Highlights

• Overview
  • Quarterly production increased 6.5% to 51,438 ounces (“oz”)  (Q2 – 48,365 oz, Q1 – 12,912 oz)
  • Completed an equity placement of 41,922,487 common shares raising $ 65.0 million
  • Post quarter end, announced the acquisition of the remaining 17.5 % of Nalunaq Gold Mine
  • Post quarter end, announced the sale of 15 million Crew Minerals ASA (“CMASA”) shares raising $32.9 million, net of transaction costs
    
    
• Results
  • EBITDA of negative $4.8 million (quarter ended Sept 30, 2006 – $4.6 million)
  • Net loss of $51.3 million / 12 cents per share (quarter ended Sept 30, 2006 – net profit of $1.6 million) primarily due to non cash foreign exchange losses on translation of NOK denominated debt
    
    
• LEFA
  • 29,056 oz produced in the quarter (Q2 2007 – 24,412 oz, Q1 2007 – 10,637 oz). This represents a 19% increase over Q2 in spite of the impact of heavy rains
  • Upgrade and rectification program progressing according to plan
  • Completed ordering new equipment for plant rectification
  • Mid-year reserves increased by 0.49 million oz to 3.87 million oz (14% increase) and included a new reserve at Firifirini of 0.23 million oz
    
    
• Maco (formerly called Masara)
  • Appointed new Resident Manager
  • Phase 1 pilot plant at Maco operating on development ore
  • Infrastructure development and ore development progressing,
  • Commenced construction of new tailings facility
  • Continued focus on adding further tenements around the existing  mining operations and consolidating a larger long term gold and copper porphyry potential
  • Commenced discussions with a potential partner for the assessment of the copper porphyry resource
  • Expect technical review of the mill expansion and mine plan to be complete by the end of Q4 2007
    
    
• Nalunaq Gold Mine and Nugget Pond Processing Facility
  • Quarterly production of 20,287 oz (Q2 2007 – 21,697 oz)
  • Nugget Pond facility continuing to operate at above design capacity with excellent recoveries
  • Nalunaq ore production rate continues near target of 500 tonnes per day (“tpd”), with September performance averaging 510 tpd
    
    
• Outlook
  • Continued production growth over the next 6 quarters
  • Investment in resource and reserve expansion to continue with annual reserve and resource updates expected to be released during Q1, 2008.
  • Completion of capacity increase  and production ramp up at LEFA anticipated by the end of Q2 2008
  • Continued focus on securing new strategic land claims