The Central Tanami Project Feasibility Study is now substantially completed. The Feasibility Study has considered several combinations of open pit and underground developments. The combined impact of the lower gold price and higher stripping ratios for the open pit scenarios has meant that the investment case for such scenarios cannot be demonstrated. However, recent optimisation of the Feasibility Study, based on an all underground mine development, indicates potential for future development subject to a number of criteria. The key criterion is to achieve an increase in the Mineral Resource base in several areas within the contemplated mine development envelope which currently are of insufficient certainty and in the Mineral Resource category, to be included in the Feasibility Studies.

In these circumstances, the Board has taken the prudent and conservative decision to postpone any immediate development of the project. Instead, Tanami Gold will now proceed to develop and consider implementation of an appropriate additional drilling program with a view to increasing the Mineral Resource base, and/or await more favourable economic conditions, before giving further consideration to development.

The Board regards Groundrush / Central as highly prospective and as its flagship asset.