LGL underlying profit up 130%
 
Financial Performance and Operating Highlights from LGL's Half Year Financial Report:

• Record underlying profit* of $154.9 million, up 130% from $67.4 million in the prior corresponding period.
• Mine EBITDA increased by 141% to $330.4 million, from $136.8 million in the six months to June 30, 2008.
• A one-off charge of $409.1 million, after-tax, associated with the write down of the Ballarat assets, reduced net profit after tax to a loss of $300.9 million, compared with a profit of $36.5 million in the six months to June 30, 2008.
• Operating cash flow of $258.9 million, up 528% from $41.2 million in the prior June half.
• Total cash costs down 20% compared with the prior June half, at $350/oz.
• $340.9 million equity raising successfully completed in the half year. Very strong balance sheet with net cash of $488.8 million at June 30, up $424.1 million in the half, and no debt.
• Former Equigold gold hedge book closed during the half year, leaving LGL with no gold hedging.
• Measured & Indicated Resources at Lihir Island increased 31% to 43 million ounces. Inferred Resources increased 62% to 5.5 million ounces.
• Measured & Indicated Resources in C�te d�Ivoire increased 22% to 1.7 million ounces. Inferred Resources lifted 28% to 784,000 ounces.
• 12 million man-hours without a lost-time injury achieved at Lihir Island operations.

Outlook

• Group production guidance maintained at 1-1.2 million ounces for the full year.
• Total cash costs per ounce for the full year expected to be below $400/oz.
  *Profit after tax before non-cash hedging losses and non-recurring items.

The Half Year Financial Report is now available on the LGL website at www.LGLgold.com

Enquiries:

Josie Brophy
Corporate Communications Manager
Email: josie.brophy@LGLgold.com
Tel: +61 7 3318 3317