� Exploration continues at Cloncurry and Hazel Creek: The exploration programmes within the Cloncurry and Hazel Creek projects have resumed with an aggressive 3 tier strategy focussing on the discovery of major new resources delineation of second tier resources suitable for third party transactions, and a rolling programme of new data acquisition to ensure a pipeline of new targets.
Drill rigs, geophysical crews, and geochemical sampling teams have commenced work in the Cloncurry Project and will also mobilise to the Hazel Creek Project shortly.
White Dam Gold Project, South Australia
� Gold production continues: Joint venture production for the quarter at 5,575 ounces was down 2,846 ounces from the previous quarter as mining at the Hannaford pit reached its conclusion. Leaching continues with recovery levels continuing to exceed initial predictions.
� Vertigo development and exploration: Development of the Vertigo deposit commenced in January. Mining of the deposit will be completed in the June quarter with production continuing until the September quarter.
� Cash flow: Exco received $6.9m in revenues for the three months at an average price of A$1,598/oz. Whilst unit cash operating costs have risen as expected with the drop-off in production, operating margins continue to be healthy.
Corporate
� Appointment of Managing Director: The Company announced on the 10th January 2012 that the Board had appointed Mr Geoffrey Laing as its new Managing Director. Mr Laing had been in the role of Acting CEO since the resignation of the Company�s previous managing director in August 2011.
� Australian Tax Office (�ATO�) Class Ruling: The Company had previously informed shareholders it had applied for to the ATO in respect of the tax treatment of the December 2011 Capital Return for certain shareholders. The Class Ruling (2012/11) was published by the ATO on 15 February 2012.
� Issue of Performance Rights: On the 30 March 2012 the Company advised that the Board had resolved to issue 11,200,000 unlisted performance rights to employees and contractors subject to the certain conditions, under the Exco Resources Ltd - Long Term Incentive Awards - 2012 Plan. In addition the Board has also resolved, subject to shareholder approval, to issue a further 3,300,000 performance rights on similar terms to Directors.
� Well-funded:Exco remains well-funded with an increased cash balance at the end of the quarter of $59.9million or approximately 16.3 cents per share fully diluted.