CONSOLIDATED BALANCE SHEET

Property, plant and equipment increased significantly year on year, mainly due to expenditure incurred on the underground development at Loulo, including the development of the twin shafts and the acquisition of the underground fleet, the completion of the four CIL tanks and expenditure on the thickener and tailings dam.

Long term receivables increased by US$9.1 million over the year due mainly to an increase in the TVA balance at Morila. The non-current receivables of US$22.8 million are those parts of the MDM and Malian Government receivables which, whilst legally payable immediately, are anticipated to be reimbursed after more than 12 months. Short term receivables increased mainly as a result of an increase in trade debtors due to the timing of gold shipments at year end at both mines.

The increase in inventories and ore stockpiles is due to the increased demand for supplies and insurance spares at Loulo with the development of the underground mine and increased production, as well as an increase in the stockpiles at Morila in line with the life of mine plan. This was partially offset by a decrease in the stockpiles at Loulo due to the problems experienced with the contractor during the rainy season, resulting in reduced production over this period. As previously indicated, mining at Morila will stop during 2009, after which the lower grade stockpiles will be processed until 2013.

The increase in cash and cash equivalents is mainly the result of the equity placing which closed in December 2007 and raised US$231.7 million net of expenses. Cash and cash equivalents also increased year on year with cash generated from operations of US$62.2 million. This was partially offset by the underground capital expenditure at Loulo of US$47.9 million, the repayment of the corporate revolving credit facility of US$40.8 million and a transfer of cash currently held in asset-backed securities from cash and cash equivalents to available-for-sale financial assets amounting to US$49 million, due to the temporary illiquid nature of the investments held.

Long term borrowings and the current portion of long-term borrowings decreased significantly year on year as a result of the full repayment of amounts outstanding under the corporate facility, which replaced the Loulo project facility in May 2007, and prior to repayment in December 2007 stood at US$40.8 million. This corporate facility remains in place should we have a need to use it.

The financial instruments liability also increased, following the increase in the gold price, and reflects the marked-to-market valuation of the hedged ounces at the year end spot price of US$836.50/oz. During the year the company delivered 90 836 gold ounces into its hedge positions, which reduced the financial instruments liability, given the higher gold price.