Avocet Mining PLC RBC Capital Markets 2011 African Gold Conference - - PowerPoint PPT Presentation

June 2011

Avocet Mining PLC –RBC Capital Markets’ 2011 African Gold Conference

80 100 120 140 160 180 200 220 240 260 280 DATA REBASED TO AVM SHARE PRICE

AVOCET GOLD FTS E GOLD MINES INDEX

Corporate overview

Market statistics*

OSE & AIM - AVM 225.0 p Market capitalisation US$779.9 m Shares outstanding 199.5 m Cash (31.03.11) US$47.0 m Net debt (31.03.11) US$25.0 m Enterprise value US$804.9 m

Largest shareholders

• Elliott

13.0 %

• Datum

12.2 %

• BlackRock

10.0 %

• JP Morgan

7.7 %

Share price performance (12 months)

* All figures as of 03.05.11, unless otherwise stated

2

Directors

• Russell Edey, Chairman
• Harald Arnet
• Mike Donoghue
• Robert Pilkington
• Barry Rourke
• Brett Richards, CEO
• Mike Norris, Finance Director

Exco

• Brett Richards
• Mike Norris
• Peter Flindell
• Richard Gray
• Hans-Arne L’orange

Focused on West Africa

• Conditional sale of assets in Asia for

US$200 million cash announced Dec. 2010

• US$110 million placed in escrow account to date
• Inata gold mine in Burkina Faso
• 2010 production: 137,732 oz at US$531/oz
• 2011 guidance: 165,000 oz
• Burkina Faso: 200,000 m drilling

programme in progress (DD/RC)

• Targeting a doubling of Inata’s reserves by the end
• f Q3 2011
• Guinea: 100,000 m drilling programme in

progress (DD/RC)

• Advancing Tri-K to start feasibility study by year end
• Targeting 2 Moz Mineral Resource estimate in 2011

3 INATA (2.1 Moz) Tri-K (Koulékoun) (1.1 Moz) Bélahouro (0.6 Moz) Producing asset Exploration asset 100% Resources reported for each asset Mali Guinea Burkina Faso

Q1 2011 summary

4

Group Production

Total gold production of 71,708 ounces at a total cash cost of US$678/oz Compared with 70,857 ounces in Q4 2010 at US$641/oz Q1 2010 production: 44,877

• unces at

US$735/oz

Inata Production

Inata production of 47,963 ounces at a cash cost of US$533 per ounce Compared with 46,208 ounces at US$511* per ounce in Q4 2010 Q1 2010 production: 19,838

• unces

Financial performance

EBITDA of US$33.0 million in Q1 2011 Up from US$29.7 million in the previous quarter Q4 2010

SE Asia sale

SE Asia sale – US$110m consideration received in escrow but outstanding pre-conditions remain to be satisfied

Exploration

Inata resource increased to 2.12 million ounces On target to double Inata reserves to c.1.8 million ounces by Q3 2011 Positive drilling results from Kodiéran and Koulékoun in Guinea

* Includes US$2.7m adjustment to reflect a government decree on 31 December 2010 that government royalties for 2010 should be charged at 3% rather than 5% Royalty rate from 2011: up to $1,000 Au price – 3%; $1,000 to $1,300 Au price – 4%; >$1,300 Au price – 5%

Cash and net debt

• Cash at bank of

US$47.0 m1

• Net debt of US$25 m1

Project finance facility

• US$65m project

finance facility with Macquarie Bank

• Outstanding

balance1: US$47m

• Repayment schedule
• f US$6m per quarter

Gold hedge

• 324,193 oz, at an

average US$970/oz1

• Hedge delivery

schedule of ~25,000

• z per quarter -

commenced Q3 2010

Corporate facility

• US$25m corporate

revolving credit facility with Standard Chartered Bank, fully drawn

Financial summary

5

1 As of 31 March 2011

Period Quarter ended 31 March 2011 Unaudited Quarter ended 31 March 2010 Unaudited Quarter ended 31 December 2010 Unaudited Year ended 31 December 2010 Audited Total gold production (ounces) 71,708 44,877 70,857 236,396 Average realised gold price (US$/oz) 1,241 1,107 1,229 1,174 Cash production costs (US$/oz) 678 735 641 660 EBITDA from continuing operations (US$000) 25,403 (4,148) 22,425 54,597 EBITDA from continuing and discontinued

• perations (US$000)

32,994 4,115 29,738 86,272 Profit before tax from continuing operations (US$000) 12,570 (4,143) 7,986 17,475 Profit/(loss) before tax (US$000) 20,321 196 9,145 33,549

Q1 2011: financial highlights

Notes:

• Inata costs and revenues in the quarter to 31 March 2010, prior to the commencement of commercial mining operations, were capitalised. 19,838 ounces of gold

poured in this period were however included in total gold production.

• EBITDA represents earnings before exceptional items, finance items, tax, depreciation and amortisation. EBITDA is not defined by IFRS but is commonly used as an

indication of underlying cash generation.

6

Conditional sale of South East Asian assets

• Announced 24 December 2010
• Completion expected in Q2 2011
• Binding agreement signed for conditional

sale of all SE Asian assets to J&Partners

• J&Partners is a mining fund established by the

Indonesian family that sold Indonesia’s 2nd largest mining contractor in November 2009

• Current focus is on gaining government approvals

and satisfying other conditions precedent that remain

• Cash consideration of US$200m*
• Initial consideration and second tranche received

in escrow: US$110m

• Final tranche (on completion): US$90m
• Net proceeds estimated: US$170m

* On a cash free, debt free basis, and subject to working capital adjustment

7

8

Operational review – Burkina Faso

Inata gold mine & Bélahouro district

Gold mining and exploration in Burkina Faso

• Mining code adopted in

2003

• 3-4 year tax holiday
• 20% corporation tax
• 3-5% royalty
• 10% free carried interest
• Rapidly expanding

mining sector

• Only 1 gold mine operating in

2007

• 6 gold mines operational
• Mines produced over 700,000
• unces in 2010
• Over 20 listed gold

producers and explorers

• perating in country

Prospective Birimian geology Gold deposit / resource 9 Inata (Avocet) 137,732 oz Mana (Semafo) 179,700 oz Youga (Endeavour) 82,400 oz Kalsaka (Cluff) 74,000 oz Essakane (IAMGold) 135,900 oz Taparko (High River) 127,684 Producing gold mine; number of ounces shown represent 2010 gold production

Inata: successful ramp-up completed

10

• Mining:
• Inata North pit continues to contribute majority of ore to mill
• Mining of Inata Central commenced in June 2010 – ore

production increasing throughout 2011

• In line with LoM plan, as mining advances deeper in the pits

and harder host rock is encountered, more drilling and blasting has been required

• Processing:
• Q1 average throughput of 318 tph - above 287 tph

nameplate capacity

• Plant expansion underway towards target of 340 tph
• Production and cash costs:
• Higher royalty rate and increased reagent costs of

explosives and cyanide compared with Q4 2010

• Costs in the rest of the year are expected to increase due to

an increase in explosives and cyanide usage, and fuel and reagent costs; but also as mining volumes rise (third fleet) due to a higher strip ratio.

• 2011 Guidance:
• Production: 165,000 oz (unchanged)
• Inata Cash Costs: US$600-$650/oz (increase)

* Includes US$2.7m adjustment to reflect a government decree on 31 December 2010 that government royalties for 2010 should be charged at 3% rather than 5% Royalty rate from 2011: up to $1,000 Au price – 3%; $1,000 to $1,300 Au price – 4%; >$1,300 Au price – 5%

Production statistics Q1 2011 Q4 2010 Ore mined (t) 618,000 638,000 Total movement (t) 5,291,000 5,007,000 Ore processed (t) 645,000 593,000 Average head grade (g/t) 2.37 2.68 Gold recovery rate (%) 94% 94% Gold production 47,963 46,208 Cash costs (US$/oz)

• mining

136 132

• processing

205 209

• royalties & overheads

192 170 Total cash cost 533 511*

Inata: expanding the orebody to the north

• Drilling results announced 7 February 2011
• 55,000 m of drilling completed
• Assays received from 28,579 m of drilling, testing northern extensions of resource at Inata

North and Sayouba, as well as mineralisation below the current 1.84 Moz resource

Sayouba highlights:

• 3 m @ 18.5 g/t Au from 31 m
• 17 m @ 1.60 g/t Au from 81 m
• 18 m @ 1.29 g/t Au from 158 m
• incl. 5 m @ 2.81 g/t Au
• 7 m @ 2.83 g/t Au from 125 m
• incl. 3 m @ 5.86 g/t Au

Inata North highlights:

• 39 m @ 3.01 g/t Au from 93 m
• incl. 10 m @ 5.41 g/t Au
• 28 m @ 3.13 g/t Au from 146 m
• incl. 8 m @ 4.30 g/t Au

11

• Near surface intercepts are broader than indicated by

previous wide-spaced exploration drill holes and of similar gold grade

Inata North Inata Central Inata South Plant site Sayouba

Bélahouro: VTEM survey results

12

Gomde Barrage

WESTERN DOMAIN CENTRAL DOMAIN EASTERN DOMAIN

INATA Dynamite Miilam Gassel Garafo Fete Kole Pali Kourfadie Damba

Image: VTEM survey overlain with existing drill hole data. Warm colours (red/orange) indicate regions of more conductive geology

Oka Gakinde

5km

Gomde Barrage

Key: Priority drilling target

N

Inata: encouraging exploration results in Q1

13

• Further positive drilling results for the

quarter at Sayouba, Minfo and extensions to the existing Inata North pit, including:

• 39 m @ 3.01 g/t Au from 93 m
• incl. 10 m @ 5.41 g/t Au
• 28 m @ 3.13 g/t Au from 146 m
• incl. 8 m @ 4.30 g/t Au
• 3 m @ 18.5 g/t Au from 31 m
• Inata Mineral Resource increased

during Q1 to 2.12 Moz

• Including the 0.56 Moz resource at Souma, the

Mineral Resource across the Bélahouro district now stands at 2.68 Moz

• 200,000 m drilling campaign continues

throughout 2011

3km

INATA MINING LICENCE Pali Kourfadie Damba Minfo Filio

N

VTEM: targets in Western Domain

• Multiple untested conductive units

west of Inata, highlighted by VTEM survey

• Different geological setting to

Eastern Domain

• Folded conductive units

(carbonaceous shale) surrounding

• void conductive lows (granites)
• Gold associated with folded

carbonaceous shale

• Targets include:
• Along-strike extensions to Inata
• VTEM highlights multiple untested

conductive units west of Inata

14

Image: VTEM survey overlain with existing drill hole data. Warm colours (red/orange) indicate regions of more conductive geology

Bélahouro: growing resources and reserves

15

Programmes

Jan ’11 Feb ‘11 Mar ‘11 Apr ‘11 May ‘11 Jun ‘11 Jul ‘11 Aug ‘11 Sep ‘11 Oct ‘11 Nov ‘11 Dec ‘11 Q1 ‘12 RC/DD Drilling Inata mining licence D D D/R D R D R Filio D D D D/R Other – Western Domain D Souma Trend RAB Drilling Filio Permit D Damba Permit D

Key: Period of exploration activity R = resource model report; D = drilling results

16

Operational review – Guinea

Tri-K, Balandougou, Kankan & Kolenda

Guinea – the golden Siguiri Basin

17 Tri-K Permits

Balandougou

Severstal (Lefa – 5.9 Moz Au) Cassidy (Kouroussa – 1.0 Moz Au) SEMAFO (Kiniero – 0.9 Moz Au)

Kolenda Kankan 50km

Burey Gold (Mansounia – 0.8 Moz Au)

Conakry Birimian geology Wega Mining Guinée permits Deposit size (production + resource)

• Untapped mineral potential
• Two +5Moz Au deposits
• Three ~1Moz Au deposits
• Extensive under-explored Birimian

geology

• Two strongly mineralised belts extend

from Mali

Anglogold Ashanti (Siguiri – 5.6 Moz Au)

Avocet (Koulékoun – 1.1 Moz Au)

• Tri-K comprises three main licences:

Koulékoun, Kodiéran and Kodiafaran

• Drilling of existing targets underway:
• Goals of increasing Koulékoun resource and

establishing a maiden resource at Kodiéran

• 48,000m RC drilling
• 19,000m diamond drilling
• Advancing Koulékoun towards feasibility

study in 2011

• VTEM survey scheduled for H1 2011
• Key stage in identifying new drill targets in

largely under-explored region

• Other programmes in Guinea:
• Balandougou – mapping & RAB drilling
• Kolenda & Kankan – trenching & RAB drilling

Tri-K: 2 million ounce target in 2011

18

Koulékoun

1.1 million ounces Currently drilling

Kodiéran 1A

60 m @ 2.01 g/t Au 20 m @ 6.43 g/t Au Currently drilling

Kodiéran 1B

2 km long orpaillage Drilling planned in Q4

Kodiéran 2A Kodiafaran

5km

N

• Tri-K consists of the Koulékoun,

Kodiéran and Kodiafaran licences

• 100% owned by the Company
• Q1 activities:
• Highly promising drilling results for Kodiéran

announced in February 2011

• Early results from drilling at Koulékoun, results

released March 2011, indicated that the ore body is less fragmented, as well as extending deeper than had been originally thought

• VTEM survey conducted during the period –

results now being analysed and will be used to define drill targets in all 3 areas

• 100,000 metre drilling campaign in

Guinea continues at 4 projects

• 67,000 metres planned for Tri-K licences
• Resource target in 2011: 2 million
• unces

Guinea: focussed on Tri-K

19 Koulékoun Current resource: Indicated: 12.7Mt @ 1.55 g/t Au Inferred: 0.7Mt @ 1.49 g/t Au Kodiafaran Kodiéran

• 31 m @ 5.51 g/t Au

from 85 m

• (incl. 21 m @

7.72 g/t Au)

• 15 m @ 5.99 g/t Au

from 63 m

• (incl. 13 m @

6.76 g/t Au)

• 17 m @ 4.76 g/t Au

from 101 m

• (incl. 11 m @

6.81 g/t Au) Forowa Dimbala (unsampled) Marina (unsampled) Tri-K Permits Gold in Termite Mounds

2km

> 300 ppb Au 200-300 ppb Au 100-200 ppb Au 50-100 ppb Au

• Assays from first two drill holes

highlight Koulékoun’s potential

• Highlights include:
• 34 m @ 2.57 g/t Au from 94 m
• 59 m @ 4.95 g/t Au from 277 m
• Results indicate:
• Main zone of porphyry-hosted

mineralisation continues to depth with width

• General tenor of mineralisation

remains in the 2 to 5 g/t Au range

• Initial results also highlights

previously unknown zone of mineralisation in host rock

• 67,000 metre drilling programme

planned for 2011

Tri-K – increasing momentum at Koulékoun

20

• Initial drilling results from

exploration at Kodiéran

• Kodiéran located within the southern

section of the Tri-K project

• 100% owned
• Geophysical contact extending over

3 km in length

• Prospect initially drilled in 2008, prior

to construction commencing at Inata

• Drilling highlights include:
• 31 m @ 5.51 g/t Au from 85 m (incl.

21 m @ 7.72 g/t Au)

• 15 m @ 5.99 g/t Au from 63 m
• 17 m @ 4.76 g/t Au from 101 m
• Represents first 4,003 m of wider

100,000 m program remaining in Guinea for 2011

• Further drilling planned across Tri-K

and Balandougou

Tri-K – encouraging drill results at Kodiéran

21

Guinea: accelerating resource growth

Programmes

Jan ’11 Feb ‘11 Mar ‘11 Apr ‘11 May ‘11 Jun ‘11 Jul ‘11 Aug ‘11 Sep ‘11 Oct ‘11 Nov ‘11 Dec ‘11 Q1 ‘12 RC/DD Drilling Koulékoun D D/R R D D/R Kodiéran D R D/R Balandougou D D R D/R RAB Drilling Tri-K Permits D Other Targets D

Key: Period of exploration activity R = resource model report; D = drilling results

22

Generative Scout Drilling Pre-Feasibility Feasibility Mine - Resource Development

Exploration and development pipeline

N’Tjila

Koulékoun

Mali Burkina Faso Guinea

Souma Kodiéran Legend Bubble size reflects current resource estimate

23

Inata Filio Damba Balandougou

Generative Scout Drilling Pre-Feasibility Feasibility Mine - Resource Development

Exploration and development - targets

N’Tjila

Koulékoun

Mali Burkina Faso Guinea

Souma Kodiéran Legend Bubble size reflects current target resource

24

Inata Filio Damba Balandougou

Gold mining in West Africa

Approx.

• utline of

Birimian Greenstone Belt Inata Mine Avocet Mining-owned exploration project Source: Company data Resource data as of 2008 Mali Niger Côte d’Ivoire Guinea Mauritania Senegal Ghana Burkina Faso

Country Birimian Geology (km2) Gold Resources (Moz)

Ghana 45,000 110 Mali 124,000 33 Guinea 27,000 12 Burkina Faso 60,000 12 Cote d’Ivoire 113,000 8 Senegal 6,000 3

25

20,000 40,000 60,000 80,000 100,000 120,000 140,000 20 40 60 80 100 120 140

Area of Birimian geology (km2) Gold Endowment (Moz)

Birimian Prospectivity

26

Highly developed Under explored

Burkina Faso Mali Guinea Ghana Cote d’Ivoire Niger Senegal

Maximising value from South East Asian assets Realising and growing the potential of Inata Accelerated organic growth in West Africa Ready and prepared to act on value adding acquisitions News flow in 2011

Strategic direction and outlook

• Conditional sale announced 24 December 2010
• Cash consideration of US$200 million upon completion
• US$110 million received in escrow to date
• Completion expected in Q2 2011
• Resources and reserves updated in Q3 2010
• On track for target of doubling Inata reserves by Q3 2011
• Increase in plant capacity announced
• 200,000 m drilling in and around Inata mining licence
• Early results to expand resource at depth and along strike
• Drilling commenced at Tri-K & Balandougou
• Initial results at Koulékoun & Kodiéran released Q1 2011
• Rise in cash from sale of Asian assets will leave Avocet

in a potentially strong position

• Continued review of M&A landscape in West Africa

27

• Completion of sale of South East Asian assets (Q2)
• Resource and reserve reports at Inata (Q3), Koulékoun

(Q3) and Balandougou (Q3)

• Start of Tri-K feasibility study (Q4)

Avocet Mining PLC

28

29

Appendices

Cautionary note

DISCLAIMER

• This Presentation is for information purposes in connection with the Avocet Mining PLC’s (the “Company’s”) preliminary results presentation only.

While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly

• disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility

for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.

• This Presentation may contain forward-looking statements regarding Avocet Mining PLC and its subsidiaries. These statements are based on various

assumptions made by the Company, which are beyond its control and which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Forward-looking statements may in some cases be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or

• ther comparable terminology. These forward looking statements are only predictions. Actual events or results may differ materially, and a number of

factors may cause our actual results to differ materially from any such statement. Such factors include among others general market conditions, demand for our products, development in reserves and resources, unpredictable changes in regulations affecting our markets, market acceptance of products and such other factors that may be relevant from time to time. Although we believe that the expectations and assumptions reflected in the statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievement. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Presentation to conform these statements to actual results or to changes in our expectations. You are advised, however, to consult any further public disclosures made by us, such as filings made with the Oslo Stock Exchange or press releases.

• This Presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and

nothing contained herein shall form the basis of any contract or commitment whatsoever. Copies of this Presentation should not be distributed in or sent into any jurisdiction where such distribution may be unlawful.

• United Kingdom: This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and

Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. By accepting this Presentation, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation.

30

Board of Directors and senior management

Exco Board of Directors

• Appointed to the Board in July 2010. He retired as Chairman of AngloGold

Ashanti Ltd in May 2010 having been a member of the board since 1998. Non- executive Director of Old Mutual PLC and several companies in the Rothschild

• Group. He took over as Chairman of Avocet in September 2010.

R P Edey Non-executive chairman

• Brett was appointed CEO of the Company in July 2010, and brings significant

experience working in Africa and developing larger mining companies that will be invaluable in realising Avocet’s potential. Brett is a HR and operations executive with previous experience at Katanga Mining Limited, Kinross and Co-Steel Inc.

Brett Richards CEO

• Finance Director since July 2007 having previously been CFO since February
• 2007. Chartered accountant at Coopers & Lybrand before holding senior

financial and operational roles at Rio Tinto PLC and Anglo American PLC.

Mike Norris Finance Director

• The Chief Executive Officer of Datum AS, Avocet's second largest shareholder.
• Mr. Arnet previously held the position of Senior Vice President, Corporate

Finance, Norway for Svenska Handelsbanken

H Arnet Non-executive Director

• Managing Director of UBS Investment Bank and also a director of ASA Limited,

an investment trust investing principally in South African gold mining companies.

R A Pilkington Non-executive Director

• A mining engineer with over 30 years experience in mining operations and new

mine developments in Africa, Australia, South East Asia and Europe.

M J Donoghue Non-executive Director

• Appointed in July 2010. He served as a Partner at PricewaterhouseCoopers for

17 years, acting as an advisor and auditor for several large and medium-sized businesses in both the public and private sector before retiring in 2001. He is also Chairman of the Audit Committee.

B J W Rourke Non-executive director

• Richard joined Avocet in June 2009 following

the acquisition of Wega Mining. He has had a successful career in developing mining companies, including 15 years working in South Africa for Gencor Ltd, and 10 years in West Africa for Golden Star Resources Ltd.

Richard Gray EVP Operations – West Africa

• Peter is a geologist

with over 20 years experience in gold and copper exploration, resource evaluation and reserve development in South East Asia, Central Asia and North America. He joined the Group as Chief Geologist in May 2002 following 12 years with Newmont Mining Corporation.

Peter Flindell EVP Exploration

• Hans-Arne

joined Avocet in June 2009 following the acquisition of Wega Mining. Previously he was Acting CEO of Wega Mining, having joined from Vyke Communications Plc, where he served as

• CEO. Prior to that position, he was CEO of

Birdstep Technologies, Inc.

Hans-Arne L’orange EVP Business Development & Investor Relations

31

Operational review – South East Asia

32

Penjom and North Lanut

• Combined gold production of 23,745
• z in Q1 2011
• Penjom Q1 production of 11,597 oz at

cash cost of US$1,194/oz

• Low ore tonnes mined
• Heavy rainfall in January and reduced

fleet availability

• North Lanut Q1 production of 12,148
• z at cash cost of US$759/oz
• Recoveries and costs affected by high

rainfall and increased reagent usage to counteract the dilutive effect of rainfall on leach solution

• Production guidance
• Q2 2011 guidance of approximately

20,000 oz for South East Asian

• perations due to temporary labour

disruption at North Lanut

South East Asia

33

Q1 2011 Production statistics Penjom North Lanut Ore mined (t) 80,000 298,000 Total movement (t) 3,366,000 589,000 Ore processed (t) 187,000 366,000 Average head grade (g/t) 2.29 2.06 Gold recovery rate (%) 84% 50% Gold production 11,597 12,148 Cash costs (US$/oz)

• mining

742 412

• processing

310 201

• royalties & overheads

142 146 Total cash cost 1,194 759

Financial results – 1st Quarter 2011

34

Income statement – Q1 2011

Three months ended Three months ended 31-Mar-11 31-Mar-10 US$ million Continuing Discontinued Group Continuing Discontinued Group Revenue 55.8 32.0 87.8

• 27.2

27.2 Cash costs (25.6) (23.1) (48.7)

• (18.4)

(18.4) Changes in inventory (1.0) 0.1 (0.9)

• 1.1

1.1 Other cost of sales (1.5) (1.4) (2.9) (0.9) (1.6) (2.5) Admin (1.9)

• (1.9)

(1.7)

• (1.7)

Share based payments (0.4)

• (0.4)

(1.6)

• (1.6)

EBITDA 25.4 7.6 33.0 (4.2) 8.3 4.1 Depreciation (11.2)

• (11.2)
• (4.1)

(4.1) Net finance costs (1.6) 0.1 (1.5) 0.1 0.1 0.2 Profit before tax 12.6 7.7 20.3 (4.1) 4.3 0.2 Tax (2.6) (1.3) (3.9) 1.2 (0.1) 1.1 Profit after tax 10.0 6.4 16.4 (2.9) 4.2 1.3

• Financial results in Q1 2011

reflect strong quarter from Inata

• Inata results in Q1 2010

were capitalised as the mine had not reached commercial production

• Other cost of sales reflects

exploration expensed in each period

• Group EBITDA of

US$33.0m mainly reflects Inata EBITDA of US$27.8m

• IFRS requires that South

East Asia operations be disclosed separately as Discontinued Operations on the basis that sale is probable

35

Group Reserves and Resources

* Mineral Resources include Reserves. Note: the above figures are rounded up/down where appropriate. Dates for reserve and resource estimates are outlined in the following slides

36 AVOCET GROUP Tonnes Grade (g/t) Contained Ounces Tonnes Grade (g/t) Contained Ounces Mineral Reserves

• Proven

13,239,000 1.91 815,000 11,833,700 1.91 728,300

• Probable

10,111,000 2.30 746,600 9,497,800 2.31 705,060

• Reserves subtotal

23,350,000 2.08 1,561,600 21,331,500 2.09 1,433,360 Mineral Resources*

• Measured

34,030,000 1.43 1,561,700 22,204,000 1.38 1,021,900

• Indicated

57,410,000 1.45 2,680,200 56,751,800 1.48 2,591,780

• Measured + Indicated

91,440,000 1.44 4,241,900 78,955,800 1.45 3,613,680

• Inferred

59,560,000 1.38 2,646,600 44,552,100 1.43 2,142,160

• Resources subtotal

151,000,000 1.42 6,888,500 123,507,900 1.45 5,755,840 Gross Net attributable

Cash flow

37

• Significant operating cash flow from

Inata in Q1 2011, compared with Inata inventory build up in Q1 2010

• 2011 capex at Inata – plant

enhancements and deposits for third fleet

• 2010 capex at Inata – construction

and commissioning costs, net of capitalised revenue in testing phase

• 2011 exploration expenditure

focused on Bélahouro and Guinea in West Africa

• US$6m repayment of Macquarie

project finance facility in 2011

• Q1 2010 repayment of intercompany

loans from the South East Asia group

• South East Asia cash balances are

reclassified as part of Group cash

US$ million Q1 2011 Q1 2010 Continuing Discontinued Group Continuing Discontinued Group EBITDA 25.4 7.6 33.0 (4.2) 8.3 4.1 Working capital 1.0 (1.5) (0.5) (9.9) (5.0) (14.9) Share based payments 0.3

• 0.3

1.6

• 1.6

Provision/other

• 0.3

0.3

• 1.0

1.0 Operating cash flow 26.7 6.4 33.1 (12.5) 4.3 (8.2) Interest (0.7)

• (0.7)

(0.9)

• (0.9)

Tax

• (2.2)

(2.2)

• (0.4)

(0.4) Capex (13.8) (0.6) (14.4) 1.0 (1.0)

• Exploration

(10.0) (1.5) (11.5) (0.5) (1.1) (1.6) Loan repayment (6.0)

• (6.0)
• Other
• (1.0)

(1.0) (0.5)

• (0.5)

Intercompany

• 10.6

(10.6)

• Reclassify cash

1.2 (1.2)

• Net cash flow

(2.6)

• (2.6)

(2.8) (8.8) (11.6) Opening cash 49.5

• 49.5

29.4 17.6 47.0 Closing cash 46.9

• 46.9

26.6 8.8 35.4

Cash costs and realised prices

2011 2010 Q1 Q1 Q2 Q3 Q4 Total Production

• Inata

47,963 19,838 31,225 40,461 46,208 137,732

• North Lanut

12,148 11,370 11,184 12,311 12,715 47,580

• Penjom

11,597 13,669 10,461 15,020 11,934 51,084 TOTAL 71,708 44,877 52,870 67,792 70,857 236,396 Cash costs

• Inata

533

• 1

569 526 5112 531

• North Lanut

759 635 678 657 722 674

• Penjom

1,194 818 1,119 841 1,064 944 TOTAL 678 735 701 619 641 660 Group realised gold price 1,2413 1,107 1,203 1,1393 1,2293 1,174

1 Inata costs and revenues in the quarter to 31 March 2010, prior to the commencement of commercial mining operations, were capitalised. 19,838 ounces of gold poured in this period were however included in total gold production. 2 Includes US$2.7m adjustment to reflect a government decree on 31 December 2010 that government royalties for 2010 should be charged at 3% rather than 5% royalty rate from 2011: up to $1,000 Au price – 3%; $1,000 to $1,300 Au price – 4%; >$1,300 Au price – 5% 3 Reflects 24,608, 26,135 and 25,064 ounces delivered into the Inata hedge in Q1 2011, Q3 2010 and Q4 2010 respectively at US$970/oz

38

Burkina Faso Reserves and Resources

Reserves and resources as at 31 December 2010 (Reserves were calculated at a 0.7 g/t Au cut-off and a stock pile is developed for all low grade ore (0.5 – 0.7 g/t Au) that will be processed towards the end of the mine’s life.) Note: the above figures are rounded up/down where appropriate. * Mineral Resources include Reserves.

39 INATA & BELAHOURO Tonnes Grade (g/t) Contained Ounces Tonnes (Mt) Grade (g/t) Contained Ounces Mineral Reserves

• Proven

9,905,000 2.05 653,900 8,914,500 2.05 588,500

• Probable

5,536,000 2.20 391,400 4,982,400 2.20 352,300

• Reserves subtotal

15,441,000 2.10 1,045,300 13,896,900 2.10 940,800 Mineral Resources*

• Measured

20,077,000 1.60 1,034,400 10,789,200 1.60 589,100

• Indicated

10,910,000 1.37 482,200 11,604,600 1.47 435,500

• Measured + Indicated

30,987,000 1.52 1,516,600 22,393,800 1.53 1,024,600

• Inferred

21,560,000 1.68 1,164,500 18,223,100 1.73 1,102,600

• Resources subtotal

52,547,000 1.59 2,681,100 40,616,900 1.62 2,127,200 Gross Net attributable

Guinea Reserves and Resources

Resources as at 31 December 2010 Note: the above figures are rounded up/down where appropriate. *

40 TRI-K (KOULEKOUN) Tonnes Grade (g/t) Contained Ounces Tonnes Grade (g/t) Contained Ounces Mineral Reserves

• Proven
• Probable
• Reserves subtotal

Mineral Resources*

• Measured
• Indicated

22,300,000 1.45 1,040,000 22,300,000 1.45 1,040,000

• Measured + Indicated

22,300,000 1.45 1,040,000 22,300,000 1.45 1,040,000

• Inferred

900,000 1.86 60,000 900,000 1.86 60,000

• Resources subtotal

23,200,000 1.47 1,100,000 23,200,000 1.47 1,100,000 Gross Net attributable (100%)

South East Asia Reserves and Resources

Reserves and resources as at 31 December 2010 Note: the above figures are rounded up/down where appropriate. * Mineral Resources include Reserves.

41 SOUTH EAST ASIA Grade Contained (g/t) Ounces Mineral Reserves

• Proven

3,334,000 1.51 161,100 2,919,200 1.49 139,800

• Probable

4,575,000 2.41 355,200 4,515,400 2.43 352,760

• Reserves subtotal

7,909,000 2.03 516,300 7,434,600 2.06 492,560 Mineral Resources*

• Measured

13,953,000 1.18 527,300 11,414,800 1.18 432,800

• Indicated

24,200,000 1.49 1,158,000 22,847,200 1.52 1,116,280

• Measured + Indicated

38,153,000 1.37 1,685,300 34,262,000 1.40 1,549,080

• Inferred

37,100,000 1.19 1,422,100 25,429,000 1.20 979,560

• Resources subtotal

75,253,000 1.28 3,107,400 59,691,000 1.32 2,528,640 Tonnes Grade (g/t) Contained Ounces Tonnes Gross Net attributable