Avocet reports higher gold output from N.Sulawesi mine

The following is an excerpt from Avocet Mining Plc?s second quarter ended Sept. 30, 2008, which released on Thursday.

North Lanut, North Sulawesi
North Lanut's gold production in Q2 of 9,963 ounces was 7% above Q1 as higher tonnes processed more than compensated for lower recovery. Ore treated was highly sulphidic throughout the quarter, and recovery at 31% was therefore lower than the 38% achieved in Q1, which benefited from a higher proportion of oxide material. During Q2 several projects were progressed with a view to enhancing recovery, as outlined in the Company's Q1 release. A new mobile crusher and a leach plant upgrade were commissioned at the end of the quarter and work continued on the new HLP3 leach pad which will provide separate cells for the different ore types. In addition, a decision was made to bring forward mining of the Effendi deposit to the north of the Riska pit, as Effendi ore is mainly oxide and therefore yields a higher recovery from dump leaching. Pre-treatment of Riska's sulphide ore is being evaluated to improve subsequent leaching.

North Lanut's cash cost of US$661/oz was 10% above Q1, with diesel prices and lime consumption both higher, the latter reflecting the more sulphidic material treated and the timing of lime dosing. In the second half, costs are expected to benefit from lower fuel prices and higher production.

Further details of production and cash costs will be provided in the interim results to be announced on 12 November 2008.

The North Lanut gold mine in North Sulawesi, Indonesia, was developed by Avocet from the exploration stage and has produced over 200,000 ounces since it was commissioned in 2004. Recent high grade exploration drilling results indicate the potential for increases in resources and mine life. In 2002 Avocet purchased its 80 per cent interest in PT Avocet Bolaang Mongondow (PT ABM), an Indonesian company holding a 6th generation Contract of Work (CoW), from Newmont Mining Corporation. The North Lanut gold mine is located within the CoW, which includes exploration and mining rights over approximately 50,000 hectares in an area highly prospective for gold. An Indonesian company, PT Lebong Tandai, owns the remaining 20 per cent. (end of excerpt)