SAN GREGORIO OPERATION

OVERVIEW

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The San Gregorio gold operation, located within the Isla Cristalina Belt, comprises a number of open pit mines and a processing plant. The mineralized system covers a 7 kilometre shear zone with three major deposits identified to date - Arenal, San Gregorio and Santa Teresa, which have collectivelly produced more than 800,000 ounces.

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Potential underground deposits also exist as extensions to the San Gregorio and Arenal open pits. Ongoing exploration work takes place both within the mine areas and at several prospects in the Minas de Corrales goldfield.

Production statistics for the past five years of operation:

Year to 31 May	Unit	FY2008	FY2007	FY2006	FY2005	FY2004
Open pit ore mined	Tonnes	1,796,608	1,260,551	1,049,869	1,164,790	1,003,825
Open pit waste mined	Tonnes	11,458,993	10,929,543	9,224,489	5,714,190	4,105,644
Ore processed	Tonnes	1,244,331	1,312,999	1,266,529	1,194,630	941,443
Gold produced	Ounces	90,668	96,420	101,287	74,525	48,241
Gold grade	Au/t	2.45	2.45	2.63	2.04	1.71
Recovery	%	92.3%	93.1%	93.7%	95.1%	92.9%

Note: UME has operated the San Gregorio mine since 1 October 2003.

Additional information on operations, including mining method and equipment, process flowsheet and flowchart, infrastructure and services and laboratory can be found in the following pdf document.