Ramon Escobar

Millennium Minerals Limited

Millennium Minerals Limited operates the Nullagine Gold Project, located in the Pilbara Region in Western Australia. The Project comprises 7 deposits on granted mining leases. The largest deposit, Golden Eagle, is located approximately 10 km south of the Nullagine Township. The 1.5 Mtpa CIL processing plant commenced commissioning in August 2012 and first gold was poured in September 2012. Commercial production was declared effective January 2013. The project was delivered on time and within capital cost guidance. The company has forecast gold production for CY2013, its financial year, at between 78,000 oz and 83,000 oz at C1 cash costs below AUD850/oz. C1 costs for the 6 months to June 30 2013 averaged AUD794/oz and sustaining cash costs averaged AUD955/oz which includes C1 costs, royalties, site capital and corporate overhead. Millennium commenced delivering aproximately 50% of its gold production into its hedge structure in March 2013 that has a par forward price of AUD1673/oz. At June 30 2013 the hedge book stood at aproximately 83,000 oz at a par foward gold price of AUD1642. The hedge book has largely protected revenue from the recent volatility in gold prices and gross operating margins at the mine level remain at forecast levels of aproximately AUD800/oz. Current minelife is 7.5 years however continuing exploration success augers well for extending mine life and supporting expansion in the medium term.