White Dam Gold Production Joint Venture

(EXCO 50%, POLYMETALS 50%)

The White Dam Gold Project is located in South Australia approximately 80km west of Broken Hill. The project was developed as an unincorporated joint venture between Exco and Polymetals Mining Ltd (ASX:PLY). Project financing was provided by Barclays plc through a gold loan facility.

Since pouring first gold in April 2010, production rates and margins from White Dam have been well above expectations. The project has produced in excess of 130,000oz of gold to date.

In November 2010 the Company announced that it had completed the required gold loan repayments nine months ahead of schedule. A combination of better than expected production outcomes and higher than envisaged gold prices had allowed the loan to be repaid after only seven months of production.

In January 2012 Exco announced that the Joint Venture partners had agreed to proceed with development of the Vertigo Gold Project under revised joint venture conditions. Under those conditions production from Vertigo and any other deposits developed would be split 50:50.

Mining at Vertigo began in January 2012 and extended the mining operations at Drew Hill to May 2012. Processing of ore both from the Hannaford and Vertigo pits continues using the existing White Dam infrastructure.

White Dam Project OK Resource Estimate



Indicated

Inferred

Total

Deposit

Material

kts

g/t Au

koz Au

kts

g/t Au

koz Au

kts

g/t Au

koz Au

White Dam

Oxide

600

0.99

19.1

90

0.74

2.1

690

0.96

21.3

Fresh

327

1.01

10.6

1,952

0.88

55.3

2,281

0.90

66.0

Sub-Total

927

1.00

29.7

2,044

0.87

57.4

2.971

0.91

87.3

Vertigo

Oxide

1,008

1.10

35.6

703

0.73

16.5

1,711

0.95

52.1

Fresh

212

1.56

10.6

526

1.15

19.4

738

1.26

30.0

Sub-Total

1,220

1.18

46.2

1,229

0.91

36.0

2,449

1.04

82.1

PROJECT TOTAL

2,147

1.10

75.9

3,273

0.89

93.4

5,420

0.97

169.4

Notes: Discrepancies in totals are as result of rounding.

White Dam resource (which is depleted to end of mining January 2012) was re-estimated in October 2010 with a cut off grade of 0.3g/t.

Vertigo was re-estimated in January 2011 with a cut off grade of 0.4g/t

 

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Drew Hill Exploration Joint Venture

(EXCO 50%, POLYMETALS 50%)

Gold, Copper, Uranium

In parallel with the White Dam Gold Production Joint Venture, Exco and Polymetals entered into the unincorporated Drew Hill Exploration Joint Venture to further evaluate and explore the tenements surrounding the White Dam area. Polymetals have taken over responsibility for the day to day management of the exploration programmes.

RC drilling is ongoing in order to test nearby prospects and establish potential new greenfield targets within a 3km radius of the current operation. Additional exploration is also in progress over the broader tenement package, in order to evaluate the potential of other Deposit types such as Iron-oxide-copper-gold (IOCG) styles of mineralisation, as well as variants of these including Uranium accumulations.