Pioneer - Infrastructure

Transport

The Pioneer mine is approximately 40km from the Tygda station on the Trans- Siberian Railway and approximately 60km from the nearest airport in Zeya. The mine also has excellent road connections with the Pokrovskiy mine; its close proximity to the Pokrovskiy mine allows it to share much of that mine's infrastructure.

Human Resources

Around 550 employees work at Pioneer. Some of the employees of Pokrovskiy may transfer temporarily to Pioneer depending on the business needs at any one time. These employees are recruited from the Amur Region and some of them live in accommodation constructed by the Group.

Cash Costs

For the period ended 31 December 2008, GIS total cash costs for the Pioneer mine were US$293/oz which is in line with the Directors' expectations as the mine has only been in operation since late April 2008 and was in the ramping up phase.