Quarterly Report June 2006

Centamin Egypt Limited 26 July 2006 Centamin Egypt Limited Quarterly Report for the Quarter Ended 30 June 2006 Highlights • The Sukari JORC compliant geological resource upgraded to 5.99 million ounces of gold. • Amun Zone resource infill definition programme completed, confirming tenor and extent of mineralisation and increasing the measured and indicated categories. Significant results included: RCD497 - 4m @ 13.70g/t RCD498 - 80m @ 2.30g/t RCD499 - 40m @ 2.86g/t RCD508 - 60m @ 2.40g/t RCD509 - 34m @ 3.08g/t RCD513 - 5m @ 10.13g/t & 32m @ 1.91g/t Au RCD522 - 24.6m @ 4.90g/t Au (incl. 8m @ 12.04g/t Au) RCD524 - 45m @ 3.26g/t RCD525 - 18m @ 3.07g/t Au, 49m @ 1.51g/t & 28m @ 2.02g/t RCD526 - 62m @ 2.01g/t Au • Drilling continued in the Pharaoh, Ra and Gazelle Zones, targeted at defining the continuation of mineralisation to the northern end of the hill. Significant results included: RCD461 - 75m @ 1.91g/t Au (incl. 1m @ 49.8g/t Au) RCD536 - 26m @ 1.65g/t Au from surface D543 - 20m @ 1.86g/t Au RCD569 - 44m @ 2.26g/t Au RCD570 - 11m @ 2.66g/t Au RCD578 - 16m @ 1.76g/t Au • Spectacular intersection of 111m @ 15.06g/t Au recorded in RCD553, identifying a new high grade, thick quartz vein - shear system at depth in the Ra - Gazelle zone. • Minister Sameh Fahmy and members of Parliament revisited site, resulting in positive media coverage and increased public interest in the Project. • During the quarter the metallurgical and process flow sheet elements of the Feasibility Study were completed. Feasibility Study ('BFS') / Process Plant Acquisition During the fourth quarter the metallurgical and process flow sheet elements of the BFS were completed which has allowed the company to commence a search for appropriate items of used process plant. The company is considering the purchase of used process plant items in an effort to reduce both the procurement time and the cost for major plant items. The search has identified a recently closed operation that contains most of the process plant items that Centamin will require for the Sukari project. The potential purchase of this plant represents an opportunity to materially reduce the cost of development and also accelerate the construction timetable. Testing of the structural integrity of key plant items has been arranged and negotiations with the plant owner are at an advanced stage. Consequently the completion of the BFS will be delayed while a thorough review of this process plant is completed. Sukari Project Resource Modelling The Geological Resource was upgraded by Hellman and Schofield Pty Ltd during the quarter and currently stands at 128.5Mt @ 1.45g/t Au for 5.99 Moz Au at a 0.5g/t Au cut-off. Resources by Confidence Category - Total Resource - Global All Data Cut-off Measured Indicated Inferred Total Total Tonnes Grade Tonnes Grade Tonnes Grade Tonnes Grade Ounces 0.50 35,232,233 1.44 49,764,840 1.47 43,502,598 1.44 128,499,671 1.45 5,994,550 1.00 17,921,275 2.13 25,577,226 2.19 20,417,375 2.26 63,915,876 2.19 4,510,536 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, whilst indicated resources are in areas drilled at approximately 25 x 50 metre spacing and inferred resources in areas of broader spaced drilling. The resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction. The latest resource report is based on 118,038.45 metres of diamond ('DD') and reverse circulation ('RC') drilling in 607 holes and 10,540 metres of surface rock chip lines spaced on approximately 25 metre spaced sections. These cover about 2,500 metres strike length of the deposit and (the drilling extends) to a depth of approximately 700 metres. A database of 55,175 two-metre drill hole sample composites and 4,908 two-metre surface rock chip samples provides the basis for resource estimation. All zones drilled during the quarter recorded significant assay results, which is very encouraging for defining additional resources and extending the mineralisation zone at Sukari at depth and to the northern end of the hill (12,200N). Amun Zone (9900N - 10,900N) All drilling was completed and assay results received for the Amun Zone Infill Resource definition drill programme for the BFS during the June quarter 2006. The drilling was designed to convert inferred resources to measured and indicated, to add ounces inside the optimised pit shell, infill identified data gaps in the geological model and to fully define the extent of the porphyry within the BFS mine area for infrastructure and mine planning. All these aims were achieved by the drilling. The mineralisation and porphyry is still open at depth and to the north of the proposed mining operations, and although it appears to narrow in the south, hasn't conclusively been closed off. Drilling intersected strong zones of mineralisation in the main Sukari P1 porphyry associated with moderate east dipping quartz vein, breccia - shear zones, with haloes of stacked extensional quartz veins and silica-sericite-carbonate-sulphide-kaolin alteration (Figure 1). Higher grades are associated with strongly sulphidic (particularly arsenopyrite), hydrothermal brecciated zones, shear zones and milky quartz veins. Sterilisation drill programmes have been planned for proposed plant site, tailings and waste dump areas. Drilling Programmes Ra - Gazelle Zone (10,900 - 11,400N) Drilling continued in the Ra - Gazelle zones, intersecting several zones of strong gold mineralisation, confirming the extension of gold mineralisation northwards. Drilling is primarily at an inferred resource category on 50m spaced sections, with some areas 25m spaced. RCD553 (11,075N) returned spectacular gold grades in several zones down hole (Table 1). The hole was collared just above the historical Gazelle exploration adit, which has previously recorded 38m @ 7.73g/t from rock chip channel sampling. Coarse visible gold in quartz veins were logged at 572 - 575m, corresponding to an assay result of 3m @ 440.6g/t Au, within a massive intersection of 111m @ 15.06g/t Au (uncut) from 473m. This newly defined high grade zone is outside the main BFS study Amun orebody and currently defined pit shells, but is similar in style to the Amun Zone Main Lode of the old mine that was exploited in ancient times, and seems to represent a new zone in the stacked system of high grade quartz veins and shear zones. The hole was designed to follow up strong mineralisation previously defined in the Ra-Gazelle zone higher up in the porphyry and from mapping, from 11,025N to 11,175N, and from 10,650E to the eastern contact of the porphyry. Current pit optimisations show a deepening of the pit shell in this area. The assay results highlight the strong potential for further high grade zones at depth in Sukari Hill, and in the Ra-Gazelle zone in particular. Table 1 - Significant Results RCD553 HOLE NORTH EOH AZI DIP From To Interval Au (g/t) RCD553 11079 614.4 270 -77 52 68 16 1.21 142 163 21 2.64 incl. 153 157 4 6.38 169 177 8 2.51 incl. 169 170 1 10.70 191 210 19 1.80 incl. 197 198 1 12.20 271 280 9 1.17 286 297 13 1.13 301 305 4 2.19 322 337 15 1.51 341 359 18 1.09 363 368 5 1.26 427 449 22 1.43 473 584 111 15.06 incl. 572 575 3 440.6 595 613 18 2.59 Pharaoh Zone (11,400N - 12,200N) Drilling is continuing in the Pharaoh Zone, with several holes returning significant assay results in the northern part of the hill. RC drilling continued on the Mike Track, northern Pharaoh Zone from 11,850N north, and further south in the Pharaoh zone on Adit and Accra South tracks. Several zones of anomalous looking porphyry were intersected near surface from the Mike Track drilling, assay results are awaited. DD continued in several areas from the Ra/ Gazelle zones to 11,800N, tailing RC pre-collars and following up previously intersected mineralisation and is targeted at adding resource ounces. Several RC pre-collars intersected anomalous mineralisation in a near surface environment (Table 2). 579 returned significant near surface mineralisation of 24m @ 1.13g/t Au from 5m, supported by adjacent hole 482. RCD578 had two higher grade zones in weakly mineralised rock all the way downhole (16m @ 1.78g/t from 65m). Hole D546, drilled at -10o west into the massive part of the porphyry intersected visible gold in a very high grade zone of 3m @ 9.47g/t from 2m, confirming the surface mineralisation. Even taking into account the non-optimal, fan-like drilling density in the area, the surface gold zone looks to be more than 200m in strike, and 80m wide, with depth of significant mineralisation up to 40m from surface. This drilling confirms the presence of significant near surface mineralisation and extends the strike length of it south of 11,600N, and north of previously defined mineralisation from 11,800N. Diamond tailing of pre-collars in the Pharaoh zone is underway, results are awaited. For Centamin Egypt Limited Josef El-Raghy Managing Director/CEO 26 July 2006 For more information please contact: Centamin Egypt Limited or Bishopsgate Communications Ltd Ph: +61 8 9316 2640 Fax: +61 89316 2650 +44 (0) 20 7430 1600 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.bishpsgatecommunications.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. Table 2 - Significant Assay Intersections June Quarter 2006 Hole Northing EOH (m) From To Width Assay g/t RCD459 10981 485.5 190 197 7 1.10 429 436 7 1.90 incl. 430 431 1 5.79 RCD461 11027 647.4 295 305 10 2.00 399 405 6 6.33 incl. 400 401 1 31.70 410 422 12 1.97 incl. 413 414 1 11.80 426 434 8 1.34 478 571 75 1.91 incl. 519 520 1 49.80 RCD489 9925 313.40 202 207 5 1.68 RCD492 10000 271.10 215 221 6 1.93 243 249 6 1.02 RCD497 10075 380.00 201 223 22 1.82 227 244 17 5.79 incl. 233 237 4 13.70 263 284 21 2.50 RCD498 10100 308.30 98 170 72 1.97 incl. 135 138 3 11.50 175 191 16 1.14 198 278 80 2.30 incl. 220 221 1 8.94 incl. 241 242 1 7.09 incl. 265 266 1 16.50 RCD499 10000 371.30 250 266 16 1.05 279 319 40 2.86 incl. 287 288 1 12.20 incl. 292 298 6 8.09 incl. 301 302 1 8.27 RCD500 10150 277.60 22 151 129 1.36 164 241 77 1.58 incl. 180 181 1 6.46 RCD502 10200 348.10 156 167 11 2.23 171 190 19 1.02 217 273 56 1.39 incl. 231 232 1 8.01 incl. 252 253 1 6.11 RCD503 10250 308.20 160.8 166.3 5.5 4.11 171 212 41 1.35 incl. 194 196 2 8.13 223 265 42 1.57 incl. 226 227 1 7.53 incl. 249 250 1 17.90 274.15 280.18 6.03 14.18 incl. 276 277 1 56.30 RCD504 10300 321.20 192 197 5 2.00 209 212 3 10.11 incl. 210.5 212 1.5 19.40 228 283 55 1.41 incl. 236 237 1 15.40 incl. 280 281 1 8.58 RCD505 10375 302.10 178 195 17 3.67 incl. 178 182 4 12.95 211 223 12 1.00 232 266 34 1.28 271 274.87 3.87 9.03 incl. 274 274.87 0.87 29.90 RCD508 10450 341.70 215 275 60 2.40 incl. 227 228 1 24.50 incl. 235 236 1 16.00 incl. 4 6.14 4 6.14 RCD509 10500 384.5 295 329 34 3.08 incl. 296 298 2 32.10 incl. 323 324 1 7.10 D510 11175 216.57 128 132 4 2.21 143 147 4 5.66 176 179 3 2.12 211 216.57 5.57 1.20 RCD511 10550 484.6 289 304 15 1.71 RCD512 10725 398.7 166 173 7 1.65 207 213 6 2.91 incl. 207 208 1 6.84 incl. 210 211 1 7.22 218 227 9 2.73 incl. 222 223 1 6.22 incl. 226 227 1 8.18 233 237 4 3.19 240 241 1 57.10 262 273 11 1.73 incl. 272 273 1 6.96 280 290 10 1.63 306 323 17 1.18 RCD513 10787 481.8 272 280 8 1.70 391 396 5 10.13 incl. 394 395 1 27.70 401 405 4 3.55 incl. 402 403 1 7.66 409 441 32 1.91 incl. 418 419 1 7.95 incl. 431 432 1 8.26 RCD514 10582 472.4 235 250 15 1.24 412 429 17 1.07 RCD515 10598 455.8 58 64 6 1.64 293 301 8 1.13 312 316 4 1.77 D516 11075 298.91 148 156 8 2.84 incl. 154 155 1 9.60 272 287 15 1.41 RCD519 10657 494 457 460 3 107.40 RCD520 10675 528.5 158 160 2 16.85 RCD521 10554 654.7 317 342 25 1.22 incl. 326 327 1 7.66 381 406 25 1.14 425 430 5 4.20 incl. 428 430 2 9.31 507 521 14 1.71 542 548 6 15.50 incl. 543 544 1 76.40 RCD522 10480 449.6 321 322 1 9.76 336 360.6 24.6 4.90 incl. 342 350 8 12.04 364 386 22 1.51 incl. 379 380 2 6.40 RCD523 10400 384.9 266 272 6 5.09 incl. 269 270 1 15.10 300.5 308.6 8.1 1.69 313 322 9 4.07 incl. 314.4 315 0.6 26.30 328 345 17 1.26 RCD524 10800 284.8 131 176 45 3.26 incl. 141 144 3 27.53 186 192 6 2.35 203 208 5 1.69 RCD525 10800 455.5 60 62 2 17.08 167 174 7 2.16 233 251 18 3.07 incl. 236 238 2 5.97 incl. 243 244 1 7.80 incl. 250 251 1 15.40 264 313 49 1.51 incl. 286 290 4 6.80 319 347 28 2.02 incl. 320 321 1 5.17 incl. 338 339 1 5.37 357 400 43 1.37 RCD526 10778 452.8 97 99 2 4.97 245 250 5 2.39 incl. 249 250 1 9.85 298 307 9 3.23 incl. 300 301 1 7.24 326 388 62 2.01 incl. 340 341 1 5.11 incl. 357 359 2 12.10 incl. 369 370 1 10.30 396 421 25 1.19 RCD527 11025 344.10 64 71 7 1.25 D528 11200 247.52 25 29 4 1.90 168 169 1 24.70 RCD529 11200 150 60 62 2 1.37 77 79 2 1.50 103 105 2 1.59 119 120 1 10.70 RCD530 11200 150 0 2 2 2.58 18 25 7 1.24 68 77 9 3.20 incl. 68 69 1 17.20 RCD533 11750 387 0 43 43 1.20 RCD534 11650 150 0 5 5 1.30 60 69 9 1.26 RCD535 11650 374.9 0 13 13 2.82 33 36 3 1.62 68 71 3 1.28 98 103 5 1.04 RCD536 11647 312.20 0 26 26 1.65 incl. 37 55 18 1.07 incl. 58 75 17 1.13 D537 11175 120.17 34 47 13 1.13 77 83 6 1.42 RCD538 11753 354.00 15 29 14 1.09 80 83 3 2.16 99 121 22 1.16 RCD539 11753 333.90 15 23 8 1.11 33 40 7 2.33 D540 11134 336.62 169 170 1 7.42 228 270 42 1.31 incl. 245 246 1 7.91 277 291 14 2.07 incl. 277 278 1 16.80 322 334 12 3.20 incl. 322 323 1 16.20 RCD541 11600 422.30 1 12 11 1.22 62 73 11 1.53 D542 11201 316.7 103 110 7 1.04 D543 11085 112.72 4 9 5 1.13 14 16 2 3.36 incl. 15 16 1 5.95 26 46 20 1.86 incl. 40 41 1 11.90 68 74 6 1.43 83 90 7 2.60 RCD544 11556 144 47 79 32 1.15 RCD545 11556 150 25 27 2 2.06 51 54 3 2.71 incl. 52 53 1 6.30 D546 11645 295.4 2 5 3 9.47 10 31 21 1.39 126 128 2 2.68 137 142 5 1.24 RCD547 11500 100 39 43 4 5.00 incl. 42 43 1 7.19 D548 11182 337.12 57 61 4 1.82 103 114 11 1.13 165 169 4 3.21 174 184 10 1.49 226 227 1 6.80 246 307 61 1.05 incl. 274 275 1 5.06 incl. 291 292 1 8.91 326 335 9 1.65 RCD550 11401 375.65 111 120 9 4.11 incl. 111 112 1 19.80 incl. 119 120 1 8.92 RCD552 11250 327.2 93 97 4 1.96 261 271 10 1.40 313 314 1 7.67 RCD553 11079 614.4 52 68 16 1.21 142 163 21 2.64 incl. 153 157 4 6.38 169 177 8 2.51 incl. 169 170 1 10.70 191 210 19 1.80 incl. 197 198 1 12.20 271 280 9 1.17 286 297 13 1.13 301 305 4 2.19 322 337 15 1.51 341 359 18 1.09 363 368 5 1.26 427 449 22 1.43 473 584 111 15.06 incl. 572 575 3 440.6 595 613 18 2.59 RCD565 11300 271.5 84 90 6 1.25 173 177 4 1.06 199 200 1 14.80 199 202 3 5.18 351 357 6 3.77 incl. 352 352.6 0.6 19.30 RCD566 11354 337.9 94 99 5 2.25 incl. 96 97 1 7.92 105 111 6 1.25 255 260 5 1.27 incl. 259 260 1 5.07 282 298 16 1.25 RCD567 11361 330.8 68 80 12 1.46 88 98 10 1.11 242 254 12 1.98 D568 11239 307.42 108 109 1 7.24 138 145 7 1.98 incl. 138 139 1 7.51 223 230 7 1.24 RCD569 11300 437.7 23 29 6 4.34 incl. 25 26 1 18.10 213 219 6 1.82 incl. 216 217 1 6.51 303 347 44 2.26 incl. 311 312 1 7.50 incl. 326 327 1 6.34 incl. 338 339 1 35.60 422 428 6 1.59 incl. 427 428 1 6.75 RCD570 11350 150 9 20 11 2.66 incl. 11 12 1 19.50 76 83 7 1.11 RCD576 11350 150 38 40 2 2.21 RCD577 11400 150 30 32 2 3.23 RCD578 11450 136 26 29 3 1.88 43 45 2 2.02 65 81 16 1.76 incl. 73 74 1 6.84 92 102 10 1.15 RCD579 11500 150 5 29 24 1.13 RCD581 11550 326.3 45 53 8 1.15 140 147 7 1.13 RCD582 11650 320.7 75 78 3 3.51 incl. 77 78 1 6.94 RCD584 11550 150 5 17 12 1.46 RCD587 11650 150 72 75 3 1.45 RCD594 11450 314.3 94 97 3 3.58 incl. 95 96 1 7.50 Intersections based on Composite and Single Sample cut off grade of 0.5g/t; Max Internal Waste 3m. 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