Gold Ridge

completed

The proposed project is a $134 million investment to rehabilitate and 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, which is part of the Solomon Islands. GRML operated from August 1998 before closing due to civil unrest in Guadalcanal in June 2000. Following an international tender the mine assets were purchased in December 2004 by ASG, a company now 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 approx. 40 km by road from Honiara, the capital city on Guadalcanal, the main island 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 4th quarter 2010. At full production GRML is expected to produce an average of 124,000 oz. of gold annually with a mine life, based on current reserve estimates, of just under 8 years, with potential to extend mine life to 12 – 15 years and beyond. The Gold Ridge Mine redevelopment is the largest private sector project in the Solomon Islands and is a strong fit with IFC investment strategy in the Pacific area, with priorities of regional governments providing support to the Government of the Solomon Islands under the Regional Assistance Mission to the Solomon Islands, and to government of the Solomon Islands in promoting private sector investment and new sources of growth for the country.