General

Despite the operating challenges currently being experienced at the Yalea underground section, management remains committed to meeting the annual production targets previously outlined by the company - production from Loulo is forecast to increase over the year and the Tongon mine remains on track for first production early in the fourth quarter.  However, since 3 May 2010, Loulo has experienced power supply interruptions which have impacted operations throughout the mine and the consequences of this problem are still being addressed and assessed.  It is not yet clear what effect these could have on Loulo's production guidance for the year. 

Following the positive prefeasibility study at Gounkoto, the focus has now shifted to completing a feasibility study by the year end. Similarly, work on optimising the Kibali feasibility study and completing the Massawa feasibility study is progressing.

The directors confirm to the best of their knowledge that: