Net revenue for the second quarter was $42,569 compared to $2,849,265 for the same period in

2009. This decrease was attributable to lower gold production and the reinvestment of available

cash in an ongoing intensive exploration program at the Tulawaka mine.

The net loss for the second quarter was $1,457,009 or $0.015 per share. The loss included

$644,000 in non-recurring expenses related to a now-defunct long-term plan for compensation, on

termination of the contract of a Company employee, as well as $481,000 relating to an income tax

reassessment for prior years, which did not entail a cash outlay.

As at June 30, 2010, the Company had $15.4 million in cash and investments, in addition to $1.1

million in tax credits receivable, primarily related to the development of the Crevier project.

In the first half of 2010, the Tulawaka gold mine produced 27,513 ounces of gold, representing a

production decrease attributable to an equipment shortage that resulted in less tonnage hoisted to

surface. Lower-grade ore from the surface stockpiles was milled to make up for the shortfall in

underground ore, resulting in a lower-than-forecast head grade that was partly offset by a higher

milling rate. The underground ore grade nevertheless remains high, at 9.15 g/t Au.

MDN’s 30% interest in Tulawaka generated a share equivalent to 8,254 ounces of gold in the first

half of 2010. Although gold production was down for the period, African Barrick Gold remains

confident that underground mine production will return to normal in the second half of 2010,

once the issue of mine equipment availability has been addressed.

MDN and the operator of the Tulawaka mine have agreed to conduct an intensive exploration

program aimed at extending the mine life. Results for the underground and surface drilling

programs indicate that the life of the Tulawaka mine will be extended.

Feasibility study preparation for the Crevier project, an advanced niobium-tantalum development

project held 67.5% by MDN, is on schedule. The resource update includes a 5.38% increase in

niobium grade and a 17.6% increase in tantalum grade. In addition, 50% of the initial indicated

resource is now classified as measured. These positive results, combined with rising market

prices, particularly for tantalum, set the stage for even more promising economic study

parameters.

The exploration program at Ikungu continues to show good gold intersections and continuity over

more than 2.5 km. A 5,000-m drilling program began in the third quarter, aimed at testing the

vertical continuity of the near-surface high-grade lenses to a depth of 300 metres.

In the second quarter, MDN entered into an agreement with SOQUEM to acquire the MCGOLD

gold exploration project in Chibougamau, Quebec. The agreement grants MDN the option to

acquire a 50% interest in the project in consideration of a schedule of payments and exploration

expenditures of up to $5.25 million over five years. SOQUEM is scheduled to start drilling in the

third quarter.