Saracen Mineral Holdings Limited provided production guidance for the full year 2020. For the year, the company provided production guidance of 350,000oz - 370,000oz at an AISC of AUD 1,025 - AUD 1,075/oz (pre-released), ounces increase and costs decrease progressively over the 12-month period.

It announced the latest results of its highly successful organic growth strategy, with Reserves rising by 32% to a record 3.3Moz. The new Reserves fully underpin a 7 year production profile of 400,000oz a year from fiscal year 2021 (after the Carosue Dam mill is expanded to 3.2Mtpa). The update also includes a further ~6Moz in Resources, highlighting the additional growth potential at and around the Company's mills in Western Australia. With a further AUD 50 million budgeted for exploration in the current financial year, Saracen has strong potential to establish a +10- year mine life at 400,000oz a year. Saracen has budgeted AUD 112 million for growth capital this financial year as part of its strategy to capitalise on the increased Reserves by growing production to 400,000oz a year. The Carosue Dam mill will be expanded to 3.2Mtpa during fiscal year 2020-21 (currently 2.4Mtpa) for an estimated capital cost of AUD 34m. The additional ore required to fill the expanded mill will be sourced from the Carosue Dam open pits (+10 years at 800ktpa in Reserves). The upgrades are planned (focused on the milling area):· A secondary re-grind mill will be added (nominally 3.5 - 4.0MW increase); A gravity circuit upgrade will be added to optimise the recovery of gravity gold; A ninth tank will be added to the carbon in leach train; An elution circuit upgrade will be added to manage the increased recovered gold; and Various automation and control upgrades will be added to improve the process plant operation. The upgrades will result in the key plant specification changes: Mill throughput (nameplate) increases to 3.2Mtpa (from 2.4Mtpa); Recovery increases to 94% (from 93%); P80 Mill feed size increases to 25mm (from 12mm); P80 grind size reduces to 140µm (from 180µm); Unit milling costs reduced by ~AUD 1.50 - AUD 2.50/t milled; The Bond ball mill Work Index reduces to 17.8 (from 20.5); and Mill feed is based on 70-75% underground ore /30-25% open pit ore. The crushing circuit will remain unchanged aside from increasing the crushed mill feed size P80 to 25mm. Mintrex has been the key technical expert in the mill upgrade study. The study has concluded with GR Engineering Services (GRES) currently compiling the tender documents. The detailed design will be sent out for tender with a decision to award being concluded within the September quarter 2019. The expected build time is ~12 months with a planned commissioning date targeted for the December quarter 2020. A number of the upgrades take place independent of processing operations, minimising disruption to production. Open pit mining is planned to resume at Carosue Dam in fiscal year 2021, with the development of the Million Dollar open pit utilising a single fleet mine plan. Open pit mining has not been conducted at Carosue Dam since mid-2015, when the prevailing gold price was ~AUD 1550/oz, ~AUD 500/oz below the spot price today. The resumption of open pit mining at Carosue Dam coincides with the expansion of the Carosue Dam mill from its current nameplate of 2.4Mtpa to 3.2Mtpa during fiscal year 2020-21. It is planned to fill the additional 800ktpa of mill capacity with open pit material. With 9Mt in Reserves, the open pits can supply the additional 800ktpa for more than 10 years.