Ann: Quarterly Activities & Cashflow Report - 30 September 2014, page-18

Hi joewolf,
The Sept Qtr report which says that AISC is $997/oz is for the Sept Qtr only (see below)
with the plant in ramp-up mode. The plant processed 23,278 ton from a standing start
in mid July. Had it been processing at capacity it would have had a throughput of 35,000 tons
or 50% higher for the same period. Also mining costs have been higher due to start-up development
work.

The proper AISC is $650/oz USD as per the RIU presentation-13-05-15- which is the Steady State AISC (again see below)

As I have previously posted, the  ramp-up Qtr AISC is not very useful for forward fundamental
analysis purposes. The Steady State ASIC of USD$650/oz is AUD$755 which leaves a margin
of AUD$680/oz at today's POG in AUD.

I trust that this clarifies the situation.

Moorookamick