🕐27.01.09 - 23:26 Uhr

Lihir Gold Limited - Fourth Quarter 2008 Production Results



Good morning Please find attached and copied below an announcement regarding LGLs Fourth Quarter 2008 Production Results.

The Production Report and Presentation are also attached. A media conference call with CEO Arthur Hood will commence at 11.00am AEDT (Syd/Melb time). Best regards Josie
28 January 2009 LGL achieves third successive year of record gold production Global gold company Lihir Gold Limited (LGL) has reported record gold production in 2008 of 882,000 ounces, a 26% increase on the prior year and well in excess of its targeted 850,000 ounces. The result represents a third successive year of record production for LGL and was achieved on the back of record gold output of 315,000 ounces in the December quarter, up 26% on the preceding three month period. Total cash costs for the LGL group were US$400 per ounce in 2008 and US$353 per ounce for the fourth quarter, which continues to position the company at the lower end of the global gold production cost curve. LGL has forecast group-wide gold production to increase by more than 10 percent in 2009 to in excess of one million ounces, confirming the companys standing among the worlds premier gold producers. The production growth in 2008 reflected an outstanding fourth quarter performance from LGLs cornerstone Lihir Island operation, which produced 247,000 ounces, taking full year production to a record 771,000 ounces. The acquisition of Equigold NL, completed in June, also underpinned LGLs record production for the year, with the Mt Rawdon, Bonikro and Kirkalocka gold mines joining the group.

Together these mines contributed 100,000 ounces to LGLs production since June. Managing Director Mr Arthur Hood said LGLs excellent performance in 2008 highlighted the success of operational improvements implemented at Lihir Island over recent years, as well as the companys transformation into a multi-mine producer. "LGL is now established as a global gold producer, with improved operational reliability and an exciting growth profile from a diversified portfolio of high quality assets," he said. "The Equigold merger has enabled us to significantly diversify our revenue and production sources.

In the fourth quarter some 22% of group gold output came from our Australian and Ivory Coast operations." The Bonikro plant in Ivory Coast was successfully commissioned in October and ramped up to produce 37,000 ounces for the quarter.

In Australia, Mt Rawdon in Queensland produced 25,000 ounces in the final quarter, with 54,000 ounces attributable to LGL in 2008.

Ballarat in Victoria reported 7,000 ounces for the fourth quarter and 10,000 ounces for the year. In 2009 LGL has forecast another year of record gold output from Lihir Island at between 770,000 and 840,000 ounces, approximately 130,000 - 160,000 ounces from Bonikro as it delivers its first full year of production, 90,000 - 100,000 ounces from Mt Rawdon confirming its track record of consistent production; and 50,000 - 100,000 ounces from Ballarat.

Total cash costs are expected to fall to less than US$400 per ounce. "2008 has been a great year for LGL.

Weve built on the world-class Lihir Island deposit to create a major, diversified gold producer with four operating mines spanning three countries, and a very strong growth outlook," Mr Hood said. The company will release its 2008 full year financial results on 19 February 2009. For further information: Josie Brophy Communications Officer [cid:image001.jpg@01C9811B.E4F2FE80] Lihir Services Australia Phone: +61 7 3318 3317 Mobile: +61 448 177 502 Website: www.LGLgold.com



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