SYDNEY MINING CLUB CLUB 5 DECEMBER 2002

Outline of Presentation  the answer  the question  the explanation:  How we got here  Coal cash flow leverage  Gold exploration leverage  Value adding to coal and to gold  value today and target value  the plan

1996 to Corporate  Chopped H.O and divested non-core  Acquired coal infrastructure and consolidated gold ownership at low cost  Started gold and coal production  Used a range of debt & equity finance  Minimised shareholder dilution  Built teams and backing  Formed strategic alliances

 Bought out partners  Started profitable small mine  Built great exploration and mining teams  Established resources 780K oz at 7.6g/t  Installed large exploratory decline  Launched exploration of Goldfield 7/02  Already having significant hits 1996 to Gold Leverage to exploration upside

1996 to Coal  Purchased infrastructure and land in 1998  Built great team with a halved workforce  Production ramping-up to > 1.5Mtpa  Sufficient development put in place  Diversified customer & product base  Commenced mining in thick-seam zone  Positive consequences for coal quality  Some lessons being learnt for mining Leverage to emerging coal cash flow

 Mt  Mt  1 st half 0.8Mtpa  2 nd half 1.8Mtpa  1.2Mtpa rate triggers profits Coal – Production

Coal – Marketing Southland is diversifying its customer & product base in preparation for production at capacity of >2Mtpa

Coal- Strengths  Long-life mine  Most surface lands our freehold  Strong community support  Strong environmental control  Prolific historic coal seam  High quality = high margin  Infrastructure in place for +2 mtpa

Gold - Production Cash Cost = $317/oz  Production from one zone of Inglewood Structure  Production doubled over 5 years  Profitably mining at high-grades of 8 g/t  Targeting much larger production if exploration succeeds

 Current production is efficient  Decline connects deeper mine in Dec  Major Goldfield targets being drilled  Decline will extend to discoveries  Still drilling Partridge to the west  1 st cab off the rank will be Inglewood north  Last week hit Inglewood 1 km to the south Gold Status

 100% controlled Goldfield and region  Prolific high-grade 4 million oz field  Potential for a further 6 million ozs  Strong community support  Low environmental risks  Established geological expertise Exploration Potential

GEOLOGICAL KEY How gold formed at Gympie River sand & cover rock concealment Mary Valley sediments (5-20m thick) INGLEWOOD LODE

 Targeting a new 2 million oz Inglewood- style ore system  Drilled through the river sands & sampled fresh rock below  Lo-level geochemistry identified anomalies  High hit rate in follow- up drilling of + 65% Exploration Technology is Working

Inglewood Lode – A Major Goldfield Feeder? 1.5 million oz gold produced 2 million oz gold produced Ore Feeder ?

 Deep Monkland Mine has +3 years reserves.  Lewis Decline is accessing ore zones and opens up the goldfield potential. TIME TO EXPAND EXPLORATION Gold - Development More Ore Shoots North

Inglewood Lode - north  New ore shoots north of current mine  Can access by extending Lewis Decline

Inglewood being traced  2km zone mined to date on/near Inglewood has yielded 2 million ounces at +8g/t  Length of Inglewood extended by >8km by geophysical survey interpretation  Drilling yielding good early results to north  We’ve hit it last week to the south, uplifted!!!

Gold - Gemstone

The starting point, mkt cap $160M Coal $100 Million Sold 10% for $11 million In May 01 Gold $68 Million Company Production Market Cap Market Cap (000oz) ($millions) (per prod oz) Troy Triako Sipa Gympie Production = 60,000 ounces Imputed Value = $68 million

 GYM share price > 230cps in 2008 ?  Need value growth $240M ?  Discover/exploit > 2M oz 8g/t ?  Coal to 2.5Mtpa…$15/t profit & FCF ?  Add legs to each table, corporate ?  Separate the tables? The plan is to achieve 20%pa for next 6 years 20%pa for next 6 years

emerging coal cash flow with the exploration leverage of a high-grade goldfield