Quarterly Update

Centamin Egypt Limited
31 October 2006

                             Centamin Egypt Limited


                                QUARTERLY REPORT

                    FOR THE QUARTER ENDED 30 SEPTEMBER 2006




Highlights


• Agreement entered into to acquire the Kori Kollo CIL process plant
from a subsidiary of Newmont Mining Corporation for US$11m

• Key equipment sizing is well matched to the 4-5mtpa processing rate
currently envisaged for the Sukari Project


• The Sukari JORC compliant geological resource upgraded to 6.79
million ounces of gold

• Increase of 3.85 million ounces or 131% above the resource statement
at recommencement of drilling in May 2005

• Cost per ounce discovered since recommencement of drilling in May
2005 - US$3.60

• Confirmation of extension of mineralisation from the Amun and Ra
zones into the Pharaoh zone with higher grade north plunging ore shoots

• Near surface mineralisation encountered on eastern flank of Sukari

• Potential to add significant ounces up dip to the west of RCD 553 
(111m @ 15.06g/t Au)

• Key personnel appointed

• Drilling continues with 9 rigs on site and additional 60,000m
drilling program set



Feasibility Study ('BFS') and Process Plant Acquisition


During the quarter Centamin Egypt Limited (the 'Company') made two decisions
with respect to the BFS, brought about primarily by a rampant resources sector.


These decisions were necessitated primarily due to the slow progress being made
with the study and concerns with the rapid escalation in cost and lead times for
major processing plant items.


Firstly the decision was taken to discontinue with the services of Ausenco and
to replace them with an experienced in house team combined with the appointment
of Roche Mining (JR) Pty Ltd.


Secondly, after an extensive search and thorough technical review, the Company
entered into an agreement to acquire the Kori Kollo gold treatment plant. This
decision to purchase Kori Kollo has been justified as we are now advised that
the lead time for the manufacture of new mills has increased to 76 weeks, which
together with delivery and installation translates to in excess of 100 week lead
time.


Most technical aspects of the BFS are now essentially complete however further
work on the impact of the purchase of the Kori Kollo plant on capex and opex and
the mine plan still need to be completed. Further information and detailed
implementation schedules will be released as they become available.


Kori Kollo Process Plant


Centamin has entered into an agreement with a subsidiary of Newmont Mining
Corporation, to acquire the Kori Kollo CIL process plant for US$11m. The
acquisition will be funded out of existing cash reserves of the Company.


The Kori Kollo plant is located in Bolivia and was built and commissioned by
Minproc Engineers in 1993. The plant operated for ten years and on-site
inspections by Centamin representatives have shown the key plant components to
be in excellent condition due to the site altitude providing a non-corrosive
environment and the high standard of maintenance practices during operation.
Testing of the structural integrity of key plant items was also completed prior
to the signing of the agreement.


Payment for the plant is to be on a structured basis, pending the satisfactory
completion of certain events occurring with title to pass once the plant is
delivered into Chile.


The plant is ideally suited to the Sukari orebody and key equipment sizing is
well matched to the 4-5mtpa processing rate currently envisaged for the Sukari
project. The acquisition represents a key step forward in bringing the Sukari
project into production.


Scope of the Acquisition


The purchase includes:

• Crushing circuit - primary gyratory crusher, rock breakers, stockpile feed
conveyor

• Grinding and classification circuit - 28' Fuller SAG mill , 2 x 16'6''
Fuller ball mills, mill inching drive, mill liner handling machine

• CIL (Leach and Adsorption) circuit and carbon recovery equipment

• Thickening and process water area - Enviro Clear 75' diameter thickener

• Reagent plant - flocculant plant, caustic dosing system

• Gravity separation circuit

• Sulphur dioxide cyanide destruction plant

• Engineering design and construction drawings

• Operating and maintenance manuals

• Spares inventory



The location, modular design and bolted construction of the plant will allow for
ease of dismantling and relocation to Sukari. Newmont's subsidiary has ongoing
heap leach operations at Kori Kollo and, as such, some equipment in the plant
(elution and stripping circuit) will not be available for sale.


The scope of intellectual property purchased with the plant will mean that the
plant has been acquired as a fully engineered operational entity, providing
considerable time and cost saving benefits in bringing the Sukari project
online. All available engineering design, construction drawings, operation and
maintenance manuals, maintenance procedures and records and other intellectual
property (relevant to the design, construction and operation of the plant) is
included as part of the sale.


Relocation Plan


Roche Mining (JR) Pty Ltd has been appointed to manage the dismantling,
transportation and refurbishment of the plant.


The plant is currently being electrically isolated to allow for dismantling.
This process will be completed sequentially over the next two months and will
then permit dismantling to commence. The plant will be trucked to the port of
Arica in Chile, shipped to Alexandria in Egypt for refurbishment and then
trucked to Sukari.


New Personnel Appointments


Mr Bob Sinclair B. Sc. (Eng) Chemical Engineering

Sukari Project Development Manager


Mr Sinclair has over 40 years experience in engineering and construction on
projects in mining and chemical industries. These projects are located in the
US, Australia, Canada, Asia and Africa and range in value from US$30 million to
US$850 million. Mr Sinclair has technical experience in senior management
positions with both engineering contractors and with the owner's team and has
managed pre-feasibility and feasibility studies, EPC and EPCM contracts and
direct hire jobs. Mr Sinclair most recently worked as the Area Manager,
Infrastructure for the Koniambo Nickel Project in New Caledonia and previously
as the EPC Manager and Acting General Manager of the Chirano Gold Mine in Ghana.


Peter Evans

Sukari Construction Manager


Mr Evans has in excess of 20 years experience in all facets of the construction,
upgrading, dismantling and relocation of gold mining plants in Australia and
overseas.


Mr Evans is also experienced in negotiating and obtaining development permits
and approvals with various government authorities and liaising with local
stakeholders in order to achieve favourable outcomes for all participants and
will be based in both Bolivia and Egypt, as necessity requires.


Mr Mark Smith B. Bus. (Accy), CPA, MAICD

Finance Manager


Mr Smith has a Bachelor of Business undergraduate degree, with a major in
Accountancy, obtained from the Queensland University of Technology and is a
Certified Practicing Accountant with 15 years post-graduate experience across a
wide variety of industries. He has held senior financial positions with a number
of Australian publicly listed companies in the resources sector, most recently
as the CFO for Grange Resources Limited and prior to that for Red Back Mining
Inc. and Chirano Gold Mines Ltd in Ghana.


Mr Smith has considerable experience in project financing, establishing
accounting systems and controls for project development and operations reporting
and will be based in Egypt.


Sukari Project


Resource Modelling


The gold resource increased during the quarter to 142.96 Mt @ 1.48 g/t Au for
6.79 Moz Au at a 0.5g/t Au cut-off grade - a 131% increase (3.85Moz) since the
project drilling recommenced in May 2005 (Table 1). The cost per ounce of the
new resources since re-commencement is US$3.60/oz.


               Table 1 - Updated Mineral Resource Sukari Project

Cut-off      Measured        Indicated         Inferred               Total    Total
 g/t Au     Mt      g/t      Mt      g/t      Mt      g/t      Mt       g/t     Moz
  0.50    36.06    1.45    54.63    1.50    52.30    1.50    142.96    1.48     6.79
  0.70    27.24    1.73    41.77    1.78     37.3    1.80    106.34    1.78     6.09
  1.00    18.42    2.15    28.64    2.21    24.40    2.40     71.47    2.24     5.15


The resources are estimates of recoverable tonnes and grades using Multiple
Indicator Kriging with block support correction. Measured resources lie in areas
where drilling is available at a nominal 25 x 25 metre spacing, Indicated
resources occur in areas drilled at approximately 25 x 50 metre spacing and
Inferred resources exist in areas of broader spaced drilling.


The resource estimate has been based on the sampling and geological logging
coming from 647 diamond and RC drill holes combining to give approximately
130,000 metres of drilling and from available assaying as at 21 July 2006. The
resource data set comprises approximately 66,400 two-metre down hole composites
and rock chip samples. The mineral resource estimate has been adjusted to
present land surfaces (currently available and subject to change) and previous
underground mining (very minor effect on total resources). The resource extends
to a maximum of about 700m below surface. All resources north of 11,200N are
reported as inferred.


Significant areas of resource increase occurred at 11000N, 11100N and 11175N to
11550N. Drilling on sections 11075N to 11100N intersected high grade
mineralisation from 930RL to the 500RL. The zone of mineralisation confirms the
extension of mineralisation that occurs to the south in the Amun and Ra zones.


Work Programmes


   •Drilling continued in Pharaoh, Ra and Gazelle Zones, defining the
    continuation of mineralisation to the northern end of the outcropping Sukari
    porphyry hill and increasing the economic resource base.


   • Continuation of significant surface mineralisation identified in
    northern Pharaoh Zone from 11,800N, and in zones south of 11500N, indicating
    total strike length of over 1000m. Significant intersections received for
    the quarter in a near surface environment include:


o       RCD595 - 5m @ 1.74g/t Au from 0m and 4m @ 5.19g/t Au from 71m

o       RCD603 - 10m @ 2.56g/t Au from 18m

o       RCD610 - 16m @ 3.23g/t Au from 65m and 17m @ 1.48g/t Au from 99m

o       RCD616 - 17m @ 2.24g/t Au from 55m

o       RCD620 - 9m @ 2.12g/t Au from 36m

o       D633 - 11m @ 2.47g/t Au from 18m

o       D634 - 11.72m @ 5.12g/t Au from 17m


• Resource drilling also confirmed strong mineralisation in the Ra and
  Pharaoh zones at depth. Drilling has intersected economic tenor gold
  mineralisation to 12000N. Some of the better intersections include:


o       RCD529 - 27.4m @ 1.98g/t Au from 229m

o       RCD530 - 16mk @ 1.57g/t Au from 295m and 4m @ 3.88g/t Au from 315m

o       RCD533 - 14m @ 1.62g/t Au from 387m

o       RCD616 - 23m @ 1.98g/t Au from 133m and 7m @ 2.23g/t Au from 316m

o       RCD579 - 4m @ 10.77g/t Au from 242m (incl. 1m @ 40.7g/t from 242m)

o       RCD595 - 27m @ 3.28g/t Au from 164m (incl. 4m @ 16.13g/t Au from 225m)

o       RCD629 - 10m @ 2.99g/t Au from 198m


• A new infill and resource extension drilling programme commenced, aimed
  at:


o       Increasing resource ounces in the Amun and Ra zones inside a larger
optimised pit shell

o       Testing the continuity of the near footwall Amun and Ra zones to the
north and outside the current pit limits.

o       Infilling and testing the near surface resource in the Pharaoh Zone
north of 11200N to the end of the porphyry hill. Testing the footwall contact
and deeper Amun and Ra zone ore extensions in this area as well.


•Geological interpretation, digitising and wire framing of the 3D geological model continued

•Major database upgrade and validation exercise completed

Drilling Programmes


The majority of the drilling during the quarter was completed north of 11200N in
the Pharaoh Zone. Work has re-started in the Ra and Gazelle Zones, and will
continue in the Pharaoh Zone during the next quarter (Figure 1).

Economic gold mineralisation was recorded in several holes near the surface
during the quarter, corresponding to mainly shallow east dipping vein sets, with
some conjugate west dipping ones observed in outcrop and drilling. Holes 611,
612 and 568 on 11250N, from 10770E - 10850E; and 610 on 11300N, returned strong
surface Au, with weaker zones in holes 600, 565 and 569 (Table 1). Surface
mineralisation was also returned from holes on sections 11350N - 11450N,
confirming the southern continuation of the surface zone previously defined
north of 11500N.

Assay results from DD tails drilled in the Pharaoh Zone show a west dipping
structure becoming more significant from 11500N . Utilising surface mapping,
rock chipping and drilling information, a general pattern of shallow NW and NE
dipping veins and shears has been interpreted, with some flatter, zones of
mineralisation occurring at depth.

Future drilling is targeted at resource definition in and below a shallow
optimised pit extending from 11400N to 12000N, thereby increasing the size and
confidence level of the surface resource and improve mining economics. Several
deeper holes are targeted at drilling through to the FW, intersecting the
northward continuation of the Amun and Ra mineralisation zones at depth.

Drilling continued in the Ra - Gazelle zones, intersecting several zones of
strong gold mineralisation, confirming the extension of gold mineralisation
northwards from the Amun Zone. Drilling is primarily at an inferred resource
category on 50m spaced sections, with some areas 25m spaced.


Recently drilled holes 584 - 586 and 690 - 692 from the Ahmed and Track 7 areas
intersected moderate to strong looking mineralisation in altered and sulphidic
P6 and P1 ores. Hole 690 drilled on 11025N vertically into the porphyry near the
FW contact intersected visible gold in a weathered pyrite crystal at 25 - 26m.
Assay results are awaited.


Current planned drilling is aimed at a significant resource upgrade, increasing
the size of the current pit design, extending mine life and lowering strip
ratios, thereby improving overall project economics. The northern extension of
the Ra and Amun Zones and more complete testing of the footwall are particularly
targeted in this area (Figure 1).


Rock Chip and Track Sampling


Partial assay results have been returned from recent rock chip sampling of the
Mike, Upper Mike and Lower Mike tracks in the northern part of the Pharaoh zone
of the Sukari outcrop. Several strong zones of mineralisation were mapped.
Anomalism corresponds to major quartz veins and alteration zones surrounding
them. Mapping identified two major vein sets, a moderate NW and a NE dipping
one. Chip sampling has confirmed the mineralisation associated with these veins
and alteration zones and that they extend to the far north of the porphyry. Rock
chip sampling continues on all tracks to help improve understanding of the
mineralisation system. As the samples are taken from track access that has been
cut in along the hill they do not represent true width however they are of
importance in that this mineralisation is at surface and close to the most
northerly point of the outcrop.


      Table 2 - Significant Assay Results, Rock Chip Samples, Mike Tracks

    Track     North From   North To    East From    East To    Length   Au ppm
North Mike        12002       12000        10851      10847        6     1.38
Lower Mike North  12167       12098        10820      10847       90     1.78
        incl.     12130       10826                                2     8.82
        incl.     12116       10829                                2     7.31
        incl.     12105       10831                                2       13
Central Mike      11993       11969        10838      10837       24     1.68
Upper Mike North  11963       11981        10822      10825       20     2.48
        incl.     11963       10822                                2     16.3


Database / IT / GIS


Century Systems and Sukari personnel completed a major geological database
upgrade, data validation exercise, troubleshooting and training visit during the
quarter. An experienced GIS/cartography Administrator commenced work full time
on site, improving in-house map production, presentation, data analysis,
validation and interpretation capabilities.


For Centamin Egypt Limited


Josef El-Raghy

Managing Director/CEO

31 October 2006


For more information please contact:

Centamin Egypt Limited                      Bishopsgate Communications Ltd                  Evolution Securities
Ph: + 61(8)9316 2640                                 + 44 (0) 20 7430 1600                 + 44 (0) 20 7071 4300
Josef El-Raghy                            Maxine Barnes / Dominic Barretto            Frank Moxon /Simon Edwards
([e-mail])                                                     
                       
www.centamin.com                         www.bishopsgatecommunications.com              www.uk.evosecurities.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 1 - Significant Assay Intersections, Sukari Project July to September 2006

    HOLE      NORTH      EAST      DIP    AZI    EOH (m)   FROM     TO       INT    Au (g/t)
    D583      11225       10839    -87    270    319.62    129       133        4      1.85
                                                           289    319.62    30.62      1.27

    D588      11700       10756    -10    270    300.78      6         8        2      2.79
                                                            16        19        3      1.55
                                                            38        40        2      2.39

    D618      11750       10786    -10    270    304.32      7        42       35      1.13
                                                            48        50        2      5.81
                                                  incl.     48        49        1     10.40
                                                            96       108       12      1.26

    D633      11600       10686    -10    270    150.02     18        29       11      2.47
                                                  incl.     20        22        2      8.49
                                                            34        38        4      1.30
                                                            43        45        2      1.30

    D634      11850       10941    -70    270     28.72     17     28.72    11.72      5.12

   RC644      10558       10771    -60    320       150     84       112       38      1.30
                                                  incl.     92        93        1     10.90
                                                  incl.    111       112        1      5.22

   RC647      10525       10703    -60    320       150    129       141       12      1.49

   RC648      10509       10659    -60    320       150     69        76        7      2.06

   RC658      10509       10659    -60    320       150     83        90        7      1.15
                                                           108       122       14      1.24

   RC659      10609       10819    -60    320       150      6         9        3      1.14
                                                            13        34       21      1.20

   RC660      10912       10550    -90      0       150     13        34       21      1.20
                                                           117       124        7      1.19
                                                           131       133        2      1.15
                                                           145       147        2      1.47

   RCD470     11500       10669    -87    270     390.8    166       169        3      2.64
                                                           268       286       18      1.03
                                                           306       308        2      5.78
                                                  incl.    307       308        1     10.70
                                                           314       320        6      1.31

   RCD529     11200       10902    -85    270     256.4    229     256.4     27.4      1.98
                                                  incl.    232       234        2      6.86
                                                  incl.    236       237        1      6.38
                                                  incl.    247       248        1      5.29

   RCD530     11200       10901    -73    270     410.2    192       196        4      1.01
                                                           259       264        5      1.59
                                                           295       311       16      1.57
                                                  incl.    298       299        1      6.36
                                                           315       319        4      3.88
                                                  incl.    318       319        1     10.30
                                                           391       400        9      1.36

   RCD533     11750       10862    -72    270       387    271       276        5      1.14
                                                           318       332       14      1.62

   RCD535     11650       10728    -87    270     374.9    281       291       10      1.88

   RCD539     11750       10793    -63    270     333.9    163       180       17      1.55

   RCD541     11600       10694    -74    270     422.3    325       338       13      1.24

   RCD565     11300       10883    -70    270     392.6    297       304        7      1.74
                                                  incl.    302       303        1      7.49
                                                           351       357        6      3.77
                                                  incl.    352     352.6      0.6     19.30

   RCD578     11449       10718    -89    270     350.9    207       219       12      1.17
                                                           251       259        8      1.95
                                                  incl.    251       252        1     11.30

   RCD579     11500       10776    -71    270     407.8    207       215        8      1.32
                                                           242       246        4     10.77
                                                  incl.    242       243        1     40.70

   RCD582     11650       10888    -67    270     320.7    169       238       69      1.44
                                                  incl.    190       191        1      6.28
                                                  incl.    200       201        1      12.7

   RCD584     11550       10786    -73    270     416.2    185       207       22      1.25
                                                  incl.    188       189        1      7.31
                                                           213       218        5      1.46
                                                           291       297        6      1.76
                                                           306       321       15      1.38
                                                           406       407        1     12.00

   RCD586     11596       10816    -75    270     302.8    221       246       25      1.31
                                                  incl.    225       226        1     10.00
                                                           285       299       14      1.29
                                                  incl.    298       299        1      9.70

   RCD594     11450       10865    -80    270     314.3     94        97        3      3.58
                                                  incl.     95        96        1      7.50
                                                           256       260        4      1.35

   RCD595     11850       10830    -87    270       380      0         5        5      1.74
                                                            63        66        3      1.29
   RCD595                                                   71        75        4      5.19
(continued)                                                147       148        1     17.10
                                                           164       191       27      3.28
                                                  incl.    175       179        4     16.13
                                                           220       224        4      3.70
                                                  incl.    223       224        1      9.33

   RCD596     11850       10830    -75    270     393.9      0         5        5      1.88
                                                           210       233       23      1.04
                                                           238       258       20      1.13
                                                           284       286        2      6.86
                                                  incl.    285       286        1      6.86
                                                           358       363        5      1.85

   RCD597     11896       10853    270    -89     424.7    191       213       22      1.46
                                                  incl.    197       198        1      7.93

   RCD601     11900       10813    -88    270       150      9        12        3      0.94
                                                            28        31        3      1.13

   RCD602     11950       10828    -87    270     397.8      3         7        4      1.78
                                                            14        23        9      1.55

   RCD603     11948       10827    -68    270     423.2      1        14       13      0.94
                                                            18        28       10      2.56
                                                  incl.     19        20        1      7.29
                                                            43        45        2      1.16
                                                           311       321       10      1.47
                                                           334       373       39      0.52

   RCD604     12000       10829    -78    270       150      3        36       33      1.33
                                                  incl.      4        10        6      3.76
                                                           133       137        4      1.72

   RCD606     12000       10829    -65    270       150      0        59       59      1.12
                                                            70        72        2      1.31
                                                           109       113        4      1.76

   RCD609     11350    10686.56    -88    270     353.8    148       153        5      1.84
                                                  incl.    149     149.8      0.8      6.70
                                                           195       203        8      1.25
                                                           235       246       11      1.55
                                                           273       277        4      1.69
                                                  incl.    275       276        1      5.24
                                                           320       323        3      2.55
                                                  incl.    320       321        1      6.96
                                                           337       346        9      1.01

   RCD610     11300       10740    -88    270     397.9     65        81       16      3.23
                                                  incl.     70        71        1      6.11
                                                  incl.     76        77        1     12.20
                                                            99       116       17      1.48
   RCD610                                                  363       383       20      1.46
(continued)                                                387       392        5      3.52
                                                  incl.    390       391        1     15.60

   RCD611     11250    10791.20    -85    270       100     16        34       26      1.35
                                                           111       116        5      1.54
                                                           235       242        7      1.24
                                                  incl.    241       242        1      5.70

   RCD612     11250       10791    -75    270       150      6        10        4      1.44
                                                            15        25       10      1.44
                                                            30        37        7      2.07

   RCD613     11200       10963    -76    270       589     19        21        2      2.32
                                                            84        86        2      2.39
                                                           526       559       33      1.49
                                                  incl.    549       550        1      7.13
                                                  incl.    555       556        1      6.96

   RCD615     11450       10808    -80    270       121     81       100       19      1.40
                                                  incl      81        83        2      5.82

   RCD616     11400       10787    -80    270     368.7      1         4        3      1.21
                                                            43        45        2      1.22
                                                            55        72       17      2.24
                                                  incl.     67        68        1     19.20
                                                           133       156       23      1.98
                                                  incl.    143       144        1      9.86
                                                  incl.    146       147        1      7.20
                                                           316       323        7      2.23
                                                  incl.    320       321        1      8.14

   RCD617     11450       10765    -88    270     346.2    166       172        6      3.04
                                                  incl     171       172        1      9.33
                                                           328       336        8      1.02

   RCD620     12100       10804    -90      0       146     36        45        9      2.12

   RCD621     12150       10783    -88    270       142     38        42        4      1.25
                                                            54        57        3      2.97
                                                  incl.     55        56        1      6.51

   RCD627     12101       10849    -88    270     192.6    164       169        5      2.11

   RCD629     12050       10967    -70    270       233     50        52        2      1.28
                                                           198       208       10      2.99
                                                  incl.    201       202        1     21.70

   RCD631     12150    10890.79    -65    270       150     14        16        2      2.52

   RCD641     11900    10986.50    -75    270        80      0         1        1      4.78

   RCD660     10912       10550    -90      0       150      7         9        2       3.3
                                                           117       124        7      1.19
                                                           131       133        2      1.15
                                                           145       147        2      1.47

   RCD670     10902       10489    -75    270       150    117       122        5      1.06
                                                           126       135        9      1.12

   RCD673     10818       10492    -88    270       105     63        83       20      1.38
                                                  incl.     67        69        2      6.75
                                                            88        92        4      1.09

 Intersections based on Composite and Single Sample CUG of 0.5g/t; Max Internal Waste 3m.




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