Ann: Phoenix suspends mining to focus on Norton JV and heap leach, page-2

Dear All

Please find the link below to our latest announcement.

While a difficult decision, the temporary suspension of small mining projects is the most prudent one and we now will focus on the Mick Adams development with Norton and the heap leach project.

Kintore West has been disappointing. Drill and blast performance has been poor and grade reconciliation in the second mill campaign below forecast. Selective small scale mining of these bulk stockwork systems has proven difficult and only reinforces the importance of heap leaching as a processing pathway.

Mining at Kintore will be completed by the end of April and milling will continue with the third campaign running until the end of May.

The additional projects, Burgundy, Red Dam, Nazzaris will remain under review and timing aligned with cash flow from the Norton JV. We expect execution of the formal agreement in coming weeks and development to commence within 3 months. This delivers significant cash to the business.

Heap leach financing  is well underway with interest from local and overseas financiers. With the project generating A$10m pa over its initial 7 year life, the project is extremely robust. Combined with the Norton JV cash flow, these projects have significant value.

To view the announcement, click on the link below:

http://www.asx.com.au/asxpdf/20150414/pdf/42xw5ch1ld4j8y.pdf