Excelsior Gold Limited (Excelsior or the Company) is pleased to provide an update on its review of the strategic and corporate options available regarding development of the Company’s 100% owned Kalgoorlie North Gold Project (the Project).

As announced to the market on 22 May 2013, in response to approaches made to the Company, Excelsior appointed KPMG Corporate Finance (KPMG) as its corporate adviser to assist with assessing development options for the Project, with the objective of maximising shareholder returns.

The Company has considered, and continues to assess, multiple proposals, including:
- fully funded development of its own new stand alone plant;
- relocation of existing plants; and
- potential toll treatment operations.
Various funding structures and operating models have also been considered.

As the assessment of various options has progressed it has become apparent to the Company that the scale of the Project is such that the long term interests of Excelsior shareholders may best be served through ownership of a standalone processing plant. This strategy will potentially allow Excelsior to extract the maximum value from the Project while retaining exposure to the significant long term exploration potential.



The Company has therefore now committed to completing the Pre-Feasibility Study based on construction of a standalone 1.0Mtpa processing facility adjacent to a proposed Zoroastrian open pit and underground mine and within a short haul distance from the large conceptual Excelsior open pit. The Study is scheduled for completion in early 2014.

Work required to complete the Study includes:

Refinement of the mill design study to reflect the latest metallurgical testwork results which support a simpler and more power efficient process flow sheet. Finalising site infrastructure design studies including geotechnical investigations to confirm the rail and road diversion corridor around the Excelsior open pit extension.
 Review of all capital costs and construction schedules associated with the processing plant and the rail and road diversion.
 Application of more detailed underground and open pit mining costs based on current conceptual mine designs.
 Completion of a detailed power supply study and confirmation of power source, availability and costs.
Further metallurgical testwork on the site bore water to refine reagent consumptions for operating cost estimates.
 Completion of geotechnical assessment and reporting for open pit and underground mining designs.
 Reverse circulation and diamond drilling programs as required to convert Inferred resources within and adjacent to current pit optimisation and conceptual underground mine design to JORC standard Indicated resources.
 Continued assessment of pit designs and mining/milling schedules in order to maximise Project value.

Excelsior continues to assess its options with regard to plant development, including comparing construction of a new plant to acquisition of an existing plant. In addition, the Company is also reviewing its options for financing Project capital costs, with discussions ongoing with various parties.

Senior Mine Management Appointment
To assist with the effective management of the Study and future mining operations, the Company is very pleased to announce the appointment of Mr Daniel Doherty to the position of Operations Manager of the Kalgoorlie North Gold Project.
Mr Doherty is a very experienced and accomplished mining engineer with in excess of 22 years of experience in operational and mine management roles in the Kalgoorlie region. He was formerly the Operations Manager at the Wattle Dam Gold Mine for Ramelius Resources Limited from July 2008 to February 2013 and Regional Underground Mining Manager for Barrick Kanowna Pty Ltd responsible for the Raleigh, Bullant, Paradigm and Mt Pleasant operations from 2004 to 2008.

Mr Doherty’s employment is effective immediately and the appointment of such a highly experienced mine manager with extensive underground mine expertise is a clear indication of the importance the Company places in the future underground mine potential from the large Zoroastrian deposit.

Mr Doherty will be ably assisted in his role by Auralia Mining Consulting Pty Ltd (Auralia) who have provided conceptual open pit and underground mining studies on numerous deposits within the Project. Auralia also have an extensive background in operating open pit and underground mines in the Kalgoorlie region and are currently managing the Study program.

Commenting on the appointment, Managing Director Mr David Hamlyn said “The appointment of someone of Danny’s calibre and experience is a significant step for Excelsior Gold in advancing the development of its Kalgoorlie North Gold Project. Most notably, Danny brings to Excelsior a proven history of effective mine development and management experience and again demonstrates the attractiveness of this Project to Goldfields experienced professionals who can readily understand and appreciate the significance of the large Zoroastrian and Excelsior deposits and the upside potential of the Project.”
The Company will continue to keep the market informed as the assessment process and the Study progress over the coming months.