La Mancha is 51% owner and operator of the Frog’s Leg project; the remaining interest is owned by Dioro.

The underground Frog’s Leg mine is forecast to produce an average of 83,000 oz/y of gold over the next seven years, based on reserves of 3.65 million mt grading 5.29 g/mt of gold. This reserve and the related mining plan do not take into account an additional estimated 267,000 oz of resources announced in March 2008. Total measured and indicated resources at the project now stand at 990,000 oz. Mine production at full capacity will average 545,000 mt/y. Capital expenditure to develop the project is budgeted at just over A$71 million.

The initial gold pour from Frog’s Leg ore was accomplished two months ahead of the schedule announced by La Mancha in August 2007, when the decision was taken to proceed with development of the mine. As of mid-May 2008, decline development totaled 3,000 m, and development was proceeding on three horizontal mining levels. A third drill jumbo had been commissioned to increase underground development rates, and a second 50-mt underground truck was increasing haulage capacity. Wherever the mineralization has been exposed to date, orebody widths and grades have been in accordance with resource model predictions.

The Frog’s Leg mine is located 25 km west of Kalgoorlie in the southern part of the Kundana gold field. Production is primarily from steeply dipping quartz lodes. Mining is by longhole open stoping with fill. The high in situ stress environment and the competent rock quality result in a seismically active mining environment. This seismicity risk is being minimized by adopting a ‘bottom up’ mining sequence/ retreat front, which systematically pushes the stress field and requires the completion of most of the pre-mining development prior to stope extraction.

La Mancha Resources is a Canadian company based in Montreal and listed on the Toronto Stock Exchange. In addition to Frog’s Leg, the company is 45.9% owner and operator of the Ity gold mine in Côte d’Ivoire, which is expected to produce 24,600 oz attributable to La Mancha during 2008, and 40% owner and operator of the Hassaï gold mine in Sudan, which is expected to produce 40,000 oz attributable to La Mancha during 2008.

Dioro Exploration acquired Harmony Gold’s South Kalgoorlie operations, including the Jubilee mill, in 2007. Production from these South Kalgoorlie mines totaled 80,000 oz in 2007, and reserves are sufficient to maintain that production rate for three years. The project’s measured and indicated resource inventory totals 1.55 million oz. Dioro also has an extensive gold exploration land package and interests in uranium exploration projects in Western Australia.