004- 2005- 2006- 2007- 2008-

37

6 a Total number of visitors (to nearest thousand) to the Exhibition annually, based on recorded daily visitor traffic.

b Satisfaction levels are derived from random sampling of comments entered into the visitors' book which is

available in the foyer of The Perth Mint.

7 Comparative figures have been adjusted where necessary to conform with changes in presentation of the financial

statements under AIFRS.

Bullion or investment coins represent a significant market for gold and it is important that The Perth Mint increases demand

by promoting its well-known gold Kangaroo and its other bullion coins.

It is also important that proof, commemorative and numismatic coins are promoted as these add significant value to

precious metals. Most of these coins are exported.

Value is also added to precious metals in the manufacture and supply of coin blanks to other mints in the world.

Gold Corporation continually upgrades The Perth Mint heritage building situated at 310 Hay Street, and currently has a

project underway to renovate and conserve the historically significant Shop and Exhibition housed in the building on its

original grounds in East Perth. It also preserves historical artefacts and documents related to minting and the gold industry

in Western Australia.

2004- 2005- 2006- 2007- 2008-The key efficiency indicator for service No. 1 is: 2005 2006 2007 2008 2009 Target

1 Trading profit as a proportion of sales revenue 6.1% 2.9% 4.0% 3.0% 2.6% 4.6%(Note 1)

2 Staff costs as a proportion of trading profit 54.5% 53.6% 55% 52.4% 33.9% 37%(Note 2)

The key efficiency indicator for service No. 2 is:

3 Average cost per Exhibition/visitor expressed as an index 129 133 143 167 176(Note 3)

1 The percentages show the proportion of Gold Corporation's sales revenue represented by the trading profit (gross margin)

for the respective financial year. The percentage fell in 2008 / 2009 due to the larger percentage of bullion sales which

occur at lower margins.

2 Staff costs include employee benefits on-costs and contract staff costs, expressed as a percentage of trading profit (gross

margin). Staff costs are Gold Corporation's major expenditure, after the cost of precious metals.

3 Average cost per Exhibition/visitor is derived by calculation of total costs of Exhibition divided by annual number of visitors

expressed as an index, with the 2002 / 2003 year indexed as 100.

SERVICES

1 Precious Metal Coins, Other Products and Services

2 Cultural Heritage Conservation

EFFICIENCY INDICATORS

Notes:

38

In our opinion, the Key Performance Indicators for Gold Corporation and its subsidiaries contained in this report are based on

proper records, are relevant and appropriate for assisting users to assess the performance of Gold Corporation and its

subsidiaries, and fairly represent the performance of the Group for the year ended 30 June 2009.

17 September 2009

R G BOWE M E HARBUZ

Chairman Executive Director

CERTIFICATION OF KEY PERFORMANCE INDICATORS

39

The accompanying financial statements of Gold Corporation and the accompanying consolidated financial statements have been

prepared in compliance with the provisions of the Financial Management Act 2006 from proper accounts and records to present

fairly the financial transactions for the year ended 30 June 2009, and the financial position as at 30 June 2009.

At the date of signing, we are not aware of any circumstances which would render the particulars included in these financial

statements misleading or inaccurate.

17 September 2009

R G BOWE

Chairman Executive Director Chief Finance Officer

M E HARBUZ R G HAYES

CERTIFICATION OF FINANCIAL STATEMENTS

40

FINANCIAL STATEMENTSGOLD CORPORATION AND SUBSIDIARIES

YEAR ENDED 30 JUNE 2009

41

1

GOLD CORPORATION AND SUBSIDIARIES

INCOME STATEMENT

FOR THE YEAR ENDED 30 JUNE 2009Consolidated Gold Corporation

INCOME Note 2009 2008 2009 2008Revenue $000 $000 $000 $000

Sales 2,33 2,482,381 1,190,171 1,694,692 1,087,224 Charges for technical services - - 2,702 - Fees and rents 6,735 2,239 6,537 1,893 Interest revenue 8,750 5,469 8,733 5,467 Dividends from subsidiaries 3b - - 22,000 3,500

Other IncomeNet profit on sale of assets 12 - - 3 - Revaluation increase in buildings 61 334 - - Charges to divisions - - - 1,400 Share of profits of joint venture partnerships 10 8,708 - - -

Total Income 2,506,636 1,198,213 1,734,667 1,099,484 EXPENSES

Cost of sales 2,33 2,419,017 1,154,870 1,683,062 1,083,374 Employee benefits expense 4 20,198 14,232 8,844 4,443 Materials and services 33 23,014 16,625 6,543 3,787 Depreciation expense 12 2,430 2,065 280 128 Amortisation expense 13 563 567 563 567 Computer rentals 297 254 295 254 Finance costs 1,806 2,159 1,806 2,175 Net (profit)/loss on sale of assets 12 105 7 - 7 Inventory write-down to net realisable value 1,169 1,026 - - Share of loss of joint venture partnerships 10 - 2,676 - -

Total Expenses 2,468,600 1,194,481 1,701,393 1,094,735

PROFIT BEFORE INCOME TAX EQUIVALENT EXPENSE 38,036 3,732 33,274 4,749

Income tax equivalent expense 5 11,388 2,361 11,388 2,361

PROFIT FOR THE YEAR 26,648 1,371 21,886 2,388

The Income Statements are to be read in conjunction with the Notes to the Financial Statement.

2

GOLD CORPORATION AND SUBSIDIARIES

BALANCE SHEET

AS AT 30 JUNE 2009Consolidated Gold Corporation

Note 2009 2008 2009 2008$000 $000 $000 $000

ASSETSCURRENT ASSETS

Cash and cash equivalents 6 90,698 23,282 52,089 19,104 Receivables 7 6,430 5,328 23,120 4,989 Precious metal leases 8a 634,772 1,080,364 634,772 1,080,364 Inventories 8b 1,399,737 761,140 1,387,549 749,338 Current tax assets 5e - 897 - 897 Prepayments 1,083 619 1,017 587

Total current assets 2,132,720 1,871,630 2,098,547 1,855,279

NON-CURRENT ASSETSInvestments accounted for using the equity method 10 18,221 11,855 - - Loans to subsidiaries 7 - - 90,268 79,074 Other financial assets 11 - - 21,603 21,603 Deferred tax assets 5c 108 - 108 - Property, plant and equipment 12 53,075 50,786 1,149 481 Intangible assets 13 775 1,575 775 1,575

Total non-current assets 72,179 64,216 113,903 102,733

TOTAL ASSETS 2,204,899 1,935,846 2,212,450 1,958,012

LIABILITIESCURRENT LIABILITIES

Payables 14 73,587 28,137 61,761 22,612 Borrowings 15 141,517 445,341 138,017 441,841 Current tax liabilities 5e 5,617 - 5,617 - Provisions 17 204 339 - - Employee benefits 16 2,266 1,919 1,701 1,444 Other current liabilities 18 1,883,972 1,387,590 1,883,972 1,387,590

Total current liabilities 2,107,163 1,863,326 2,091,068 1,853,487

NON-CURRENT LIABILITIESEmployee benefits 16 235 191 128 118 Loans from subsidiaries 14 - - 61,249 64,438 Deferred tax liabilities 5c - 1,027 - 1,027

Total non-current liabilities 235 1,218 61,377 65,583

TOTAL LIABILITIES 2,107,398 1,864,544 2,152,445 1,919,070

NET ASSETS 97,501 71,302 60,005 38,942

EQUITYContributed equity 19 31,603 31,603 31,603 31,603 Asset revaluation reserve 19 19,588 19,211 - - Hedge reserve 19 (407) (404) - - Retained earnings 46,717 20,892 28,402 7,339

TOTAL EQUITY 97,501 71,302 60,005 38,942

The Balance Sheets are to be read in conjunction with the Notes to the Financial Statements.

3

GOLD CORPORATION AND SUBSIDIARIES

STATEMENTS OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2009Consolidated Gold Corporation

Note 2009 2008 2009 2008$000 $000 $000 $000

Total equity at beginning of year 71,302 69,358 38,942 40,789

CONTRIBUTED EQUITYBalance at beginning of year 19 31,603 31,603 31,603 31,603 Contributed during the year - - - -

Balance at end of year 31,603 31,603 31,603 31,603

RESERVESAsset Revaluation ReserveBalance at beginning of year 19,211 14,015 - - Revaluation land 12 (800) 3,900 - - Revaluation buildings 1,177 1,296 - -

Balance at end of year 19 19,588 19,211 - -

Hedge ReserveBalance at beginning of year (404) (16) - - Share of AGR Matthey hedge reserve (3) (388) - - Balance at end of year 19 (407) (404) - -

RETAINED EARNINGSBalance at beginning of year 20,892 23,756 7,339 9,186 Net profit for the year 26,648 1,371 21,886 2,388 Dividends to shareholder (823) (4,235) (823) (4,235)

Balance at end of year 46,717 20,892 28,402 7,339

Total equity at end of year 97,501 71,302 60,005 38,942

Total recognised income and expense for the year 27,021 6,179 21,886 2,388

The Statements of Changes in Equity are to be read in conjunction with the Notes to the Financial Statements.

4

GOLD CORPORATION AND SUBSIDIARIES

CASH FLOWS STATEMENT

FOR THE YEAR ENDED 30 JUNE 2009Consolidated Gold Corporation

Note 2009 2008 2009 2008$000 $000 $000 $000

Cash flows from operating activitiesCash receipts from customers 2,488,015 1,189,869 1,707,800 1,095,786 Cash paid to suppliers and employees (2,418,494) (1,184,778) (1,673,292) (1,095,441) Interest received 8,750 5,469 8,733 5,467 Interest paid (1,806) (2,159) (1,806) (2,175)

Net cash provided by operating activities 20 76,465 8,401 41,435 3,637

Cash flows from investing activitiesProfit distribution from joint venture partnership 2,338 1,146 - - Payments for plant and equipment (3,976) (2,938) (1,039) (72) Payments for intangibles-computer software (170) (3) (170) (3) Proceeds from sale of plant and equipment 94 12 94 12

Net cash provided by/(used in) investing activities (1,714) (1,783) (1,115) (63)

Cash flows from State GovernmentIncome tax equivalent paid (6,512) (4,806) (6,512) (4,806) Dividend paid (823) (4,235) (823) (4,235)

Net cash flow from State Government (7,335) (9,041) (7,335) (9,041)

Net Increase/(Decrease)in cash and cash equivalents 67,416 (2,423) 32,985 (5,467)

Cash and cash equivalents at the beginning of year 23,282 25,705 19,104 24,571

Cash and cash equivalents at the end of year 6 90,698 23,282 52,089 19,104

The Statements of Cash Flows are to be read in conjunction with the Notes to the Financial Statements.

5

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES

Gold Corporation is an entity domiciled in Australia.

The consolidated financial report of Gold Corporation for the year ended 30 June 2009 comprisesGold Corporation (the Corporation) and its subsidiaries (together referred to as the Group) and its interest in associates and jointly controlled entities.

The significant accounting policies adopted by Gold Corporation and its subsidiaries arestated to assist in the general understanding of the financial statements. These policies have beenapplied consistently to all periods presented in the consolidated financial report and have beenapplied consistently by Group entities.

(a) Statement of ComplianceThe Corporation's financial statements for the year ended 30 June 2009 have been prepared inaccordance with Australian equivalents to International Financial Reporting Standards (AIFRS),which comprise a Framework for the Preparation and Presentation of Financial Statements (theFramework) and Australian Accounting Standards (including the Australian AccountingInterpretations).

The financial report constitutes a general purpose financial report which has been prepared inaccordance with Australian Accounting Standards (AASBs) adopted by the Australian AccountingStandards Board (AASB) and UIG Interpretations, as applied by the Treasurer's Instructions.

In preparing these financial statements the Corporation has adopted, where relevant to its operations,new and revised Standards and Interpretations from their operative dates as issued by the AASB andformerly the Urgent Issues Group (UIG).

The Australian Accounting Interpretations are adopted through AASB 1048 'Interpretation andApplication of Standards' and are classified into those corresponding to IASB Interpretations andthose only applicable in Australia.

The Financial Management Act 2006 and the Treasurer's Instructions are legislative provisions governingthe preparation of financial statements and take precedence over the Accounting Standards, theFramework, Statements of Accounting Concepts and other authoritative pronouncements of theAustralian Accounting Standards Board.

The Treasurer's Instructions may modify or clarify their application, disclosure, format and wording toprovide certainty and to ensure consistency and appropriate reporting across the public sector. If anysuch modification has a material or significant financial effect upon the reported results, details of thatmodification and, where practicable, the resulting financial effect are disclosed in individual notes tothe financial report.

6

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)(b) Basis of preparationThe financial report is prepared on the accrual basis of accounting using the historical cost convention except for precious metal holdings & inventories, derivative financial instruments, and landand buildings, which are stated at fair value. The financial report is presented in Australian dollars,which is the Group's functional and presentation currency, rounded to the nearest thousand dollars in accordance with Treasurer's Instruction 948.

management to make judgements, estimates and assumptions that affect the application of policies

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised ifthe revision affects only that period, or in the period of the revision and future periodsif the revision affects both current and future periods.

In particular, information about significant areas of estimation uncertainty and critical judgements inapplying accounting policies that have the most significant effect on the amount recognised in thefinancial statements are described in the valuation of financial instruments note.

The Corporation cannot early adopt an Australian Accounting Standard or Australian AccountingInterpretation unless specifically permitted by TI 1101 'Application of Australian AccountingStandards and Other Pronouncements' . No Standards and Interpretations that have been issuedor amended but are not yet effective have been early adopted by the Corporation for theannual reporting period ended 30 June 2009. Consequently, the Corporation has not appliedthe following Australian Accounting Standards and Australian Accounting Interpretations thathave been issued but are not yet effective. These will be applied from their application date:

(1) AASB 101 "Presentation of Financial Statements" (September 2007). This Standard hasbeen revised and will change the structure of the financial statements. These changes will require that owner changes in equity are presented separately from non-owner changes inequity. The Corporation does not expect any financial impact when the standard is first applied

(2) AASB 2008-13 'Amendments to Australian Accounting Standards' arising from AASBinterpretation 17 - distributions of non-cash assets to owners (AASB 5 & AASB 110).This standard amends AASB 5 'Non-current Assets held for Sale and Discontinued Operations ' in respect of the classification, presentation and measurement of non-currentassets held for distribution to owners in their capacity as owners. The Corporation does not expect any financial impact when the Standard is first applied prospectively.

The preparation of a financial report in conformity with Australian Accounting Standards requires

and reported amounts of assets and liabilities, income and expenses. Actual results may differfrom these estimates.

7

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)

(b) Basis of preparation (continued)

(3) AASB 123 "Borrowing Costs" (June 2007). This standard has been revised to mandate the capitalisation of all borrowing costs attributable to the acquisition, construction or productioof qualifying assets. The Corporation already capitalises borrowing costs directly attributable to buildings under construction: therefore there will be no impact on the financial statements whenthe standard is first applied. Agencies presently expensing such borrowing costs will need to report the impact. The AASB has deferred the withdrawal of the option to expense borrowingcosts for public sector agencies (AASB Action Alert Issue No 121 - 19 December 2008 ).The AASB has approved the issue of ED 176 "Amendments to Australian AccountingStandards - Borrowing Costs of Not-for-Profit Public Sector Entities" for comment, whichproposes that not-for-profit public sector entities be able to choose whether to expense or capitalise borrowing costs relating to qualifying assets by deferring the mandatory adoption of the capitalisation approach (AASB Action Alert Issue No. 122 - 9 February 2009 ).

(c) Basis of consolidation(i) Subsidiaries

The consolidated financial statements have been prepared by combining the financial statements ofGold Corporation and all controlled entities in accordance with AASB127'Consolidated and SeparateFinancial Statements' and modified by the Treasurer's Instruction 1105. The accounting policies osubsidiaries have been changed where necessary to align them with the policies adopted by the Corporation.A controlled entity is an entity where Gold Corporation has the capacity to dominate the decision - making in relation to the financial and operating policies of another entity so that the other entity operates with the Corporation to achieve its objectives.

Where controlled entities enter or leave the Group during the year, their operating results are includedfrom the date control was obtained or until the date control ceased.

Investments in subsidiaries are brought to account at cost in the Corporation.

(ii) Associates and Joint VenturesAssociates are those entities in which the Group has significant influence, but not control, overthe financial and operating policies. Joint ventures are those entities over whose activities theGroup has joint control, established by contractual agreement and requiring unanimous consentfor strategic financial and operating decisions. Associates and joint ventures, includingpartnerships, are accounted for using the equity method (equity accounted investees). Theconsolidated financial statements include the Group's share of the income and expenses ofequity accounted investees, after adjustments to align the accounting policies with those of theGroup, from the date that significant influence or joint control commences until the date thatsignificant influence or joint control ceases. When the Group's share of losses exceeds its interests in an equity accounted investee, the carrying amount of that interest (including long-term investments) is reduced to nil and the recognition of further losses is discontinued except tothe extent that the Group has an obligation to make or has made payments on behalf of the investee.

8

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)

(iii) Transactions eliminated on consolidationIntergroup balances and any unrealised gains and losses or income and expenses arising fromintergroup transactions are eliminated in preparing the consolidated financial statements.Unrealised gains arising from transactions with associates and jointly controlled entities areeliminated to the extent of the Group's interest in the entity. Unrealised losses are eliminatedin the same way as unrealised gains, but only to the extent that there is no evidence of impairment.Gains and losses are recognised as the contributed assets are consumed or sold by the associate or jointly controlled entities or, if not consumed or sold by the associate or jointly controlled entity,when the Group's interest in such entities is disposed of.

(d) Foreign currency transactionsTransactions denominated in foreign currencies are translated at the foreign exchange rate ruling at thedate of the transaction. Monetary assets and liabilities denominated in foreign currencies atthe balance date are translated to Australian dollars at the foreign exchange rate ruling atthat date. Foreign exchange differences arising on translation are recognised in the incomestatement. The foreign currency gain or loss on monetary items is the difference betweenamortised cost in the functional currency at the beginning of the period, adjusted for effectiveinterest and payments during the period, and the amortised cost in foreign currency translatedat the exchange rate at the end of the period. Non-monetary assets and liabilities that aremeasured in terms of historical cost in a foreign currency are translated using the exchangerate at the date of the transaction. Non-monetary assets and liabilities denominated in foreigncurrencies that are stated at fair value are translated to Australian dollars at foreign exchangerates ruling at the dates the fair value was determined.

Foreign currency gains and losses are reported on a net basis.

(e) Financial Instruments(i) Derivative financial instruments

The Group may use derivative financial instruments to hedge its exposure to foreign exchange risksarising from operating, financing and investing activities. In accordance with its treasury policy,the Group does not hold or issue derivative financial instruments for trading purposes. However,derivatives that do not qualify for hedge accounting are accounted for as trading instruments.

Derivatives are recognised initially at fair value; attributable transaction costs are recognised inthe income statement when incurred. Subsequent to initial recognition, derivatives are measuredat fair value, and changes therein are accounted for as described below.

Cash flow hedgesChanges in the fair value of the derivative hedging instrument designated as a cash flow hedgeare recognised directly in equity to the extent that the hedge is effective. To the extent that thehedge is ineffective, changes in fair value are recognised in the income statement.

If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold,terminated or exercised, then hedge accounting is discontinued prospectively. The cumulativegain or loss previously recognised in equity remains there until the forecast transaction occurs.When the hedged item is a non-financial asset, the amount recognised in equity is transferredto the carrying amount of the asset when it is recognised. In other cases the amount recognisedin equity is transferred to the income statement in the same period that the hedged item affectsthe income statement.

9

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)

(ii) Non-derivative financial instrumentsNon-derivative financial instruments comprise investments in equity and debt securities, trade andother receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.

Non-derivative financial instruments are recognised initially at fair value plus, for instruments notat fair value through the income statement, any directly attributable transaction costs, except asdescribed below. Subsequent to initial recognition non-derivative financial instruments are measuredas described below.

A financial instrument is recognised if the Group becomes a party to the contractual provisions ofthe instrument. Financial assets are derecognised if the Group's contractual rights to the cash flowsfrom the financial assets expire or if the Group transfers the financial asset to another party withoutretaining control or substantially all risks and rewards of the asset. Regular purchases and salesof financial assets are accounted for at trade date, i.e. the date that the Group commits itself topurchase or sell the asset. Financial liabilities are derecognised if the Group's obligations specifiedin the contract expire or are discharged or cancelled.

Cash and cash equivalents comprise cash balances, call deposits and commercial bills .

Other non-derivative financial instruments are measured at amortised cost using the effectiveinterest method, less any impairment losses.

(f) ReceivablesTrade and other receivables are stated at their amortised cost less impairment losses (see Note 1ii).

(g) InventoriesPrecious metal inventories are valued at fair value, being market prices ruling at balance date.Other inventories are stated at the lower of cost or net realisable value. Net realisable value is theestimated selling price in the ordinary course of business, less the estimated costs of completion andselling expenses. Cost is assigned on a first - in - first out basis except for retail inventories where aweighted average method is used. In the case of manufactured inventories and work in progress, cost includes an appropriate share of overheads based on normal operating capacity.

Precious metal borrowings and unallocated precious metal owned by the Group's customers is shownas inventory due to the fungible nature of precious metal.

(h) Property, plant and equipment(i) Capitalisation/expensing of assets

Items of property, plant & equipment costing $2,000 or more are recognised as assets and the cost ofutilising assets is expensed (depreciated) over their useful lives. Items of property, plant & equipmentcosting less than $2,000 are expensed direct to the income statement (other than where they form partof a group of similar items which are significant in total).

(ii) Initial recognition and measurementAll items of property, plant & equipment are initially recognised at cost. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringingthe asset to a working condition for its intended use, and the cost of dismantling and removing the itemand restoring the site on which it is located. Cost also may include transfers from equity of any gain orloss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.Purchased software that is integral to the functionality of the related equipment is capitalised as partof that equipment. Borrowing costs related to the acquisition or construction of qualifying assets arerecognised in profit or loss as incurred. In the following year these costs will be capitalised.

10

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)(iii) Subsequent measurement

After recognition as an asset, the Corporation uses the revaluation model for the measurement of landand buildings and the cost model for all other property, plant & equipment. Land and building arecarried at fair value less accumulated depreciation on buildings and accumulated impairment losses.All other items of property, plant & equipment are carried at cost less accumulated depreciation andaccumulated impairment losses.

Where market-based evidence is available, the fair value of land and buildings is determined on the basisof current market buying values determined by reference to recent market transactions. When buildingsare revalued by reference to recent market transactions, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount.

Where market-based evidence is not available, the fair value of land and buildings is determined on thebasis of existing use. This normally applies where buildings are specialised or where land use isrestricted. Fair value for existing use assets is determined by reference to the cost of replacing theremaining future economic benefits embodied in the asset, i.e. the written-down current replacementcost. Where the fair value of buildings is dependent on using the depreciated replacement cost, thegross carrying amount and the accumulated depreciation are restated proportionately. Independentvaluations of land and buildings are provided annually by the Western Australian Land InformationAuthority (Valuation Services) and recognised with sufficient regularity to ensure that the carryingamount does not differ materially from the asset's fair value at the balance sheet date.

The most significant assumptions in estimating fair value are made in assessing whether to apply theexisting use basis to assets and in determining estimated useful life. Professional judgement by thevaluer is required where the evidence does not provide a clear distinction between market valuetype assets and existing use assets.

(iv) DepreciationAll non-current assets having a limited useful life are systematically depreciated over their estimateduseful lives in a manner that reflects the consumption of their future economic benefits. Land is notdepreciated. Depreciation on other assets is calculated using the straight line method, using rates whichare reviewed annually. Estimated useful lives for each class of depreciable asset are:

Buildings 40 yearsPlant & equipment 3-8 yearsOffice Equipment 5 yearsSoftware 3 yearsMotor Vehicles 6 years

Where parts of an item of property, plant & equipment have different useful lives, they are accounted for as separate items of property, plant & equipment.

(i) Impairment(1) Financial assetsA financial asset is assessed at each reporting date to determine whether there is any objective evidencethat it is impaired. A financial asset is considered to be impaired if additional objective evidence indicatesthat one or more events have had a negative effect on the estimated future cash flows of that asset.

11

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)An impairment loss in respect of a financial asset measured at amortised cost is calculated asthe difference between its carrying amount, and the present value of the estimated future cashflows discounted at the original effective interest rate.

Individually significant financial assets are tested for impairment on a individual basis. Theremaining financial assets are assessed collectively in groups that share similar credit riskcharacteristics.

All impairment losses are recognised in the income statement.

An impairment loss is reversed if the reversal can be related objectively to an event occurringafter the impairment loss was recognised. For financial assets measured at amortised cost,the reversal is recognised in the income statement.

(ii) Non-financial assetsThe carrying amounts of the Group's non-financial assets, other than inventories and deferredtax assets, are reviewed at each reporting date to determine whether there is any indication ofimpairment. If any such indication exists then the asset's recoverable amount is estimated. Forgoodwill and intangible assets that have indefinite lives or that are not yet available for use,recoverable amount is estimated at each reporting date.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unitexceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset groupthat generates cash flows that largely are independent from other assets and groups. Impairmentlosses are recognised in the income statement. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated tothe units and then to reduce the carrying amount of the other assets in the unit (group of units)on a pro rata basis.

The recoverable amount of an asset of a cash-generating unit is the greater of its value in useand its fair value less costs to sell. In assessing value in use, the estimated future cash flowsare discounted to their present value using a pre-tax discount rate that reflects current marketassessments of the time value of money and the risks specific to the asset. For the purposeof impairment testing, assets are grouped together into the smallest group of assets thatgenerates cash inflows from continuing use that are largely independent of the cash inflowsof other assets or groups of assets (the "cash-generating unit"). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units that are expected to benefit from the synergies of the combination.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairmentlosses recognised in prior periods are assessed at each reporting date for any indications that theloss has decreased or no longer exists. An impairment loss is reversed if there has been a changein the estimates used to determine the recoverable amount. An impairment loss is reversed onlyto the extent that the asset's carrying amount does not exceed the carrying amount that would havebeen determined, net of depreciation or amortisation, if no impairment loss had been recognised.

12

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)(j) Intangible Assets

(i) Capitalisation / expensing assetsAcquisitions of intangible assets costing $2,000 or more are capitalised. The cost of utilisingthe assets is expensed (amortised) over their useful lives. Costs incurred of less than $2,000 areimmediately expensed directly to the income statement.All computer software which is not integral to the operation of computer hardware is classifiedas an intangible asset with a finite useful life, and is stated at cost less accumulated amortisationand impairment losses. For assets acquired at no cost or for nominal cost, cost is the fair value at the date of acquisition. Software that is an integral part of the related hardware is treated as property, plant & equipment.Amortisation is charged to the income statement on a straight-line basis over the estimated usefullife of the intangible asset. Intangible assets are amortised from the date they are available for use.The estimated useful lives in the current and comparative periods are:

Computer software 3 - 5 yearsSubsequent expenditure on capitalised intangible assets is capitalised only when it increases thefuture economic benefits embodied in the specific asset to which it relates. All other expenditureis expensed as incurred.

(k) Employee benefits -defined contribution plansA defined contribution plan is a post-employment benefit plan under which an entity paysfixed contributions into a separate entity and will have no legal or constructive obligation topay further amounts. Obligations for contributions to defined contribution plans are recognisedas a personnel expense in profit or loss when they are due. Prepaid contributions are recognisedas an asset to the extent that a cash refund or reduction in future payments is available.

(i) Annual Leave and Long Service LeaveThe liability for annual and long service leave expected to be settled within 12 months after theend of the balance sheet date is recognised and measured at the undiscounted amounts expectedto be paid when the liabilities are settled. Annual and long service leave expected to be settledmore than 12 months after the end of the balance sheet date is measured at the present value ofamounts expected to be paid when the liabilities are settled. Leave liabilities are in respect ofservices provided by employees up to the balance sheet date.

When assessing expected future payments consideration is given to expected future wage andsalary levels including non-salary components such as employer superannuation contributions.In addition, the long service leave liability also considers the experience of employee departuresand periods of service.

The expected future payments are discounted to present value using market yields at the balancesheet date on national government bonds with terms to maturity that match, as closely as possible,the estimated future cash outflows.

All annual leave and unconditional long service leave provisions are classified as current liabilitiesas the Corporation does not have an unconditional right to defer settlement of the liability for at least12 months after the balance sheet date.

(l) Precious metal borrowingsPrecious metal borrowings, including unallocated precious metal owned by the Group's customers arebrought to account at market prices ruling at balance sheet date.

13

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)(m) Income taxGold Corporation is subject to the National Tax Equivalent Regime (NTER), under the StateEnterprises (Commonwealth Tax Equivalents) Act 1996. The NTER is administered by theAustralian Taxation Office (ATO) on behalf of the States. Under the NTER, the income taxequivalent revenue is remitted to the Treasurer of Western Australia, for credit of the ConsolidatedAccount. The calculation of the liability in respect of income tax is governed by NTER guidelinesand directions approved by Government. As a consequence of participation in the NTER, GoldCorporation is required to comply with AASB 112 "Income Taxes" . Income tax on the incomestatement for the year comprises current and deferred tax. Income tax is recognised in the incomestatement except to the extent that it relates to items recognised directly in equity, in which caseit is recognised in equity.Current tax is the expected tax payable on the taxable income for the year adjusted by changesin deferred tax assets and liabilities, using tax rates enacted at balance sheet date, and any adjustment to tax payable in respect of previous years.Deferred tax is provided using the balance sheet liability method, providing for temporary differencesbetween the carrying amounts of assets and liabilities for financial reporting purposes and theamounts used for taxation purposes. Deferred tax is not recognised for the following temporarydifferences: the initial recognition of goodwill, the initial recognition of assets or liabilities in atransaction that is not a business combination and that affects neither accounting nor taxable profit,and differences relating to investments in subsidiaries and jointly controlled entities to the extentthat they probably will not reverse in the foreseeable future. Deferred tax is measured at the taxrates that are expected to be applied to the temporary differences when they reverse, based on thelaws that have been enacted or substantively enacted by the reporting date. Deferred tax assetsand liabilities are offset if there is a legally enforceable right to offset current tax liabilities andassets, and they relate to income taxes levied by the same tax authority on the same taxable entity,or on different tax entities but they intend to settle current tax liabilities and assets on a net basisor that tax asset and liabilities will be realised simultaneously.A deferred tax asset is recognised only to the extent that it is probable that future taxable profitswill be available against which the temporary difference can be utilised. Deferred tax assets arereduced to the extent that it is no longer probable that the related tax benefit will be realised.The Corporation has formed a tax consolidated group with effect from 1 July 2002, and the Group istaxed as a single entity. All tax assets and liabilities, expenses and benefits, are recognised in GoldCorporation, which according to its legislation is liable to pay income tax on behalf of its subsidiaries.

(n) Operating LeasesLeases under which all risks and benefits of ownership are effectively retained by the lessor areclassified as operating leases. Operating lease payments are charged to the income statement inthe periods in which they are incurred over the term of the lease, as this represents the patternof benefits derived from the leased assets.

(o) Revenue(i) Sales revenue

Sales revenue represents revenue earned from the sale of precious metals, precious metal productsand other products and services. It also includes margins on transactions known as metal locationswaps, where a quantity of metal is sold in one location, and simultaneously an equivalent quantityis purchased in another location. Bullion sales are recognised on value date. Proof coin sales arerecognised on despatch of the coins.

14

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)(o) Revenue (continued)Revenue from the sale of goods is measured at the fair value of the consideration received orreceivable, net of returns and allowances, trade discounts and volume rebates.Revenue is recognised in the income statement when the significant risks and rewards ofownership have been transferred to the purchaser, recovery of the consideration is probable,the associated costs and possible return of goods can be estimated reliably, and there is nocontinuing management involvement with the goods.

(ii) Interest revenueInterest revenue is recognised as it accrues. The effective interest method, which is the ratethat exactly discounts estimated future cash receipts through the expected life of the financialasset to the net carrying amount of the financial asset, is used where applicable.

(iii) DividendsDividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates and joint venture entities are accounted for in accordance with the equity method of accounting.

(iv) Gains and lossesGains and losses on disposal of an item of property, plant and equipment are determined by comparingthe proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within "other income" in profit or loss. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings

(p) Funds received from GovernmentGovernment grants are recognised in the balance sheet initially as deferred income when thereis reasonable assurance that they will be received and that the Group will comply with theconditions associated with the grant.A grant that compensates the Group for expenses incurred is recognised in the income statementon a systematic basis in the same periods in which the expenses are incurred. Grants thatcompensate the group for the cost of an asset are recognised in the income statement on a systematicbasis over the useful life of an asset.

(q) PayablesThese amounts represent liabilities for goods and services provided to the Group prior to the endof the financial year and which are unpaid. Trade and other payables are stated at their amortisedcost. The amounts are non-interest bearing and are usually paid within 30 days of recognition.

(r) Finance costsFinance costs include interest and amortisation of discounts or premiums relating to borrowings,and are recognised on a proportional basis taking into account the interest rates applicable to thefinancial assets.Interest payments in respect of financial instruments classified as liabilities are included infinance costs.

(s) Interest-bearing borrowingsInterest-bearing borrowings are recognised initially at fair value less attributable transaction costs.Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with anydifference between cost and redemption value being recognised in the income statement over theperiod of the borrowings on an effective interest basis.

15

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)(t) Goods and services taxRevenue, expenditure and assets are recognised net of the amount of goods and services tax (GST) exceptwhere the amount of GST incurred is not recoverable from the ATO. In these circumstances the GST isrecognised as part of the cost of acquisition of the asset or as an expense. Receivables and payables arestated with the amount of GST included. The net amount of GST recoverable from, or payable to, theATO is included as a current asset or liability in the balance sheet.

Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flowsarising from investing and financing activities that are recoverable from, or payable to, the ATO areclassified as operating cash flows.(u) Financial risk management

OverviewThe Corporation has exposure to the following risks: * credit risk * liquidity risk * market riskThis note presents information about the Corporation's exposure to each of the above risks, its objectives,policies and processes for measuring and managing risk, and the management of capital. Furtherquantitative disclosures are included throughout the financial report.

The Board of Directors has overall responsibility for the establishment and oversight of the risk managementframework. The Board has established the Audit & Risk Management Committee, which is responsible fordeveloping and monitoring risk management policies. The committee reports regularly to the Board of Directorson its activities.

Risk management policies are established to identify and analyse the risks faced by the Corporation, to setappropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policiesand systems are reviewed regularly to reflect changes in market conditions and the Corporation's activities.The Corporation, through its training and management standards and procedures, aims to develop adisciplined and constructive control environment in which all employees understand their roles and obligations.The primary risk management document is the Prudential Management Policy which describes the risks theCorporation is exposed to, how those risks are to be managed and within what parameters exposure to riskscan be taken.

The Corporation's Audit & Risk Management Committee oversees how management monitors compliance with theCorporation's risk management policies and procedures, and reviews the adequacy and effectiveness of the riskmanagement framework in relation to the risks faced by the Corporation. The Corporation's Audit & Risk ManagementCommittee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviewsof risk management controls and procedures, the results of which are reported to the Corporation's Audit & RiskManagement Committee.

Credit riskCredit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial instrumentfails to meet its contractual obligations, and arises principally from the Corporation's receivables from customers,subsidiaries and investment securities. The Corporation's exposure to credit risk can occur through the provisionof trade credit (both within Australia and internationally), the provision of consignment stock facilities and theprovision of bullion trading and settlement facilities. The Prudential Management Policy determines the levelsof credit exposure the Corporation can take to various categories of customers and counterparties.

16

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)Trade and other receivablesThe Corporation's exposure to credit risk is influenced mainly by the individual financial characteristics of each customer. The demographics of the Corporation's customer base, including the default risk of the industry andcountry in which customers operate, has less of an influence on credit risk. No significant percentage of the Corporation's revenue is attributable to sales transactions with a single customer. Geographically there is noconcentration of credit risk.

The Audit & Risk Management Committee has established a credit policy under which each new customer is analysedindividually for creditworthiness before the Corporation's standard payment and delivery terms and conditions are offered.The Corporation's review includes external ratings, when available, and in some cases bank references. Purchase andsettlement limits are established for each customer, which represents the maximum open amount without requiringapproval from the Audit & Risk Management Committee; these limits are reviewed annually. Customers that fail to meetthe Corporation's benchmark creditworthiness may transact with the Corporation only on a prepayment basis or againstthe provision of acceptable security such as letters of credit, bank guarantees and other forms of payment guarantees.

The majority of the Corporation's trade and other receivables customers have been transacting with the Corporationfor over four years, and losses have occurred infrequently. The Corporation's trade and other receivables relatemainly to the Corporation's wholesale customers. Customers that are graded as "high risk" are placed on a restrictedcustomer list, and future sales are made on a prepayment basis.

Goods are sold subject to retention of title clauses, so that in the event of non-payment the Corporation may have asecured claim. The Corporation may require collateral in respect of trade and other receivables.

The Corporation has established an allowance for impairment that represents its estimate of incurred losses in respectof trade and other receivables and investments. The main components of this allowance are a specific loss componentthat relates to individually significant exposures, and a collective loss component established for the group of similarassets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determinedbased on historical data of payments statistics for similar financial assets.

GuaranteesThe Corporation does not provide financial guarantees.

Liquidity riskLiquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they fall due. TheCorporation's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficientliquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptablelosses or risking damage to the Corporation's reputation.

The Prudential Management Policy details the minimum liquidity requirements for metals borrowings as well as thelease tenor profile of metal leases to AGR Matthey.

The Corporation has structured its business such that it has sufficient cash funds available to meet its expectedoperational requirements for the forthcoming year, including the servicing of financial obligations. This excludes thepotential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. In additionthe Corporation maintains the following lines of credit:

Borrowing of $4.5 million obtained from Western Australian Treasury Corporation. Interest is payable atcommercial rates.

17

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

1 SIGNIFICANT ACCOUNTING POLICIES (continued)Market riskMarket risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equityprices, will affect the Corporation's income or the value of its holding of financial instruments. The objectiveof market risk management is to manage and control market risk exposures within acceptable parameters,while optimising the return.

The Prudential Management Policy determines what instruments can be used to manage market risk. Theseinclude spot deferred and forward transactions, options and currency swaps, all within pre-determined limits.

The Corporation currently does not use hedging or derivatives to manage this risk other than for purchases of capital equipment.

Currency riskThe Corporation is exposed to currency risk on sales and purchases that are denominated in a currency otherthan the respective functional currency of the Corporation, the Australian dollar.

The Corporation does not hedge its estimated foreign currency exposure in respect of forecast sales andpurchases. The Corporation does not hedge trade receivables, but may hedge trade payables denominated ina foreign currency where appropriate. The Corporation uses forward exchange contracts to hedge this currencyrisk, most with maturity of less than one year from the reporting date. When necessary, forward exchangecontracts are rolled over at maturity.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Corporation ensuresthat its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates whennecessary to address short-term imbalances

Interest rate riskThe Corporation adopts a policy of not hedging its exposure to change in interest rates on borrowings.

Metal price risk The Corporation does not enter into commodity (precious metals) contracts other than to meet the Corporation'sexpected sale requirements, and then only on a back to back basis so as to eliminate the risk of movements inprecious metal prices. The Corporation has a policy of minimising its long or short precious metal positions byutilising leased precious metal and unallocated precious metal owned by the Group's customers in its workinginventories.

Capital managementThe Board's policy is to maintain an adequate capital base so as to sustain the future development of thebusiness. The Board of Directors monitors the return on capital, which the Corporation defines as netoperating income divided by total shareholders' equity. The level of dividends payable is defined inaccordance with government policy.

The Corporation's target is to achieve a return on equity of 15 percent; before Income tax equivalent.During the year ended 30 June 2009 the return was 35.9% percent (2008: 6.6 percent).

There were no changes in the Corporation's approach to capital management during the year.

Neither the Corporation nor any of its subsidiaries are subject to externally imposed capital requirements.

(x) Segment reportingA segment is a distinguishable component of the consolidated entity that is engaged either in providingproducts or services (business segment), or in providing products or services within a particular economicenvironment (geographical segment), which is subject to risks and rewards that are different from thoseof other segments. The Group's primary format for segment reporting is based on business segments(Note 22).

18

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

2 GROSS PROFIT Consolidated Gold CorporationNote 2009 2008 2009 2008

$000 $000 $000 $000

Sales 33 2,482,381 1,190,171 1,694,692 1,087,224 Cost of sales

Opening trading inventories 4,507 8,207 (272) (549) Purchases 2,422,731 1,151,170 1,683,552 1,083,651

2,427,238 1,159,377 1,683,280 1,083,102 Less closing trading inventories 8,221 4,507 219 (272)

Cost of sales 2,419,017 1,154,870 1,683,062 1,083,374

Gross Profit 63,364 35,301 11,630 3,850

3 DIVIDENDS

(a) DIVIDEND TO WA GOVERNMENTIn accordance with section 21 (4) of the Gold Corporation Act,1987 the Board recommended to the Treasurer that an amount of $ 15,991,005 (2008: $823,009) be payable as dividend for the financial year ended 30 June 2009. The dividend was declared and approved after the end of the financial year and therefore has not been provided for in the financial statements.

(b) DIVIDENDS FROM SUBSIDIARIES

In accordance with sections 44(b) and 53(b) of the Gold Corporation Act, 2009 2008the Board has determined that dividends be paid to the Corporation by its $000 $000subsidiaries as follows:

GoldCorp Australia 18,000 3,500 Western Australian Mint 4,000 -

22,000 3,500

4 EMPLOYEE BENEFITS EXPENSE Consolidated Gold Corporation2009 2008 2009 2008$000 $000 $000 $000

Wages and salaries (a) 13,250 11,420 4,001 3,394 Superannuation 1,935 1,754 593 492 Annual Leave (b) 929 669 257 201 Long service leave (b) 126 51 34 18 Other related expenses 3,959 339 3,959 339

20,198 14,232 8,844 4,443

(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component.(b) Includes a superannuation contribution component.

19

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009Consolidated Gold Corporation

Note 2009 2008 2009 20085 INCOME TAX $000 $000 $000 $000(a) Income Tax ExpenseCurrent tax expense

Current year 13,079 2,107 13,079 2,107 (Over) / Under provision of tax in prior year (52) (191) (52) (191)

Deferred tax expenseOrigination and reversal of temporary differences (1,135) 1,000 (1,135) 1,000 Recognised in asset revaluation reserve (in equity in subsidiaries) (504) (555) (504) (555)

Total income tax expense in income statement 11,388 2,361 11,388 2,361

(b) Numerical reconciliation between tax expenseand pre-tax net profit

Profit before income tax 38,036 3,732 33,274 4,749 Prima facie income tax on pre-tax accounting

profit calculated at 30% (2008: 30%) 11,411 1,120 9,982 1,425 Increase in income tax expense due to:

Non-deductible depreciation on buildings 16 13 - - Difference in accounting profit and taxable income of partnerships - 1,212 - - Other non-deductible items 13 14 - -

Decrease in income tax expense due to:Non-assessable income - (45) - - Dividends from subsidiaries/ Paid - - - (1,050)

11,440 2,314 9,982 375 Over / Under-provision of income tax in prior year (52) (191) (52) (191) Under-provision of deferred tax asset in prior year - 238 - 238

Income tax expense/(benefit) on pre-tax profit 11,388 2,361 9,930 422 Obligations of Gold Corporation for income

tax on behalf of subsidiaries ( i ) - - 1,458 1,939 11,388 2,361 11,388 2,361

Note (i) DifferenceGold Corporation's income tax expense of $ 11,388,000 (2008: $2,361,000) includes the obligationin relation to the income of its subsidiaries, Western Australian Mint and GoldCorp Australia,

in accordance with its legislation.

20

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

Consolidated Gold Corporation2009 2008 2009 2008

5 INCOME TAX (Continued) $000 $000 $000 $000

(c) Deferred tax assets and liabilitiesDeferred tax assets

Doubtful debts - 1 - 1 Write-down of inventories 834 601 834 601 Plant and equipment 444 19 444 19 Other payables 148 31 148 31 Employee benefits 1,934 736 1,934 736 Deferred revenue - - - -

3,360 1,388 3,360 1,388 Deferred tax liabilities

Interest revenue (8) (17) (8) (17) Prepayment (324) - (324) - Property, plant and equipment (2,920) (2,397) (2,920) (2,397)

Deferred tax assets/(liabilities) after set-off 108 (1,027) 108 (1,027)

(d) Movement in deferred tax assets/(liabilities)Opening balance (1,027) (27) (1,027) (27)

Employee benefits 1,199 (21) 1,199 (21) Deferred revenue - (7) - (7)

Doubtful debts (1) (5) (1) (5) Write-down of inventories 233 15 233 15 Property, plant and equipment (98) (653) (98) (653) Other payables (207) (341) (207) (341) Interest revenue 9 12 9 12 Closing balance 108 (1,027) 108 (1,027)

(e) Movement in current tax liability (asset): Opening balance (897) 1,993 (897) 1,993 Provision for current year 13,079 2,107 13,079 2,107 Over / under-provision for prior year (52) (191) (52) (191) Amount paid during the year (6,513) (4,806) (6,513) (4,806) Closing balance 5,617 (897) 5,617 (897)

21

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009Consolidated Gold Corporation

2009 2008 2009 20086 CASH AND CASH EQUIVALENTS $000 $000 $000 $000

Cash and cash equivalents 90,698 23,282 52,089 19,104

Reconciliation of CashFor the purposes of the Statements of Cash Flows, cash includes cash on hand and at bank, short termdeposits at call and commercial bills. Cash as at the end of the financial year as shown in the Statementsof Cash Flows is reconciled to the related items in the Balance Sheets as follows:Cash at bank and on hand 2,841 4,160 99 (18) Call deposits 77,934 11,274 42,068 11,274 Commercial bills 9,923 7,848 9,922 7,848

90,698 23,282 52,089 19,104 The Corporation's exposure to interest rate risk and a sensitivity analysis for financial assets andliabilities are disclosed in note 26.

7 RECEIVABLESCurrentTrade receivables ( ii ) 3,431 3,842 1,094 - Other receivables ( ii ) 2,999 1,489 26 1,489 Provision for doubtful debts ( ii ) - (3) - - Loans to subsidiaries ( i ) - - 22,000 3,500

6,430 5,328 23,120 4,989

Non CurrentLoans to subsidiaries ( i ) - - 90,268 79,074

(i) Loans to subsidiaries are interest free and have no fixed terms of repaymen(ii) The Corporation's exposure to credit and currency risks and impairment losses related to trade an

other receivables are disclosed in note 26

8a PRECIOUS METAL LEASESCurrentPrecious metal leases - related entity ( i ) 634,772 1,080,364 634,772 1,080,364

( i ) Precious metal leases - related entityThe ounce based leases of precious metals to AGR Matthey are provided under the terms ofMetal Facility Agreement, and are held as inventory by AGR Matthey

8b INVENTORIESCurrentPrecious metals 1,389,973 751,704 1,387,549 749,338 Inventories

Finished goods 6,859 7,463 - - Work in progress 1,362 957 - - Consumables 1,543 1,016 - -

1,399,737 761,140 1,387,549 749,338

In 2009 financial year, consumables and changes in finished goods and work in progress recognisedas cost of sales amounted to $2,419,017,000 (2008: $1,154,870,000). In 2009 the net write-down of inventoriesto net realisable value amounted to $1,169,000 (2008: $1,025,688).

22

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

9 INVESTMENTS IN ASSOCIATED ENTITIES ConsolidatedPrincipal Consolidated Carrying Amount of

Entity Activities Investment2009 2008 2009 2008

Associated Companies % % $000 $000AGR Management Services Pty Ltd Management services 40.0 40.0 - - PartnershipsAGR Matthey Metal refining and precious 40.0 40.0 18,221 11,855

metal products businessAGR Joint Venture Metal refining and precious 50.0 50.0 - -

metal products business

Group's Share in Partnership'sDirect Interest in Associates

Metals Refining Operations Pty Ltd Metal refining 18.0 18.0 - - Alloy and Gold Supply (NSW) Pty Ltd Precious metals 0.0 20.0 - - AGR Matthey (NZ) Limited Sales precious metal products 40.0 40.0 - - AGR Hong Kong Limited Wholesaling metals 40.0 40.0 - -

All the above investments are held by Western Australian Mint.The Group's interests in the above investments, except for AGR Matthey (NZ) Limited, andAGR Hong Kong Ltd took effect from 1 December 1998 with the commencement of the AGR Joint Venture, and were subsequently transferred into the AGR Matthey partnership on 3 October 2002.

The investment in AGR Management Services Pty Ltd comprises a 40% interest in the ordinary share capital of the associate and is held by Western Australian Mint.The investment in AGR Matthey (NZ) Limited commenced upon its incorporation in New Zealand on 29August 2003. The investment comprises a 40% interest in the ordinary share capital of the associate. Thecompany was placed into solvent liquidation on 30 June 2009 and will be wound up in the 2009/10 year.

The investment in Metals Refining Operations Pty Ltd comprises an 18% interest in the ordinary share capitalof the associate. However AGR Matthey wrote-down the investment in this associate to nominal valueas at 30 June 2005 and ceased the equity accounting of this investment, due to the loss of managementcontrol and the deterioration in its operating performance subsequent to the transfer of management control to the majority shareholder.

An agreement to sell AGR Matthey's investment - Alloy & Gold Supply (NSW) Pty Ltd was signed on30 June 2008. Consideration for the sale was received - August 2008.

AGR Hong Kong Limited was incorporated on 20 July 2006 and commenced operations on 1 October 2006.The investment comprises a 40% interest in the ordinary share capital of the associate. The business ceasedoperations during the 2008/09 year and will be wound up in the 2009/10 year.

The balance date of the associated entities is 30 June. Their country of incorporation/residence is Australia,except for Metals Refining Operations Pty Ltd, AGR Matthey (NZ) Limited and AGR Hong Kong Ltd whichare in Papua New Guinea, New Zealand and Hong Kong respectively.

Ownership Interest

23

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009Consolidated

2009 200810 INVESTMENTS ACCOUNTED FOR USING $000 $000

THE EQUITY METHODShare of profit/(loss) from AGR Matthey 10b 8,708 (2,676)

Non-current InvestmentsInvestment in AGR Matthey 10b 18,221 11,855

10a INVESTMENT IN AGR JOINT VENTUREThe Group equity accounted its interest in the AGR Joint Venture partnership. The Group's share of the assets, excluding cash and debtors, and liabilities of the AGR Joint Venture were transferred to the AGR Matthey partnership as at 3 October 2002. The AGR Joint Venture partnership ceased trading on 2 October 2002, and was finally wound up in 2008/09.

10b INVESTMENT IN AGR MATTHEYBalance at 1 July 11,855 16,504 Plus: Share of partnership profit/(loss) before tax (i) 8,708 (2,676) Less: Profit distributions received (2,338) (1,146) Add: Share of movement in hedge reserve 65 (231) Less: Foreign Currency Translation Reserve (69) (172) Less: Accrual for overseas tax - (424) Balance at 30 June 18,221 11,855

The AGR Matthey partnership was formed on 3 October 2002 between Western Australian Mint,Australian Gold Alliance Pty Ltd and Johnson Matthey (Aust) Ltd. The partners hold a40%, 40%, 20% interest in the AGR Matthey partnership respectively.The investment in AGR Matthey partnership comprises the fair value of the Group's contributedassets and post formation profits. The balance date of the partnership is 30 June.The Group equity accounts its interest in the AGR Matthey partnership. The Group's share ofthe assets and liabilities of the AGR Matthey partnership at 30 June 2009 comprised:

2009 2008 2009 2008$000 $000 $000 $000

Total assets 328,205 494,221 820,512 1,235,552 Total liabilities (309,708) (482,028) (774,270) (1,205,070) NET ASSETS 18,497 12,193 46,243 30,482

(i) Results attributable to Partnership Revenue 32,971 5,966,000 82,428 14,914,999 Expenses (24,263) (5,968,676) (60,657) (14,921,690) Operating (loss)/profit before income tax 8,708 (2,676) 21,771 (6,691)

Consolidated AGR Matthey 100%

24

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

10b INVESTMENT IN AGR MATTHEY (continued)

2009 2008 2009 2008$000 $000 $000 $000

(ii) Capital CommitmentsThe Group's share of Partnership's commitments to purchaseplant and equipment at balance date was 70 354 174 884

(iii) Lease CommitmentsThe Group's share of Partnership's aggregate operating lease expenditurecontracted for at balance date, but not provided for, in the financial statements:

Payable no later than one year 222 483 554 1,206 Payable later than one, but no later than five years 670 889 1,676 2,222 Payable later than five years 1,995 1,937 4,988 4,842

2,887 3,309 7,218 8,270

11 OTHER FINANCIAL ASSETSPlace of Ownership Book value of

Corporation Incorporation Interest investment2009 2008 2009 2008

$000 $000 $000 $000Parent entity:Gold Corporation Western Australia 100% - - 7,754 870 Subsidiaries of Gold Corporation:GoldCorp Australia Western Australia 100% 5,000 5,000 17,743 5,761 Western Australian Mint Western Australia 100% 16,603 16,603 1,151 (5,259)

21,603 21,603 26,648 1,372 All subsidiaries are wholly owned.

12 PROPERTY, PLANT AND EQUIPMENT2009 2008 2009 2008$000 $000 $000 $000

Freehold land and buildings

at fair value 41,534 41,045 - -

Plant and equipmentat cost 25,508 22,687 4,328 3,426 less : accumulated depreciation (13,966) (12,946) (3,179) (2,945)

11,541 9,741 1,149 481 Total Property, Plant and Equipment 53,075 50,786 1,149 481

Gold CorporationConsolidated

Consolidated

Company resultContribution to

AGR Matthey - 100%

25

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

12 PROPERTY, PLANT AND EQUIPMENT (Continued)The Board resolved to adopt the Valuer General's valuation of the Western Australian Mint's property at 292,300 & 310 Hay Street, Perth. The land and buildings were revalued as at 30 June 2009 in accordance with theValuer General's valuation as at that date. The fair value of all land and buildings was determined by reference tocurrent use value for the land and depreciated replacement value for the buildings.The total revaluation increment was $942,644 (land $800,000 negative and buildings $1,742,644 positive).The revaluation increment in 2008 was $ 6,085,456 (land $3,900,000 and building $2,185,456). A revaluationincrement of $61,297 (2008: $333,474) was credited to the income statement as it offsets similar revaluationdecrements charged to retained earnings in prior years. The deferred tax of $ 504,404 (2008:$555,594) wasrecognised against the increment of $881,347 (2008:$5.751,982).Net transfer to revaluation reserve thusamounted to $ 376,943 (2008:$5,196,388).For each revalued property, the carrying amount that would have been recognised had the assets been carried underthe cost model is impracticable to determine, due to the fact that the original cost is not available.Movements in the carrying amounts for each class of property, plant and equipment between the beginning and theend of the current and previous financial years:

Freehold Freehold Plant &Land Buildings Equipment Total

Group - 2009 $000 $000 $000 $000Opening balance 15,000 26,045 9,741 50,786 Additions - 193 3,783 3,976 Disposals - - (200) (200) Revaluation (800) 1,743 - 943 Depreciation - (647) (1,783) (2,430)

14,200 27,334 11,541 53,075

Group - 2008Opening balance 11,100 24,469 8,306 43,875 Additions - - 2,938 2,938 Disposals - - (47) (47) Revaluation 3,900 2,185 - 6,085 Depreciation - (609) (1,456) (2,065)

15,000 26,045 9,741 50,786

Gold Corporation - 2009Opening balance - - 481 481 Additions - - 1,039 1,039 Disposals - - (91) (91) Depreciation - - (280) (280)

- - 1,149 1,149

Gold Corporation - 2008Opening balance - - 583 583 Additions - - 72 72 Disposals - - (46) (46) Depreciation - - (128) (128)

- - 481 481

Consolidated Gold CorporationNet profit/(loss) on sale 2009 2008 2009 2008 of non-current assets $000 $000 $000 $000Plant and equipmentGross proceeds on sale/disposal of assets 94 12 94 12 Carrying value of assets sold/disposed 199 19 91 19 Net profit/(loss) on sale/disposal (105) (7) 3 (7)

26

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

Consolidated Gold Corporation2009 2008 2009 2008$000 $000 $000 $000

13 INTANGIBLE ASSETSComputer software, at cost 2,929 3,165 2,929 3,165 Less: accumulated amortisation (2,154) (1,590) (2,154) (1,590)

775 1,575 775 1,575

Movement in the carrying amount for computer softwarebetween the beginning and end of the financial yearOpening balance 1,575 2,139 1,575 2,139 Additions 170 3 170 3 Disposal (407) - (407) - Amortisation expense (563) (567) (563) (567) Closing balance 775 1,575 775 1,575

There were no indications of impairment to property, plant and equipment, and intangible assets at 30 June2009. The Corporation held no goodwill or intangible assets with an indefinite useful life during the reportingperiod and at balance sheet date there were no intangible assets not yet available for use.

14 PAYABLESCurrent - unsecuredTrade payables 56,403 1,779 53,732 49 Other payables and accrued expenses 17,184 26,236 8,028 22,563 Funds received from Government - 122 - -

73,587 28,137 61,760 22,612

Non Current - unsecuredLoans from subsidiaries - - 61,249 64,438

The Corporation's exposure to currency and liquidity risk related to trade and other payables is disclosed in note 26.

15 INTEREST-BEARING BORROWINGSCurrent - securedBorrowings (a) 3,500 3,500 - - Precious metal borrowings (b) 138,017 441,841 138,017 441,841

141,517 445,341 138,017 441,841

Security for Borrowings(a) Borrowings from Western Australian Treasury Corporation

at commercial rates, repayable on 21 December 2009Finance facility - utilised at reporting date 3,500 3,500 - - Finance facility - not utilised at reporting date 1,000 5,000 - - Total finance facility available 4,500 8,500 - -

(b) Precious metal borrowings and customers owned precious metal are guaranteed by the Government ofWestern Australia under Section 22 (1) of the Gold Corporation Act, with annual limits for gold, silver,platinum and palladium approved by the Treasurer.

27

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

Consolidated Gold Corporation2009 2008 2009 2008$000 $000 $000 $000

16 EMPLOYEE BENEFITSCurrentEmployee benefits - annual leave 935 804 727 638 Employee benefits - long service leave 1,149 972 848 699

2,084 1,776 1,575 1,337 Non-currentEmployee benefits - long service leave 153 125 118 109 Employee superannuation benefits 69 55 - -

222 180 118 109 Other ProvisionsCurrentEmployment on-costs 182 143 126 107 Non-currentEmployment on-costs 13 11 10 9

Employment on-cost provisionCarrying amount at start of year 154 136 116 95 Additional provisions recognised 132 194 24 (7) Payments/other sacrifices of economic benefit (91) (176) (4) 28 Carrying amount at end of year 195 154 136 116

17 PROVISIONSAGR Westmill Kaltails TotalJV

$000 $000 $000 $000Consolidated - 2009Balance at 1 July 2008 335 4 - 339 Provisions made during the period - 150 150 Provisions used during the period (222) - - (222) Provisions reversed during the period (63) - - (63) Balance at 30 June 2009 50 4 150 204

Company - 2009Balance at 1 July 2008 - - - - Provisions made during the period - - - - Provisions used during the period - - - - Provisions reversed during the period - - - - Balance at 30 June 2009 - - - -

28

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

PROVISIONS

AGR Westmill TotalJV

$000 $000 $000Consolidated - 2008Balance at 1 July 2007 988 28 1,016 Provisions made during the period 270 - 270 Provisions used during the period (91) (24) (115) Provisions reversed during the period (832) - (832) Balance at 30 June 2008 335 4 339

Company - 2008Balance at 1 July 2007 - - - Provisions made during the period - - - Provisions used during the period - - - Provisions reversed during the period - - - Balance at 30 June 2008 - - -

AGR Joint VentureAn amount of $50,000 has been provided for costs associated with the final winding up of the AGR JointVenture. An additional amount of $285,000 has been provided for environmental remediation work.

Consolidated Gold Corporation2009 2008 2009 2008$000 $000 $000 $000

18 OTHER LIABILITIESCurrent - securedPrecious metal borrowings 1,883,972 1,387,590 1,883,972 1,387,590

Security for BorrowingsPrecious metal borrowings are guaranteed by the Government of Western Australia under Section 22 (1)of the Gold Corporation Act, with annual limits for gold, silver, platinum and palladium approved by the Treasurer.These do not attract interest and are utilised in the Corporation's operations.

29

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009Consolidated Gold Corporation

2009 2008 2009 2008$000 $000 $000 $000

19 CAPITAL AND RESERVES

Contributed EquityIssued and fully paid : 31,602,852 shares 31,603 31,603 31,603 31,603Asset Revaluation ReserveThe revaluation reserve relates to property measured at fair value in accordance with applicableAustralian Accounting Standards.Hedge ReserveThe hedge reserve, being the Group's share of AGR Matthey's hedge reserve, comprises the effectiveportion in the cumulative net change in the fair value of hedging instruments related to hedged transactionsthat have not yet occurred. AGR Matthey, in order to protect against adverse gold price movements on therecoupment of funds from precious metal retentions, entered into spot deferred sale contracts and put/calloptions to sell future gold retentions during the period. AGR Matthey, in order to protect against adverseexchange rate movements on the recoupment of funds from the foreign related entities to the partnership andon foreign accounts payables and receivables, have entered into foreign exchange contracts to sell currencies.

20 RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

Consolidated Gold Corporation2009 2008 2009 2008$000 $000 $000 $000

Cash flows from operating activitiesProfit for the year 26,648 1,371 21,886 2,388 Non-cash items:

Depreciation and amortisation 2,994 2,632 843 695 Share of loss/(profit) of joint venture partnerships (8,708) 2,676 - - Revaluation of buildings (438) (334) - -

Amounts credited to:employee benefits 391 215 267 275 income tax 11,388 2,361 11,388 2,361

Amounts written back /paid from:doubtful debts - 15 - -

(Profit)/loss on sales of plant and equipment 105 7 (3) 35 Changes in assets and liabilities

Decrease/(increase) in receivables (1,102) (2,029) (29,325) (33,162) Decrease/(Increase) in precious metal leases 445,592 (364,659) 445,592 (364,659) Decrease/(Increase) in inventories (638,597) (372,428) (638,211) (369,765) Decrease/(increase) in prepayments (464) (26) (430) (57) Increase/(Decrease) in payables 542,481 512,986 533,252 539,911 Increase/(Decrease) in borrowings (303,824) 225,614 (303,824) 225,614

Net cash provided by operating activities 76,465 8,401 41,435 3,637

30

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

21 SUBSEQUENT EVENTSThere were no events subsequent to the reporting date.

22 SEGMENT REPORTING Product Refining

(a) Primary reporting-Business segments Sales TOTALGroup - 2009 $000 $000 $000Income External sales and other income 2,497,867 - 2,497,867 Revaluation of buildings - - 61 Share of net profit of investments

accounted for using the equity metho - 8,708 8,708 Total income 2,497,867 8,708 2,506,636Profit/(loss) before income tax expense 29,328 8,708 38,036 Income tax (expense)/benefi - - (11,388) Net Profit 29,328 8,708 26,648 Segment assets 2,186,570 18,221 2,204,791Unallocated assets - - 108 Total assets - - 2,204,899Segment liabilities 2,107,398 - 2,107,398OtherInvestments accounted for using the equity metho - 18,221 18,221Acquisition of non-current segment asset 4,146 - 4,146

Depreciation and amortisation of segment asset (2,994) - (2,994)

Group - 2008 $000 $000 $000Income External sales and other income 1,197,879 - 1,197,879 Revaluation of buildings - - 334 Total income 1,197,879 - 1,198,213Profit/(loss) before income tax expense 3,732 - 3,732

Income tax (expense)/benefit - (2,361) Net Profit 3,732 - 1,371 Segment assets 1,923,991 11,855Total assets - - 1,935,846Segment liabilities 1,864,544 - 1,864,544OtherInvestments accounted for using the equity metho - 11,855 11,855Acquisition of non-current segment asset 2,941 - 2,941

Depreciation and amortisation of segment assets (2,632) - (2,632)

31

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

22 SEGMENT REPORTING (Continued)Business SegmentsSegment information is presented in respect of the Group's business and geographical segments. Theprimary format, business segments, is based on the Group's management and internal reporting structure.Gold Corporation operates predominantly in the precious metal industry. Its revenue is derived frommanufacture and marketing of precious metals and precious metal value added products, the provision ofservices related to precious metals, such as trading, metal leasing and consultancy, and from the refiningof gold and silver (through its investment in AGR Matthey).The group has two business segments as follows:

- Minting and Retailing - Product SalesThis segment includes the manufacture and marketing, including wholesale and retail sales, ofprecious metal coins, medallions, value added precious metal products and collectables, and metaltrading, leasing and depository services.

- RefiningThis segment comprises the investment in the AGR Matthey partnership which is engaged in refining of precious metals and manufacture of industrial products.

Accounting PoliciesSegment information is presented in respect of the Group's business and geographical segments.Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items consist of revaluations, income taxexpense and assets.Intersegment TransfersSegment revenue, expenses and results include transfers between segments. Inter-segment pricingis determined on an arm's length basis. The transfer prices are eliminated on consolidation.

(b) Secondary reporting - Geographical segments

2009 2008 2009 2008 2009 2008Geographical location: $000 $000 $000 $000 $000 $000Europe 606,839 315,318 - - - -Asia 275,350 246,480 - - - -United States 664,845 283,281 - - - -Other countries 39,487 35,414 - - - -Australia 895,860 309,678 2,204,791 1,935,846 4,146 2,941

2,482,381 1,190,171 2,204,791 1,935,846 4,146 2,941

The Group's business segments are located in Australia. There are agents in Europe, Hong Kong,and Japan. Sales revenue is derived from precious metal products exported from Australia.In presenting information on the basis of geographical segments, segment revenue is based on thegeographical location of customers. Segment assets are based on the geographical location of the assets.

Acquisitions of Non-current Segment Assets

Segment Revenues fromExternal customers

Carrying Amount ofSegment Assets

32

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

Consolidated Gold Corporation2009 2008 2009 2008

23 LEASE COMMITMENTS $000 $000 $000 $000

Aggregate non-cancellable operating lease expenditure contracted for at balance date butnot provided for in the accounts :Payable no later than one year 232 186 232 186 Payable later than one, but no later than five years 348 93 348 93

580 279 580 279 The operating lease commitments are for leases of computer equipment.The terms of these are various, with the maximum term being until June 2014.During the year ended 30 June 2009, $ 296,617 was recognised as an expense in the income statement in respect of operating leases (2008: $254,408)24 CAPITAL COMMITMENTS

Consolidated Gold Corporation2009 2008 2009 2008

$000 $000 $000 $000Aggregate capital expenditure contracted for, butnot provided for in the financial statements :Payable no later than one year 463 429 179 -

25 REMUNERATION OF AUDITORSConsolidated Gold Corporation

2009 2008 2009 2008$000 $000 $000 $000

Fees paid or due and payable to the Auditor General for the financial year:

Fees for external audit of financial statementsand performance indicators 148 169 148 169

26 FINANCIAL INSTRUMENTS(a) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. Themaximum exposure to credit risk at the reporting date was:

Consolidated Gold Corporation2009 2008 2009 2008$000 $000 $000 $000

Held-to-maturity investments and bills 51,990 7,848 51,990 7,848 Loans and receivables 6,430 5,328 23,120 4,988 Cash and cash equivalents 38,708 15,434 99 11,256 Forward exchange contracts used for hedging Liabilities (196) (114) (196) (114)

96,932 28,496 75,013 23,978

33

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

26 FINANCIAL INSTRUMENTS (continued)

The maximum exposure to credit risk for trade receivables at the reporting date by geographicregion was:

Consolidated Gold Corporation2009 2008 2009 2008$000 $000 $000 $000

Australia 5,489 2,875 1,120 1,489 Europe 12 1,577 - - Asia 263 10 - - Other countries 1 - - - United States 665 866 - -

6,430 5,328 1,120 1,489

The maximum exposure to credit risk for trade receivables at the reporting date by type of customer was:Consolidated Gold Corporation

2009 2008 2009 2008$000 $000 $000 $000

Retail customers 16 28 - - Wholesale customers 6,414 5,300 1,120 1,489

6,430 5,328 1,120 1,489

The Corporation trades only with recognised, creditworthy third parties. The Corporation has policies inplace to ensure that sales of products and services are made to customers with an appropriate credit history.In addition, receivable balances are monitored on an ongoing basis with the result that the Corporation'sexposure to bad debts is minimal. There are no significant concentrations of credit risk.The Group does not have any significant exposure to any individual customer or counterparty, with theexception of precious metal leases to a related entity, AGR Matthey, under the terms of the MetalFacility Agreement, (Note 8a).

Impaired losses Gross Impairment Gross Impairment

2009 2009 2008 2008The ageing of trade receivables was: $000 $000 $000 $000Not past due 5,989 - 5,275 - Past due 0-30 days 212 - 56 - Past due 31-120 days 229 - - 3 Past due 121 days to one year - - - - More than one year - - - - Total 6,430 - 5,331 3

The movement in the allowance for impairment in respect of trade receivables during the year wasas follows:

2009 2008$000 $000

Balance at 1 July 3 18 Impairment loss recognised (3) (15) Balance at 30 June - 3

Based on historical default rates, the Corporation believes that no impairment allowance is necessary inrespect of trade receivables not past due or past due by up to 30 days.

34

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

26 FINANCIAL INSTRUMENTS (continued)

No allowance for impairment in respect of held-to-maturity investments was made during the year (2008 Nil)

The allowance accounts in respect of trade receivables and held-to-maturity investments are used to recordimpairment losses unless the Corporation is satisfied that no recovery of the amount owing is possible; at thatpoint the amount is considered irrecoverable and is written off against the financial asset directly.

Liquidity risk

The following are the contractual maturities of financial liabilities, including estimated interest payments andexcluding the impact of netting agreements:

Carrying Contractual 6 mths More thanamount cash flow or less 6-12 mths 1-2 years 2-5 years 5 years

$000 $000 $000 $000 $000 $000 $000Consolidated - 2009Non-derivative financialliabilitiesSecured bank loans 3,500 (3,562) (3,562) - - - - Trade and other payables 73,587 (73,587) (70,240) (3,347) - - -

Derivative financialliabilitiesForward exchange contractsused for hedging Outflow 196 (196) - - - - - Total 77,283 (77,345) (73,802) (3,347) - - -

Carrying Contractual 6 mths More thanamount cash flow or less 6-12 mths 1-2 years 2-5 years 5 years

$000 $000 $000 $000 $000 $000 $000Consolidated - 2008Non-derivative financialliabilitiesSecured bank loans 3,500 (3,640) (3,640) - - - - Trade and other payables 27,805 (27,805) (27,344) (461) - - -

Derivative financialliabilitiesForward exchange contractsused for hedging Outflow 114 (114) (114) - - - - Total 31,419 (31,559) (31,098) (461) - - -

35

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

26 FINANCIAL INSTRUMENTS (continued)

Carrying Contractual 6 mths More thanamount cash flows or less 6-12 mths 1-2 years 2-5 years 5 years

$000 $000 $000 $000 $000 $000 $000Company - 2009Non-derivative financialliabilitiesTrade and other payables 61,759 (61,759) (61,154) (605) - - -

Derivative financialliabilitiesForward exchange contractsused for hedging Outflow 196 (196) - - - - - Total 61,955 (61,955) (61,154) (605) - - -

Carrying Contractual 6 mths More thanamount cash flows or less 6-12 mths 1-2 years 2-5 years 5 years$000 $000 $000 $000 $000 $000 $000

Company - 2008Non-derivative financialliabilitiesTrade and other payables 22,304 (22,304) (22,304) - - - -

Derivative financialliabilitiesForward exchange contractsused for hedging Outflow 114 (114) (114) - - - - Total 22,418 (22,418) (22,418) - - - -

Currency riskExposure to currency riskThe Group's exposure to foreign currency risk was as follows based on notional amounts:Consolidated

In thousands of AUD AUD USD EURO HKDTrade receivables 5,062 1,368 - - Trade payables (36,057) (37,503) (8) (19) Gross balance sheet exposure (30,995) (36,135) (8) (19)

Forward exchange contracts - - (196) - Net exposure (30,995) (36,135) (204) (19)

In thousands of AUD AUD USD EURO GBPTrade receivables 2,887 2,441 - - Trade payables (27,805) - - - Gross balance sheet exposure (24,918) 2,441 - -

Forward exchange contracts - - (114) - Net exposure (24,918) 2,441 (114) -

2009

2008

36

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

26 FINANCIAL INSTRUMENTS (continued)

CompanyIn thousands of AUD AUD USD EURO AUD USD EUROTrade receivables 22,515 605 - 1,489 - - Trade payables (25,227) (36,532) - (22,304) - - Gross balance sheet exposure (2,712) (35,927) - (20,815) - -

Forward exchange contracts - - (196) - - (114) Net exposure (2,712) (35,927) (196) (20,815) - (114)

The group is exposed to foreign currency risk on sales and purchases in currencies other than Australiandollars. The currencies giving rise to this risk are primarily US dollars. Foreign currency risk onsales and purchases are generally not hedged, except for purchases of certain capital items. The group uses forward exchange contracts to hedge such purchases, and contracts have maturity of less than oneyear after reporting date.

The following significant exchange rates applied during the yearReporting date

Aus dollar spot rate2009 2008 2009 2008

USD 1 0.8251 0.8969 0.8116 0.9518EURO 1 0.5726 0.7434 0.5740 0.6113HKD 6.2177 7.4252 6.2783 6.3714

Hedging Sensitivity Analysis

A 10 percent strengthening of the Australian dollar against the US dollar at 30 June wouldhave increased (decreased) equity and profit or loss by the amounts shown below. This analysisassumes that all other variables, in particular interest rates, remain constant. This analysis is performed on the same basis for 2008

Profit or Profit or Profit or Profit orEquity (Loss) Equity (Loss) Equity (Loss) Equity (Loss)

USD - 3,285 - (222) - 3266 - - EURO - 19 - 10 - 18 - 10 HKD - 2 - - - - -

A 10 percent weakening of the of the Australian dollar against the above currencies at 30 June would have had a similar but opposite effect on the above currencies to the amounts shown above, on the basis that all other variablesremain constant.

Profit or Profit or Profit or Profit orEquity (Loss) Equity (Loss) Equity (Loss) Equity (Loss)

USD - (4,015) - 271 - (3,992) - - EURO - (23) - (13) - (22) - (13) HKD - (2) - - - - -

2009 2008 2009 2008$000 $000 $000 $000

Consolidated Gold Corporation

Consolidated2009$000

2008$000

Gold Corporation2009$000

2008$000

Average rate

2009 2008

37

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

26 FINANCIAL INSTRUMENTS (continued)Interest rate riskProfileAt the reporting date the interest rate profile of the Corporation's interest-bearing financial instruments was:

Gold Corporation

2009 2008 2009 2008$000 $000 $000 $000

Fixed rate instrumentsFinancial assets 634,772 1,080,364 634,772 1,080,364 Financial liabilities (141,517) (445,341) (138,017) (441,840)

493,255 635,023 496,755 638,524

Variable rate instrumentsFinancial assets 90,684 23,267 52,083 19,098

90,684 23,267 52,083 19,098

The Group's exposure to interest rate risk and the effective weighted average interest rate for each class offinancial assets and financial liabilities are set out on the following pages. No interest rate hedging has beenentered into during the period.

Fair value sensitivity analysis for fixed rate instrumentsThe Corporation does not account for any fixed rate financial assets and liabilities at fair value through profitor loss.

Cash flow sensitivity analysis for variable rate instrumentsA change of 50 basis points in interest rates and 10 basis points for precious metal lease rates at the reportingdate would have increased (decreased) equity and profit or loss by the amounts shown below. This analysisassumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performedon the same basis for 2008.

EquityBasis points Basis points Basis points Basis points

increase decrease increase decrease$000 $000 $000 $000

Consolidated -2009Variable rate instruments 453 (309) - - Fixed rate instruments 739 (739) - - Cash flow sensitivity (net) 1,192 (1,048) - -

Consolidated -2008Variable rate instruments 233 (233) - - Fixed rate instruments 717 (717) - - Cash flow sensitivity (net) 950 (950) - -

Company -2009Variable rate instruments 260 (260) - - Fixed rate instruments 2,755 (2,755) - - Cash flow sensitivity (net) 3,015 (3,015) - -

Company -2008Variable rate instruments 191 (191) - - Fixed rate instruments 717 (717) - - Cash flow sensitivity (net) 908 (908) - -

Carrying amountConsolidated

Profit or loss

Carrying amount

38

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

26 FINANCIAL INSTRUMENTS (continued)Fair Values

Notes Floating interest rate

Fixed interest

maturing in 1 year or

less

Non- interest bearing Total

2009 $000 $000 $000 $000Financial and Precious Metal AssetsCash and cash equivalents 6 90,684 - 14 90,698 Receivables 7 - - 6,430 6,430 Precious metal leases 8a - 634,772 - 634,772 Precious metal inventories 8b - - 1,399,737 1,399,737

90,684 634,772 1,406,181 2,131,638 Weighted average interest rate

- cash 1.74%- precious metal leases 0.43%

Financial and Precious Metal LiabilitiesPayables 14 - - (73,587) (73,587) Borrowings 15 - (3,500) - (3,500) Precious metal borrowings 15,18 - (138,017) (1,883,972) (2,021,989)

- (141,517) (1,957,559) (2,099,076) Weighted average interest rate

- precious metal borrowings 0.78%Net financial and precious metal

assets/(liabilities) 90,684 493,255 (551,377) 32,561

2008Financial and Precious Metal AssetsCash and cash equivalents 6 23,267 - 15 23,282 Receivables 7 - - 5,328 5,328 Precious metal leases 8a - 1,080,364 - 1,080,364 Precious metal inventories 8b - - 761,140 751,704

23,267 1,080,364 757,047 1,860,678 Weighted average interest rate

- cash 4.52%- precious metal leases 0.47%

Financial and Precious Metal Liabilities

Payables 14 - - (28,137) (28,137) Borrowings 15 - (3,500) - (3,500) Precious metal borrowings 15,18 - (441,841) (1,387,590) (1,829,431)

- (445,341) (1,415,727) (1,861,068) Weighted average interest rate

- precious metal borrowings 0.35%Net financial and precious metal

assets/(liabilities) 23,267 635,023 (658,680) (390)

39

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

26 FINANCIAL INSTRUMENTS (continued)Reconciliation of Net Financial and Precious Metal Assets & Holdings to Net Assets as disclosed in the Balance Sheet

2009 2008Notes $000 $000

Net financial and precious metal assets/(liabilities) as above 22,797 (390) Non-financial assets and liabilities:Inventories 8(b) 9,764 9,436 Prepayments 1,083 619 Investments accounted for using the equity method 10 18,221 11,855 Provisions 17 (204) (339) Deferred tax assets/(liability) 5(c ) 108 (1,027) Property, plant & equipment 12 53,075 50,786 Intangible assets - computer software 13 775 1,575 Current tax asset (liabilities) 5(e) (5,617) 897 Employee benefits 16 (2,501) (2,110) Net assets per Balance Sheet 97,501 71,302

(a) Net Fair Value of Financial Assets and LiabilitiesThe net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financialliabilities of the consolidated and company approximates their carrying value.

(b) Precious Metal Assets and Liabilities 2009 2008 2009 2008Assets $000 $000 $000 $000Precious metal leases 8a 634,772 1,080,364 634,772 1,080,364 Inventories 8b 1,389,973 751,704 1,387,549 749,338 Total precious metal assets 2,024,745 1,832,068 2,022,321 1,829,702 LiabilitiesPrecious metal borrowings (secured, interest 15b 138,017 441,841 138,017 441,841 bearing)Precious metal borrowings (secured) 18 1,883,972 1,387,590 1,883,972 1,387,590 Total precious metal liabilities 2,021,989 1,829,431 2,021,989 1,829,431

Net Precious Metal Position 2,756 2,637 332 271

The $1,884 million of precious metals deposited by Perth Mint Depository clients (note 18) was used in operations byGold Corporation as working inventory ($1,390 million - Note 8b) with the balance in the refining operations of AGRMatthey (Note 8a).

Consolidated

Consolidated Gold Corporation

40

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

27 REMUNERATION OF DIRECTORS AND SENIOR OFFICERS

Key management personnelIn addition to their salaries, the Group provides non-cash benefits to key management personnel ancontributes to superannuation funds on their behalf

Consolidated Gold Corporation2009 2008 2009 2008$000 $000 $000 $000

Salaries, fees and non-cash benefits 2038 2,010 1,595 1,475Superannuation 389 362 275 264

2,427 2,372 1,870 1,739

Total fees received by non-executive directors was $344,000 (2008: $371,000).

Number of directors whose total of fees, salaries, superannuation and other benefits, received or dueand receivable for the financial year, falls within the following bands

2009 2008 2009 2008$0 - $10,000 1 1 1 1 $10,001 - $20,000 1 - 1 - $40,001 - $50,000 5 6 5 6 $90,001 - $100,000 1 1 1 1 $290,001 - $300,000 - 1 - 1 $300,001 - $310,000 1 - 1 - $390,001 - $400,000 - 1 - 1 $400,001 - $410,000 1 - 1 -

Number of senior officers other than directors whose total of fees, salaries, superannuation and otherbenefits, received or due and receivable for the financial year, falls within the following band

$80,001 - $90,000 - 1 - 1 $110,001 - $120,000 1 - 1 - $120,001 - $130,000 - 1 - 1 $130,001 - $140,000 1 1 1 - $140,001 - $150,000 2 1 2 1 $160,001 - $170,000 - 1 - 1 $180,001 - $190,000 1 2 1 1 $200,001 - $210,000 1 - 1 - $210,001 - $220,000 1 - - - $220,001 - $230,000 1 - - - $270,001 - $280,000 - 1 - 1

The superannuation included here represents the superannuation expense incurred by Gold Corporationin respect of senior officers other than senior officers reported as members of the accountable authority.

The remuneration of executive directors and senior officers includes incentive payments in respect of the 2007/2008 financial year. The incentive payments for 2008/2009 financial year which will be higher, havnot been included as they have not yet been approved, refer to note 29.

Consolidated Gold Corporation

41

GOLD CORPORATION AND SUBSIDIARIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2009

28 SUPERANNUATION COMMITMENTS

Gold Corporation contributes to a superannuation fund, the GC-AGR Superannuation Fund, which isoperated by Spectrum Super.

All permanent employees of Gold Corporation are entitled to join the fund. Trustee, funds managementand administration services are provided by SMF Funds Management Limited. The GC-AGRSuperannuation Fund provides benefits on retirement, total and permanent disability or death. GoldCorporation contributes to the fund at rates based on the salary of each member employee.

Gold Corporation employees not wishing or ineligible to join the GC-AGR Superannuation Fund aremembers of the ING Master Fund, to which the Corporation contributes at the current rate required bysuperannuation guarantee legislation.

All Gold Corporation employees can request that contributions be made to a fund of their own choice,rather than the GC-AGR Superannuation Fund or the ING Master Fund, in accordance with legislation.

Award-based employees of the Western Australian Mint who made the election prior to December 1996were entitled to contributory membership of the Western Australian Government EmployeesSuperannuation Fund (Gold State Super). Such employees contribute to that Fund at specified percentagesof their wages and salaries. The Western Australian Mint contributes to the Fund at rates set byGovernment Employees Superannuation Board.

Western Australian Mint award employees who did not wish, or who are ineligible to join Gold StateSuper are entitled to non-contributory membership of West State Super, to which the Western AustralianMint contributes at the current rate required by superannuation legislation. Members also have the optionto make personal contributions.

29 INCENTIVE PLAN

Gold Corporation's incentive plan was originally approved by the Board in 2003 and is designed to motivateall staff to strive towards the Corporation achieving an acceptable return on assets. A plan was put intoplace whereby an ever increasing profit target was set for Gold Corporation's own operations (excludingAGR Matthey) over a number of years. If the target for any year is exceeded then a certain proportionof the amount by which the profit exceeds target is available for distribution to employees. All employeesare eligible for payments in terms of the scheme.

There are upper limits on payments to employees and an upper limit to the total amount which can bepaid out. The total amount to be paid out in any year must be approved by the Board at its discretion andthen all individual payments must be approved by the Remuneration and Allowances Committee.

In the 2008/09 financial year Gold Corporation's own operations (excluding AGR Matthey) exceededtheir profit target, so employees will be eligible for payments. An amount of $ 3,958,603 (2008: $338,000)has been accrued in the financial statements for the year ended 30 June 2009.

42

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

30 CONTINGENT LIABILITIES In addition to the liabilities included in the financial statements, there are the following contingentliabilities:(a) Gold Corporation's Westmill division holds a 10% interest in the Kaltails Joint Venture, which was engaged in gold tailings treatment. The operations ceased during the year ended 30 June 2000. Thereis a closure plan for the operation which would require capping of the storage facility within the nextten years, and this could result in considerable expense for the joint venture. Another option, notrequiring the expensive capping, is possible.(b) In prior years, ground water contamination occurred at the Newburn site of the AGR Mattheyrefinery. The AGR Joint Venture partners (Western Australian Mint and Australian Gold Alliance Pty Ltd) are responsible for any remediation and restoration of the site. Expenses incurred to dateand expected to be incurred in the near future have been accrued for in the financial statements.It is difficult to estimate the future long-term costs, if any, of remediation. Hence it is not possible toquantify these as at 30 June 2009.

31 RELATED PARTIES(a) During the course of its business, the Group conducts transactions with related parties.Transactions between related parties are on normal commercial terms and conditions no morefavourable than those available to other parties unless otherwise stated.Aggregate amounts included in the determination of profit before income tax that resulted fromtransactions with each class of other related parties were as follows:

Supply of Precious Supply of Preciousgoods and metal goods and metal services lease fees services lease fees

$000 $000 $000 $000Amounts paid to related parties arising from normal trading activities

AGR Matthey (737,730) - (2,351) -

Amounts charged to related parties arising from normal trading activities

AGR Matthey 217,850 7,380 564 3,612

Amounts receivable from or (payable) torelated parties

AGR Matthey (36) - (1,787) 3,612

(b) Contribution to superannuation funds on behalf of employees are disclosed in notes 16 and note 28

2009 2008

43

GOLD CORPORATION AND SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2009

32 EXPLANATORY STATEMENT

Section 40 of the Financial Management Act requires statutory authorities to prepare annualbudget estimates. Treasurer's Instruction 945 requires an explanation of significant variationsbetween these estimates and actual results.

The Group's business plans for 2008/09 projected an operating result before income tax of $4.9 millioncompared to the actual profit of $37.4 million before tax. The most significant variations were:

Level of interest in precious metals increased significantly in the 2008/09 year as a result of instability in world financial markets. This resulted in the sales of bullion and numismatic products being substantially greater than planned.

The level of trading and other activities in both Treasury and Depository were also much greater than planned for the same reason.

Profit from AGR Matthey was greater than expected due to increased demand from a variety of overseas markets for AGR Matthey's products & services.

33 VARIATIONS FROM PREVIOUS YEAR

Treasurer's Instruction 945 requires an explanatory statement providing reasons for and the detailing of any significant variations between actual revenue and expenditure for the financial year and the corresponding item in the financial statements of the immediately preceding year. The mostsignificant variations were:

Sales Revenue, Cost of Sales and Gross ProfitSales revenue of $2.482 billion in 2008/09 was 109% higher than the $1.19 billion revenue in 2007/08 due tohigher levels of investor activity and increase in precious metals prices. Cost of Sales, comprising mostly ofprecious metals, was $1.264 billion or 109% higher than in 2007/08 reflecting the increased sales revenue.Gross profit was $28.1 million or 79% higher than the $35.3 million in 2007/08 due to increased metal activityand volumes.

Materials and Services ExpenditureMaterials and Services costs were $6.4 million or 38% higher than that in 2007/08 due to the increased levelsof activity in the Group, commensurate with increased sales volume.

Fees and RentsThe increase in fees and rents is due mainly to higher storage fees and trading margins resulting fromhigher levels of activity.

Employee Benefits ExpenseThe increase in employee benefit expense is due to higher levels of overtime, higher numbers ofemployees and increased incentive plan payments