Newcrest and Lihir enter into Merger Implementation Agreement

Newcrest Mining Limited (�Newcrest�) and Lihir Gold Limited (�LGL�) today announced that they have entered into a Merger Implementation Agreement (�MIA�) under which it is proposed that Newcrest will acquire all of LGL�s ordinary shares under a Scheme of Arrangement.

LGL shareholders will receive one Newcrest share for every 8.43 LGL shares they own, plus A$0.225 cash per share, less any interim dividend declared or paid by LGL for the half year ending 30 June 2010.

Based on Newcrest�s closing price of A$32.06 on 3 May, the implied offer price from Newcrest is now A$4.03 per LGL share, valuing LGL at approximately A$9.5 billion. This represents a 6.4% improvement on Newcrest�s previous proposal to acquire LGL as announced on 1 April 2010.

The implied offer price of A$4.03 per LGL share represents an attractive premium for LGL shareholders on a range of measures:

• A 40.8% premium to LGL�s closing share price on 12 February 2010, the last trading day prior to Newcrest�s approach to LGL in February;
• A 29.5% premium to LGL�s closing share price on 29 March 2010, the last trading day prior to Newcrest�s improved proposal in March; and
•  A 33.4% premium to LGL�s 1 month VWAP to 29 March 2010.

A limited mix and match structure will also apply, giving LGL shareholders greater flexibility in the offer consideration (see further details below).

The directors of LGL unanimously recommend that shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an independent expert�s opinion that the Scheme is in the best interests of LGL shareholders.

For more information please visit the LGL website www.LGLgold.com