Avocet updates N. Sulawesi gold mine project

The following is an excerpt from Avocet Mining Plc?s general corporate update report, which was released on Monday.

North Lanut, North Sulawesi

Since Q1, North Lanut gold production for the months of July and August has been at a level higher than the monthly average during the Q1 period. As the Company works to improve performance, development has disclosed further extensions to the orebodies. Continued exploration will aim to upgrade the existing reserves and resources and further increase the existing mine life at an annual production level at 45,000-50,000 ounces.

North Lanut in North Sulawesi, was developed by Avocet from the exploration stage and has produced over 220,000 ounces since it was commissioned in 2004. Avocet purchased an 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 in 2002. North Lanut 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. The Company has a number of other advanced development and exploration projects in Indonesia. (end of excerpt)