Qtrly report end 31.3.06

Centamin Egypt Limited 28 April 2006 Centamin Egypt Limited Quarterly Report for the Quarter Ended 31 March 2006 & April Resource Upgrade Highlights * Sukari JORC compliant resource upgrade to 5.76 million ounces of gold; * Increase of 1.27 million ounces or 28% above the resource statement announced in December 2005; * Total drill rigs on site increased to 9 with the addition of 2 new diamond rigs; * Cost per ounce discovered for current drilling programme - US$2.60 (US$4.60 to date); * £20.6m placement successfully completed (approx A$50.4 million); * Feasibility Study continues; * New Pharaoh Zone drilling hits Visible Gold 2.2m down hole * Significant drill intersections for the quarter:- RCD431 - 4m @ 4.18g/t Au RCD437 - 66.1m @ 2.18g/t Au RCD440 - 24m @ 2.03g/t Au RCD441 - 8m @ 6.80g/t Au (incl. 1m @ 38.5g/t Au from 144m) DDH455 - 74.84m @ 2.42g/t Au DDH456 - 19m @ 2.04g/t Au RCD458 - 24m @ 2.61g/t Au & 76m @ 1.96g/t Au RCD492 - 18m @ 8.80g/t Au (incl. 5m @ 21.57 g/t Au) RCD497 - 38m @ 3.57 g/t Au (incl. 17m @ 5.79 g/t Au) & 21m @ 2.50 g/t Au RCD499 - 40m @ 2.86 g/t Au (incl. 1m @ 12.20, 6m @ 8.09 & 1m @ 8.27 g/t Au) RCD500 - 56m @ 2.03g/t Au RCD502 - 38m @ 6.86g/t Au (incl. 9m @ 19.61 g/t & 3m @ 8.09 g/t Au). SUKARI PROJECT RESOURCE MODELLING The Sukari global resource was upgraded during the month of April, utilising all available assaying as at 25 April 2006 and included initial drilling data from the Ra and Pharaoh Zones, completed since November 2005 (Table 1). The global resource now stands at 124.2Mt @ 1.44g/t Au for 5.76 Moz Au, at a 0.5g/t Au cut off grade, an increase of 1.27 million oz (28%) from December 2005. Table 1 - April 2006 Resources by Confidence Category - Uncut Cut-off Measured Indicated Inferred Total TOTAL Mt g/t Mt g/t Mt g/t Mt g/t Moz 0.5 33.426 1.44 41.503 1.52 49.32 1.4 124.247 1.44 5.76 0.7 25.352 1.71 32.098 1.79 34.75 1.7 92.197 1.74 5.15 1.0 17.085 2.13 21.898 2.23 22.21 2.2 61.192 2.19 4.31 Note to Table: Figures in table may not add correctly due to rounding The measured resources lie in areas where drilling is available at a nominal 25 x 25 metre spacing, indicated resources in areas drilled at approximately 25 x 50 metre spacing and inferred resources in areas of broader spaced drilling and that the resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction. The resource model extends from 9700mN to 12250mN and to a maximum depth of 600RL (approximately 550 metres below surface). The resource estimate has been based on the sampling and geological logging coming from 571 diamond and RC drill holes combining to give approximately 116,500 metres of drilling and 5,271 two-metre surface rock chip samples. Resource data set comprises approximately 58,125 two-metre down hole composites and rock chip samples. The December model was based on 41,991 drill hole and rock chip samples. Measured and Indicated ounces increased by 15% or 472,379 ounces. The Inferred resources in the current estimate, compared to the December estimate increased by 57%, due to the step out drilling programme north of 11000mN, all resources north of this northing have been categorised as Inferred in this model. Future infill drilling should, as in the past, elevate these ounces to the Measured and Indicated categories. Drilling Programmes Resource and Exploration drilling during the March quarter focused on: 1. Initial drilling in the Ra Zone 2. Infill drilling within the AmunZone 3. Step out drilling to the north in the Pharaoh Zone Ra Zone The aim of the Ra Zone drilling was to confirm continuity of the Sukari mineralised system to the north of the Amun Zone, outline inferred resources for further delineation and start opening up the northern parts of the Sukari Hill (Pharaoh Zone) for systematic evaluation. The Ra zone from 10975N to 11200N has been infill drilled on 50m spaced sections, in some areas to 25m. Results show continuity of mineralisation through the northern part of the Amun zone, into the Ra Zone and onwards into the Pharaoh Zone, and are extremely encouraging for resource base expansion, future infill drill testing and resource modelling. The Ra Zone is characterised by the presence of large volumes of the red, porphyritic, haematitic altered porphyry. Geological and assay data shows mineralisation continuing strongly along strike to the north, mainly confined to the eastern half of the hill as accessible now. Mineralisation zones are controlled by a series of sheeted, moderate (30 - 50o) east and west dipping structures, related to extensional quartz veining and alteration of the porphyry, with sericite, silica, kaolinite, ankerite and pyrite the main alteration minerals. Amun Zone Infill The aims of this drilling programme were to: • Convert as much inferred resources lying inside the current pit shells as possible to Indicated and Measured, thereby maximising resource ounces for the Feasibility Study, reserve calculations and detailed mine design work, as well as improving geological understanding and the 3D model; • Maximise pit shell volume on geological information, not have pit shells bottoming on a lack of drill data; • Infill identified gaps in the resource model, particularly at the footwall contact in areas where it starts to flatten and have potential for higher Au grades; as well as test hangingwall porphyry units which are variably mineralised but poorly tested, particularly around 10500N; • Define the extent and geology of mineralised porphyry to the south and at depth, close off if possible to the south for infrastructure requirements and mine planning. At quarter's end, assays were beginning to be returned for the first few holes in the Southern Amun Zone. All RC pre-collar assays have been returned for the Amun Main Zone programme holes, most DD tail assays are awaited. Pharaoh Zone Drilling RC pre-collar drilling is currently underway in the Pharaoh Zone, following strong near surface indications of mineralisation from previous mapping, rock chip sampling and drilling. The aim of the drilling programme is to define mineralisation continuity north to the end of the Sukari Hill, initially on 50 - 100m spaced sections, to an inferred resource category and for preliminary economic studies. Assay results are encouraging as they indicate economic gold values near surface and visible gold has also been sighted in drill core. These correspond well with Au anomalous rock chip samples taken in early 2005 and the quartz vein-shear-alteration zone striking grid north from about 11600N to the northern margin of the porphyry hill at 12200N. FEASIBILITY STUDY During the quarter, work continued with Ausenco on the Bankable Feasibility Study into the development of a 4 to 5 million tonne per annum processing facility. Current indications are that the study should be completed by the end of the second quarter. CORPORATE ACTIVITIES Share Placement The company successfully placed 75 million new ordinary shares at a price of 27.5p per share, raising approximately £20.6 million (A$50.4 million), before expenses, via the Company's nominated adviser, Williams de Broe Plc. The funds raised from the placing will be used to secure long lead time items and to cover pre-mining costs in relation to the development of the Company's Sukari mine. Funds will also be used to provide general working capital. The new shares were placed with institutional investors and other financial institutions including Ambrian Partners Limited who acted as sub-agent to the placing. The new shares represent approximately 13.0% of the Company's expanded issued share capital immediately following the placing. For Centamin Egypt Limited Josef El-Raghy Managing Director/CEO 28 April 2006 For more information please contact: Centamin Egypt Limited Bishopsgate Communications Ltd Tel: +61 8 9316 2640 Fax: +61 8 9316 2650 Tel: +44 (0) 2074 301 600 Josef El-Raghy (josef@centamin.com.au) Maxine Barnes +44 (0) 7860 489 571 Heidi Brown (heidi@centamin.com.au) Dominic Barretto +44 (0) 7930 450 156 www.centamin.com www.bishopsgatecommunications.com Information in this report which relates to exploration, geology, sampling and drilling is based on information compiled by geologist Mr R Osman who is a full time employee of the Company, and is a 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 a 'Competent Person' for this purpose. 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. The information in this report that relates to mineral resources is based on work completed by Mr Nicolas Johnson, who is a Member of the Australian Institute of Geoscientists. Mr Johnson is a full time employee of Hellman and Schofield Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Johnson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Significant Assay Intersections Returned for the March 2006 Quarter Hole Northing EOH (m) From To Width Assay g/t RCD420 11077 387 367 382 15 2.41 RCD421 11125 431.3 373 387 14 2.22 RCD427 11075 370.4 284 318 34 1.58 incl. 304 305 1 6.15 339 340 1 6.07 RCD428 11075 602.8 215 222 7 1.91 incl. 221 222 1 6.65 504 550 46 1.28 RCD431 11075 320.3 110 170 60 1.15 175 179 4 4.18 incl. 175 176 1 13.90 RCD433 11125 276.5 204.6 206 1.4 8.13 230 234 4 2.85 RCD434 11175 284.5 180 181 1 5.22 247 254 7 2.29 incl. 247 248 1 9.49 RCD436 11200 312.7 294 295 1 6.37 RCD437 11175 365.1 299 365.1 66.1 2.18 incl. 319 331 12 4.64 incl. 350 361 11 3.58 incl. 356 358 2 12.38 RCD440 11125 296 50 52 2 22.73 110 111 1 6.84 123 147 24 2.03 incl. 124 125 1 18.40 incl. 137 138 1 8.28 RCD441 11175 306.9 138 146 8 6.80 incl. 144 145 1 38.50 RCD444 11600 245.6 143 180 37 1.41 incl. 169 170 1 8.36 RCD445 11700 263.9 216 222 6 3.74 incl. 220 221 1 11.20 D447 10400 115.59 113 115.59 2.59 5.50 RCD454 10950 503.1 182 191 9 2.10 incl. 182 183 1 10.80 252 253 1 6.20 281 282 1 8.47 332 421 89 1.39 incl. 399 406 7 4.59 incl. 404 405 1 23.70 D455 11025 300.84 194 207 13 2.46 226 300.84 74.84 2.42 incl. 252 287 35 3.70 incl. 261 265 4 8.00 incl. 274 279 5 6.46 incl. 284 287 3 9.11 D456 11075 324.47 217 241 24 1.61 incl. 233 238 5 4.81 251 270 19 2.04 RCD458 10975 595 166 167 1 8.70 328 329 1 8.33 415 439 24 2.61 incl. 415 419 4 6.10 472 548 76 1.96 incl. 473 474 1 42.10 incl. 509 510 1 6.13 incl. 515 519 4 3.95 incl. 546 547 1 10.60 554 588 34 1.33 incl. 561 562 1 13.40 incl. 561 567 6 3.19 incl. 577 578 1 10.00 D464 11125 266.6 169 172 3 7.13 incl. 170 171 1 14.70 RCD467 11800 268 50 76 26 1.66 incl. 67 69 2 6.71 RCD471 11600 386.8 0 12 12 1.86 57 66 9 2.25 316 323 7 3.77 RCD478 11800 368 15 16 1 7.68 15 23 8 2.67 90 91 1 14.80 RCD479 11700 380 0 11 11 1.97 59 101 42 1.26 incl. 62 73 11 3.19 294 306 12 2.17 300 301 1 7.43 RCD480 11700 320 26 30 4 2.48 116 121 5 2.32 RCD492 10000 271.1 97 113 16 1.46 incl. 98 99 1 9.81 181 198 18 8.80 incl. 188 193 5 21.57 incl. 196 197 2 12.18 RCD493 10025 223.5 30 37 7 2.55 incl. 34 35 1 6.62 RCD497 10075 380.00 206 244 38 3.57 incl. 227 244 17 5.79 incl. 233 237 4 13.70 263 284 21 2.50 RCD498 10100 308.3 75 78 3 2.87 99 138 39 2.60 incl. 135 138 3 11.50 RCD499 10000 371.30 279 319 40 2.86 incl. 287 288 1 12.20 incl. 292 298 6 8.09 incl. 301 302 1 8.27 RCD500 10150 277.6 65 121 56 2.03 incl. 104 105 1 10.10 incl. 109 111 2 5.65 129 141 12 2.32 D501 11175 128.4 66 67 1 6.88 118 127 9 5.29 incl. 125 127 2 19.50 RCD502 10200 348.1 108 146 38 6.86 incl. 108 117 9 19.61 incl. 137 140 3 8.09 RCD504 10300 321.2 192 197 5 2.00 206 212 6 5.29 incl. 210.5 212 1.5 19.40 234 239 5 4.84 278 283 5 3.32 Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin : Appendix 8. Amended 1/7/98, 30/9/2001. Name of Entity Centamin Egypt Limited ABN Quarter ended ('current quarter') 86 007 700 352 31 March 2006 Consolidated statement of cash flows Centamin Egypt Limited Pharaoh Gold Mines NL (100%) Viking Resources Ltd (100%) North African Resources (100%) Cash flows related to operating activities Current Year to date Quarter (9 months) $A'000 $A'000 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (2,884) (7,425) (b) development (424) (643) (c) production - - (d) administration (253) (687) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 159 564 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other (provide details if material) - - ----------- ----------- Net Operating Cash Flows (3,402) (8,191) ------------------------------- ----------- ----------- Cash flows related to investing activities 1.8 Payment for purchases of (a) prospects - - (b) equity investments - - (c) other fixed assets (347) (596) 1.9 Proceeds from sale of (a) prospects - - (b) equity investments - - (c) other fixed assets - (6) 1.10 Loans to other entities *(Refer Note 1) (3,366) (8,376) 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - - ----------- ----------- Net investing cash flows (3,713) (8,978) ----------- ----------- 1.13 Total operating and investing cash flows (carried forward) (7,115) (17,169) ----------- ----------- 1.13 Total operating and investment cash flows (brought forward) (7,115) (17,169) ------------------------------- ----------- ----------- Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 73 203 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings *(Refer Note 1) 3,366 8,376 1.17 Repayment of borrowings 158 316 1.18 Dividends paid - - 1.19 Other (provide details if material) - - ----------- ---------- Net financing cash flows 3,597 8,895 ------------------------------- ----------- ---------- Net increase (decrease) in cash held (3,518) (8,274) 1.20 Cash at beginning of quarter/year to date 13,156 17,946 1.21 Exchange rate adjustments to item 1.20 111 77 ----------- ---------- 1.22 Cash at end of quarter 9,749 9,749 ------------------------------- ----------- ---------- *Note 1 - From the March 2004 Quarter onwards, the funding of exploration expenditure by the Holding Company to its subsidiaries is also disclosed as an inter-entity loan under sections 1.10 and 1.16 respectively. ---------- Payments to directors of the entity and associates of the Current quarter directors Payments to related entities of the entity and associates of $A'000 the related entities ----------- 1.23 Aggregate amount of payments to the parties included in item 1.2 227,510 ----------- 1.24 Aggregate amount of loans to the parties included in item - 1.10 ----------- 1.25 Explanation necessary for an understanding of the transactions - Salaries, superannuation contributions, consulting and directors fees paid to Directors during the quarter amounted to $200,370. - Mr S El-Raghy and Mr J El-Raghy are Directors and shareholders of El-Raghy Kriewaldt Pty Ltd ('ELK'), which provides office premises to the Company in Australia. All dealings with ELK are in the ordinary course of business and on normal terms and conditions. Rent paid to ELK during the quarter amounted to $13,395. - Mr S El-Raghy provides office premises to the Company in Alexandria, Egypt. All dealings are in the ordinary course of business and on normal terms and conditions. Rent paid during the quarter amounted to $4,704. - Mr C Cowden, a non-executive director, is also a director and shareholder of Cowden Limited, which provides insurance broking services to the Company. All dealings with Cowden Limited are in the ordinary course of business and on normal terms and conditions. Insurance premiums paid to Cowden Limited during the quarter amounted to $9,041. 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 fro 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 3,300 ---------- 4.2 Development 700 ---------------------------------------- ---------- Total 4,000 ---------------------------------------- ---------- Reconciliation of Cash Reconciliation of cash at the end of the Current quarter Previous quarter (as shown in the consolidated quarter statement of cash flows) to the related items $A'000 $A'000 in the accounts is as follows. ------------------------------- ----------- ----------- 5.1 Cash on hand and at bank 1,072 940 ----------- ----------- 5.2 Deposits at call 473 931 ----------- ----------- 5.3 Bank overdraft - - ----------- ----------- 5.4 Term deposits 8,204 11,285 ------------------------------- ----------- ----------- Total: cash at end of quarter (item 1.22) 9,749 13,156 ------------------------------- ----------- ----------- Changes in interests in mining tenements ------------- ---------- ------------ ----------- Tenement Nature of Interest at Interest at reference interest beginning of end of (note (2)) quarter quarter ------------- ---------- ------------ ----------- 6.1 Interest 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 Number Issue price Amount paid quoted per security up per (see note 3) security (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 502,850,369 502,850,369 ------------- ---------- ------------ ----------- 7.4 Changes during quarter 290,000 290,000 (See 7.9 below) (See 7.9 below) (a) increases through options exercise (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 Employee Exercise price Expiry date Option Plan 2002 (description and conversion 600,000 Nil 23.10 cents 12/11/2006 factor) 50,000 Nil 23.10 cents 17/11/2006 750,000 Nil 35.49 cents 15/12/2006 775,000 Nil 28.04 cents 04/02/2008 410,000 Nil 28.04 cents 17/02/2008 4,200,000 Nil 35.00 cents 31/10/2010 1,500,000 Nil 43.55 cents 08/12/2008 ------------- ---------- ------------ ----------- 7.8 Issued during quarter ------------- ---------- ------------ ----------- 7.9 Exercised during quarter 160,000 Nil 23.10 cents 12/11/2006 80,000 Nil 23.10 cents 17/11/2006 50,000 Nil 35.00 cents 31/10/2010 ------------- ---------- ------------ ----------- 7.10 Expired/ lapsed 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: 28 April 2006 Print name: Heidi Brown 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 FKNCBKKPQB

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