--  Net income before income taxes for the third quarter was $13.6 million
    ($0.19 per share), compared to $11.8 million ($0.17 per share) for the
    previous quarter. 

--  Cash flows generated from operating activities were $20.1 million for
    the quarter compared to $13.4 million in the previous quarter.

--  Production costs for the quarter were $291 per ton of ore ($908 per
    ounce of gold), compared with $273 per ton ($793 per ounce) in the prior
    quarter. Lower costs per ton and per ounce are expected as higher levels
    of ore tonnage are achieved. 

--  72,504 tons of ore were milled at a head grade of 0.33 ounces of gold
    per ton (opt) and a recovery of 96.0% to produce 23,241 ounces of gold.
    25,245 ounces were sold.

--  Year-to-date cash balance has reduced by just $8.0 million while meeting
    operating, exploration costs, and capital expenditures. Expansion
    capital remains on budget. 

--  Fiscal year 2012 guidance is being revised to an estimated 100,000 -
    105,000 ounces due to a more aggressive approach to the expansion
    program.

--  The Company has, in several cases and due to the better than expected
    financial results, revised the project scope to complete more work in
    order to achieve a higher production rate than planned starting in
    fiscal year 2014 (May 2013). 

--  A Phase III production expansion is being implemented to increase the
    average daily ore tonnage rate to 2,200 tons per day by the start of
    fiscal year 2014, which should result in an accelerated production
    profile in fiscal years 2014 - 2016 to an estimated 250,000 - 300,000
    ounces per year, compared to an estimated 210,000 - 240,000 ounces as
    previously planned. 

--  The overall expansion program budget remains targeted at $75 million of
    which $60.6 million had been spent at the end of January 2012.

--  It has been determined that for an additional $20 million, the mill can
    be expanded from 1,600 to 2,200 tons per day. No additional project
    costs are expected elsewhere at the mine. 

--  Work is on track to meet an average daily ore tonnage rate of 1,600 tons
    per day by November 2012. 

--  Underground working face development is on schedule and there are
    currently enough additional working faces being planned or developed to
    support fiscal year 2013 production levels of an estimated 180,000 -
    200,000 ounces per year. Equipment deliveries and labour increases to
    meet this production rate are also on schedule. 

--  The scope of the hoisting capacity upgrade has been increased to 3,000
    tons per day from 2,300 tons in the original plan. As a result of
    studies undertaken for phase III, a decision was made to take advantage
    of the working platform being in the shaft in order to complete
    additional shaft upgrades. No significant increase in hoisting capacity
    from the current capacity is expected until August 2012 when the working
    platform will be replaced by the new service cage.