Buzwagi (Project)

Buzwagi is located in northwest Tanzania, East Africa, approximately 6 kilometers east of Kahama town and 120 kilometers south of Mwanza.  The project was approved for construction on August 1, 2007. All long lead items have been ordered.  Initial capital costs are expected to be $400 million, consistent with previous guidance. The project is tracking well, within budget and on schedule.

The close proximity to both Bulyanhulu and Tulawaka mines presents significant synergy opportunities, including shared infrastructure, equipment, personnel & training initiatives.  Buzwagi will be the second largest mining operation in Tanzania and the largest single open pit in the country.

Buzwagi is expected to begin production in mid-2009, producing 250,000 - 260,000 ounces per year at total cash costs of $270 - $280 per ounce in its first five full years of operation¹.  Proven and probable reserves at Buzwagi are 3.6 million ounces of gold and 175 million pounds of copper contained within the gold reserves².