Mesquite Mine Gold Sales And Production Increase 

VANCOUVER, BC - Gold sales and production at the Mesquite increased by 5% in the third quarter of 2011 and were relatively consistent in the year-to-date period, when compared to the same periods of the prior year. During the quarter and through 2011, the operating team has remained focused on cost control despite year-over-year input cost pressures, most notably from increased diesel prices. By working to offset some of the impact of input cost pressures on total cash cost and through the increase in the average realized gold price, Mesquite increased earnings from mine operations by 83% to $14 million during the third quarter of 2011. Similarly, in the first nine months of 2011, earnings from mine operations increased by 68% to $58 million when compared to the same period of the prior year.

The increases in gold production and sales during the third quarter were a result of greater ore tonnes being placed on the leach pad at grades and recoveries consistent with those realized in the third quarter of 2010. Year-to-date gold production and sales were consistent with the prior year as the benefit of mining at grades closer to reserve grade offset the impact of fewer ore tonnes being placed on the pad. The change in total cash cost was primarily driven by increased inputs costs, such as diesel fuel, where prices have been approximately 40% higher than in both the third quarter and year-to-date periods of 2010. The higher diesel prices were partially offset by a lower strip ratio resulting in lower waste tonnes moved during the third quarter and increased operator efficiencies.

Based on Mesquite's strong performance through the first nine months of 2011 and the forecast for the fourth quarter, it is anticipated that Mesquite should achieve the upper end of its 2011 gold production guidance of 145,000 to 155,000 ounces. In addition, depending on the movements in the diesel price in the final months of the year, Mesquite should be lower than the total cash cost(1) guidance range of $660 to $680 per ounce of gold sold.

The company's address is 3110-666 Burrard St., Vancouver, BC V6C 2X8, (604)696-4100, fax: (604)696-4110.