Ann: Twin Hills Operations and Production Update , page-42

re: Ann: Twin Hills Operations and Production... To clear up some of the misapprehensions posted, here is what AYN has said:

From the December quarterly:

"Ore feed onto the heap leach pads was constrained during the Quarter by some mechanical issues with the crushing
circuit, particularly the new Quad Rolls Crusher. This adversely affected overall plant availability and utilisation, resulting in a lower-than-budgeted rate of ore feed into the front end of the production process.

These issues have since been addressed..."


From the February 22nd. update:

"The Company advises that stacking of high-grade ore onto Leach Pad 3 has now commenced and similar ore is now
under full irrigation on Leach Pad 2. In total, approximately 400,000 recoverable ounces of silver are stockpiled on Leach Pad 2 and 3.

The recent heavy rains in south-east Queensland have caused delays to the completion of Leach Pad 3, which was
expected to be in production in January and forecast to significantly increase production levels for the March 2012
Quarter. It is now anticipated that production will commence from this pad by late March.

While the operation has recently achieved production rates in excess of 3,100oz of silver per day, there has been a
slower than anticipated ramp-up in recovery rates. During this ramp-up period, the Company is continuing to undertake
optimisation work on heap flow rates and reagent addition to maximise silver leaching kinetics from the heaps. This
work, together with the commissioning of Leach Pad 3, should assist the Company in moving towards its goal of
achieving consistent daily production of around 4,000oz of silver."