Operating Cost Summary Per Oz. Gold

The following is a repost of the Operating Cost Summary from pg. 163 of the Final PEA, posted in March of 2009. The operating costs for the La Ronge Gold project to be reported should be in line with these estimates and only vary by a small percentage. Operating costs are summarized in various ways in this section, not just per oz. gold:

Notable is the operating cost per oz. with no development costs added in Year 3. Development costs should be summarized separately.

Development costs are higher when all mines are under development, as these costs are carried over from the prior year into the next year, thus Year 2 has a higher operating cost per ounce, due to development occurring at three mines in the prior year.

These estimates are far below the cost estimate by the company of ~$875/oz. previously mentioned by the company as required for full development plans to include all of the forseeable operational and developmental costs. Gold prices remain firm in the vicinity of ~$1500/oz.

Final PEA, March 2009