Straits reports C. Kalimantan Q3 gold, silver output

The following is an excerpt from Straits Asia Resources on Central Kalimantan gold project, taken from the quarterly report ended Sept 30, 2008 released on Wednesday.

Mt Muro, Central Kalimantan
Straits 100%

The Mt Muro operation exceeded forecasts and achieved record production for the quarter with 17,188 ounces of gold and 98,498 ounces of silver poured. Mining performed well for the quarter, notably exceeding targets for gold equivalent ounces mined. The re-commissioned SAG Mill was able to capitalise on the good mining result as well as processing the large inventory of scats built up over the recent months. The tonnes sent to leach were also a record for the quarter.

Commissioning of individual components of the Coal Fired Power Station (CFPS) commenced in September and it is expected that the CFPS will be online and generating cheaper power supply by early November.

Unit cash costs reduced due to the increase in throughput and production. The average unit cash cost for the quarter was US$736 per ounce down from US$975. Diesel remains a cost and logistics impost but this will reduce once the CFPS is online. (end of excerpt)

	Unit	Sept Qtr 2008	June Qtr 2008	Mar Qtr 2008	YTD
Ore Milled	tonnes	172,062	104,906	108,378	385,346
Gold grade	g/t Au	3.50	2.98	3.74	3.43
Silver grade	g/t Ag	32	16	17	23
Gold recovery	% Au	90.8%	92.7%	92.4%	91.8%
Silver recovery	% Ag	58.8%	62.6%	58%	59.8%
Production gold*	oz Au	17,188	10,003	11,725	38,916
Production Silver	oz Ag	98,498	33,461	35,325	167,284
Gold Sold	oz Ag	15,431	9,323	16,235	40,989
* Production reported is gold poured