PanAust – Leading copper and gold producer in Southeast Asia with a portfolio of organic growth projects

#PanAust has acquired a majority interest in the Inca de Oro Copper-Gold
Project in Chile from Codelco, the world's largest copper company; a move that
provides geographic diversity and a base for establishing copper production in
South America, the world's most prolific copper producing region. The
acquisition fits well with PanAust's corporate strategy for growth and
represents an excellent opportunity to establish a business in one of the
world's most attractive copper mining regions. PanAust's key producing asset
is the Phu Kham Copper-Gold Operation, which is located within the Company's
highly prospective 2,636 square kilometre Contract Area in Laos. Phu Kham
employs a conventional open-pit mining method – drill, blast, load and haul.
The final product is a copper-gold concentrate, grading approximately 25 per
cent copper, 7 grams per tonne (g/t) gold and 60g/t silver. Production for 2010
was approximately 67,806t of copper, 58,152oz of gold and 507,590oz of silver. A
further 2,490oz of gold in dorè was produced from the oxide gold heap leach.
Production guidance for 2011 will be between 62,000 and 65,000t of copper at an
average C1 cash cost of between US$0.95 and US$1.05/lb copper after precious
metal credits, from 50,000 to 55,000oz of gold, and 450,000 to 500,000oz of
silver. For more information on PanAust's mining projects, download a copy of
the Asian Mining Times or visit our website