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Belo Sun Mining Completes Pre-Feasibility Study

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Capital Cost

Capital cost for the mine infrastructure, process plant and open pit development has been developed to provide an estimate suitable for the Construction Phase including cost to design, construct and commission the facilities. Mining costs include pre-stripping of the open pit in preparation for production.

Volta Grande Capital Cost Estimate

----------------------------------------------------------------------------                                  Value without     Value with                                          Taxes          TaxesArea Description                     (USDx1000)     (USDx1000)   % of CAPEX----------------------------------------------------------------------------General (Assemblies)                     52,573         57,551         7.68%----------------------------------------------------------------------------Mine                                    121,528        126,127        16.84%----------------------------------------------------------------------------Plant - General                          91,471        101,508        13.55%----------------------------------------------------------------------------Crushing                                 11,412         12,186         1.63%----------------------------------------------------------------------------Storage/Ore transference                  5,087          5,537         0.74%----------------------------------------------------------------------------Grinding                                 70,178         75,724        10.11%----------------------------------------------------------------------------Leaching/Adsorption                      30,037         33,057         4.41%----------------------------------------------------------------------------Elution                                   5,763          6,564         0.88%----------------------------------------------------------------------------Electrowinning                            1,119          1,279         0.17%----------------------------------------------------------------------------Gold room                                 1,527          1,674         0.22%----------------------------------------------------------------------------Carbon regeneration                         970          1,081         0.14%----------------------------------------------------------------------------Tailings treatment                        3,186          3,877         0.52%----------------------------------------------------------------------------Lime preparation                          1,491          1,698         0.23%----------------------------------------------------------------------------Tailings dam                             10,788         12,641         1.69%----------------------------------------------------------------------------Ancillary facilities                     48,507         55,493         7.41%----------------------------------------------------------------------------Water distribution system                 2,868          3,512         0.47%----------------------------------------------------------------------------Compressed air system                     1,111          1,189         0.16%----------------------------------------------------------------------------Reagents delivery, store and distribution                             7,308          8,249         1.10%----------------------------------------------------------------------------Infrastructure                           29,378         32,946         4.40%----------------------------------------------------------------------------Environment                               1,018          1,174         0.16%----------------------------------------------------------------------------Engineering and Procurement (EP)         23,787         26,039         3.48%----------------------------------------------------------------------------Construction management (CM)             31,716         34,719         4.63%----------------------------------------------------------------------------Owner's Costs                            21,819         21,819         2.91%----------------------------------------------------------------------------Freight                                   8,223          8,223         1.10%----------------------------------------------------------------------------Erection supervision (Vendor Representation)                          3,721          4,340         0.58%----------------------------------------------------------------------------Spare parts                               1,052          1,132         0.15%----------------------------------------------------------------------------Firts Fills                               1,817          1,954         0.26%----------------------------------------------------------------------------Pre-Commissioning and training            3,721          4,340         0.58%----------------------------------------------------------------------------Engineering insurance                     5,998          6,561         0.88%----------------------------------------------------------------------------Contingency                              96,919         96,919        12.94%----------------------------------------------------------------------------Total                                   696,094        749,114          100%----------------------------------------------------------------------------

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