ABN Media Release December LEASE REVIEW UPDATE The Thai media

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ABN Media Release December LEASE REVIEW UPDATE The Thai media Powered By Docstoc
					 ABN 42 000 837 472

Media Release - 5 December 2007

                                           LEASE REVIEW UPDATE

The Thai media has reported that the cabinet of the Thai Government has endorsed a decision to suspend
the consideration of new lease applications made by Kingsgate and Akara Mining in two provinces of
Thailand, Phitchit and Phetchabun. . Kingsgate has had no official notification from the Minister about these
developments and is endeavouring to obtain clarification from the Thai Government.

The Thai media reports indicate that the state-run advisory body, the National Economic and Social
Development Board (NESDB), has been asked to study the environmental and local community impact prior
to deciding whether to resume consideration of new leases.

Kingsgate is confused by the media reports as the current nine mining lease applications to expand the
Chatree mine has an Environmental Impact Assessment (EIA) of an international standard, which was
approved in April 2007 after a rigorous 18 month review period. Under Thai law, no environmental
assessment is necessary for exploration licences.

Despite conflicting reports, it now appears the directive may apply only to exploration lease applications made
by the company and may not impact the current application process for the nine new mining leases at
Chatree North. There has been some indication that these mining lease applications can be processed as

Kingsgate and Akara have met, complied with, fulfilled and cleared all regulatory and environmental
requirements under Thai law for the current operation and have cleared all environmental requirements for
the pending mining lease applications.

The operation has received overwhelming local community support for many years with most of the 925
strong workforce employed from local villages.

A formal and urgent request has been lodged by His Excellency, the Australian Ambassador to Thailand,
William Paterson, to the Thai government for immediate advice on these media reports..

Kingsgate’s CEO and MD, Gavin Thomas, and its Chairman, Ross Smyth-Kirk, are travelling to Thailand to
further clarify the situation. Delays in obtaining formal clarification are expected, owing to the public holiday
and major national celebrations underway this week in Thailand for His Majesty the King’s 80th birthday.

Until further clarification is received, it is appropriate that the company‘s trading be suspended on the ASX.

Media Enquiries: Suzanne Blake 0414 233 500
Investor Enquiries: Stephen Promnitz +61 419 194 918

Suite 801, Level 8                           Tel: (61 2) 8256 4800                       Email: info@kingsgate.com.au
14 Martin Place                              Fax: (61 2) 8256 4810                      Website: www.kingsgate.com.au
Sydney NSW 2000