All the infrastructure necessary to commission and operate the Varvarinskoye mine is now in place and although some deliveries have been delayed the outstanding equipment is expected on site in time to allow staged commissioning of the various components of the process plant during the fourth quarter of 2007. Approximately 700,000 mt of ore has been stockpiled. All tank work is complete and hydraulic testing is scheduled to commence by the end of the month. Tailings dam earthwork is complete together with all delivery and return water pipelines to and from the tailings dam. The process plant building is complete and mine infrastructure is virtually finished.

On January 15, 2007, the company announced independently estimated measured and indicated mineral resources of 3.9 million oz of gold and 450 million lb of copper. Based on these resources and using a gold price of $525/oz and a copper price of $1.30/lb, the pit design contains estimated proven and probable mineral reserves of 60.6 million mt containing 2.2 million oz gold and 254 million lb of copper at a grade of 1.15 g/t gold including 17.1 million mt at a grade of 0.67% copper. Based on this current reserve and plant capacity, life of mine production averages 120,000 oz of gold and 13 million lb of copper. However over the first three full years of mine life average annual production is planned to be 149,000 oz of gold and 26 million lb of copper.

Bert Kennedy, president and CEO of EMC, commented: “We do not underestimate the challenges to come but we believe we have a team in place to overcome these. We expect to complete our evolution to a commercial mining company by the end of first quarter 2008.”