Quarterly Update

Centamin Egypt Limited 31 October 2006 Centamin Egypt Limited QUARTERLY REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2006 Highlights • Agreement entered into to acquire the Kori Kollo CIL process plant from a subsidiary of Newmont Mining Corporation for US$11m • Key equipment sizing is well matched to the 4-5mtpa processing rate currently envisaged for the Sukari Project • The Sukari JORC compliant geological resource upgraded to 6.79 million ounces of gold • Increase of 3.85 million ounces or 131% above the resource statement at recommencement of drilling in May 2005 • Cost per ounce discovered since recommencement of drilling in May 2005 - US$3.60 • Confirmation of extension of mineralisation from the Amun and Ra zones into the Pharaoh zone with higher grade north plunging ore shoots • Near surface mineralisation encountered on eastern flank of Sukari • Potential to add significant ounces up dip to the west of RCD 553 (111m @ 15.06g/t Au) • Key personnel appointed • Drilling continues with 9 rigs on site and additional 60,000m drilling program set Feasibility Study ('BFS') and Process Plant Acquisition During the quarter Centamin Egypt Limited (the 'Company') made two decisions with respect to the BFS, brought about primarily by a rampant resources sector. These decisions were necessitated primarily due to the slow progress being made with the study and concerns with the rapid escalation in cost and lead times for major processing plant items. Firstly the decision was taken to discontinue with the services of Ausenco and to replace them with an experienced in house team combined with the appointment of Roche Mining (JR) Pty Ltd. Secondly, after an extensive search and thorough technical review, the Company entered into an agreement to acquire the Kori Kollo gold treatment plant. This decision to purchase Kori Kollo has been justified as we are now advised that the lead time for the manufacture of new mills has increased to 76 weeks, which together with delivery and installation translates to in excess of 100 week lead time. Most technical aspects of the BFS are now essentially complete however further work on the impact of the purchase of the Kori Kollo plant on capex and opex and the mine plan still need to be completed. Further information and detailed implementation schedules will be released as they become available. Kori Kollo Process Plant Centamin has entered into an agreement with a subsidiary of Newmont Mining Corporation, to acquire the Kori Kollo CIL process plant for US$11m. The acquisition will be funded out of existing cash reserves of the Company. The Kori Kollo plant is located in Bolivia and was built and commissioned by Minproc Engineers in 1993. The plant operated for ten years and on-site inspections by Centamin representatives have shown the key plant components to be in excellent condition due to the site altitude providing a non-corrosive environment and the high standard of maintenance practices during operation. Testing of the structural integrity of key plant items was also completed prior to the signing of the agreement. Payment for the plant is to be on a structured basis, pending the satisfactory completion of certain events occurring with title to pass once the plant is delivered into Chile. The plant is ideally suited to the Sukari orebody and key equipment sizing is well matched to the 4-5mtpa processing rate currently envisaged for the Sukari project. The acquisition represents a key step forward in bringing the Sukari project into production. Scope of the Acquisition The purchase includes: • Crushing circuit - primary gyratory crusher, rock breakers, stockpile feed conveyor • Grinding and classification circuit - 28' Fuller SAG mill , 2 x 16'6'' Fuller ball mills, mill inching drive, mill liner handling machine • CIL (Leach and Adsorption) circuit and carbon recovery equipment • Thickening and process water area - Enviro Clear 75' diameter thickener • Reagent plant - flocculant plant, caustic dosing system • Gravity separation circuit • Sulphur dioxide cyanide destruction plant • Engineering design and construction drawings • Operating and maintenance manuals • Spares inventory The location, modular design and bolted construction of the plant will allow for ease of dismantling and relocation to Sukari. Newmont's subsidiary has ongoing heap leach operations at Kori Kollo and, as such, some equipment in the plant (elution and stripping circuit) will not be available for sale. The scope of intellectual property purchased with the plant will mean that the plant has been acquired as a fully engineered operational entity, providing considerable time and cost saving benefits in bringing the Sukari project online. All available engineering design, construction drawings, operation and maintenance manuals, maintenance procedures and records and other intellectual property (relevant to the design, construction and operation of the plant) is included as part of the sale. Relocation Plan Roche Mining (JR) Pty Ltd has been appointed to manage the dismantling, transportation and refurbishment of the plant. The plant is currently being electrically isolated to allow for dismantling. This process will be completed sequentially over the next two months and will then permit dismantling to commence. The plant will be trucked to the port of Arica in Chile, shipped to Alexandria in Egypt for refurbishment and then trucked to Sukari. New Personnel Appointments Mr Bob Sinclair B. Sc. (Eng) Chemical Engineering Sukari Project Development Manager Mr Sinclair has over 40 years experience in engineering and construction on projects in mining and chemical industries. These projects are located in the US, Australia, Canada, Asia and Africa and range in value from US$30 million to US$850 million. Mr Sinclair has technical experience in senior management positions with both engineering contractors and with the owner's team and has managed pre-feasibility and feasibility studies, EPC and EPCM contracts and direct hire jobs. Mr Sinclair most recently worked as the Area Manager, Infrastructure for the Koniambo Nickel Project in New Caledonia and previously as the EPC Manager and Acting General Manager of the Chirano Gold Mine in Ghana. Peter Evans Sukari Construction Manager Mr Evans has in excess of 20 years experience in all facets of the construction, upgrading, dismantling and relocation of gold mining plants in Australia and overseas. Mr Evans is also experienced in negotiating and obtaining development permits and approvals with various government authorities and liaising with local stakeholders in order to achieve favourable outcomes for all participants and will be based in both Bolivia and Egypt, as necessity requires. Mr Mark Smith B. Bus. (Accy), CPA, MAICD Finance Manager Mr Smith has a Bachelor of Business undergraduate degree, with a major in Accountancy, obtained from the Queensland University of Technology and is a Certified Practicing Accountant with 15 years post-graduate experience across a wide variety of industries. He has held senior financial positions with a number of Australian publicly listed companies in the resources sector, most recently as the CFO for Grange Resources Limited and prior to that for Red Back Mining Inc. and Chirano Gold Mines Ltd in Ghana. Mr Smith has considerable experience in project financing, establishing accounting systems and controls for project development and operations reporting and will be based in Egypt. Sukari Project Resource Modelling The gold resource increased during the quarter to 142.96 Mt @ 1.48 g/t Au for 6.79 Moz Au at a 0.5g/t Au cut-off grade - a 131% increase (3.85Moz) since the project drilling recommenced in May 2005 (Table 1). The cost per ounce of the new resources since re-commencement is US$3.60/oz. Table 1 - Updated Mineral Resource Sukari Project Cut-off Measured Indicated Inferred Total Total g/t Au Mt g/t Mt g/t Mt g/t Mt g/t Moz 0.50 36.06 1.45 54.63 1.50 52.30 1.50 142.96 1.48 6.79 0.70 27.24 1.73 41.77 1.78 37.3 1.80 106.34 1.78 6.09 1.00 18.42 2.15 28.64 2.21 24.40 2.40 71.47 2.24 5.15 The resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction. Measured resources lie in areas where drilling is available at a nominal 25 x 25 metre spacing, Indicated resources occur in areas drilled at approximately 25 x 50 metre spacing and Inferred resources exist in areas of broader spaced drilling. The resource estimate has been based on the sampling and geological logging coming from 647 diamond and RC drill holes combining to give approximately 130,000 metres of drilling and from available assaying as at 21 July 2006. The resource data set comprises approximately 66,400 two-metre down hole composites and rock chip samples. The mineral resource estimate has been adjusted to present land surfaces (currently available and subject to change) and previous underground mining (very minor effect on total resources). The resource extends to a maximum of about 700m below surface. All resources north of 11,200N are reported as inferred. Significant areas of resource increase occurred at 11000N, 11100N and 11175N to 11550N. Drilling on sections 11075N to 11100N intersected high grade mineralisation from 930RL to the 500RL. The zone of mineralisation confirms the extension of mineralisation that occurs to the south in the Amun and Ra zones. Work Programmes •Drilling continued in Pharaoh, Ra and Gazelle Zones, defining the continuation of mineralisation to the northern end of the outcropping Sukari porphyry hill and increasing the economic resource base. • Continuation of significant surface mineralisation identified in northern Pharaoh Zone from 11,800N, and in zones south of 11500N, indicating total strike length of over 1000m. Significant intersections received for the quarter in a near surface environment include: o RCD595 - 5m @ 1.74g/t Au from 0m and 4m @ 5.19g/t Au from 71m o RCD603 - 10m @ 2.56g/t Au from 18m o RCD610 - 16m @ 3.23g/t Au from 65m and 17m @ 1.48g/t Au from 99m o RCD616 - 17m @ 2.24g/t Au from 55m o RCD620 - 9m @ 2.12g/t Au from 36m o D633 - 11m @ 2.47g/t Au from 18m o D634 - 11.72m @ 5.12g/t Au from 17m • Resource drilling also confirmed strong mineralisation in the Ra and Pharaoh zones at depth. Drilling has intersected economic tenor gold mineralisation to 12000N. Some of the better intersections include: o RCD529 - 27.4m @ 1.98g/t Au from 229m o RCD530 - 16mk @ 1.57g/t Au from 295m and 4m @ 3.88g/t Au from 315m o RCD533 - 14m @ 1.62g/t Au from 387m o RCD616 - 23m @ 1.98g/t Au from 133m and 7m @ 2.23g/t Au from 316m o RCD579 - 4m @ 10.77g/t Au from 242m (incl. 1m @ 40.7g/t from 242m) o RCD595 - 27m @ 3.28g/t Au from 164m (incl. 4m @ 16.13g/t Au from 225m) o RCD629 - 10m @ 2.99g/t Au from 198m • A new infill and resource extension drilling programme commenced, aimed at: o Increasing resource ounces in the Amun and Ra zones inside a larger optimised pit shell o Testing the continuity of the near footwall Amun and Ra zones to the north and outside the current pit limits. o Infilling and testing the near surface resource in the Pharaoh Zone north of 11200N to the end of the porphyry hill. Testing the footwall contact and deeper Amun and Ra zone ore extensions in this area as well. •Geological interpretation, digitising and wire framing of the 3D geological model continued •Major database upgrade and validation exercise completed Drilling Programmes The majority of the drilling during the quarter was completed north of 11200N in the Pharaoh Zone. Work has re-started in the Ra and Gazelle Zones, and will continue in the Pharaoh Zone during the next quarter (Figure 1). Economic gold mineralisation was recorded in several holes near the surface during the quarter, corresponding to mainly shallow east dipping vein sets, with some conjugate west dipping ones observed in outcrop and drilling. Holes 611, 612 and 568 on 11250N, from 10770E - 10850E; and 610 on 11300N, returned strong surface Au, with weaker zones in holes 600, 565 and 569 (Table 1). Surface mineralisation was also returned from holes on sections 11350N - 11450N, confirming the southern continuation of the surface zone previously defined north of 11500N. Assay results from DD tails drilled in the Pharaoh Zone show a west dipping structure becoming more significant from 11500N . Utilising surface mapping, rock chipping and drilling information, a general pattern of shallow NW and NE dipping veins and shears has been interpreted, with some flatter, zones of mineralisation occurring at depth. Future drilling is targeted at resource definition in and below a shallow optimised pit extending from 11400N to 12000N, thereby increasing the size and confidence level of the surface resource and improve mining economics. Several deeper holes are targeted at drilling through to the FW, intersecting the northward continuation of the Amun and Ra mineralisation zones at depth. Drilling continued in the Ra - Gazelle zones, intersecting several zones of strong gold mineralisation, confirming the extension of gold mineralisation northwards from the Amun Zone. Drilling is primarily at an inferred resource category on 50m spaced sections, with some areas 25m spaced. Recently drilled holes 584 - 586 and 690 - 692 from the Ahmed and Track 7 areas intersected moderate to strong looking mineralisation in altered and sulphidic P6 and P1 ores. Hole 690 drilled on 11025N vertically into the porphyry near the FW contact intersected visible gold in a weathered pyrite crystal at 25 - 26m. Assay results are awaited. Current planned drilling is aimed at a significant resource upgrade, increasing the size of the current pit design, extending mine life and lowering strip ratios, thereby improving overall project economics. The northern extension of the Ra and Amun Zones and more complete testing of the footwall are particularly targeted in this area (Figure 1). Rock Chip and Track Sampling Partial assay results have been returned from recent rock chip sampling of the Mike, Upper Mike and Lower Mike tracks in the northern part of the Pharaoh zone of the Sukari outcrop. Several strong zones of mineralisation were mapped. Anomalism corresponds to major quartz veins and alteration zones surrounding them. Mapping identified two major vein sets, a moderate NW and a NE dipping one. Chip sampling has confirmed the mineralisation associated with these veins and alteration zones and that they extend to the far north of the porphyry. Rock chip sampling continues on all tracks to help improve understanding of the mineralisation system. As the samples are taken from track access that has been cut in along the hill they do not represent true width however they are of importance in that this mineralisation is at surface and close to the most northerly point of the outcrop. Table 2 - Significant Assay Results, Rock Chip Samples, Mike Tracks Track North From North To East From East To Length Au ppm North Mike 12002 12000 10851 10847 6 1.38 Lower Mike North 12167 12098 10820 10847 90 1.78 incl. 12130 10826 2 8.82 incl. 12116 10829 2 7.31 incl. 12105 10831 2 13 Central Mike 11993 11969 10838 10837 24 1.68 Upper Mike North 11963 11981 10822 10825 20 2.48 incl. 11963 10822 2 16.3 Database / IT / GIS Century Systems and Sukari personnel completed a major geological database upgrade, data validation exercise, troubleshooting and training visit during the quarter. An experienced GIS/cartography Administrator commenced work full time on site, improving in-house map production, presentation, data analysis, validation and interpretation capabilities. For Centamin Egypt Limited Josef El-Raghy Managing Director/CEO 31 October 2006 For more information please contact: Centamin Egypt Limited Bishopsgate Communications Ltd Evolution Securities Ph: + 61(8)9316 2640 + 44 (0) 20 7430 1600 + 44 (0) 20 7071 4300 Josef El-Raghy Maxine Barnes / Dominic Barretto Frank Moxon /Simon Edwards (josef@centamin.com.au) www.centamin.com www.bishopsgatecommunications.com www.uk.evosecurities.com Information in this report which relates to exploration, geology, sampling and drilling is based on information compiled by geologist Mr R Osman who is a full time employee of the Company, and is a member of the Australasian Institute of Mining and Metallurgy with more than five years experience in the fields of activity being reported on, and is a 'Competent Person' for this purpose. His written consent has been received by the Company for this information to be included in this report in the form and context which it appears. The information in this report that relates to mineral resources is based on work completed by Mr Nicolas Johnson, who is a Member of the Australian Institute of Geoscientists. Mr Johnson is a full time employee of Hellman and Schofield Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Johnson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Table 1 - Significant Assay Intersections, Sukari Project July to September 2006 HOLE NORTH EAST DIP AZI EOH (m) FROM TO INT Au (g/t) D583 11225 10839 -87 270 319.62 129 133 4 1.85 289 319.62 30.62 1.27 D588 11700 10756 -10 270 300.78 6 8 2 2.79 16 19 3 1.55 38 40 2 2.39 D618 11750 10786 -10 270 304.32 7 42 35 1.13 48 50 2 5.81 incl. 48 49 1 10.40 96 108 12 1.26 D633 11600 10686 -10 270 150.02 18 29 11 2.47 incl. 20 22 2 8.49 34 38 4 1.30 43 45 2 1.30 D634 11850 10941 -70 270 28.72 17 28.72 11.72 5.12 RC644 10558 10771 -60 320 150 84 112 38 1.30 incl. 92 93 1 10.90 incl. 111 112 1 5.22 RC647 10525 10703 -60 320 150 129 141 12 1.49 RC648 10509 10659 -60 320 150 69 76 7 2.06 RC658 10509 10659 -60 320 150 83 90 7 1.15 108 122 14 1.24 RC659 10609 10819 -60 320 150 6 9 3 1.14 13 34 21 1.20 RC660 10912 10550 -90 0 150 13 34 21 1.20 117 124 7 1.19 131 133 2 1.15 145 147 2 1.47 RCD470 11500 10669 -87 270 390.8 166 169 3 2.64 268 286 18 1.03 306 308 2 5.78 incl. 307 308 1 10.70 314 320 6 1.31 RCD529 11200 10902 -85 270 256.4 229 256.4 27.4 1.98 incl. 232 234 2 6.86 incl. 236 237 1 6.38 incl. 247 248 1 5.29 RCD530 11200 10901 -73 270 410.2 192 196 4 1.01 259 264 5 1.59 295 311 16 1.57 incl. 298 299 1 6.36 315 319 4 3.88 incl. 318 319 1 10.30 391 400 9 1.36 RCD533 11750 10862 -72 270 387 271 276 5 1.14 318 332 14 1.62 RCD535 11650 10728 -87 270 374.9 281 291 10 1.88 RCD539 11750 10793 -63 270 333.9 163 180 17 1.55 RCD541 11600 10694 -74 270 422.3 325 338 13 1.24 RCD565 11300 10883 -70 270 392.6 297 304 7 1.74 incl. 302 303 1 7.49 351 357 6 3.77 incl. 352 352.6 0.6 19.30 RCD578 11449 10718 -89 270 350.9 207 219 12 1.17 251 259 8 1.95 incl. 251 252 1 11.30 RCD579 11500 10776 -71 270 407.8 207 215 8 1.32 242 246 4 10.77 incl. 242 243 1 40.70 RCD582 11650 10888 -67 270 320.7 169 238 69 1.44 incl. 190 191 1 6.28 incl. 200 201 1 12.7 RCD584 11550 10786 -73 270 416.2 185 207 22 1.25 incl. 188 189 1 7.31 213 218 5 1.46 291 297 6 1.76 306 321 15 1.38 406 407 1 12.00 RCD586 11596 10816 -75 270 302.8 221 246 25 1.31 incl. 225 226 1 10.00 285 299 14 1.29 incl. 298 299 1 9.70 RCD594 11450 10865 -80 270 314.3 94 97 3 3.58 incl. 95 96 1 7.50 256 260 4 1.35 RCD595 11850 10830 -87 270 380 0 5 5 1.74 63 66 3 1.29 RCD595 71 75 4 5.19 (continued) 147 148 1 17.10 164 191 27 3.28 incl. 175 179 4 16.13 220 224 4 3.70 incl. 223 224 1 9.33 RCD596 11850 10830 -75 270 393.9 0 5 5 1.88 210 233 23 1.04 238 258 20 1.13 284 286 2 6.86 incl. 285 286 1 6.86 358 363 5 1.85 RCD597 11896 10853 270 -89 424.7 191 213 22 1.46 incl. 197 198 1 7.93 RCD601 11900 10813 -88 270 150 9 12 3 0.94 28 31 3 1.13 RCD602 11950 10828 -87 270 397.8 3 7 4 1.78 14 23 9 1.55 RCD603 11948 10827 -68 270 423.2 1 14 13 0.94 18 28 10 2.56 incl. 19 20 1 7.29 43 45 2 1.16 311 321 10 1.47 334 373 39 0.52 RCD604 12000 10829 -78 270 150 3 36 33 1.33 incl. 4 10 6 3.76 133 137 4 1.72 RCD606 12000 10829 -65 270 150 0 59 59 1.12 70 72 2 1.31 109 113 4 1.76 RCD609 11350 10686.56 -88 270 353.8 148 153 5 1.84 incl. 149 149.8 0.8 6.70 195 203 8 1.25 235 246 11 1.55 273 277 4 1.69 incl. 275 276 1 5.24 320 323 3 2.55 incl. 320 321 1 6.96 337 346 9 1.01 RCD610 11300 10740 -88 270 397.9 65 81 16 3.23 incl. 70 71 1 6.11 incl. 76 77 1 12.20 99 116 17 1.48 RCD610 363 383 20 1.46 (continued) 387 392 5 3.52 incl. 390 391 1 15.60 RCD611 11250 10791.20 -85 270 100 16 34 26 1.35 111 116 5 1.54 235 242 7 1.24 incl. 241 242 1 5.70 RCD612 11250 10791 -75 270 150 6 10 4 1.44 15 25 10 1.44 30 37 7 2.07 RCD613 11200 10963 -76 270 589 19 21 2 2.32 84 86 2 2.39 526 559 33 1.49 incl. 549 550 1 7.13 incl. 555 556 1 6.96 RCD615 11450 10808 -80 270 121 81 100 19 1.40 incl 81 83 2 5.82 RCD616 11400 10787 -80 270 368.7 1 4 3 1.21 43 45 2 1.22 55 72 17 2.24 incl. 67 68 1 19.20 133 156 23 1.98 incl. 143 144 1 9.86 incl. 146 147 1 7.20 316 323 7 2.23 incl. 320 321 1 8.14 RCD617 11450 10765 -88 270 346.2 166 172 6 3.04 incl 171 172 1 9.33 328 336 8 1.02 RCD620 12100 10804 -90 0 146 36 45 9 2.12 RCD621 12150 10783 -88 270 142 38 42 4 1.25 54 57 3 2.97 incl. 55 56 1 6.51 RCD627 12101 10849 -88 270 192.6 164 169 5 2.11 RCD629 12050 10967 -70 270 233 50 52 2 1.28 198 208 10 2.99 incl. 201 202 1 21.70 RCD631 12150 10890.79 -65 270 150 14 16 2 2.52 RCD641 11900 10986.50 -75 270 80 0 1 1 4.78 RCD660 10912 10550 -90 0 150 7 9 2 3.3 117 124 7 1.19 131 133 2 1.15 145 147 2 1.47 RCD670 10902 10489 -75 270 150 117 122 5 1.06 126 135 9 1.12 RCD673 10818 10492 -88 270 105 63 83 20 1.38 incl. 67 69 2 6.75 88 92 4 1.09 Intersections based on Composite and Single Sample CUG of 0.5g/t; Max Internal Waste 3m. 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