Inata Mineral Reserve Increased By 25% To 1.08 Million Ounces ...

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The new Mineral Reserve follows a pit optimisation study that was based on a gold price ofUS$1,000 per ounce of gold, compared with US$800 per ounce previously used, and revisedoperating costs. After taking into account these factors, the resulting cut off grade remainedunchanged at 0.7 g/t Au. The increase in Mineral Reserve is therefore attributable to thechanges in the Mineral Resource model, which have facilitated extensions of the Inata North,Far South and Minfo pits. These extensions add over two years to the original seven year lifeof mine, which had been at an average production rate of 120,000 ounces per annum until2016. The Mineral Reserve increase announced today means that the remaining life of mine at31 August 2010 is now eight years to 2018 with a similar average production rate.Avocet is commencing a 200,000 metre drilling program to delineate additional resources inand around the Inata deposit and to sterilise infrastructure expansion sites. The results of thisprogram will form the basis of next year's Mineral Resource and Mineral Reserve upgrade,expected in Q3 2011.Commenting on the Mineral Reserve upgrade at Inata, Brett Richards, Chief Executive Officerfor Avocet, stated:“Further to the recently reported Mineral Resource upgrade, the increased Mineral Reserveannounced today confirms our belief that Inata will become a significantly larger producer thanindicated on acquisition. In addition to our efforts to further increase the Mineral Reserves in2011, work is in progress to determine how the current capacity of the Inata processing plantcan be increased to optimise the benefit of these new reserves.”The information in this announcement that relates to Mineral Reserves is based on information compiled by Kell Monro, anemployee of Avocet Mining PLC. Mr. Monro has sufficient experience, which is relevant to the style of mineralisation and typeof deposit under consideration to qualify as Qualified Person as defined by the Canadian Institute of Mining and Metallurgyand Petroleum (CIM) for the planning, supervision, preparation and reporting of Mineral Resource and Mineral Reserveestimates under National Instrument 43-101 (NI 43-101). Mr Monro consents to the inclusion of the technical information in thisannouncement in the form and context in which it appears.For further information please contact:Avocet Mining PLC Buchanan Communications Ambrian Partners Limited J.P. Morgan Cazenove Arctic SecuritiesFinancial PR Consultants NOMAD and Joint Broker Lead Broker Financial AdviserBrett Richards, CEOMike Norris, FDHans-Arne L’orange, EVP BusinessDevelopment & Investor RelationsBobby MorseKatharine Sutton+44 20 7766 7676 +44 20 7466 5000+44 7802 875227Richard BrownMichael Wentworth-Stanley Arne WengerRichard GreenfieldAnish Patel+44 20 7634 4700 +44 20 7588 2828 +47 21013100www.avocet.co.uk www.buchanan.uk.com www.ambrian.com www.jpmorgancazenove.com www.arcticsec.noRegistered Office 3 rd Floor 30 Haymarket London SW1Y 4EX England Registered in England No 3036214
Notes to EditorsAvocet Mining PLC (“Avocet” or “the Company”) is a gold mining company listed on the AIM market of theLondon Stock Exchange (Ticker: AVM.L) and the Oslo Børs (Ticker: AVM.OL). The Company’s principal activitiesare gold mining and exploration in Burkina Faso (as 90 per cent owner of the Inata gold mine), Malaysia (as 100per cent owner of the Penjom gold mine, the country’s largest gold producer) and Indonesia (as 80 per centowner of the North Lanut gold mine and Bakan project in North Sulawesi).The Company announced in May 2010 that it had initiated exploration within the Inata Mining Licence area and inthe surrounding Bélahouro district with the objective of significantly increasing Inata’s resource and reserve baseas well as investigating the highly prospective Souma Trend, located 20 km from the Inata mill. The Companyhas a number of other advanced exploration projects in West Africa and South East Asia.Background to operationsInata has a Mineral Resource of 1.84 million ounces and an Ore Reserve of 1.08 million ounces. Inata pouredfirst gold in December 2009 and has now reached a steady state production rate in excess of 12,000 ounces permonth. Other assets in West Africa include exploration licences in Burkina Faso, Guinea and Mali (the mostadvanced being the Tri-K gold exploration project in Guinea with a resource of 666,500 ounces).Penjom is Malaysia’s largest gold mine and was developed by Avocet in an area of historic alluvial mining. Themine is located in Pahang State, approximately 120 km north of the country’s capital, Kuala Lumpur.North Lanut in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has producedover 270,000 ounces since it was commissioned in 2004. North Lanut is located within a Contract of Work, whichincludes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold.Avocet holds an 80 per cent interest and an Indonesian company, PT Lebong Tandai, owns the remaining 20 percent.Registered Office 3 rd Floor 30 Haymarket London SW1Y 4EX England Registered in England No 3036214
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Inata Mineral Reserve Increased By 25% To 1.08 Million Ounces ...

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