Taldybulak Exploration Licence, Kyrgyzstan

Talas Joint Venture

On 3 December 2008, Orsu announced that it had successfully signed a joint venture agreement (the “JV Agreement”) with Gold Fields Orogen Holding BVI Limited (“Gold Fields”), a wholly owned subsidiary of Gold Fields Limited, for the further exploration and development of the Talas licence area, north west Kyrgyzstan.

On 4 February 2010, Orsu announced that Gold Fields completed the First Phase of the Talas Joint Venture and exercised its First Phase earn-in option after satisfying the First Phase option premium by funding exploration expenditures of C$10 million. As the result Gold Fields earned a 60% interest in the Talas Joint Venture which is the indirect owner of the Taldybulak, Barkol, Kentash and Korgontash properties in the Talas region of the Kyrgyz Republic (the “Talas Project”). Gold Fields is the current project operator of exploration activities pursuant to the JV Agreement.

On 23 February 2010, Orsu announced that Gold Fields notified the Company that it will not exercise the Second Phase Option to increase its interest in the Talas Joint Venture to 70% through funding additional exploration expenditure. Gold Fields intends to continue developing the Talas Project with its 60% ownership while Orsu will retain a 40% interest.

Under the terms of the JV Agreement both parties are required to fund on a pro-rata basis further project expenditures, required to continue exploration activities, complete a feasibility study and complete the project development in accordance with approved programmes and budgets to be set by Gold Fields. Dilution provisions apply under the terms of the JV agreement if either party decides not to contribute to expenditure in accordance with its pro-rata share.

Gold Fields is currently undertaking an internal resource and scoping study and believes that the Talas Project is a significant opportunity. Gold Fields will continue work to confirm the mineral resources by way of value engineering and additional drilling. An internal scoping study by Gold Fields is expected to be completed by the middle of 2010.

Orsu is currently undertaking resource verification and has engaged Wardell Armstrong International to prepare an updated mineral resource estimate for Taldybulak Cu-Au porphyry, which is expected to be completed by the end of March 2010.

See press release dated 3 December 2008.
See press release dated 4 February 2010.
See press release dated 23 February 2010.