RESERVES AND RESOURCES

Gold Reserves — 31 December 2010
Project Classification Tonnes Grade (g/t Gold) Ounces
SVARTLIDEN        
Svartliden - Open Pit (1) Proven 156,000 3.7 18,560
  Probable 209,000 3.4 22,850
         
Svartliden - Underground (2) Proven - - -
  Probable 294,000 4.3 40,680
         
Svartliden - Stockpiles (3) Proven 20,890 2.7 1,800
  Probable 335,240 1.8 19,400
         
Svartliden Gold Mine - Total Proven 176,890 3.6 20,380
  Probable 838,240 3.1 82,930
  Total 1,015,130 3.2 103,310
         
ORIVESI        
Sarvisuo - Underground (4) Proven - - -
  Probable 155,240 4.7 23,230
         
Kutema - Underground (5) Proven - - -
  Probable 72,060 3.2 7,410
         
Kutema Deeps - Underground (6) Proven - - -
  Probable 263,370 4.9 41,490
         
Orivesi Gold Mine - Total Proven - - -
  Probable 490,670 4.6 72,130
  Total 490,670 4.6 72,130
         
JOKISIVU        
Kujankallio - Underground (7) Proven - - -
  Probable 346,700 4.5 50,160
         
Arpola - Open Pit (8) Proven 28,500 3.7 3,390
  Probable 12,200 5.2 2,040
         
Jokisivu Gold Mine - Total Proven 28,500 3.7 3,390
  Probable 358,900 4.6 52,200
  Total 387,400 4.5 55,590
         
Group Total Proven 205,390 3.6 23,770
  Probable 1,687,810 3.8 207,260
  Total 1,893,200 3.8 231,030

Click here to view Notes

(1) Ore loss was set at 10% and dilution at 22% in line with reconciliation figures. Mining costs were based on the existing mining contract. Metallurgical recoveries average 91%. The determined ore reserves are based on a gold price of US$1,200/oz and reported at a gold cut-off grade of 1.8 g/t gold.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of the company and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(2) Ore loss was set at 21% and dilution at 39%. Mining costs were based on tendered rates. Metallurgical recoveries average 91%. The ore reserves that have been declared are based on a gold price of US$1,200/oz and reported at a gold cut-off grade of 3.0 g/t gold.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of the company and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(3) The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of the company and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(4) Ore loss was set at 0% and dilution at 10%. Mining costs were based on the existing mining contract. The determined ore reserves are based on a gold price of US$1,355/oz and foreign exchange rate of 1,40 USD/EUR. Ore reserves are reported at a gold cut-off grade of 2.0 g/t gold.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen consent to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(5) Ore loss was set at 0% and dilution at 10%. Mining costs were based on the existing mining contract. The determined ore reserves are based on a gold price of US$1,355/oz and foreign exchange rate of 1,40 USD/EUR. Ore reserves are reported at a gold cut-off grade of 2.0 g/t gold.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen consent to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(6) Ore loss was set at 0% and dilution at10%. Mining costs were based on the existing mining contract. The determined ore reserves are based on a gold price of US$1,200/oz and foreign exchange rate of 1,35 USD/EUR. Ore reserves are reported at a gold cut-off grade of 2.0 g/t gold.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australasian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen consent to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(7) Ore loss was set at 5% and dilution at 30%. Mining costs were based on the existing mining contract. The determined ore reserves are based on a gold price of US$1,200/oz and foreign exchange rate of 1.25 USD/EUR. Ore reserves are reported at a gold cut-off grade of 2.0 g/t gold.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australasian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen consent to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(8) Ore loss was set at 10% and dilution at 44% in line with results from the Kujankallio open pit. Mining costs were based on the tendered rates. The determined ore reserves are based on a gold price of US$1,350/oz and foreign exchange rate of 1.35 USD/EUR. Ore reserves are reported at a gold cut-off grade of 2.0 g/t gold.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australasian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen consent to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.

Gold Resources — 31 December 2010 (Inclusive of Reserves)
Project Classification Tonnes Grade (g/t Gold) Ounces
SVARTLIDEN        
Svartliden - Open Pit (1) Measured 189,000 4.1 24,900
  Indicated 360,000 3.2 37,000
  Inferred 79,000 2.8 7,100
  Total 629,000 3.5 69,000
         
Svartliden - Underground (2) Measured - - -
  Indicated 272,000 6.5 56,800
  Inferred 73,000 4.9 11,500
  Total 345,000 6.1 68,000
         
Svartliden — Stockpiles (3) Measured 20,900 2.7 1,800
  Indicated 335,200 1.8 19,400
  Inferred - - -
  Total 356,100 1.8 21,200
         
Svartliden Total Measured 209,900 4.0 26,700
  Indicated 967,200 3.6 113,200
  Inferred 152,000 3.8 18,600
  Total 1,330,100 3.7 158,200
         
Orivesi - Kutema (4) Measured - - -
  Indicated 64,300 3.6 7,400
  Inferred 9,200 3.1 900
  Total 73,500 3.5 8,300
         
Orivesi — Kutema Deeps (5) Measured - - -
  Indicated 310,400 5.1 50,800
  Inferred 515,000 6.0 100,100
  Total 825,400 5.7 150,900
         
Orivesi — Sarvisuo Lodes (6) Measured 132,000 6.6 27,900
  Indicated 74,700 6.7 16,200
  Inferred 57,000 9.5 17,400
  Total 263,700 7.3 61,500
         
Jokisivu - Arpola (7) Measured 23,600 6.3 4,800
  Indicated 152,000 5.2 25,400
  Inferred 271,900 7.3 63,900
  Total 447,500 6.5 94,000
         
Jokisivu - Kujankallio (8) Measured 38,000 6.1 7,500
  Indicated 590,800 5.3 101,200
  Inferred 750,300 5.6 135,800
  Total 1,379,100 5.5 244,500
         
Kaapelinkulma (9) Measured - - -
  Indicated 119,000 4.4 16,800
  Inferred 64,000 3.5 7,200
  Total 183,000 4.1 24,000
         
Vammala Total Measured 193,600 6.5 40,200
  Indicated 1,311,200 5.2 217,800
  Inferred 1,667,400 6.0 325,300
  Total 3,172,200 5.7 583,200
         
KUUSAMO        
Juomasuo (10) Measured - - -
  Indicated 491,000 7.5 119,100
  Inferred 912,000 4.8 140,200
  Total 1,403,000 5.7 259,300
         
Hangaslampi (11) Measured - - -
  Indicated 219,000 6.8 47,800
  Inferred 59,000 4.20 7,900
  Total 278,000 6.2 55,700
         
Pohjasvaara (12) Measured - - -
  Indicated 51,000 4.4 7,100
  Inferred 45,000 5.4 7,700
  Total 95,000 4.9 14,800
         
Meurastuksenaho (13) Measured - - -
  Indicated 25,000 3.8 3,000
  Inferred 341,000 3.6 39,400
  Total 366,000 3.6 42,400
         
Sivakkaharju (14) Measured - - -
  Indicated - - -
  Inferred 47,000 7.5 11,300
  Total 47,000 7.5 11,300
         
Kuusamo Total Measured - - -
  Indicated 786,000 7.0 177,000
  Inferred 1,404,000 4.6 206,500
  Total 2,189,000 5.4 383,500
         
Total - Scandinavia Measured 403,500 5.2 66,900
  Indicated 3,064,400 5.2 508,000
  Inferred 3,223,400 5.3 550,400
  Total 6,691,300 5.2 1,124,900

Note: Resources may not sum to equal totals due to rounding

Click here to view Notes

(1&2) The September 2010 resource update was undertaken by independent geological consultants Runge Limited of Perth, Western Australia using Ordinary Kriging (OK) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 1 g/t gold cut-off and a minimum down hole length of 2 metres. Block dimensions used in the model were 2m NS x 10m EW x 10 m Vertical. A high grade cut of 60 g/t gold was utilised for the underground resource and 30 g/t gold for the open pit resource. The Open Pit Resource is reported at a 1.3 g/t gold cut-off and the Underground Resource reported at a 3 g/t gold cut-off. The updated resource incorporates all available drill data at September 2010 and complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). The resource has been depleted for mining from the Svartliden open cut as at 31 December 2010.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of the company and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(3) The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of the company and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(4) The 2010 resource update was prepared internally. Inverse Distance to Power 2 (ID2) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 1.0 g/t gold cut-off. Block dimensions used in the model were 5m NS x 10m EW x 10m vertical. High grade cuts of 80 g/t and 110 g/t gold were utilised for the lodes. The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). Reported at a 3 g/t gold cut-off.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australasian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen consent to the inclusion in the announcement of the matters based on their information in the form and context in which it appears.
(5) The 2007 resource update was completed by independent geological consultants Resource Evaluations Pty Ltd (Perth, Western Australia) using Inverse Distance to Power 2 (ID2) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 1.0 g/t gold cut-off. Block dimensions used in the model were 5m NS x 10m EW x 10m vertical. High grade cuts of 80 g/t and 110 g/t gold were utilised for lodes. The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). Reported at a 3 g/t gold cut-off.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who was a full time employee of Resource Evaluations Pty Ltd and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(6) The January 2011 resource update was completed by independent geological consultants Runge Limited of Perth (Western Australia) using Inverse Distance to Power 2 (ID2) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 0.1-0.5 g/t gold cut-off and no minimum down hole length due to the pinch and swell nature of the ore body. Block dimensions used in the model were 2m NS x 10m EW x 10m vertical. High grade cut of 70 g/t gold was utilised for all mineralised objects. The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). Reported at a 3 g/t gold cut-off.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(7) The January 2011 resource update was completed by independent geological consultants Runge Limited of Perth (Western Australia) using Inverse Distance to Power 2 (ID2) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 0.1-0.5 g/t gold cut-off and no minimum down hole length due to the pinch and swell nature of the ore body. Block dimensions used in the model were 10m NS x 2m EW x 5m vertical. High grade cut of 70 g/t gold was utilised for all mineralised objects. The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). Reported at a 2 g/t gold cut-off.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(8) The January 2011 resource update was completed by independent geological consultants Runge Limited of Perth (Western Australia) using Inverse Distance to Power 2 (ID2) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 0.2-1.0 g/t gold cut-off and no minimum down hole length due to the pinch and swell nature of the ore body. Block dimensions used in the model were 2m NS x 5m EW x 5m vertical. High grade cuts of 75 g/t and 105 g/t gold was utilised for the mineralised objects. The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). Reported at a 2 g/t gold cut-off.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(9) The October 2010 resource update was completed by independent geological consultants Runge Limited of Perth, Western Australia using Inverse Distance to Power 2 (ID2) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 0.5 g/t gold cut-off and a minimum down hole length of 2 metres. Block dimensions used in the model were 10m NS x 2m EW x 5m vertical. High grade cuts of 50 g/t gold and 20 g/t were utilised for the Southern and Northern areas, respectively. The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). Reported at a 1 g/t gold cut-off.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(10) The Juomasuo resource update was completed in January 2011 using Ordinary Kriging (OK) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 0.5 g/t gold cut-off (Cut-off grade previous resource – 2 g/t gold equivalent Aueq = Au (g/t) +10*Co (%)) and a minimum down hole length of 2 metres. Block dimensions used in the model were 6m NS x 2m EW x 5m vertical. The deposit currently comprises 22 objects, with statistically derived high grade cuts of 120 g/t gold applied to the two main lodes that contain the bulk of the high grades, 50 g/t gold to another large lode that contained a substantial distribution of high grades and 30 g/t to all other smaller peripheral lodes (High grade cut previous resource – 33 g/t gold). The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC).
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(11) The Hangaslampi resource update was completed in January 2011 using Ordinary Kriging (OK) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 0.5 g/t gold cut-off (Cut-off grade previous resource – 2 g/t gold equivalent Aueq = Au (g/t) +10*Co (%)) and a minimum down hole length of 2 metres. Block dimensions used in the model were 6m NS x 2m EW x 5m vertical. A statistically derived high grade cut of 70 g/t gold was applied to all objects (High grade cut previous resource – 33 g/t gold). The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC).
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(12) The resource update was completed in January 2011 using Ordinary Kriging (OK) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 0.5 g/t gold cut-off (Cut-off grade previous resource – 2 g/t gold) and a minimum down hole length of 2 metres. Block dimensions used in the model were 6m NS x 2m EW x 5m vertical. A statistically derived high grade cut of 30 g/t gold was applied to all objects (High grade cut previous resource – 10 g/t gold). The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC).
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(13) The resource update was completed in January 2011 using Ordinary Kriging (OK) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 0.5 g/t gold cut-off combined with a nominal 500ppm cobalt cut-off (Cut-off grade previous resource – 3 g/t gold equivalent Aueq = Au (g/t) +10*Co (%) + 2*Cu (%)) and a minimum down hole length of 2 metres. Block dimensions used in the model were 6m NS x 2m EW x 5m vertical. A statistically derived high grade cut of 37 g/t gold was applied to all objects (High grade cut previous resource – 14 g/t gold). The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC).
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(14) The resource update was completed in January 2011 using Inverse Distance to Power 2 (ID2) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 0.5 g/t gold cut-off (Cut-off grade previous resource – 3 g/t gold) and a minimum down hole length of 2 metres. Block dimensions used in the model were 6m NS x 2m EW x 5m vertical. No high grade cuts were applied due to the absence of extreme high grade outliers and the low coefficient of variation for gold (High grade cut previous resource – 21 g/t gold). The updated Mineral Resource complies with recommendations in the Australasian Code for Reporting Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC).
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Resources - Other Metals - 31 December 2010
Project Classification Tonnes Ni 
(%) Cu 
(%) Co (%) Pd 
(%) Pt (g/t)
VAMMALA              
Stormi (1) Inferred 1,600,000 0.40 0.30      
  Total 1,600,000 0.40 0.30      
               
Ekojoki (2) Inferred 1,096,000 0.50 0.40      
  Total 1,095,900 0.50 0.40      
               
Vammala Total Inferred 2,696,000 0.47 0.34      
  Total 2,696,000 0.47 0.34      
               
KUHMO JV (5% Interest)              
Vaara (3) Indicated 7,502,000 0.32 0.02 0.01 0.15 0.07
  Inferred 739,000 0.27 0.02 0.01 0.11 0.07
  Total 8,241,000 0.32 0.02 0.01 0.14 0.07
               
Peura-aho (4) Indicated 405,000 0.63 0.29 0.04 0.62 0.28
  Inferred 90,000 0.48 0.23 0.03 0.42 0.21
  Total 495,000 0.60 0.27 0.04 0.58 0.27
               
Hietaharju (5) Indicated 848,000 0.85 0.44 0.06 1.25 0.53
  Inferred 235,000 0.59 0.27 0.04 0.89 0.34
  Total 1,083,000 0.80 0.40 0.05 1.17 0.49
               
Kuhmo JV Total Indicated 8,755,000 0.39 0.08 0.02 0.27 0.13
  Inferred 1,064,000 0.36 0.09 0.02 0.31 0.14
  Total 9,819,000 0.38 0.08 0.02 0.28 0.13
               
Group Total Indicated 437,750 0.39 0.08      
  Inferred 2,749,200 0.47 0.34      
  Total 3,186,950 0.46 0.30      

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(1 & 2) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Aaron Green BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Aaron Green consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(3 to 5) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information as lodged with the ASX on 23 October 2009 by Vulcan Resources Limited “Increase in Kuhmo Nickel Project Resources: Now a Significant Emerging Nickel Province”. These resources have been reported according to the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (2004 JORC Code). The Kuhmo Nickel Project Mineral Resource remains unchanged since that date.
With respect to Dragon Mining Ltd’s 5% share of the project, Mr Neale Edwards, a Member of the Australian Institute of Geoscientists who is a full time employee of Dragon Mining Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves, has verified the form and context in which the information regarding the Kuhmo Nickel Project Mineral Resource has been used and considers it to be consistent with the original release by Vulcan Resources Limited.