Growing Unhedged Gold Producer in China Denver Gold Forum September 2008 For personal use only Disclaimer The information contained in this presentation has been prepared using the information available to Sino Gold Limited (‘Sino Gold’) at the time of preparation. This presentation contains forward-looking statements that were based on expectations, estimates and projections as of the date of this presentation. Any forward-looking statement is subject to known and unknown factors which may cause actual results and developments to materially differ from those expressed by, or implied by the forward-looking statements in this presentation. External or other factors may have impacted on the business of Sino Gold and the content of this presentation since its preparation. Sino Gold does not undertake to update any forward-looking statements that are contained in this presentation, except in accordance with applicable securities laws. In addition, this presentation may not include all relevant information regarding Sino Gold. Sino Gold has taken all reasonable care in preparation of this presentation. However, the content of this presentation should not be relied upon in relation to any further action including investment in Sino Gold. Any person considering an investment in Sino Gold is advised to obtain independent financial advice prior to making an investment decision. This presentation is not a prospectus or an offer, invitation, solicitation or recommendation of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under U.S. Securities Act of 1933, as amended (the “Securities Act”), or an exemption from registration therefrom. The information in this presentation which relates to Exploration Results, Mineral Resources or Ore Reserves of Sino Gold has been approved for release by Mr Phillip Uttley (FAusIMM), who is Sino Gold’s Chief Geologist and has sufficient experience in relation to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined by the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (The JORC Code 2004 Edition). JORC is a ‘recognized code and FAusIMM is a recognized designation’, under Canadian reporting standard NI 43-101. Mineral Resource. Mr Uttley has consented to inclusion of this information in the form and context in which it appears. For personal use only In this presentation, Mineral Resources are always inclusive of Ore Reserves. Further information about Sino Gold is available at www.sinogold.com.au. Delivering on the Opportunity One Year Ago Now Total Resources 4.9Moz 8.2Moz Total Reserves 3.3Moz 4.8Moz Jinfeng Commissioning Producing White Mountain Feasibility Construction Beyinhar Acquisition Target Feasibility Eastern Dragon Acquisition Target Pre-Feasibility Gold Hedging 0.3Moz Nil For personal use only Rapidly developing into a low-cost UNHEDGED producer with several mines Capital Structure Equity: 292M shares on issue Market capitalisation ~US$1.0 billion Listed on ASX & HKSE Balance Sheet at 30 June 2008: Cash on hand of US$81M US$35M Jinfeng Project Loan Major Shareholders: Gold Fields 19.9%, C’wealth Bank 8%, Black Rock 6% For personal use only Growing UNHEDGED gold company China – Attractive Mining Destination Legal Costs Geology Security Low Cost Growth Production For personal use only Improving relative to many countries China – Growing Gold Production 500 South Africa China 400 China now 300 largest gold producing country 200 Tonnes of Gold of Tonnes 100 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: GFMS Gold Survey 2008 For personal use only Largest gold producer but only 7th largest reserve base China – The Global Powerhouse US$1.8 trillion foreign currency reserves GDP - 1980 US$100 billion - 1993 US$500 billion - 2008 US$4 trillion Tarrifs = 40% in 1993 Tarrifs < 10% today For personal use only World’s 3rd largest economy China – Geology Eastern Dragon Beyinhar White Mountain BioGold Sino Gold China: established >8,000 gold in 3 well Nibao endowed For personal use only deposits/prospects Jinfeng belts One-third larger than Australia China – Legal Security Big Fish in Small Pond? Or Small Fish in Big Pond? 35,000 foreign joint ventures and WFOE’s approved in 2007 Business framework for mining no different to other industries 3 foreign mines developed in last 3 years For personal use only Sino Gold has permitted & developed three mines China – Growing Capital Market >8,000 gold deposits/prospects Capital markets also becoming more open Natural progression for Chinese SOE’s to float Market capitalisation of Chinese mining companies now ~US$200 billion (one-third free float) Only aOne-third few listed larger Chinese gold companies – Zijin, Zhaojin than Australia For personal use only Mining, Lingbao Gold, Zhongjin Gold, Shandong Gold Sino Gold listed on ASX and Hong Kong Stock Exchange China - Cost Competiveness (US$’s) China Australia Open Pit Mining $1.30/t $4.00/t Decline Development $1,700/m $3,000/m Shaft Sinking $4,000/m >$20,000/m Skilled Mine Operator $20K pa >$100K pa Senior Geologist $35K pa >$110K pa Note: approximate estimates, contract rates for mining costs. For personal use only China cost advantage applies in mining China - Cost Competiveness Low staff turnover -(<3% YTD 2008) Low expat requirement - ~1,500 staff, <50 expats - All site managers Chinese Skilled workforce available - Deep pool of candidates Foreign company attractive - Values & career path For personal use only Staff retention is key industry driver today China - Sustainability Safety Environment Community Practice Common Practice Sino Gold LTIFR = 0.6 Zero catastrophic/ Development program < Australian average major incidents Focus on near-mine For personal use only Training Invest in people & health, education & systems to monitor infrastructure China’s future is dependent on sustainability China – Exploration Potential Historical exploration collected good data Little money for drilling Many small-scale, subsistence style mines Minimal application of mineralisation models to focus prospecting For personal use only Gold mineralisation identified… but not tested at depth Eastern Dragon (80%) Strategic Position Established Evaluating high-grade deposit with potential for Beyinhar (95%) <US$100/oz gold Potential heap leach oxide +Sino Gold Fields development with sulphide Alliance exploring zone upside all of China for >3Moz gold White Mountain (95%) deposits First gold from ~70Koz pa mine in 4Q 08 Nibao (70%) Evaluating & drilling 0.8Moz Resource BioGold (100%) Concentrate processing facility now profitable Jinfeng (82%) High-grade, long-life mine For personal use only China’s 2nd largest gold mine Building a strong position in well-endowed gold belts Jinfeng – Flagship Operation Open Pit with Underground Mine 5.3Moz Resource China’s 3.5Moz Reserve second largest gold mine High-quality, efficient processing facility >15 year mine life For personal use only with district potential Jinfeng - Low Cost Production Focus on OP grade Initial UG ore being mined 1H08 = 66Koz @ US$416/oz BIOX plant now at design Throughput to ↑by 10% 2H08 Fcst > 80Koz @ <US$400/oz For personal use only Gold production steadily increasing Jinfeng – World Class Orebody Resource of 5.3Moz (35.9Mt @ 4.5g/t) OP Reserve of 1.1Moz (7.7Mt @ 4.4g/t) UG Reserve of 2.4Moz (13.1Mt @ 5.8g/t) Higher grade UG ore to be blended with OP ore Remains open at depth For personal use only 15 to 20 year mine life Golden Triangle Exploration Nibao drilling aimed at defining high-grade zones Initial drilling at new prospect 4m @10.2g/t & 4m @4.2g/t Au Jinfeng resource > 5.3Moz Yandan drilling confirmed Drilling planned 1km mineralised zone & along 15km progressing westwards target zone For personal use only Now 42 EL’s in Golden Triangle Total resources of 6.0 Moz White Mountain – The Second Mine Underground mine with 650Ktpa CIL plant Construction 1.1Moz Resource on schedule 0.8Moz Reserve for first gold 4Q08 Forecast production of 70Koz @ ~300/oz Capital cost ~US60M For personal use only Near excellent infrastructure White Mountain Construction Good progress continues: Crushers, CIL tanks, and ball mills in place Dry commissioning of plant has commenced Required infrastructure complete For personal use only UG mine on track - stopes accessed in 2 areas Project estimated at ~ 90% complete White Mountain Exploration 3.0m3.0m @@ 10.2g/t10.2g/t 6.4m6.4m @@ 6.4g/t6.4g/t For personal use only Northeast zone down dip extended in 2008 Four rigs now testing for further extensions White Mountain Evolution 2003 - JV formed, 80% equity, 60km2 EL 2004 – Discovery hole drilled 2005 – Initial resource 2006 – ↑equity to 95% 2007 – EL’s↑to 128km2 2008 – Reserves↑to 0.8Moz & Resources↑ to 1.2Moz For personal use only First gold pour to be only 4 years after discovery Growth - Beyinhar & Eastern Dragon Able to develop projects efficiently: Sino Gold has developed 3 mines in China Experienced Mandarin-speaking team Utilise best value Chinese or Western technology For personal use only Knowledge of permitting & legal system Valuable competitive advantage Beyinhar – Feasibility Progressing Feasibility study being finalised Potentially 1.0Moz Resource commence 0.5Moz Reserve heap leach in 2010 Robust 2.5Mtpa (~50Koz) project 2 rigs testing for more oxide For personal use only & higher grade sulphide Eastern Dragon – Quality Asset High-grade