2008 PRODUCTION FORECAST Kemess South Mine In 2008, the mine plan calls for the removal of 18.2 million tonnes of ore and 19.0 million tonnes of waste from the Kemess South open pit. The majority of this material, approximately 30 million tonnes, will be mined from the western end of the open pit and the balance will come from the eastern end of the pit where pre-stripping of waste for the 2009-2010 ore production will commence in the second half of this year. Mill feed will be supplied by ore sourced from the western end of the open pit and stockpiles and mill throughput is forecast to average approximately 50,000 tonnes per day (tpd) with the mill operating at 92% availability. The majority of the ore milled during the year will be hypogene ore with only a small quantity ((less than)6%) of supergene ore. Total metal production for 2008 is anticipated to be approximately 243,000 ounces of gold and 64.4 million pounds of copper. Production of gold-copper concentrate is forecast to total 148,000 dry metric tonnes (dmt), which will be shipped to Xstrata Copper's Horne smelter in Rouyn-Noranda, Quebec. Annual smelting and refining terms for 2008 are expected to settle at around $45/dmt and 4.5cents/lb of copper with no price participation, which represents a reduction in concentrate marketing costs of approximately $3 million from 2007 levels. Gold Cash Cost Assuming by-product copper and silver prices of $3.00 per pound and $12.00 per ounce, respectively, and an exchange rate of Cdn$/US$1.00, the Kemess mine's 2008 net cash cost is projected to be $130 per ounce of gold produced. In 2008, each $0.10 per pound change in the copper price and each $0.03 change in the Cdn$/US$ exchange rate will affect the net cash cost of production by approximately $25 per ounce.