News

September 18, 2013

ANNUAL GENERAL & SPECIAL MEETING ADJOURNED TO OCTOBER 9, 2013, AT 10:30 A.M.

The past couple of years have seen more gold production and mine development activity than ever before by your Company. From the start-up of the mill in 2011, gold was produced continuously from the BK vein. Underground development continued through 2013 on the BK-3 zone to outline potentially mineable zones. The results of sub-level drifting were very encouraging (refer to news release dated April 16) and accordingly, development proceeded in preparation for stope mining. Mining was completed successfully in one zone and started in two other areas to generate mill feed.

The last few months have been very challenging for the operation. At the start of the year, the mine was cash flow positive and exploration, development and diamond drilling was being done to open up new areas. The fall in the gold price forced the Company to cut operational costs by implementing a hiring freeze, restricting underground operations to a single shift, and curtailing large expenditures. Most recently, the mine was ordered to suspend operations to address surface fire-fighting and underground safety issues.

Given the issues surrounding the mine closure just before the original date scheduled for the Annual General & Special Meeting, the Board determined that it was in the best interests of the Company and its shareholders to adjourn the meeting until October 9, 2013. This would allow enough time to address the issues affecting the mine operation. Fire-fighting capability was upgraded and surface operations including milling resumed this month (see news release dated September 9, 2013), the underground issues are being addressed to allow mining to resume as soon as possible.

We hope that all shareholders will participate at the upcoming adjourned shareholder meeting. Please refer to the Notice of Adjourned Annual & General Meeting for voting instructions.

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