Quarterly Report October – December 2014

Key Points

• HENTY:
  • Sustained strong operational performance from Henty with quarterly production of 11,370oz gold at a cash operating cost of $968/oz and AISC of $986/oz – continuing to deliver significantly ahead of plan
• DARGUES:
  • Preparation for submission of planning modification nearing completion
• CORPORATE:
  • Continued cash build with $12.3M cash at bank – above current market capitalisation
  • An additional $9.5M held in cash-backed performance bonds
  • Sustained cost reductions across the group
  • Gold put options acquired to hedge approximately 70% of forecast gold production January to June 2015 at A$1445/oz

Summary

Andrew McIlwain, Managing Director & CEO comment “A continued focus on operational performance at Henty has seen this quarter build on the previous
quarter’s production performance, delivering strong gold production and cost outcomes – again well ahead of our plan.

Importantly, this is the third quarter running where Henty has exceeded its budgeted production and financial performance. We have seen continued contribution from the high grade Read Zone continue beyond its planned depletion in 2014 and are encouraged by the tonnages and grades Darwin South stopes that have been brought into the schedule.”

Production

• Henty Gold Mine produced 12,832 oz at a cash cost $976/oz including royalties, with all-in sustaining cost (AISC) of $1028/oz, (11,983 oz gold at a cash cost of $988/oz and AISC of $1123/oz in previous quarter).

Development

• Dargues technical studies have resulted in preparation of a planning modification to complete all processing operations on site. Submission will be made early in 2015.

Exploration

• Drilling conducted at Booth’s Reward.
• Best results included 3.0 m (down hole) at 6.6 g/t gold and 1m at 12.5g/t gold.

Corporate

• Gold sales were $16.2 million during the quarter from the sale of 11,493 oz gold at an average price of $1413/oz.
• Cash at bank was $12.3 million at 31 December 2014 ($11.9 million at 30 September 2014) after payment of a number of extraordinary items including annual insurance premiums, put option premiums and employee redundancies totalling approximately $1.3 million.