US Companies

Royal Gold
Subsequent to quarter end, the company announced that it signed a definitive agreement with a subsidiary of Teck Cominco
to acquire an interest in the gold production at the Andacollo mine (Chile) for US$218 million in cash and 1.2 million Royal
Gold shares. Royal Gold will receive 75% of the gold produced from the sulphide portion of the Andacollo deposit until 910
koz of payable gold have been sold, after which Royal Gold will receive 50% of all future payable gold production. Teck expects initial production from the sulphide deposit to begin in late 2009 and reach commercial production in H1 2010.

Royal Gold subsequently raised net proceeds of US$235 million through the issue of 6.5 million shares at US$38.00/share to cover the cash portion of the deal. Gold reserves, as of 31st December 2008, increased by 30% to 64.2Moz, whilst silver reserves increased by 16% to 1.3 Boz.

UK Companies

Randgold Resources
Massawa (Senegal) – an initial resource estimate and scoping study were completed. The project comfortably passes the
company’s hurdle rates and consequently the board has approved its progress to prefeasibility. This study is planned to be
completed by the end of the year and will include a 30 000 metre drilling programme. Pit A provides for an 8 year mine life
producing 2.16 Moz and Pit B provides for an 11 year mine life, producing 2.73 Moz.

Tongon (Côte d’Ivoire) – on track for production in Q4 2010. Preloading of the secondary crusher has been completed.

Loulo (Mali) – the plant expansion, to cater for production ramp-up from Yalea, is due for completion in Q2 09.

Highland Gold
In April, Highland Gold sold the Mayskoye Development Project (Russia) for a cash consideration of US $105 million to
a group of Russian companies, one of which is JSC Polymetal. Novoshirokinskoye – the project was placed on care and
maintenance in late 2008.

Hochschild
Hochschild exercised its option to increase its ownership interest in Gold Resource Corporation from 5% to 15%. El Aguila
(Mexico) is scheduled to begin production in 2009. The company also entered into a binding agreement to acquire 100% of
Southwestern Resources Corp for a total cash consideration of US$17.5 million).

Selene (Peru) is under consideration for closure.

After quarter end, positive exploration results were returned from San José, including the discovery of a new mineralised
structure, where a follow-up surface drilling programme is taking place.

Peter Hambro Mining
Equipment installation for the Pioneer (Russia) plant’s second line is ongoing, with commissioning expected in July, and thereafter ramping up to its full capacity by September.

At Malomir (Russia) infrastructure construction continues. The road to the mine has been completed, the power line is on
track to reach completion soon, and the delivery of the mining equipment is on schedule. Subsequent to quarter end, Peter Hambro confirmed that its all-share offer for Aricom plc had been completed. It also transferred its listing from AIM to the LSE main board.

Courtesy: www.gfmsworldgold.com

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