production starts 2 months ahead of schedule

The Frog's Leg advanced project is well underway, as production started ahead of schedule and 46,000 tonnes of ore grading 3.43 g AU/t were already stockpiled on the surface by the end of March. The first load of ore was hauled to the Jubilee processing plant in April, and the first gold pour took place yesterday, on May 13, 2008. Frog's Leg is expected to produce 10,000 ounces of gold (5,100 ounces attributable to La Mancha) during second quarter of 2008. During the first quarter, a total of 23,700 tonnes of ore was mined at an average grade of 3.67 g Au/t. Inclusion of the 37% increase in the Frog's Leg resource announced on April 1st in a new mining plan is currently being evaluated and would significantly improve the profitability of the Frog's Leg project.

To date, more than 3,000 meters of development have been completed at a capital cost to date of $21.8 million, 10% under budget. Development rates are expected to increase significantly from May onward with the commissioning of a third development drill (two-boom jumbo).