Kingsgate

It is estimated that the Kingsgate project has:

• A projected net present value of A$87.7m using a discount rate of 10%.
• An Internal Rate of Return of 45.8%.
• Total revenues amount to A$445 million, creating $283.2 million in cash flow after operating costs, and $138.8million after capital expenditure, royalties and tax. Initial start-up capital expenditure of $80.9 million, of which the process plant is $69.1million.
• A capital expenditure payback period of 22 months.

Project development focus is anticipated to be on optimising high purity silica production to achieve greater marketing flexibility and potentially significant capital and operating cost reductions. Investment opportunities include Farm-In, JV and purchase.

For further information please call Michelle Stokes on +61 8 6468-4965 or check the Auzex Resources website (www.auzex.com)