1st Quarter Results

Centamin Egypt Limited 31 October 2003 CENTAMIN EGYPT LIMITED QUARTERLY REPORT FOR THE PERIOD ENDING 30 SEPTEMBER 2003 CORPORATE As previously reported, the company is in ongoing discussions with the Egyptian Geological Survey and Mining Authority (EGSMA) and the Minister for Industry in order to obtain the renewal of security passes for its staff and contractors, so that work may resume at the Sukari gold project. Also previously advised, the company instigated Arbitration proceedings in the Regional Centre for Commercial Arbitration, as well as an action in the Administrative Court of Cairo to ensure a return to work. These proceedings are ongoing. The company also initiated action via the Ministerial Dispute Committee of the Egyptian General Authority for Investment (GAFI). This committee is chaired by the Deputy Prime Minister, Dr.Youssef Wali and is responsible for resolving disputes that may arise between investors and the relevant Minister. Following the Company's submission to GAFI the Committee unanimously ruled that work should resume without delay. In order for this decision to be binding on EGSMA it required a full meeting of the Cabinet and Prime Ministerial approval. The Cabinet met on the 22nd September and ratified the resolution of GAFI, and on the 4th October issued a notice to EGSMA, ordering EGSMA to sign the required permits allowing a return to work. Centamin is therefore pleased to have its rights officially ratified by GAFI and the Cabinet and is now actively pursuing EGSMA for execution of all documentation. The Sukari project is the most advanced gold project in Egypt and will be the first gold producer in the modern era and as such Centamin understands that it is important to seek resolution to these matters in a non-confrontational and co-operative manner if possible. Although this approach has taken significantly more time, we believe it has and will provide for an even more supportive framework in which to deal with the government during the lead up to and through project construction. The company is confident that the approvals mentioned above will be forthcoming however it is important to resolve all such procedural issues to the company's satisfaction prior to considering the decision to commence development of the Sukari gold project. The Company has 7 drilling rigs mobilised to resume the task of completing infill over the Amun zone along with step out and infill drilling on the Ra zone and across to the Gazelle zone, where existing adits have shown wide mineralised zones, with one adit channel sample assaying 38m @ 7.73g/t. The recent completion of geological mapping over the entire Sukari hill strengthens the company's belief that further drilling will considerably add to the current resource of 3.06 million ounces. This resource is contained predominantly within the Amun Zone which is up to 200m wide however mineralisation in the Ra zone increases to over 500m in width and surface sampling indicates the continued presence of gold. Initial drilling in the Ra Zone returned intersections of :- 54m @ 3.11g/t Au, 49m @ 2.1g/t Au, 40m @ 2.09g/t Au, 50m@2.05g/t Au, 10m @ 5.83g/t Au, 60m @ 2.20g/t Au These intersections have been previously reported in the Company's 2003 Annual Report. Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entity Centamin Egypt Limited ABN Quarter ended ('current quarter') ------------------- ------------------ 86 007 700 352 30 September 2003 ------------------- ------------------ Consolidated statement of cash flows ------------ ------------ Year to date Current quarter (3 months) ------------ ------------ $A'000 Cash flows related to operating activities $A'000 ------------ ------------ 1.1 Receipts from product sales and related debtors ------------ ---------------------- 1.2 Payments for (a) exploration ( 682) ( 682) and evaluation (b) development ( 88) ( 88) (c) production (d) administration ( 152) ( 152) 1.3 Dividends received 1.4 Interest and other items of a similar 249 249 nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Legal Settlement ( 200) ( 200) ------ ---------------------- ------------ ------------ Net Operating Cash Flows ( 873) ( 873) Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b) equity investments (c) other fixed ( 35) ( 35) assets 1.9 Proceeds from sale of: (a)prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) ------------ ------------ Net investing cash flows ( 35) ( 35) ------------ ------------ 1.13 Total operating and investing cash ( 908) ( 908) ------ flows (carried forward) ------------ ------------ ---------------------- ------ ---------------------- 1.13 Total operating and investing cash flows ( 908) ( 908) (brought forward) ------------ ------------ Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Cost of Fund Raising ------------ ------------ Net financing cash flows ------------ ------------ Net increase (decrease) in cash held ( 908) ( 908) 1.20 Cash at beginning of quarter/year to date 24,627 24,627 1.21 Exchange rate adjustments to item 1.20 ( 36) ( 36) ------------ ------------ 1.22 Cash at end of quarter 23,683 23,683 ------ ---------------------- ------------ ------------ Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities ------------- Current quarter $A'000 ------------- 1.23 Aggregate amount of payments to the parties included 160 ------ in item 1.2 ------------- -------------------------------- 1.24 Aggregate amount of loans to the parties included in item 1.10 1.25 Explanation necessary for an understanding of the transactions ------------------------------------------- (a) Mr Sami El-Raghy, a director and employee of the Company received salary and superannuation for the quarter amounting to $64,694. (b) Mr Josef El-Raghy, a director and employee of the Company received salary and superannuation for the quarter amounting to $56,150. (c) Mr Sami El-Raghy is also a Director and Shareholder of El-Raghy Kriewaldt Pty Ltd ('El-Raghy Kriewaldt'). El-Raghy Kriewaldt provide office premises to the Company. All dealings with El-Raghy Kriewaldt are in the ordinary course of business and on normal terms and conditions. Rent paid to El-Raghy Kriewaldt during the current quarter amounted to $12,636. (d) Directors Fees and superannuation paid during the quarter amounted to $19,875. (e) Consulting Services Dr T Elder, a non-executive director provides additional consulting services to the Company. All dealings with Dr T Elder are in the ordinary course of business and on normal terms and conditions. Consulting fees paid to Dr T Elder during the current quarter amounted to $6,211. ------------------------------------------- Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows -------------------------------------------- -------------------------------------------- 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest -------------------------------------------- -------------------------------------------- Financing facilities available Add notes as necessary for an understanding of the position. ------------- ------------- Amount available Amount used $A'000 $A'000 ------------- ------------- 3.1 Loan facilities ----- ----------------------- ------------- ------------- 3.2 Credit standby arrangements ----- ----------------------- ------------- ------------- Estimated cash outflows for next quarter $A'000 ------------------ 4.1 Exploration and evaluation 1,756 ------------------ 4.2 Development 115 ----- ----------------------------- ------------------ 1,871 Total ----- ----------------------------- ------------------ Reconciliation of cash ------------------------- ------------ ------------- Reconciliation of cash at the end of the Current quarter Previous quarter quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. $A'000 $A'000 ------------------------- ------------ ------------- ------------- 5.1 Cash on hand and at bank 1,194 1,194 ------------ ------------- 5.2 Deposits at call 7,811 7,811 ------------ ------------- 5.3 Bank overdraft ------------ ------------- 5.4 Term Deposit 14,678 14,678 ----- ---------------------- ------------ ------------- Total: cash at end of quarter 23,683 23,683 ----- (item 1.22) ------------ ------------- ---------------------- Changes in interests in mining tenements -------- --------------- -------- -------- Tenement Nature of Interest at Interest reference interest beginning of at end of quarter quarter (note (2)) -------- --------------- -------- -------- 6.1 Interests in mining tenements relinquished, reduced or lapsed -------- --------------- -------- -------- 6.2 Interests in mining tenements acquired or increased -------- --------------- -------- -------- Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total Number Issue price per Amount paid up -------------- number quoted security (see per security ---------- ---------- note 3) (cents) (see note 3) ---------- (cents) ------------ ------------ 7.1 Preference ------ +securities ---------- ---------- ---------- ------------ (description) ---------- 7.2 Changes during quarter (a) Increases through issues (b) Decreases through ---------- ---------- ---------- ------------ returns of capital, buy-backs, redemptions 7.3 +Ordinary securities 501,910,369 501,910,369 ---------- ---------- ---------- ------------ 7.4 Changes during quarter (a) Increases through issues (b) Decreases ------ through ---------- ---------- ---------- ------------ returns of capital, buy-backs ---------- 7.5 +Convertible debt ---------- ---------- ---------- ------------ securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases ------ through ---------- ---------- ---------- ------------ securities matured, converted ---------- 7.7 Options Exercise price Expiry date (description and conversion factor) 49,999,744 NIL 20 cents 09/11/2003 ---------- ---------- ---------- ------------ 7.8 Issued during quarter ---------- ---------- ---------- ------------ 7.9 Exercised during ---------- ---------- ---------- ------------ quarter 7.10 Expired ------ during ---------- ---------- ---------- ------------ quarter ---------- 7.11 Debentures (totals only) ------ ---------- ---------- ---------- 7.12 Unsecured notes (totals only) ---------- ---------- Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Sign here: Company Secretary Date: 31 October 2003 Print name: Mrs Cecilia Tyndall Notes 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The 'Nature of interest' (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. This information is provided by RNS The company news service from the London Stock Exchange

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