Feasibility Study

Centamin Egypt Limited
10 September 2002



       Centamin Egypt announces completion of Bankable Feasibility Study

  - Resource increased from 1.73 million ounces to 2.04 million ounces gold (Southern end of Sukari Hill
                                                  only)

                      - IRR of 28.4% for 2 million tonne per annum processing plant

        - Recent drilling on Ra zone of Sukari Hill highly promising for further increase in resources


Centamin Egypt Limited (UK/ASX Ticker: CEY/ CNT) today announces the completion
of the independent review of the Bankable Feasibility Study for the development
of a 2 million tpa processing facility for the Sukari Gold Project in Egypt.


Speaking today, Managing Director Josef El-Raghy said that 'the study forms the
foundation of the company's strategy to become a substantial producer of gold.'


The study which, as a result of recent infill drilling at the Amun Zone and
drilling into the Ra zone also resulted in an increase of the 1.73m ounce
resource to 2.04m ounces, showed cash costs of US$182/ ounce and, at a 8%
discount rate , a NPV of US$23 million. 'When we take into account the company's
view that the resource base will be greatly increased as a result of infill
drilling, then the cash costs have the potential to fall to US$164 /ounce, with
NPV rising to US$55 million on the 2 million tonne per annum scenario' added Mr
El-Raghy.


SNC-Lavalin Australia Pty Ltd (SNA) conducted the review of the metallurgy,
process plant (including tailings disposal), capital cost, operating costs,
infrastructure and implementation. The mine scheduling, pit optimisation and
design work was carried out by Mining Solutions Consultancy Pty Ltd (MS) and are
based on the Measured and Indicated Resources of 2.04m ounces (0.5g/t cut-off)
prepared by Hellman & Schofield Pty Ltd (H&S). Corporate CVs relating to SNA, MS
and H&S are appended to this announcement.


The financial model that was prepared by the company as a result of this
feasibility study is referred to as the Sukari Base Case Model and is derived
from data relating to only the Amun zone (10% of the volume of the Sukari Hill).
It does not take into account the full potential of the project where an
exhaustive drilling campaign continues and has resulted in some spectacular
grades such as 28m @ 6.85g/t including 3m @ 56.83g/t.


The Sukari Base Case Model is the foundation for an additional study for a
larger processing facility in the region of 5 million tonne per annum based on
an upgraded resource figure which is expected to be announced by the end of the
year.


In support of this concept, two additional studies referred to as the Sukari
Base + Inferred Model and the Sukari Inferred Pit Expansion Model have been
developed. These additional models demonstrate the potential upside of the
Project. The Base + Inferred Model takes into account inferred resources, rather
than only the measured and indicated resources used in the Base Case model. The
Inferred Pit Expansion Model assumes that the base case ultimate pit limits
would expand to the larger pit shell limits optimised with the inclusion of the
Inferred resources.


Key Financial Data ($US)

                                            Base Case        Base + Inferred      Inferred Pit
                                                                                    Expansion

Recovered Ounces               oz            589,411             646,555             942,452

Strip Ratio                    t/t             4.38               3.93                4.51

Recovery                        %             80.07               80.16               81.60

Total Operating Costs           $          107,244,434         113,206,666         154,787,257

Net Sales Revenue               $          177,041,244         194,205,846         270,289,768

Spot Gold Price                 $             297/oz             297/oz              297/oz

Forward Sale Price              $             317/oz             317/oz              317/oz

Cash Cost Per Ounce           $/oz            182/oz             175/oz              164/oz

Project Net Cash Flow           $           39,634,991         51,903,991          97,340,993

NPV @ 8% DCF                    $           23,692,199         31,024,322          55,789,787

Internal Rate of Return         %              28.4               32.2                37.8


BASE CASE

(Recovered Ounces - 589,411 oz): The base case scenario includes Measured and
Indicated resources and considers the opening of an open pit mine and
construction of a CIP operation treating 2 million tonne per annum of ore.
Forecast cash costs per ounce for the 2 million tonne per annum operation are
$182 per oz over the 6.5 year processing period which includes processing of the
low grade stockpiles after the mining has ceased. During the 5 year mining
period cash costs average $167 per oz.


BASE + INFERRED MODEL

(Recovered Ounces - 646,555 oz): As well as the project reserves (based on
Measured and Indicated resources), the Inferred resources reported in the base
case pit designs have been included in this case. The production schedule and
the cash flow model have been adjusted for longer operation life and lower
mining rates at the later years of the operation.


INFERRED PIT EXPANSION CASE

(Recovered Ounces - 942,452oz): It is assumed that the base case ultimate pit
limits would expand to the larger pit shell limits optimised with the inclusion
of the Inferred resources. The Base + Inferred Case production schedule has been
further extended with mining of quantities in the Stage 5 cutback expansion to
the north.

RESOURCE INCREASE

Infill drilling continues to focus on the Amun zone and into the Ra zone located
in the south of the Sukari hill where approximately 43,000m of drilling has
outlined the following current resources and reserves.


    Resources are:-

  Cut-off grade       Measured and Indicated             Inferred                          Total
     g/t Au             Mt           g/t Au          Mt         g/t Au        Mt        g/t Au    Ounces(M)

       0.5            26.39           1.42          16.88        1.54        43.27       1.47          2.04

       1.0            13.48           2.09          8.70         2.33        22.19       2.18          1.56


    Mining reserves are:-

     Cut-off                   Proven                         Probable                         Total
                              Tonnes        Au g/t            Tonnes       Au g/t             Tonnes       Au g/t

0.8 - 1.0g/t               1,353,000          0.89         1,304,000         0.91          2,657,000         0.90

>1.0g/t                    5,063,000          2.07        4,828/,000         2.07          9,891,000         2.07

Total >0.8g/t              6,416,000          1.82         6,132,000         1.82         12,548,000         1.82


Due to recent slower than anticipated drilling rates being achieved by the
current contractor (particularly due to equipment breakdowns), the company has
engaged Stanley Mining Services Pty Ltd who are deploying two diamond rigs from
Tanzania. These rigs are expected to arrive at site by the end of the month.


The current infill and step out drilling into the RA Zone has resulted in
additional higher grade Inferred Resources that are outside the existing
optimised pit shell used for the above resource calculations and justifies the
company's decision to continue drilling to expand the current resource.


     The Sukari Deposit is a large mineralised system that outcrops for 2.5 km
and is up to 400m wide. The system has been divided into 4 zones; the AMUN, RA,
GAZELLE and PHARAOH with drilling to date focussed in the Amun zone and just
beginning to step out into the RA zone. The mine and plant capacity will be
up-graded as further resources are converted into reserves. It is anticipated
that the Sukari resources will support a 4 to 5 million tonne per annum
operation at the next bankable feasibility study review.



Yours faithfully


Josef El-Raghy

Managing Director

For more information please contact

Josef El Raghy                                                Leesa Peters

Centamin Egypt Ltd                                            Capital PR

Tel: + 61 (0) 8 9316 2640/ 0418 333 444                       Tel: [phone]

[e-mail]                                         [e-mail]

Louis Castro

Williams de Broe Plc

Tel: + 44 (0) 20 7588 7511

[e-mail]

www.centamin.com.au


ASX Listing Rules 5.10 1

Information in this report which relates to exploration, geology, sampling and
drilling is based on information compiled by consulting geologist Mr M Kriewaldt
who is a corporate member of the Australasian Institute of Mining and Metallurgy
with more than five years experience in the fields of activity being reported on
and is not a full time employee of the Company. His written consent has been
received by the Company for this information to be included in this report in
the form and context which it appears. Mr Kriewaldt declares an interest in
shares of the Company.


The information in this report that relates to mineral resources is based on
information compiled by Mr Gary Brabham, a member of the Australasian Institute
of Mining and Metallurgy. Mr Brabham is employed by Hellman & Schofield Pty Ltd
a consultancy primarily concerned with estimation of mineral resources
worldwide. Mr Brabham is a Competent Person under the meaning of the J.O.R.C.
code with respect to the mineralisation being reported in this report. Mr
Brabham has more than five years' experience in the mining industry and has
given his consent to the public reporting of this information in the section
headed Mineral Resources.


The information in this report that relates to open pit mine design is based on
information compiled by Mr Tamer Dincer of Mining Solutions Consultancy Pty Ltd.
Mr Dincer is a member of the Australasian Institute of Mining and Metallurgy, a
member of the Mineral Industry Consultants Association and has 15 years
experience in the mining industry. Mr Dincer has given his consent for this
information to be included in this report as presented under the heading Open
Pit Design.


APPENDIX - INDEPENDENT CONSULTANTS


SNC LAVALIN

Founded in 1911, SNC-Lavalin is one of the leading engineering and construction
firms in the world and a key player in the ownership and management of
infrastructure and facilities. The company provides engineering, procurement,
construction, project management and project financing services to a variety of
industry sectors, including chemicals and petroleum, mining and metallurgy,
power, infrastructure, mass transit, defence and environment sectors, and to
emerging high growth sectors such as telecommunications, pharmaceutical's,
agrifood and facility management.


SNC-Lavalin has been active internationally for nearly 40 years and has built a
network that spans every continent. The company combines first-hand knowledge of
diverse geographical regions with respect for the cultures and customs of the
countries in which it works. The company's headquarters are in Montreal, Quebec,
and is supported by offices across Canada and in about 30 other countries. Its
6,500 employees are currently engaged in projects in approximately 100
countries. SNC-Lavalin's business units have the autonomy and resources,
globally, to assume total responsibility for every aspect of a project, on a
fee-for-services, turnkey or concession basis, on its own or in partnership.


The SNC-Lavalin group of companies were founded more than 80 years ago. The
group has a staff of over 6,500, and is one of the largest engineering and
construction firms in the world.


SNC-Lavalin has a world-class reputation in consulting, process design,
engineering and construction for the treatment of ores and recovery of minerals
and metals including gold, nickel, cobalt, alumina, magnesium, copper, zinc,
uranium, coal and diamonds.


Some world-wide projects that SNC-Lavalin have been involved with include:


  • Troilus Gold Mine - Quebec, Canada

  • Pascua-Lama Gold Project - Chile/Argentina.

  • Olympus Gold Project - Greece.

  • Lone Tree Gold Project - Nevada, USA.

  • Meikle Gold Mine Project - Nevada, USA.

  • Anaconda - Murrin Murrin Stage 1 and 2, Mt Margaret Nickel Project,
    Western Australia.

  • Resolute - Bulong Nickel Project, Western Australia.

  • Black Range Minerals - Syerston Nickel Project,

  • Inco - Goro Nickel, Voisey's Bay Nickel,

  • Moneo Metals - Cap Bocage Nickel Project,

  • Sumitomo Metal Mining - Rio Tuba Nickel Project,

  • Ravensthorpe Nickel Operations, Ravensthorpe Nickel Project, Western
    Australia.


Mining Solutions Consultancy Pty Ltd


The mine scheduling and pit optimisation and design have been prepared by Mining
Solutions Consultancy Pty Ltd and are based on Measured and Indicated Resources
prepared by Hellman & Schofield Pty Ltd. SNC-Lavalin Australia Pty Ltd conducted
a review of the metallurgy, process plant (including tailings disposal), capital
cost, operating costs, infrastructure and implementation.

Mining Solutions Consultancy Pty Ltd was established in 1998 with specialisation
in mine planning and computer applications. Since its establishment, Mining
Solutions has undertaken mining studies for more than 25 open pit mining
projects located in Australia and overseas. Recently Mining Solutions has been
commissioned to complete the mining section of three bankable feasibility
studies for medium size gold projects (2.0-2.5Mtpa). Currently one of the
projects is under construction with the pit development at an advanced stage and
the other two overseas projects are in progress.

The Company founder and director, Tamer Dincer has 16 years experience as a
Mining Engineer with BSc and MSc degrees. He is currently a Member (CP) of The
Australian Institute of Mining and Metallurgy and Australian Mineral Industry
Consultants Association. In the last 8 years, Tamer managed and worked in
numerous open pit mining projects involving pit optimisations, designs,
production schedules, operating and capital cost estimates, equipment selection
and sensitivity analyses.

Mining Solutions have recently worked on projects such as

  • Thunderbox Gold project for Lionore Australia
  • White Foil Gold project for Mines and Resources Australia
  • Frogs Leg Gold project for Mines and Resources Australia
  • Kansanhi Open Pit in Zambia for GRD Minproc
  • Rosia Montana Open Pit Planning for GRD Minproc and Gabriel Resources in
    Romania
  • Bronzewing Open Pit for Normandy

Hellman & Schofield Pty Ltd has offices in Sydney, Brisbane and Perth, and
through FSSI has affiliated offices in Toronto and Geneva.

The principals and staff of H&S have worked on projects for numerous companies
in a variety of countries, commodities and mineralisation types, including:

  • Ranger Minerals' Damang gold project, Ghana
  • Kingsgate Consolidated's Chatree Au-Ag project, Thailand
  • Oxiana's Sepon Cu-Au project, Laos
  • Resolute Limited's Golden Pride mine, Tanzania
  • Teck Corporation's Hemlo gold mines, Canada
  • Mount Isa Mines Limited, Mount Isa copper and lead-zinc mines, Hilton and
    George Fisher mines, Queensland, Australia
  • BHP Cannington, Queensland, Australia
  • Sons of Gwalia's Tarmoola, Carusoe Dam and Marvel Loch gold mines, Western
    Australia
  • Lynas Corporation's Mount Weld rare earth oxide project, Western Australia

KCGM's Kalgoorlie Superpit operation, Western Australia


                      This information is provided by RNS
            The company news service from the London Stock Exchange