Reserves for the Challenger Mine total 702,570 ounces (including 940 ounces contained in gold in circuit).

This reflects an additional 73,465 from the June 2008 total after taking account of production of 98,755ounces during the year.

Resources have increased from 1,159,830 ounces to 1,461,140 ounces and importantly, resources that are additional to reserves have increased from 392,300 ounces to 719,590 ounces.

Given the very high historic conversion rate of resources to reserves at Challenger, these totals underpin confidence in an extended mine life.

The location of the majority of these reserves and resources is illustrated in the following figure:

New reserves are mainly attributable to the M3 and Challenger West Shoots. These shoots will provide higher than average grade ore. Some of which will be based om hand held mining techniques. These additions increase the average reserve ounces per vertical metre (ovm) to 1,780. Exploration is focused on evaluating additional targets with an interpreted potential of between 550 - 810 ovm.

The Challenger Deeps surface drilling programme has demonstrated the continuityof the main M1 and M2 Shoots up to 400 metres below the levels of the current reserves. Mining down to, and beyond these levels is considered to be feasible. Conversion to reserves will depend on the results of both further technical and economic evaluation.

The gold endowment of Challenger (historic production, reserves and resources additional to reserves) is now almost 2 million ounces.

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