Gold Ridge

completed

The proposed project is a $134 million investment to restart operations of Gold Ridge mine, owned and operated by Gold Ridge Mining Limited (“GRML”), an indirect wholly owned subsidiary of Australian Solomons Gold Limited (“ASG” or “the Company”). The Gold Ridge mine is an open pit gold mine on Guadalcanal Island (the largest of the Solomon Islands) which operated from August 1998 before closing due to civil unrest in June 2000. Following an international tender, the mine assets were purchased in December 2004 by ASG, a company listed on the Toronto Stock Exchange (“TSX”), which was established to acquire and redevelop the Gold Ridge mine. The Gold Ridge mine area consists of 4 adjacent deposits together with a crusher, mill and processing plant located 27 km by road from Honiara, the capital city of the Solomon Islands. The proposed investment program will rehabilitate and replace existing equipment and redevelop the mine area with a view to restarting production by 4thquarter 2010. At full production GRML is expected to produce an average of 124,000 oz. of gold annually. The projected mine life, based on current reserve estimates is just under 8 years, with potential to extend mine life to 12 – 15 years and beyond.