Red Hill

Grange retains a 4% gross revenue royalty on all production after the first 85,000 ounces of gold produced from the Red Hill Mine (Mining Lease 27/57) located approximately 4km north east of the Kanowna Belle Gold Mine and 24km north east of Kalgoorlie. The project is owned and operated by Barrick (PD) Australia Limited (“Barrick PD”).

Gold mineralisation at Red Hill occurs mainly as free gold in shallow dipping quartz veins within a porphyry host. Drilling has shown the presence of a large tonnage low-grade gold deposit, which extends outside the boundaries of M27/57 on to tenements held 100% by Barrick PD and not subject to the royalty.

Mining operations commenced at Red Hill on 15 February 2003 and ceased on 22nd May 2007. Total ore mined from the commencement of operations to 30 June 2007 is 6,097,265 tonnes @ 1.80 g/t gold.

Royalty income from commencement of operations in February 2003 to 30 June 2007 amounts to $6,393,249. Ore treated during this period has been 5,456,162 million tonnes at an average grade of 1.79g/t gold for the recovery of 314,862 ounces. For production above the threshold of 85,000 ounces the royalty has averaged $27.81 per ounce of gold produced.

Red Hill Project – Open Pit Operations