March 2013 Quaterly Report

April 30, 2013

Dubbo Zirconia Project (DZP)

  • The DFS for the DZP has delivered a technically and financially robust project over an initial 20 year life with EBITDA of A$5.23 billion and NPV of A$1.23 billion.
  • The DZP is a strategic and alternative source of zirconium and heavy rare earth products with a resource capable of very long term supply.

Tomingley Gold Project (TGP)

  • The Mining Lease was granted in February and site construction commenced immediately.
  • The construction is currently on time and within budget.
  • RC and core drilling at Caloma Two have been completed and results confirm
    significant gold mineralisation:
    • PE 873 9 metres grading 110g/t gold from 194 metres
      including 1 metre grading 821g/t gold from 196 metres
    • PE 892 39 metres grading 4.52g/t gold from 150 metres
      including 5 metres grading 14.8g/t gold from 150 metres
  • Project financing discussions continued but the existing gold hedge has been closed out for a net A$6.8 million cash receipt.