Key terms and conditions of the Samsung/\Cluff deal: (Total cost about 10% or $2 million per annum on $20 million financing).

"The key terms of the initial US$20m facility drawn down today are as follows:

· Initial term of 22 months, repayable evenly over the final 12 months from the Sega asset's cash flow

· Interest payable of 2.5% above US LIBOR

· Cluff Gold to sell 1,929 ounces of fine gold per month to Samsung at a 2.25% discount to the London Gold AM/PM LBMA dollar gold fixing price on the day prior to delivery. There are no hedging requirements as the price of gold is not fixed in advance in any way under the facility

· Facility secured by a charge over the shares of Cluff Gold's subsidiary company, Cluff Mining (West Africa) Limited, which holds the Company's interest in the Kalsaka/ Sega project.

A 1.75% facilitation fee is payable immediately on draw down of the first tranche of the facility. The total cost of the facility is estimated at 10% per annum." Ike