At Sadiola / Yatela, an additional $2.2 million capitalized exploration budget was approved in Q3 2009 to complement the $14.9 million exploration program approved in May 2009. The 18 month exploration program was designed to fully evaluate the remaining oxide gold potential on the joint venture lands and undertake further investigation of potential sulphide mineralization by Q3 2010.

The additional $2.2 million capitalized exploration funding was approved in response to encouraging exploration drill results in and adjacent to the Yatela Pit, targeted extensions of the Alamoutala Pit and exploration targets north of Yatela. Gravity geophysical surveys, in conjunction with a detailed airborne magnetic and radiometric survey completed in September 2009, has advanced the early stage exploration phase of the program and refined numerous targets.

The mine life of the Yatela Gold Mine is now estimated to be extended by approximately 15 months into early 2012. Drilling that was completed subsequent to the October 31, 2009 cut-off date has increased the resource base at Yatela.

Recent Developments as at September 30, 2010

Gold production was lower by 59% in the third quarter of 2010 compared to the third quarter of 2009 as a result of the gold grade of ore stacked in prior periods. After the completion of mining the bottom of the main pit in early 2010, mine production has shifted to a longer-haul satellite pit which resulted in lower grades and higher waste stripping. As a result, gold stacked decreased in the third quarter of 2010. In comparison, higher grade fresh ore was being mined in the prior year.

Cash costs per ounce were significantly higher during the third quarter of 2010 compared to the third quarter of 2009, primarily as a result of higher waste stripping costs due to an increase in the mining contractor fee structure, lower gold production from lower grades, and higher royalty costs from higher realized gold prices.

Attributable capital expenditures for the third quarter and the first nine months of 2010 were $0.4 million and $1.6 million respectively, mainly consisting of capitalized exploration.

Yatela distributed no dividend to the Company during the third quarter of 2010 (2009 – $10.0 million). In the first nine months of the year, Yatela distributed $25.9 million to the Company (2009- $20.0 million).

Outlook

Mining is expected to continue at least through 2010 while gold production on the leach pads is expected to continue into early 2012. Previously, mining was expected to cease mid 2010. Exploration potential exists for additional satellite deposits in the vicinity of the mine.