Mt Magnet Gold Mine

(Ramelius 100%)

Ramelius purchased Mt Magnet Gold NL and the Mt Magnet gold project from Harmony Gold (Australia) Pty Ltd in July 2010 for A$40 million. The Mt Magnet project has previously produced over 5 million ounces of gold and has potential for significant new discoveries. In April 2011 the Ramelius Board approved the redevelopment of Mt Magnet, with open pit mining initially focusing on a series of large open pit cutbacks to the Mars, Saturn and Titan pits, collectively referred to as the Galaxy mining area.

Mt Magnet Gold Mine project location, 600km north of Perth in Western Australia

Ramelius recommenced open pit mining operations in September 2011 and expect to produce 545,000 ounces of gold over 6 years. The mine schedule does not include on-site tailings and low grade stockpiles, which total 1.4Mt at 0.9g/t Au for 42,000 ounces of gold.

Ore will be treated through the adjacent Checker Mill, rated at 1.7Mtpa.

Geology

The Mt Magnet project is located within the north-south striking Meekatharra-Mt Magnet greenstone belt of the Western Australian Murchison Province. The greenstone belt lithologies comprise a succession of steeply dipping and intensely deformed plus interlayered mafic and ultramafic extrusive and intrusive rocks, felsic volcanics and banded iron formations. Granitic rocks intrude the greenstone belt stratigraphy.

Banded iron formations are the dominant host rocks for gold mineralisation in the project. Gold mineralisation is typically associated the pyrite and/or pyrrhotite replacing magnetite in the banded iron. Economic high grade ore shoots are developed along the intersection of the banded iron formation and a swarm of northeast trending faults, colloquially referred to as Boogardie Breaks.

Mining

Watpac Limited (ASX:WTP) has been awarded the open pit mining contract. Watpac is a publicly listed company and is one of Australia’s leading mining contractors. Watpac has a number of mining contracts in Western Australia.

Milling

The Checkers Mill is an existing 1.7 million tonne per annum (mtpa) conventional semi autogenous grinding (SAG) gold mill located approximately 4km from the Galaxy mining area.

The mill refurbishment was commenced in July 2011 and is scheduled for completion in December 2011.

Galaxy mining area and Checkers Treatment Plant at Mt Magnet, Western Australia