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For Personal Use Only Use Personal for the Acquisitions Include Apex Minerals N.L. June 2007 Quarterly Report Apex Minerals N.L. Quarterly Report for the period ending 30th June 2007 Highlights • Apex Minerals NL unveils gold consolidation strategy focussed on the Eastern Goldfields region of Western Australia • Strategy includes the acquisition of the Gidgee, Youanmi and Aphrodite gold projects as announced on 3rd May 2007 (stage 1) and the acquisition of the Wiluna gold mine as announced on 20th June 2007 (stage 2) • A$32.2 million (gross) capital raising completed heavily oversubscribed at 52 cents per share to fund stage 1 acquisitions announced on 20th June • Mr Glenn Jardine appointed to the Apex Board as Director Operations • Exploration success at Wiluna, Gidgee and Aphrodite from initial drill programs aimed at increasing existing resources • Narndee JV interest restructured • Share placement at $1 per share to raise $35 million (gross) announced on 30th July to complete the purchase of, and advance, the Wiluna project Corporate Activities Gold Consolidation Strategy During the quarter, Apex unveiled its regional gold consolidation strategy focusing on high grade refractory gold deposits located in Western Australia’s Eastern Goldfields region. This involved the acquisition of four projects from four separate parties and represents the culmination of over nine months of analysis by the Company of various corporate opportunities mainly within Australia. The first stage of the strategy was announced on the 3rd May 2007, namely the simultaneous execution of three separate agreements in respect of acquisitions which together represent the initial stage of a broader regional gold consolidation strategy designed to rapidly elevate Apex to the status of a mid-tier Australian gold producer with significant potential for further growth. For personal use only The acquisitions include: • The Gidgee Gold Mine, located 640 kilometres northeast of Perth and covering 90 kilometres of strike of the Gum Creek greenstone belt. The Project comprises a total JORC compliant resource inventory of 490,000 ounces gold, including the Wilsons refractory gold deposit (Current Resource: Apex Minerals N.L. June 2007 Quarterly Report 734,000t @ 6.9g/t for 164,000oz), a 600,000tpa gold treatment plant (currently not in operation), a 150 man camp, additional high-grade non- refractory resources close to the existing developments, and significant exploration upside. The Gidgee Mine is being acquired from ASX-listed Legend Mining Limited (ASX:LEG) through the issue of 34 million Apex shares, representing a purchase price equivalent to A$11 million. Apex understands that Legend intends to distribute these shares in specie to its shareholders following Completion and Apex has agreed to assist in this process. The Agreement includes a further contingent payment of A$5 million by Apex to Legend, payable upon future production from the Gidgee tenements reaching 250,000 ounces; • The Youanmi Gold Mine, located 480 kilometres northeast of Perth and covering 40 kilometres of strike of the Youanmi shear zone. The Project comprises a total JORC and NI 43-101 compliant resource inventory of 951,000 ounces of gold, including the Youanmi Deeps refractory gold deposit (Indicated and Inferred resource of 2.4 million tonnes @ 8.5 g/t for 658,000 ounces of gold) plus a 600,000tpa gold treatment plant, a 270,000tpa sulphide flotation plant and a BacTech bacterial oxidation treatment plant capable of treating the gold concentrate (currently not in operation). The Youanmi Mine is being acquired from TSXV-listed Goldcrest Resources Ltd for a total consideration of A$10 million, to be satisfied by the payment of A$5 million in cash and the issue of 14,285,714 Apex shares. • The Aphrodite Gold deposit, located 65 kilometres north of Kalgoorlie and covering 51 square kilometres of the Bardoc Tectonic Zone. The Project comprises a refractory gold deposit with a JORC compliant Inferred Resource of 1.44 million tonnes @ 6.2 g/t for 287,000 ounces of gold as well as a significant inventory of unclassified gold mineralisation. The Aphrodite deposit is being acquired from Barrick (PD) Australia Limited for a total consideration of A$7 million, to be satisfied by the payment of A$5 million in cash and the issue of A$2 million worth of Apex shares (the number of shares to be calculated based on the Apex share price just prior to Completion). The second stage of Apex’s strategy was unveiled on the 20th June 2007 with the announcement that the Company had entered into an agreement with Oxiana Limited to acquire 100% ownership of the Wiluna gold mining and processing operation. The acquisition includes the plant and infrastructure, existing gold resources and additional exploration potential. The A$26.5 million cost of the Wiluna acquisition is to be satisfied by the payment to Oxiana of A$16.5 million in cash and the issue of A$10 million in Apex shares (based on the volume weighted average price of Apex over the 30 day period prior to Completion). In addition, a further payment of A$3 million will be made upon the For personal use only resumption of gold production from the Sale Tenements. Apex will take possession of the Wiluna Project on 1st August 2007 on a care and maintenance basis. To that end, Oxiana ceased mining operations during June with processing of ore continuing into July 2007. Apex Minerals N.L. June 2007 Quarterly Report The Wiluna Project is situated approximately 1,000 kilometres northeast of Perth and comprises granted mining leases covering approximately 50 square kilometres, as well as miscellaneous licences. The operation has access to the Goldfields Gas Pipeline and includes gold resources totalling over 700,000 ounces (see Table 1), a ~1Mtpa processing facility and a BIOX® bacterial oxidation plant, along with other established infrastructure. Following the Wiluna acquisition and subject to relevant feasibility studies, Apex expects to be in a position to commence gold production within approximately 18 months at the initial rate of around 200,000 ounces per annum, increasing to approximately 350,000 ounces per annum within three years, which contemplates future production from Aphrodite. Capital Raisings On the 20th June 2007, Apex announced that it had received advice from Sydney- based stockbroking group, Southern Cross Equities that, in accordance with the mandate referred to in the Company’s statement to the ASX on 3rd May 2007, it would place to institutional and sophisticated investors, 62 million ordinary shares in Apex Minerals at a price of $0.52 per share (a small discount to the last price traded on ASX) to raise A$32.2 million gross (A$30.3 million net of broker and management fees). These funds will be used to satisfy the cash component of the Gidgee, Youanmi and Aphrodite acquisitions and to substantially advance those projects with the aim of moving toward a development decision and to provide additional regional exploration funding and general working capital. Significant support for the Placement was received from Australian, North American and European institutional and sophisticated investors, with Southern Cross advising that the offering was heavily oversubscribed with firm bids received far exceeding the placement allocations. The Placement was completed in two tranches, with the initial 23,000,000 shares to raise A$12 million (gross) being issued using Apex’s ability to issue up to 15% of its capital within a 12 month period without the need for shareholder approval. These shares were issued on the 23rd June 2007. This resulted in an increase in Apex’s issued capital at the end of the quarter to 182,119,755. The issue of the remaining 39,000,000 shares, which was subject to shareholder approval, was obtained at an Extraordinary General Meeting of Apex held post the end of the quarter on 18th July 2007. On 30th July 2007, The Company announced a further capital raising with Southern Cross Equities and Hartleys ltd acting as joint lead arrangers to raise $35 million by placing 35 million shares to Australian, North American and European institutional and sophisticated investors at $1.00 per share. The issue will be in two tranches with 30 million shares being issued immediately with the remaining 5 million shares being issued subject to shareholder approval (expected to be secured by the end of August). The funds raised will be used to fund the cash component of the Wiluna acquisition ($16.5m) and to provide for significant underground and surface For personal use only exploration programs and to advance the project to a development decision during 2008. Apex Minerals N.L. June 2007 Quarterly Report Share Capital The share capital of the Company at the end of the quarter totalled 182.1 million. However, a number of transactions that are in progress will result in a material change to this number. For the sake of clarification, the following is a summary of those transactions and the impact they will have on the shares on issue: Million shares On issue at 30th June 2007 182.1 2nd tranch of June placement (settled July) 39.0 Issue of shares to Goldcrest (Youanmi acquisition) 14.3 Issue of shares to Legend (Gidgee acquisition) 34.0 Issue of shares to Barrick (Aphrodite acquisition) 2.0* Issue of shares to Oxiana (Wiluna Acquisition) 10.0* Placement announced 30th July 2007 (tranch 1) 30.0 Placement announced 30th July 2007 (tranch 2) 5.0 TOTAL 316.4 million All the above shares issues are expected to be completed during this September quarter. * Shares to be issued to Barrick and Oxiana are based on average share price prior to Completion of those transactions. Assume the above assumes (for illustration purposes) an average price of $1.05/sh Addition to the Apex Board and Recruitment of Personnel On the 1st June 2007, Apex announced that Mr Glenn Jardine, a highly experienced mining engineer with particular expertise in mine planning, development and operations, had accepted an invitation to join the Board of Apex in an executive role as Director Operations.
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