Ann: Gold Production at HGZ Project, page-2

Crater Gold Mining Limited (“Company” (ASX: CGN) is pleased to provide an update on the High Grade
Zone (“HGZ” gold mining project at Crater Mountain, PNG.
The Company has produced approximately 66 ozs of gold. Production was from a composite of low and
high grade gold ore.
Current production is running at minimal levels utilising only the newly purchased hammer mill and
concentrator whilst the process plant is being refurbished. Once the full plant is operational a night shift
will be introduced with production rates expected to increase greatly.
Additional pneumatic jack hammers are en route to the mine site and these will allow more specific
mining on an increased number of faces, thus providing additional high grade ore to the processing
plant.
Skid steer loaders have been ordered and are expected on site shortly. The skid steer loaders will
dramatically improve the underground bogging operations and also increase the ore tonnage to the
process plant.
Email: [email protected] Website: www.cratergold.com.au 2
The HGZ mine has for some time been operating at a minimal capacity, however we are confident that
when the new and refurbished mining equipment is commissioned, allowing the processes as
mentioned above to be implemented, that they will all have a considerable effect in increasing gold
production at the HGZ mine.
Crater Gold Mining Managing Director, Russ Parker said:
“…The Company has been frustrated by further delays at the HGZ mine, however during this time we
have been planning and carrying out improvements to the mine and fully expect these to have a very
positive effect on gold mining production rates at the HGZ. As shareholders are no doubt aware, the
Company is in the midst of a Rights Issue. On behalf of the Board I encourage all shareholders to take
up their Rights entitlements. A better funded Company will enable further improvements to the HGZ
mine “