Name: Chatree mine.

Location: The Chatree mine is located near Khao Sai, about 280 km north of Bangkok, in central Thailand.

Controlling Company: Kingsgate Consolidated, through its Thai subsidiary, Akara Resources.

Brief History: The Chatree gold deposits were discovered in 1995. The region had no prior history of gold production or evidence of artisanal workings. The mine, which is Thailand’s first and largest modern gold mine, started commercial operations in November 2001. The Chatree mining complex comprises the original Chatree South operation and Chatree North, which began production in November 2008.

Brief Description: The Chatree mine comprises an operating openpit mine, an associated processing plant and infrastructure. Mining operations are conducted by a contractor in a series of satellite pits on contiguous mining leases.

Geology/Mineralisation: The geology of the host rocks and the mineralisation are exposed in the openpit mines in the Chatree leases and the area has been the subject of several geological investigations commissioned by Akara.

In the mine area, the host volcanic sequence comprises four main units. The basal unit is dominated by andesite lavas and breccias, containing dacite dome complexes. This is followed by a thick sequence dominated by andesitic breccia. Overlying this is a largely sedimentary package with interfingering rhyolitic breccias. The uppermost unit in the mine area is a lithic-rich fiamme breccia. As the lithologies interfinger, the locations of some unit boundaries in core, and especially in chips, are not always clear. All units are cut by dykes, predominantly andesitic, and are typically less than 10 m wide.

The stratigraphy is disrupted by several north-south-trending, steeply-dipping faults that also offset mineralisation. Vertical offsets on faults mapped to date tend to be on the scale of tens of metres. Faulting between the mining pits is not well understood.

Reserves: Total proven and probable reserves as at June 30, 2013, were estimated at 69.5-million tonnes grading 0.81 g/t gold and 7.6 g/t silver.

Resources: Total mineral reserves, inclusive of reserves as at June 30, 2013, were estimated at 188.3-million tonnes grading 0.66 g/t gold and 5.42 g/t silver.

Products: Gold.

Mining Method: Openpit operations are conventional and involve drilling and blasting.

Major Infrastructure and Equipment: The Chatree mine is well established, with several proximate openpits supplying ore to the processing facility. The facility comprises two comminution circuits in parallel, each comprising a crushing and grinding plant, followed by a carbon-in-leach circuit capable of processing more than 6.4-million tonnes of ore a year.

Prospects: Akara is appraising potential modifications to the processing plant to maintain the current production rate, with the harder ore expected later in the mine life. This will entail the construction of minor additional plant and infrastructure.

Meanwhile, grades of economic interest for underground mining have been identified outside the existing pit limits, and some initial modelling has been completed. Drilling is not yet sufficient to provide confidence that payable zones are of a scale to warrant development, but there is exploration potential for several lode zones of potential minable thickness and grade.

Contact Person: Investor relations.

Contact Details:
Kingsgate Consolidated,
tel +61 2 8256 4800,
fax +61 2 8256 4810,
email info@kingsgate.com.au, and
website http://kingsgateconsolidated.com.au.

Akara Mining,
tel +66 56 614 500,
fax +66 56 614 195, and
email admincgm@akaramining.com.