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## Corporate Governance Statement 

Listing Rule disclosure requirements and accountability for compliance. All price sensitive matters are handled by directors, each of whom is aware of the listing rule requirements for disclosure of price sensitive information on a timely basis. 

All stock exchange announcements including all financial reports are posted to the Company’s website. 

The Company encourages effective participation at general meetings through a policy of open disclosure to shareholders, regulatory authorities and the broader community of all material information with respect to the Company’s affairs. All company announcements, media briefings, details of company meetings, press releases and financial reports are available on the Company’s website. Shareholders and interested investors are encouraged to subscribe to the Company’s database, through which participants are made aware of news releases as soon as possible after such releases have been issued to the ASX and TSX. Hard copies of financial reports and news releases are made available on request. 

## Principle 7: Recognise and manage risk 

The full board has the responsibility for the risk management, compliance and internal controls systems of the Company. The Company’s size and activities do not, at this stage, warrant the formation of a separate committee of the board for this purpose. 

## Risk management (7.1, 7.2) 

Group management, through the managing director, is responsible for designing, implementing and reporting on the adequacy of the Group’s risk management and internal control system. The Group’s risk management policy is designed to provide the framework to identify, assess, monitor and manage the risks associated with the Company’s business. The Group adopts practices designed to identify significant areas of business risk and to effectively manage those risks in accordance with the Group’s adopted risk profile. The risks involved in operating a resources sector company and the specific uncertainties faced by the Group continue to be regularly monitored and the managing director regularly appraises the full board of the Company as to the effectiveness of the Company’s management of its material business risks. All investment proposals reviewed by the board include a consideration of the 

issues and specific risks associated with the proposal. Where necessary, the board draws on the expertise of appropriate external consultants to assist in dealing with transferring or mitigating risk. The Company’s main areas of risk include: 

a) Price of Gold 

b) Potential changes to the regulatory regime of host countries 

c) Political stability in host countries 

d) Security of tenure 

e) Exploration and development risk 

f) Uncertainty in the Estimation of Mineral Resources and Mineral Reserves 

g) Production risks 

h) Increased cost of working including inflation risk 

i) Environmental risks and hazards 

j) Occupational health and safety risks 

k) Community dissatisfaction risks 

l) Labour and associated employment risks 

m) Financial risks including foreign exchange, interest rate, metal price fluctuations 

n) Dependence on key executives and personnel 

o) Stability of debt and equity capital markets 

p) Key counterparty risks 

## Assurances from the managing director and the chief financial officer (7.3) 

It is the responsibility of the board to regularly assess the adequacy of the Company’s risk management and internal control systems and that its financial affairs comply with applicable laws and regulations and professional practices. 

Regular consideration is given to all these matters by the board. The Company has in place an internal control framework to assist the board in identifying, assessing, monitoring and managing risk. 

The Company’s internal control system is monitored by the board and assessed regularly to ensure effectiveness and relevance to the Company’s current and future operations. Procedures have been put into place to ensure the managing director and the chief financial officer state in writing to the board that the integrity of the financial statements is founded on a sound system of risk management and internal compliance and control and that the Company’s risk management and internal compliance and control system is operating efficiently and effectively. 

