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Barbrook Underground Mining Positive Results

Positive Results from Bankable Feasibility Study for Shallow Underground Mining at the Barbrook Project, South Africa Stage 1 Production Plan Economically Viable. The Directors of Vantage Goldfields Limited (VGO) are pleased to announce the successful completion of an independent Bankable Feasibility Study (“BFS”) on Stage 1 of the proposed shallow underground mining production plan at its Barbrook Project in the Barberton Goldfield of South Africa. The BFS has determined the economic viability of mining the pre-developed mineral resources within the Taylors Central and French Bob sections of the dormant Barbrook Mine between 6 and 10 Levels and producing gold concentrate, using existing metallurgical plant infrastructure, to meet the requirements of an Off-Take Agreement with a London-based metals trader, Mine2Market Limited (“MML”). Under the Off-Take Agreement, VGO agreed to sell a specified amount of gold concentrate to MML each month over a 36 month period (“Term”). The maximum amount of gold concentrate which VGO agreed to sell to MML over the Term is 30,000 metric tonnes, subject to VGO increasing its production from the Barbrook mine. The minimum amount of gold concentrate VGO must sell to MML is 15,000 metric tonnes. Turgis Consulting (Pty) Ltd (“Turgis”) was commissioned by VGO to analyse the proposed mine design, the production schedule, the metallurgical process and all associated costs of producing the required amount of concentrates to satisfy the terms of the Off-Take Agreement. Turgis concluded that the underground production plan is economically viable at the assumed gold price of US$ 1000/oz. Executive Director, Dr Willo Stear, commented; “We are pleased with the positive results of the Barbrook Stage 1 BFS and will be investigating various financing options for implementing the proposed production plan over the next few months”. The results of the BFS mine plan show that the ore reserves in the Taylors and French Bob sections are accessible via existing underground development from horizontal adits to surface on 4, 7 and 10 Levels. It is anticipated that mine production will commence in 2011 via the two adits at 7 and 10 Levels, and will ramp up to a production rate of 10,000 tonnes of run-of-mine ore per month, building up to 15,000 ounces of gold produced per annum. The following are the declared ore reserves: The capital costs for Stage 1, based on the engineering design work, are estimated to be A$ 2.8 million. Dr Stear added; “We are now confident to proceed with underground drilling with a view to completing a pre-feasibility study on Stage 2, which will analyse the viability of introducing bulk mining by mechanised methods below 10 Level on depth extensions of the same ore bodies that will be mined in Stage 1”.