Second Quarter Report

RNS Number : 1854N

Centamin Egypt Limited

11 February 2009

Centamin Egypt Limited ('Centamin' or 'the Company')

(TSX:CEE, ASX:CNT, AIM:CEY)

SECOND QUARTER REPORT

31 December 2008

REPORT TO SHAREHOLDERS

Highlights

Construction and Development

Commissioning and gold production remains on track for Q2 2009

Site works advancing well across all fronts with sound progress in crusher and mill areas

Power station engine infrastructure delivered and in place with structural steel erection underway

25km seawater pipeline earthworks and piping completed

Construction of non-process buildings proceeding

Operations

Award of blasting permits ahead of scheduled mining operations in early 2009

Underground tender process underway with site visits from shortlisted underground mining contractors
13,120m of diamond drill ('DD') and 538m of reverse circulation ('RC')
375,000m of drilling has been completed to date
Drilling continues targeting the Hapi Zone, Amun Deeps, the deeper 'Horus' Zone and the northern Pharaoh Zone
Grade Control RC drilling - 19,112m completed to date
Regional Exploration continues
Deepest hole drilled at Sukari to date (1,176m) stopped due to rig capacity in porphyry mineralisation
Significant intersections received for the quarter include:

Amun Deeps (9900N - 10700N)

D1388 - 20m @ 7.39g/t Au
D1391 - 189m @ 2.51g/t Au
D1392 - 14m @ 6.28g/t Au

Pharaoh Zone (11200N - 12100N)

RCD571 - 27m @ 1.31g/t Au & 48.3m @ 1.42g/t Au
D1393 - 6m @ 4.03g/t Au
D1397 - 4m @ 7.84g/t Au
D1400 - 47m @ 1.27g/t Au

Corporate

During January 2009, the Company entered into a C$60m bought deal arrangement with a syndicate of underwriters led by Thomas Weisel Partners Canada Inc

SUKARI GOLD PROJECT CONSTRUCTION

The project remains on track for the second quarter of 2009 commissioning and production.

Current activity continues to focus on the civil works, power generation, CIL tank erection, tailing storage facility and the seawater pipeline. There has been a significant increase in personnel throughout the quarter in order to advance civil works and associated structural steel templates. Construction activities continue to progress across a number of fronts including: primary crusher, Conveyor 01 ('CV01'), reclaim tunnel, mills, CIL tanks, gold room, reverse osmosis ('RO') plant, non process buildings, fuel farm, power station and sea water pipeline.

Progress pictures can be viewed on the Company's website - www.centamin.com.

Project Engineering and Design

MetPlant Engineering Services Pty Ltd, an Australian based company, continued with engineering and design work for the Process Plant. SENET in South Africa have made significant progress on the design scopes of pipe work and associated installations.

Crusher & Conveyor Systems

Crusher concrete works have advanced significantly with the completion of crusher civil works in early January 2009. Structural steel installation has commenced and will be the focus of the crusher area during the first quarter of 2009. Structural work on conveyor system 'CV01' was completed during the quarter.

Reclaim and Grinding Systems

All civil works relating to the reclaim tunnel were completed during the quarter and backfilling of the top bunker is complete. Steelwork for the first apron feeder was erected during the quarter following satisfactory completion of reclaim tunnel steel assembly.

Installations are underway with all mill plinths and jacking points being in place. SAG Mill and Ball Mill #1 shells and heads have been erected with focus on mill fasteners scheduled for early in the first quarter of 2009.

CIL Circuit & Gold Recovery

Civil works have progressed well during the quarter with all retaining walls complete and work nearing completion of cyclone feed pump bases. Structural CIL tank erection works is 98% complete with top of tank steel to be erected early in the next quarter. Gearboxes are ready to be installed upon completion of top of tank steelwork.

Gold room foundations were completed during the quarter with steelworks and precast tilt up panels scheduled for next quarter.

Power Plant

Erection of structural steel is well advanced following the completion of Power Plant civil works and installation of the Cummins and MAK engines during the quarter. All four engines are now in position in the main power station with a further six engines in place within the second Cummins power station facility. Delivery of piping and valve installations are expected early in the first quarter of 2009.

Kori Kollo Process Plant Refurbishment

Refurbishment of the Kori Kollo processing facility continues to progress well. Sand blasting and painting of key structures has advanced significantly and activity is currently focussed on bearing housings for pinion lubrication systems and fitting of new bearings to intertank screens. Refurbishment of apron feeders is practically complete with feed sprockets being fitted.

Site Buildings and Infrastructure

During the quarter, the reverse osmosis plant steelworks were completed with building erection and equipment pedestals in place.

Fabrication of fuel storage facilities including a required 500m3 diesel tank was awarded during the quarter. Civil works for the fuel storage and distribution facility were substantially completed during the quarter.

Site buildings including the administration and plant site offices were completed. Design works were completed on the warehousing and mobile fleet maintenance buildings and infrastructure, with building fabrication and erection scheduled for the first quarter of 2009.

Tailings Storage Facility ('TSF')

Knight Piesold Pty Ltd has been appointed to carry out the design and construction supervision of the TSF. Bulk earthworks for the TSF have now been completed with only drainage channels to be completed. HDPE liner has been delivered to site and lining has commenced following the completion of lining with gypsum.

Seawater Supply System

The Seawater Supply System will draw in and transport raw seawater, via a staged pumped pipeline, to the Sukari site where it will be processed through a desalination plant for end use as process plant water, mine site dust suppression water and, after secondary processing and treatment for construction camp, drinking water.

Earthworks associated with the seawater pipeline were completed during the quarter. Pressure testing of pumping stations is progressing and remaining works include pipe tie-ins at pumping stations in conjunction with final civil works.

EXPLORATION

During the Quarter, resource definition drilling continued in the south of the Sukari porphyry from Wadi Fault, targeting the down thrust extension of the Amun Deeps porphyry block and the deeper 'Horus' Zone beneath Amun Deeps and the Hapi Zone. In the northern Pharaoh Zone, drilling targeted the upper parts of the porphyry; near surface west dipping Cleopatra Zones; the Hapi Zone and deeper mineralisation zones, moving north of 11200N. Drilling will continue with five contractor and three Pharaoh Gold Mines NL ('PGM') rigs in all of the above areas for the foreseeable future.

Several diamond core geotechnical holes were also completed for the underground mine decline planning, and RC water bore pilot holes were completed at the planned process plant water intake borefield on the coast.

http://www.rns-pdf.londonstockexchange.com/rns/1854N_-2009-2-11.pdf

Amun Zone (9900 - 10700N)

Drilling continued to infill the Amun Deeps porphyry block and test the continuity of the west dipping Downthrust zone extending from the base of it. Following up strong mineralisation in D1384 on 10125N (reported last quarter), hole D1388 at 10050N intersected a high grade zone at the western extension of the footwall contact of the Amun Deeps porphyry, in the downthrust zone, of 20m @ 7.39g/t Au from 439m (Figure 2 & Table 2). Mineralisation is still open along strike and at depth in this area.

http://www.rns-pdf.londonstockexchange.com/rns/1854N_1-2009-2-11.pdf

Hole RCD1391 on 10475N was drilled to test and infill resource blocks in the Hapi Zone and Amun Deeps block and continue through to the Horus Zone. Results have been received for the Amun Deeps block, essentially all mineralised, returning 189m @ 2.51g/t Au from 356m with a high grade zone at the hanging wall contact (Figure 3 & Table 2). The Horus Zone porphyry was successfully intersected from 860m downhole, intercalated with dacite dykes and strongly altered zones of serpentinitic rocks, assay results are awaited.

http://www.rns-pdf.londonstockexchange.com/rns/1854N_2-2009-2-11.pdf

Horus Zone

Several holes greater than 900m depth have now been drilled into the Horus Zone porphyry block beneath the Main and Amun Deeps porphry blocks. Over 200m of north - south strike, it appears to be a block some 400m down dip thickness (open at depth) and steeply east dipping (apparent dip 75o). The across strike thickness is around 150m, also open to the east. Assays to date have shown it is weakly though consistently mineralised, typically around 0.4g/t Au average grade, with sporadic, narrow +1g/t assays in higher sulphide and brecciated/sheared zones. The Horus porphyry is similar to the Amun Deeps and Main porphyry, but is more strongly silicified, giving it a massive, glassy appearance. Higher grades seem to occur at the upper contact shear zone, along the Downthrust Zone.

Hole RCD1187 on 11450N appears to have intersected these higher Au grades at the sheared top part of the Horus Zone, possibly the intersection of it and the Downthrust Zone (Figure 4 & Table 2). The hole could not continue due to ground conditions, so RCD1391 was continued beneath it to test the full width of the Horus Zone. Drilling was terminated in serpentinites and sediments, indicating the possible footwall contact.

http://www.rns-pdf.londonstockexchange.com/rns/1854N_3-2009-2-11.pdf

Drilling has intersected the Horus Zone from 10350N to 10525N and so far indicates the zone is a thick and continuous unit. Mineralisation is open in all directions, and further wide spaced holes are planned to the north and south along strike to test continuity and for areas of higher grade. There is still strong potential to continue defining the Sukari mineralisation system at depth and along strike, and to locate higher grade structures within the massive silicified porphyry block. Drilling is also planned to infill and track possible porphyry mineralisation between high grade zones such as the 111m @ 15.1g/t Au in RCD553 on 11100N, south to hole D1280 (35m @ 164g/t Au) on 10575N.

Pharaoh Zone (11200N - 12100N)

Drilling continued during the quarter in the Pharaoh Zone, targeting infill and along strike extension of the up-dip, high grade Hapi Zone mineralisation, and deeper high grade zones at the base and contact of the main porphyry to the sedimentary country rock package.

Hole RCD571 on 11450N intersected moderate to strong, thick zone of mineralisation at the footwall contact (Table 2), deeper and down dip of the Hapi Zone, and 50m to the north of a previous high grade zone intersected in RCD756 (58m @ 3.76g/t Au from 791m). A 50m thick porphyry unit below the initial footwall contact returned 48.3m @ 1.42g/t from 763.7m. This zone is similar to others in the area, showing the continuity of mineralisation at depth in the Pharaoh Zone, and highlights conjugate west and east dipping mineralised structures continuing to be significant throughout the Sukari porphyry.

http://www.rns-pdf.londonstockexchange.com/rns/1854N_4-2009-2-11.pdf

Drilling also confirmed the continuity and extent of a thick, west dipping central zone of mineralisation, higher up in the porphyry outcrop, generally from 200 - 300m below surface, centred around 10650E. Hole D1408 on 11575N intersected several anomalous Au zones in a thick mineralised envelope from 268m (Table 2), similar to D1393 on 11475N (Table 2) and several other previously drilled holes to the north and south.

Several holes have returned significant surface mineralisation, confirming the previous drilling and interpretation of the strongly mineralised west dipping Cleopatra structures. Holes D1402, 1405 and 1408 (Table 2) highlight this zone, which is also related to recent hole D1400 (Table 2), 500m along strike to the north.

Drilling will continue during the coming quarters, targeting these mineralisation zones heading north along the drill tracks available in the Pharaoh Zone.

REGIONAL EXPLORATION

Regional exploration work continued during the quarter, with mapping and sampling completed in the north east corner of the licence area, and continuing in a SW direction on wide spaced east-west traverse lines across the regional shear in which Sukari sits, highlighting stronger alteration and structurally complex zones with shear zones and quartz veining (Figure 6). 1,897 samples were collected for the quarter, with over 3,800 completed in the programme in total. Work has now been completed down to Kurdeman.

http://www.rns-pdf.londonstockexchange.com/rns/1854N_5-2009-2-11.pdf

Mapping shows a generally north east striking rock package dominated by intermediate dioritic to andesitic rocks, grading to felsic volcanics (rhyolites, dacites) in the north east quadrant of the licence, with subordinate granitic to granodiorite intrusive rocks north and east of Sukari Hill. Intercalated sedimentary units, from fine grained siltstone and shales, to sandstones and some greywacke units are intercalated with the igneous rocks, mainly north and east of Sukari, to the licence margin. Minor but consistent lenses of serpentinitic ultramafics occur to the north and east of Sukari Hill, and in the south near Kurdeman. Interpretation and compilation of the mapping is ongoing.

1,420 assays were returned during the period, with several strongly anomalous results returned (Table 1). In addition to the regional wide spaced work, exploration has focussed on the newly discovered prospect areas to the east and south of Sukari at Quartz Ridge and the V Shears. These areas were covered with more detailed mapping and chip-line sampling to test for width and tenor of alteration and Au mineralisation. Several additional high grade assays were returned from both areas, confirming the mineralised continuity along the 400m east-west striking milky quartz vein and sheared gabbro - diorite trend at Quartz Ridge (Figure 7). Additional high grades were returned from some quartz veins and alteration 300m to the south. Interpretation of these zones is ongoing, a drill test programme is being planned, as there is significant strike length to the high grade assays, contained in a massive 1-2m thick quartz vein and enveloping 1-2m of strongly altered and sheared dioriotic rocks.

http://www.rns-pdf.londonstockexchange.com/rns/1854N_6-2009-2-11.pdf

Sampling of the 'V Shear' prospect was also completed. Results confirm strong Au anomalism in two shear zones (Figure 8). Compilation, interpretation and field checking of the mapping, alteration and mineralisation throughout the licence is continuing.

http://www.rns-pdf.londonstockexchange.com/rns/1854N_7-2009-2-11.pdf

Table 1 - Anomalous Geochemistry - Regional Rock Chip Samples (>0.5ppm Au) Sep - Dec 2008

SAMPLE	Rocktype	Au_Ar1_ppm	UTM_N	UTM_E	Comments
325929	GBD	0.761	2762639	676635	V Shear - N-S Shear; Southern Extension
325932	GBD	1.48	2762637	676640	V Shear - N-S Shear; Southern Extension
325946	GBD	7.51	2762641.25	676645.38	V Shear - N-S Shear; Southern Extension
325947	GBD	1.86	2762644	676643.44	V Shear - N-S Shear; Southern Extension
325984	GBD	0.759	2762669	676662	V Shear - N-S Shear; Infill Lines
328220	LST	3.87	2762723	676657	V Shear - N-S Shear; Northern Extension
328222	LST	1.29	2762721	676659	V Shear - N-S Shear; Northern Extension
328223	LST	8.17	2762718	676664	V Shear - N-S Shear; Northern Extension
328224	LST	3.49	2762720	676664	V Shear - N-S Shear; Northern Extension
328270	VQ	1.23	2762585.75	676567.88	V Shear - N-S Shear; SW Infill Lines
328273	Ux	2.82	2762591.5	676555.13	V Shear - N-S Shear; SW Infill Lines
328274	Ux	1.78	2762585.5	676550.94	V Shear - N-S Shear; SW Infill Lines
328307	GBD	1.93	2760274	677178	Qtz Ridge Prospect - Infill Sampling
328308	GBD	4.89	2760270	677160	Qtz Ridge Prospect - Infill Sampling
328331	GBD	0.772	2760219.25	677346.25	Qtz Ridge Prospect - Infill Sampling
328332	VQ	1.78	2760220.75	677345.81	Qtz Ridge Prospect - Infill Sampling
328352	GBD	4.76	2760279.5	677490.69	Qtz Ridge Prospect - Main Vein
328353	GBD	4.47	2760280.25	677488.75	Qtz Ridge Prospect - Main Vein
328354	GBD	1.26	2760279.75	677487.25	Qtz Ridge Prospect - Main Vein
328358	GBD	0.968	2760280.5	677478.38	Qtz Ridge Prospect - Main Vein
328359	GBD	0.764	2760281	677476.06	Qtz Ridge Prospect - Main Vein
328360	GBD	3.04	2760281	677474.88	Qtz Ridge Prospect - Main Vein
328361	GBD	4.02	2760281	677472.94	Qtz Ridge Prospect - Main Vein
328362	GBD	2.25	2760281.25	677471.44	Qtz Ridge Prospect - Main Vein
328363	GBD	0.809	2760281.25	677469.5	Qtz Ridge Prospect - Main Vein
329208	VQ	26.7	2760283	677479.88	Qtz Ridge Prospect - Infill Sampling
329227	VQ	0.608	2760253.5	677434.81	Qtz Ridge Prospect - Infill Sampling
329252	GBD	0.724	2760231.75	677388.06	Qtz Ridge Prospect - Infill Sampling
329279	VQ	0.949	2760217.5	677309.25	Qtz Ridge Prospect - Infill Sampling
329280	VQ	1.82	2760222	677310.38	Qtz Ridge Prospect - Infill Sampling
329281	GBD	7.5	2760223.5	677309.94	Qtz Ridge Prospect - Infill Sampling
331272	VQ	0.555	2760220.5	677296.13	Qtz Ridge Prospect - Infill Sampling
331273	VQ	0.527	2760222.25	677289.94	Qtz Ridge Prospect - Infill Sampling
331274	VQ	0.74	2760224.25	677280.69	Qtz Ridge Prospect - Infill Sampling
331362	GBD	1.04	2759897	677460	Qtz Ridge Prospect - South of Vein
331365	GBD	0.942	2759961	677508	Qtz Ridge Prospect - South of Vein
331366	GBD	1.17	2759968	677511	Qtz Ridge Prospect - South of Vein
332371	VQ	0.54	2760309	677519.25	Qtz Ridge Prospect - Infill Sampling
332373	VQ	7.02	2760324.75	677534.06	Qtz Ridge Prospect - Infill Sampling - east extension
332374	VQ	13.4	2760329	677538.25	Qtz Ridge Prospect - Infill Sampling - east extension
333252	VQ	6.08	2758995	676818	Zone of altered rocks/qtz veins - south of Qtz Ridge
337548	GBD	2.33	2762796	676962	V Shear - N-S Shear; Northern Extension
337559	GBD	0.507	2762793	676975	V Shear - N-S Shear; Northern Extension

Notes: GBD - Gabbro-Diorite; Ux - Ultramafic; VQ - Quartz Veining; LST - Silica-Carb Alt Rock

Assay results were received for the five RC hole programme at Sukari North B quartz vein prospect, confirming the tenor of the surface sampling of the quartz veining and structural interpretation. Drilling intersected hard, massive siliceous intermediate to felsic dioritic rock unit with minor felsic and mafic dykes. A peak assay of 1m @ 9.96g/t Au from 15m was intersected in hole 4, drilled north into the south dipping quartz vein-shear, west of the main quartz lode. The 1m high grade assay was the quartz vein, in a 12m halo of 0.1 - 0.4g/t Au alteration. Results are similar to previous work at nearby Sukari North prospect, with higher (+1g/t Au) grade quartz veins and shear zones being hosted in massive, siliceous brittle rocks with a weak and narrow alteration assemblage being defined immediately adjacent to the structure.

GRADE CONTROL

Grade control ('GC') RC drilling continued during the quarter in the Amun Zone and North Pharaoh Zone around 11500N and 12000N; testing the northwest dipping Cleopatra mineralized structure to 1142RL. 1,693m was drilled during the quarter, completing the planned programme on the available tracks and benches pre-blasting. To date, 19,112m of GC drilling has been completed; 7,292m by the PGM owned and operated Atlas Copco rig. Conditional simulation modeling of ore benches from the available drilling data was completed. Results compare well with the exploration drilling Multiple Indicator Kriging ('MIK') model in the areas drilled, and confirms the structural interpretation of significant mineralised north west and south east dipping structures.

MINING

Caterpillar, through their Egyptian authorised dealer Mantrac, was selected through a competitive tender as the supplier of haulage trucks, articulated dump trucks, excavators, graders and dozers for the project. The initial mining fleet sufficient to commence mining pre-strip work will largely comprise:-

CAT 785C Rear Dump Trucks (5)

CAT 785C Water Truck (1)

O&K RH120E Excavator (1)

CAT D10T Dozers (2)

CAT 14H Grader (1)

CAT 16M Grader (1)

CAT 365 BLME Excavator (1)

CAT 988G Wheel Dozers (2)

H180D Rock Breaker (1)

Atlas Copco has been selected to supply grade control and blast hole drilling equipment. Initial fleet selection comprises:-

ROC F9 Pioneer Drill (1)

L8 MKII Production Drill (1)

L8 MKII RC Rig (1)

The majority of the initial fleet is on site and has been utilised for plant site and Tailings Storage Facility ('TSF') civil work. Plant site civil works were completed during the first calendar quarter of 2008. Bulk earth works for the TSF were completed during the second calendar quarter. During the current quarter, haul roads, access ramps and run of mine ('ROM') pads have been established in preparation for the commencement of mining activity next quarter. A total of 475,000 bank cubic metre ('BCM') of material was moved throughout the quarter.

Mining pre-strip activity and blasting is scheduled to commence in the first quarter of 2009 following the receipt of permits for blasting during December 2008. Contracts have been finalised with the supplier of explosives and mobilisation of explosives, accessories and the required emulsion plant was completed in the quarter.

Further deliveries of mining fleet have been shipped from suppliers and are scheduled for assembly and delivery at the Sukari site in the first quarter of 2009. The shipment includes a further five CAT 785C Dump Trucks and the second O&K RH120E excavator which will be used to advance development activities during 2009.

UNDERGROUND MINE PLANNING

Studies were completed during the quarter with a continued focus on an initial underground mining rate of 500,000 tonnes per annum with grade expected to be in the range of 5g/t to 10g/t, thus bringing higher grade ore feed into production earlier than otherwise would have been the schedule through surface mining.

During the quarter, underground mining contractors were invited to attend on site meetings and a detailed tender process is currently underway with scheduled closing of 31 January 2009. Following selection of the underground mining contractor during the first quarter 2009, it is anticipated that underground development will commence with the procurement and mobilisation of key personnel and equipment.

CORPORATE

During the quarter, there were unforeseen, unprecedented and large movements in the USD versus almost all other currencies. This unprecedented and rapid shift in foreign exchange markets impacted the Company through its substantial Canadian dollar holdings. As a result, the Company incurred a US$20.5M unrealised foreign exchange loss during the quarter (at one point, the unrealised foreign exchange loss was as high as US$26M). The Company has always held a policy of not hedging its currency positions and to date this policy has been attributable for unrealised foreign exchange gains of US$13M over the past two financial years.

However, potential crystallisation of the unrealised foreign exchange position incurred in the current quarter may have required the Company to proceed with a plan to reduce a combination of exploration, underground development and capital expenditure associated with mining fleet, and possibly deferral of expenditure for the stage two sulphide plant, in order to be fully funded through to the completion of Sukari Process Plant construction.

These positions were evaluated throughout December, and in January the Board resolved that if the equity market was supportive, then a small capital raising was the preferred funding option. As such, on 20 January 2009, the company entered into an agreement with a syndicate of underwriters led by Thomas Weisel Partners Canada Inc under which the underwriters agreed to buy 92,308,000 ordinary shares (the 'Ordinary Shares') from Centamin Egypt Limited on a bought-deal basis and sell them to the public at a price of C$0.65 per Ordinary Share. The Company also granted to the underwriters an over-allotment option to purchase up to an additional 13,846,200 Ordinary Shares at the same price, exercisable by the underwriters in whole or in part for a period of 30 days on or following the closing of the offering. The gross proceeds raised from the offering was C$69,000,230 following closure on 10 February 2009.

Centamin Egypt Limited intends to use the net proceeds of the offering for the continued development of the Sukari Gold Project, underground development, exploration and working capital purposes. The Company is currently debt free, unhedged and able to aggressively pursue further exploration and development activities, including the underground development of the high grade Amun Deeps zone.

To minimise future foreign exchange losses, the Company is currently forecasting currency use to cost of completion, and plans to convert the proceeds of the offering to those currencies following the closing of the issue.

SUKARI GOLD PROJECT (BACKGROUND)

Centamin is a mineral exploration and development company that has been actively exploring in Egypt since 1995. The principal asset of Centamin is its interest in the Sukari Gold Project, located in the Eastern Desert of Egypt. The Sukari Gold Project is at an advanced stage of development, with construction having commenced in the second quarter of 2007 and first gold production expected during the second quarter of 2009.

A definitive feasibility study ('DFS') for the development to commercial production of the Sukari Gold Project was completed in February 2007.

A summary of the findings of the DFS were:-

the DFS concluded that a 4mpta plant producing on average 200,000 ounces per annum, over 15 years of mining, is economically robust; and
total Capital Construction costs are estimated at US$216m with average cash operating costs of US$290/oz (inclusive of 3% royalty) over the 15 year mining period. As at 30 June 2008, the Company is of the opinion that due to increased commodities prices and currency movements since finalisation of the DFS that the capital estimate is at risk by 20%. Average cash operating costs have also been revalidated as at 30 June 2008 due the higher cost of consumables, and are forecast to be US$365/oz.

The Sukari Gold Project will be the first large-scale modern gold mine to be developed in Egypt. Centamin's operating experience in Egypt gives it a significant first-mover advantage in acquiring and developing other gold projects in the prospective Arabian-Nubian Shield.

The Sukari Gold Project is hosted by a large, sheeted vein-type and brittle-ductile shear zone hosted gold deposit developed in a granitoid intrusive complex. Gold mineralization is hosted exclusively by a granitoid body of granodiorite - tonalite composition referred to as the Sukari Porphyry. The Company has entered into a Concession Agreement with the Egyptian Government that provides for exploration and exploitation rights at the Sukari Gold Project and whereby the Operating Company, owned 50% by the Company's wholly owned subsidiary, Pharaoh Gold Mines NL and 50% by Egyptian Mineral Resource Authority ('EMRA'), has been established. Centamin is entitled to recover all of its exploration, operating and capital costs from operating surpluses of the operating company.

The Sukari Mining Licence covers an area of 160 km2 and is for a period of 30 years, with an option for a further 30 years.

The Sukari Gold Project has been scheduled for open pit mining over an initial 15-year period. During that time 78 Mt ore @ 1.5 g/t Au is expected to be mined, producing 3.7Moz gold. A further 374 Mt of waste material is also expected to be mined resulting in a waste to ore strip ratio of 4.8:1.

Ore and waste will be mined using conventional open pit mining methods. The operation is planned to utilize selective mining techniques to separate ore and waste. Provision has been made for drilling and blasting all primary and oxide materials. Ore will be hauled to the run of mine pad next to the Processing Plant and either direct tipped to the crusher or stockpiled for future reclaim at the 4 Mtpa Process Plant throughput rate.

Mining will be progressed at an increased rate compared to processing; approximately 5 Mt of ore is expected to be mined and 4 Mt of ore will be processed annually. Operating at an increased mining rate allows the cut off grade for feed to the Plant (referred to as 'cutover' grade) to be increased in the early years of the schedule. This in turn increases the metal output and project revenue in these early years, thus increasing the discounted operating surplus cashflow. According to current schedules, the low-grade stockpile produced as a result of applying a cutover grade, will be processed after mining has ceased, extending the current operating life of the project for a further six years. As a result, the average milled grade during the mining period is forecast to be 1.87 g/t Au, compared to 0.66 g/t Au for the low-grade stockpile.

Centamin will own and operate its mining fleet. The production fleet will be based on 380 t class excavators and 150 t class rigid body trucks. At full production, three production fleets, each comprising a single excavator and sharing a maximum of 21 trucks, will be required. The capital cost of the initial mining fleet has been estimated at US$49.3 million.

The proposed process route entails:-

• crushing;

• stockpiling crushed ore;

• grinding;

• flotation of a (bulk sulphide) concentrate containing the precious metals;

• thickening of the concentrate;

• fine milling of the concentrate;

• leaching the precious metals from the concentrate in a dilute cyanide solution;

• adsorbing the precious metals onto activated carbon;

• stripping the precious metals from the carbon;

• recovering the precious metals as gold doré; and

• placing the concentrate tailing in the tailings storage facility.

Tailings from the treatment of weathered oxide ore early in the mining schedule contain too much gold to discard. Hence, the bulk flotation tail is further treated by:-

• thickening;

• leaching the precious metals into a dilute cyanide solution;

• adsorbing the precious metals onto activated carbon;

• stripping the precious metals from the carbon;

• recovering the precious metals as gold doré; and

• placing these tailings in the tailings storage facility.

Process water will be drawn from a bore field located adjacent to the Red Sea. The seawater will be pumped approximately 25 km to the mine site to satisfy all Process Plant and mining requirements. Most of the seawater will be pumped into a raw water pond located near the Processing Plant, whilst around 500m³/day will be pumped to a Water Treatment Plant for potable and fresh water supplies.

Power will be generated on site by a 28 MW primary power station, operated on heavy fuel oil. A modern camp facility was constructed to cater for approximately 700 occupants. The camp currently houses approximately 550 occupants, with another 150 occupants being housed in the old exploration camp.

On behalf of Centamin Egypt Limited

Josef El-Raghy

Managing Director/CEO

11 February 2009

For more information please contact:

Centamin Egypt Limited

+ 61 (8) 9316 2640

Josef El-Raghy

Pelham Public Relations

Tel : + 44 (0) 207 743 6376, Mobile : + 44 (0) 7894 462 114

Candice Sgroi

Ambrian Partners Limited

+ 44 (0) 207 634 4700

Richard Brown

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 and is a 'Qualified Person' as defined in 'National Instrument 43-101 of the Canadian Securities Administrators'. 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 assay samples were analysed by Ultra Trace Pty Ltd, Canning Vale, Western Australia.

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' and is a 'Qualified Person' as defined in 'National Instrument 43-101 of the Canadian Securities Administrators'. 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.

Refer to the Technical Report which was filed in March 2007 for further discussion of the extent to which the estimate of mineral resources/reserves may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issue.

Table 2 - Significant Intersections December 2008 Quarter

HOLE	NORTH	EAST	DIP	AZI	EOH (m)	FROM (m)	TO (m)	INTERVAL (m)	Gold (g/t)
RCD571	11450	10652	-88	90	867.8	687	714	27	1.31
					incl.	702	703	1	9.77
						763.7	812	48.3	1.42

RCD1187	10450	10742	-70	270	864.4	799	803	4	5.84
					incl.	800	801	1	20.00
						806	808	2	10.52
						817	820	3	1.41
						826	864.4	38.4	0.54

D1345	10350	10730	-80	270	1151	918	921	3	2.13
						932	975	43	0.87
						1004	1019	15	0.72
						1036	1057	21	0.69

D1388	10050	10550	-83	270	670.7	291	294	3	1.54
						439	459	20	7.39
					incl.	454	459	5	25.30

RCD1391	10475	10795	-75	270	1136.7	337	349	12	2.61
					incl.	346	349	3	6.49
						356	545	189	2.51
					incl.	367	372	5	34.52
					incl.	407	408	1	5.21
					incl.	435	438	3	10.31
					incl.	484	485	1	99.70
						846	848	4	7.90

D1392	10525	10587	-86	270	1076.1	314	328	14	6.28
					incl.	323	328	5	14.30
						346	352	6	2.15
					incl.	347	348	1	7.52

D1393	11475	10650	-85	270	665.5	12	18	6	4.03
						230	235	5	1.07
						248	264	16	1.22
						284	289	5	1.02
						354	365	11	1.26
					incl.	356	357	1	7.41
						490	492	2	1.58

D1397	11500	10670	-75	270	631.9	233	237	4	7.84
					incl.	236	237	1	24.90

D1400	12050	10845	-25	270	390.92	5	52	47	1.27
					incl.	19	20	1	5.33

D1402	11525	10678	-83	270	810.2	29	50	21	1.61
					incl.	44	45	1	7.28

D1405	11550	10660	-75	270	675.8	48	58	10	1.96
					incl.	55	56	1	10.80
						71	79	8	1.11
						204	209	5	1.61
						235	247	12	1.12
						295	298	3	2.83

D1408	11575	10683	-87	270	788	21	23	2	1.35
						41	51	10	1.78
						55	58	3	1.92
						99	101	2	1.27
						302	311	9	1.41
						329	340	11	0.98
						351	353	2	2.08
						381	383	2	2.69

Note: Intervals shown in the table are down hole intercepts, drilled at high angles relative to the internal mineralized structures and the Sukari Porphyry; true widths do not apply or are not used in drilling the stockwork style mineralization at Sukari

MANAGEMENT DISCUSSION AND ANALYSIS

The following Management's Discussion and Analysis of the Financial Condition and Results of Operations ('MD&A') for Centamin Egypt Limited (the 'Company' or 'Centamin') should be read in conjunction with Unaudited Interim Consolidated Financial Statements for the three months ended 31 December 2008 and related notes thereto. The effective date of this report is 11 February 2009.

In addition to these Australian requirements, further information has been included in the Unaudited Interim Consolidated Financial Statements for the six months ended 31 December 2008 in order to comply with applicable Canadian securities law, as the Company is listed on the Toronto Stock Exchange.

Additional information relating to the Company, including the Company's most recent Annual Report for the year ended 30 June 2008 and other public announcements is available at www.centamin.com.

All amounts in this MD&A are expressed in United States dollars unless otherwise identified.

FORWARD LOOKING STATEMENTS

Some of the statements contained in this MD&A, including those relating to strategies and other statements, are predictive in nature, and depend upon or refer to future events or conditions, or include words such as 'expects', 'intends', 'plans', 'anticipates', 'believes', 'estimates' or similar expressions that are forward looking statements. Forward looking statements include, without limitations, the information concerning possible or assumed further results of operations as set forth herein. These statements are not historical facts but instead represent only expectations, estimates and projections regarding future events and are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations generally.

The forward looking statements contained in this MD&A are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. The future results of the Company may differ materially from those expressed in the forward looking statements contained in this MD&A due to, among other factors, the risks and uncertainties inherent in the business of the Company. The Company does not undertake any obligation to update or release any revisions to these forward looking statements to reflect events or circumstances after the date of this MD&A or to reflect the occurrence of unanticipated events.

GENERAL

Centamin is a mineral exploration and development company that has been actively exploring in Egypt since 1995. The principal asset of Centamin is its interest in the Sukari Project, located in the eastern desert of Egypt. The Sukari Project is at an advanced stage of development, with construction having commenced in March 2007 and first gold production expected during the second quarter of 2009.

The Sukari Project will be the first large-scale modern gold mine to be developed in Egypt. Centamin's operating experience in Egypt gives it a significant first-mover advantage in acquiring and developing other gold projects in the prospective Arabian-Nubian Shield.

A definitive feasibility study (the 'DFS') for the development to commercial production of the Sukari Project was compiled in February 2007 by Roche Process Engineering Pty Ltd. The DFS provides that the capital cost to develop the project is estimated at US$216.5 million (including mining fleet and contingencies but not including the leased mining fleet). According to the DFS, the Sukari Project reserve will be mined by a single open pit over a 15-year period. During that time 78 Mt ore grading 1.5 g/t is expected to be mined, containing 3.7M oz gold. Over this 15-year mining period the project is expected to produce on average 200,000 oz of gold annually at an average cash operating cost of US$290/oz. As at 30 June 2008, the Company was of the opinion that due to increased commodities prices and currency movements since finalisation of the DFS that the capital estimate is at risk by 20%. Average cash operating costs were also revalidated as at 30 June 2008 due the higher cost of consumables, and are forecast to be US$365/oz.

The accompanying Interim Consolidated Financial Statements for the quarter ended 31 December 2008 have been prepared in accordance with generally accepted accounting principles and has not been reviewed or audited by the Company's Auditors.

SELECTED FINANCIAL INFORMATION FROM THE UNAUDITED INTERIM CONSOLIDATED INCOME STATEMENTS

	Three Months Ended		Six Months Ended
	31 December		31 December
	2008	2007	2008	2007
	US$	US$	US$	US$

Revenue	998,626	1,777,407	2,106,408	3,290,245

Other income	10,283	199,940	10,283	201,780

Corporate administration expenses	(379,706)	(1,518,328)	(914,330)	(2,071,919)

Foreign exchange gain / (loss)	(21,876,482)	412,502	(25,204,038)	5,927,574

Share based payments	106,193	(593,947)	(359,881)	(1,381,402)

Other expenses	(84,788)	(145,412)	(72,823)	(304,241)

Profit (loss) before income tax	(21,225,874)	132,162	(24,434,381)	5,662,037

Tax (expense)/income	-	-	-	-

Net profit (loss) for the period	(21,225,874)	132,162	(24,434,381)	5,662,037

Earnings per share
- Basic (cents per share)			(2.781)	0.745
- Diluted (cents per share)			(2.781)	0.733

Revenue reported comprises interest revenue applicable on the Company's available cash and working capital balances and term deposit amounts. On a comparative year to date basis the Revenue figure is lower due to the lower average cash holdings. Other income of $10,283 reported for the current 2008 period relates to a refund of value added tax whilst the corresponding 2007 amounts disclosed take into account proceeds from the sale of equipment.

Corporate administration expenses reported comprise expenditure incurred for communications, consultants, directors' fees, stock exchange listing fees, share registry fees, employee salaries and general office administration expenses. The amount disclosed for the 2007 period is higher than 2008 due to a once off charge of $926,436 for project debt financing and due diligence fees incurred during the financing process with Barclays Capital.

Foreign exchange loss reported is attributable to negative exchange rate movements during the period as a result of the strengthening United States dollar against the Canadian dollar. The Company holds is majority of liquid funds in Canadian Dollars. Unprecedented and unforeseen movements in currency markets during October and November of 2008 has given rise to a significant unrealised foreign exchange loss of $20.5M for the three months to 31 December 2008.

Share based payments reported relate to the requirement to recognise the cost of granting options (or warrants) to directors, company executives, employees under the Employee Share Option Plan or for payment for services done under a contractual arrangement which are subsequently approved at a general meeting of the Company's shareholders. Calculation of the cost is done under AIFRS over the option (or warrant) vesting period. In the three months to 31 December 2008, 1,500,000 employee options were forfeited. Consequently, in accordance with accounting policy, the company reduced the previously accounted charge for these options, resulting in a credit to the profit and loss account.

Other expenses reported comprise non-cash expenses for depreciation and employee entitlements.

The loss after tax of the consolidated entity for the three months ended 31 December 2008 was $24,434,381.

SELECTED FINANCIAL INFORMATION FROM THE UNAUDITED INTERIM CONSOLIDATED BALANCE SHEET

	31 December 2008	30 June 2008
	US$	US$

Total current assets	101,452,881	185,529,305

Total non-current assets	233,898,111	174,967,885

Total assets	335,350,992	360,497,190

Total current liabilities	4,766,860	6,868,124

Total non-current liabilities	890,554	672,236

Total liabilities	5,657,414	7,540,360

Net assets	329,693,578	352,956,830

Current assets reported have decreased due to the application of funds against development expenditure of the Sukari Gold Project.

Non-current assets reported have increased during the period as a result of the expenditure incurred with regard to ongoing exploration and construction activities at Sukari. The Company's accounting policy is to capitalise expenditure of this nature under the categories of Property, Plant and Equipment and Exploration, Evaluation & Development.

Current liabilities reported have decreased during the period due to the close out of creditors owed in relation to engineering design and construction of the Sukari Project. Non-current liabilities reported during the period have increased and are representative of an increasing provision for rehabilitation, coupled with a payment due to a related party upon commencement of gold production from the Sukari Project.

SELECTED FINANCIAL INFORMATION FROM THE UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Three Months Ended 31 December 2008	Six Months Ended 31 December 2008
	US$	US$

Total equity at beginning of period	350,883,241	352,956,830

Movement in issued equity	245,625	1,145,244

Movement in reserves	(209,414)	25,885

Profit/(loss) for the period	(21,225,874)	(24,434,381)

Total equity at end of period	329,693,578	329,693,578

Issued equity reported has increased in the three months ended 31 December 2008 due to the exercise of employee options.

Reserves reported have decreased due to the forfeiture of employee share based options.

Loss for the three months ended 31 December 2008 is analysed under the section Consolidated Income Statement.

SELECTED FINANCIAL INFORMATION FROM THE UNAUDITED INTERIM CONSOLIDATED CASH FLOW STATEMENT

	Three Months Ended		Six Months Ended
	31 December		31 December
	2008	2007	2008	2007
	US$	US$	US$	US$

Net cash flow from operating activities	(3,539,679)	(3,020,925)	(6,554,523)	(6,794,599)
Net cash flow from investing activities	(25,158,243)	(23,267,444)	(53,803,478)	(41,568,850)
Net cash flow from financing activities	(1,240,796)	131,863,709	(762,126)	131,482,651

Net increase / (decrease) in cash and cash equivalents	(29,938,718)	105,575,340	(61,120,127)	83,119,202

Cash and cash equivalents at the beginning of the financial period	147,974,068	119,722,952	182,328,604	136,501,015

Effects of exchange rate changes	(20,530,587)	819,099	(23,703,714)	6,497,174

Cash and cash equivalents at the end of the financial period	97,504,763	226,117,391	97,504,763	226,117,391

Net cash flow from operating activities reported comprises payments for corporate salary and wages, corporate administration and compliance, and exploration expenditure costs. On a comparative three month basis, expenditure is higher due to increased compliance, administration and exploration activity.

Net cash flow from investing activities reported comprises preproduction and capital development expenditures at the Sukari Project, offset by interest revenue received. On a comparative three month and six monthly basis, expenditure is higher due to construction activities associated with the development of the Sukari Gold Project. Figures reported for the comparative period last year comprised work directed towards initial construction phase of the Sukari Gold Project.

Net cash flow from financing activities reported comprises funding obtained through the exercise of share options (or warrants) and equity raisings undertaken. The comparative figure for the prior year is dominated by the cash receipts from equity raising during that period.

FOREIGN INVESTMENT IN EGYPT

Foreign investments in the petroleum and mining sectors in Egypt are governed by individual production sharing agreements (concession agreements) between foreign companies and the Ministry for Petroleum and Mineral Resources or EMRA (as the case may be) and are individual Acts of Parliament.

Title, exploitation and development rights to the Sukari Project are granted under the terms of the Concession Agreement promulgated as Law No. 222 of 1994, signed on 29 January 1995 and effective from 13 June 1995. The Concession Agreement was issued by way of Presidential Decree after the approval of the People's Assembly in accordance with the Egyptian Constitution and Law No. 61 of 1958. The Concession Agreement was issued in accordance with the Egyptian Mines and Quarries Law No. 86 of 1956 which allows for the Ministry to grant the right to parties to explore and mine for minerals in Egypt.

While the Company will be the first foreign company to develop a modern large-scale gold mine in Egypt there is significant foreign investment in the petroleum sector. Several large multinational oil and gas companies operate successfully in Egypt, some of which have long histories in the country and have dedicated significant amounts of capital. The Company believes that the successful track record of foreign investment established by these companies in the petroleum sector is an important indication of the ability of foreign companies to attract financing and receive development approvals for the construction of major projects in Egypt.

OVERVIEW OF SUKARI CONCESSION AGREEMENT

Pharaoh Gold Mines NL (PGM) a 100% wholly owned subsidiary of the Company, EGSMA (now EMRA) and the Arab Republic of Egypt (ARE) entered into the Concession Agreement dated January 29, 1995, granting PGM and EMRA the right to explore, develop, mine and sell gold and associated minerals in specific concession areas located in the Eastern Desert of Egypt identified in the Concession Agreement. The Concession Agreement came into effect under Egyptian law on 13 June 1995.

The initial term of the Concession Agreement was for one year and was extended by the parties for three two-year periods in accordance with its terms.

In accordance with the terms of the Concession Agreement, PGM undertook a feasibility study to support its application to EMRA for a 'Commercial Discovery' (within the meaning of the Concession Agreement) with respect to the Sukari Project. On 09 November 2001, EMRA notified PGM that the feasibility submission had demonstrated that a Commercial Discovery had been made at the Sukari Project. As a result, the Concession Agreement was converted from exploration to exploitation status and PGM, together with EMRA, were granted an Exploitation Lease over 160 km2 surrounding the Sukari Project site. The Exploitation Lease was signed by PGM, EMRA and the Egyptian Minister of Petroleum and gives tenure for a period of 30 years, commencing 24 May 2005 and extendable by PGM for an additional 30 years upon PGM providing reasonable commercial justification. The Exploitation Lease will lapse if production of gold is not achieved within 5 years of the signing date.

Following demonstration of a Commercial Discovery, PGM and EMRA were required to establish an operating company owned 50% by each party (the 'Operating Company').The Operating Company, named Sukari Gold Mining Company, was incorporated under the laws of Egypt on 27 March 2006. The Operating Company was formed to conduct exploration, development, exploitation and marketing operations in accordance with the Concession Agreement. The registered office of the Operating Company is at 361 El-Horreya Road, Sedi Gaber, Alexandria, Egypt.

The ARE is entitled to a royalty of 3% of net sales revenue from the sale of gold and associated minerals from the Sukari Project, payable in cash in each calendar half year. Net sales revenue is calculated by deducting from sales revenue all shipping, insurance, smelting and refining costs, delivery costs not payable by customers, all commercial discounts and all penalties (relating to the quality of gold and associated minerals shipped).

Under the Concession Agreement, PGM solely funds the Operating Company but is entitled to recover the following costs and expenses payable from sales revenue (excluding the royalty payable to ARE):

all current operating expenses incurred and paid after the initial commercial production;
exploration costs, including those accumulated to the commencement of commercial production (at the rate of 33.3% per annum); and
exploitation capital costs, including those accumulated prior to the commencement of commercial production (at the rate of 33.3% per annum).

Recovery of capital costs shall include interest on a maximum of 50% of investment borrowed from financial institutions not affiliated with PGM provided that PGM shall use best efforts to obtain the most favourable rate of interest, not to exceed LIBOR + 1%. If costs recoverable by PGM exceed the sales revenue (excluding any royalty payable to ARE) in any financial year, the excess is carried forward for recovery in the next financial year or years until fully recovered, but in no case after the termination of the Concession Agreement.

After deduction of the royalty payments and recoverable expenses by PGM, the remainder of the sales revenue from the Sukari Project will be shared equally by PGM and EMRA except that for the first and second years in which there are net proceeds for the entire year, an additional 10% of such proceeds will be paid to PGM as an incentive (i.e. 60% to PGM and 40% to EMRA), and for each of the next two years in which there are net proceeds for the entire year, an additional 5% of such proceeds will be paid to PGM (i.e. 55% to PGM and 45% to EMRA).

In addition, under the Concession Agreement, certain tax exemptions have been granted, including the following:

commencing on the date of commercial production, PGM will be entitled to a 15 year exemption from any taxes imposed by the Egyptian government. The parties intend that the Operating Company will in due course file an application to extend the tax-free period for a further 15 years. The extension of tax-free period requires that certain activities in remote areas of the lands under the Concession Area have been programmed and agreed by all parties;
PGM, EMRA and the Operating Company are exempt from custom taxes and duties with respect to the importation of machinery, equipment and consumable items required for the purpose of exploration and mining activities at the Sukari Project;
PGM, EMRA, the Operating Company and their respective buyers will be exempt from any duties or taxes on the export of gold and associated minerals produced from the Sukari Project;
PGM will at all times be free to transfer in US dollars or other freely convertible foreign currency any cash of PGM representing its share of net proceeds and recovery of costs, without any Egyptian government limitation, tax or duty; and
PGM's contractors and sub-contractors are entitled to import machinery, equipment and consumable items under the 'Temporary Release System' which provides exemption from Egyptian customs duty.

Under the Concession Agreement, all land in the Sukari Project shall be the property of EMRA as soon as it is purchased. The title to the fixed and movable assets are to be transferred by PGM to EMRA as soon as their costs are recovered by PGM, with PGM being entitled to use all fixed and movable assets during the term of the Exploitation Lease and any extensions thereof.

In case of national emergency, due to war or imminent expectation of war or internal causes, ARE may requisition all or part of the production from the areas that are the subject of the Concession Agreement, and require the Operating Company to increase production to the utmost extent. ARE may also requisition the mine itself and, if necessary, related facilities. In the event of any requisition, ARE must indemnify EMRA and PGM for the period during which the requisition is maintained.

ARE has the right to terminate the Concession Agreement in the following circumstances:

PGM has knowingly submitted any material false statements to the Egyptian government;
PGM assigns any interest to any unrelated party without the written consent of the Egyptian government;
PGM does not comply with any final decision reached as a result of provisions in the Concession Agreement with respect to disputes and arbitration;
PGM intentionally extracts any mineral other than gold and associated minerals authorized by the Concession Agreement without the approval of the Egyptian government; or
PGM commits any material breach of the Concession Agreement.

If the Egyptian government deems that any one of the foregoing causes exists, the government is required to give PGM 90 days' notice to remedy the defaults. If the default remains unremedied at the expiration of the grace period, the Egyptian government may terminate the Concession Agreement.

LIQUIDITY AND CAPITAL RESOURCES

The Company's principal source of liquidity as at 31 December 2008 is cash of $97,504,763 (31 December 2007 - $226,117,391). Of this amount $93,899,277 has been invested in rolling short term higher interest money market deposits. In the previous year, the Company completed an equity raising where it was announced that it had sold on a private basis an aggregate of 112,000,000 special warrants at a price of C$1.20 per special warrant for aggregate gross proceeds of C$134,400,000, which includes the exercise in full by the Underwriters of the Underwriters' option. The net proceeds of this equity financing are to be applied to fund the continued development of the Sukari Gold Project, underground development, other exploration and general corporate purposes.

The following is a summary of the Company's outstanding commitments as at 31 December 2008:

Payments due	Total US$	Less than 1 year US$	1 to 5 years US$
Creditors and provisions	4,654,919	3,914,365	740,554
Employee Entitlements	558,626	558,626	-
Tax Liabilities	443,869	443,869	-
Total commitments	5,657,414	4,916,860	740,554

The Company's financial commitments are limited to controllable discretionary spending on work programs at the Sukari Project, administration expenditure at the Egyptian and Australia office locations and for general working capital purposes.

The following is a summary of the Company's estimated cash outflow for the next quarter as at 31 December 2008:

Cash outflow	Total US$
Exploration & Evaluation	3,000,000
Corporate Administration	500,000
Preproduction and Sukari Development	40,000,000
Total commitments	43,500,000

Primary funding for the Sukari Project was completed during 2007 with the receipt of funds raised through the equity raising mentioned above. Further to this, following the recent volatility in currency markets, in January 2009, the Company entered into a bought deal agreement with a syndicate of underwriters to buy 92,308,000 ordinary shares from Centamin Egypt Limited and sell them to the public at a price of C$0.65 per Ordinary Share. The Company also granted to the underwriters an over-allotment option to purchase up to an additional 13,846,200 Ordinary Shares at the same price. The gross proceeds raised from the offering was C$69,000,230. The Company believes it has, or will have, sufficient cash resources and anticipated operating cashflows to fund its current operations and near term development.

OUTSTANDING SHARE INFORMATION

As at 11 February 2009, the Company had 985,673,363 fully paid ordinary shares issued and outstanding. The following table sets out the fully paid ordinary shares on issue, and the outstanding unquoted options and broker warrants on issue:

As at 11 February 2009	Number

Shares on Issue	985,673,363
Options issued but not exercised	10,435,000
Broker Warrants issued but not exercised	14,914,970
	1,011,023,333

SEGMENT DISCLOSURE

The Company is engaged in the business of exploration for precious and base metals only, which is characterised as one business segment only.

SIGNIFICANT ACCOUNTING ESTIMATES

Management is required to make various estimates and judgements in determining the reported amounts of assets and liabilities, revenues and expenses for each period presented and in the disclosure of commitments and contingencies. The significant areas where management uses estimates and judgements in preparing the consolidated financial statements are the determination of carrying values and impaired values of exploration assets.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision reflects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Company capitalises exploration, evaluation and development expenditure incurred on ongoing projects. The recoverability of this capitalised exploration expenditure is entirely dependent upon returns from the successful development of mining operations or from the surpluses from the sale of the projects or the subsidiary companies that controls the projects. At the point that it is determined that any capitalised exploration expenditure is definitely not recoverable, it is written off.

INTERNAL CONTROLS

Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported to management, including the CEO and CFO, on a timely basis so that appropriate decisions can be made regarding public disclosure. Management, with the participation of the certifying officers, has evaluated the effectiveness of the design and operation, as of 30 June 2008, of the Company's disclosure controls and procedures (as defined by the Canadian Securities Administrators). Based on that evaluation, the certifying officers have concluded that such disclosure controls and procedures are effective and designed to ensure that material information relating to the Company and its subsidiaries is known to them by others within those entities.

Internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of our financial reporting and compliance with Canadian generally accepted accounting principles in our financial statements. Management has evaluated the design of internal control over financial reporting and has concluded that such internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in Canada. In addition, there have been no changes in the Company's internal control over financial reporting during the quarter ended 31 December 2008 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

RISKS AND UNCERTAINTIES

The operations of the Company are speculative due to the high risk nature of its business which includes the acquisition, financing, exploration, development and operation of mining properties. These risk factors could materially affect the Company's future operations and could cause actual events to differ materially from those described in forward-looking statements relating to the Company.

Calculation of Mineralisation, Resources and Reserves

There is a degree of uncertainty attributable to the calculation of mineralisation, resources and reserves and corresponding grades being mined or dedicated to future production. Until reserves or mineralisation are actually mined and processed, the quantity of mineralisation and reserve grades must be considered estimates only. In addition, the quantity of reserves and mineralisation may vary depending on commodity prices. Any material change in quantity of reserves, mineralisation, grade or stripping ratio may affect the economic viability of a project. In addition, there can be no assurance that recoveries from laboratory tests will be duplicated in tests under on-site conditions or during production.

Infrastructure

Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges and port facilities are important determinants that affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect the Company's activities and profitability.

Title Matters

Any changes in the laws of Egypt relating to mining could materially affect the rights and title to the interests held there by the Company. No assurance can be given that applicable governments will not revoke or significantly alter the conditions of the applicable exploration and mining authorizations nor that such exploration and mining authorizations will not be challenged or impugned by third parties.

Mineral Prices

Factors such as inflation, foreign currency fluctuation, interest rates, supply and demand and industrial disruption have an adverse impact on operating costs, commodity prices and stock market prices and on the Company's ability to fund its activities. The Company's possible revenues and share price can be affected by these and other factors which are beyond the control of the Company. The market price of minerals, including industrial minerals, is volatile and cannot be controlled. The Company's ongoing operations are influenced by fluctuation in the world gold price. If the price of gold or other minerals should drop significantly, the economic prospects of the Company's current project could be significantly reduced or rendered uneconomic. There is no assurance that, even if commercial quantities of ore are discovered, a profitable market will continue to exist for the sale of products from that ore. Factors beyond the control of the Company may affect the marketability of any minerals discovered. Mineral prices have fluctuated widely, particularly in recent years. The marketability of minerals is also affected by numerous other factors beyond the control of the Company, including government regulations relating to royalties, allowable production and importing and exporting of minerals, the effect of which cannot be accurately predicted.

Funding Requirements

Mining exploration and development involves financial risk and capital investment. The capital development of the Sukari Gold Project and the continuance of the Company's development and exploration activities depend upon the Company's ability to generate positive cash flows, obtain financing through the joint venturing of projects, private and public equity project financing, debt and/or other means. There is no assurance that the Company will be successful in obtaining additional financing on a timely basis, or at all.

Uninsured Risks

The mining business is subject to a number of risks and hazards including environmental hazards, industrial accidents, labour disputes, encountering unusual or unexpected geologic formations or other geological or grade problems, encountering unanticipated ground or water conditions, cave-ins, pit wall failures, flooding, rock bursts, periodic interruptions due to inclement or hazardous weather conditions and other acts of God. Such risks could result in damage to, or destruction of, mineral properties or facilities, personal injury or death, environmental damage, delays in mining, monetary losses and possible legal liability. The Company maintains insurance against certain risks associated with its business in amounts that it believes to be reasonable. Such insurance, however, contains exclusions and limitations on coverage. There can be no assurance that such insurance will continue to be available, will be available at economically acceptable premiums or will be adequate to cover any resulting claim.

Foreign Operations

Operations, development and exploration activities carried out by the Company are or may be affected to varying degrees by taxes and government regulations relating to such matters as environmental protection, land use, water use, health, safety, labor, restrictions on production, price controls, currency remittance, maintenance of mineral rights, mineral tenure, and expropriation of property. There is no assurance that future changes in taxes or such regulation in the various jurisdictions in which the Company operates will not adversely affect the Company's operations. The Company's principal asset is held outside of Australia in Egypt, North Africa. Although the operating environment in Egypt is considered favorable compared to that in other developing countries there are still political risks. The risks include, but are not limited to, terrorism, hostage taking, military repression, expropriation, extreme fluctuations in currency exchange rates, high rates of inflation and labor unrest. Changes in mining or investment policies or shifts in political attitudes may also adversely affect the Company's business. Operations may be affected in varying degrees by government regulations with respect to, but not limited to, restrictions on production, price controls, export controls, currency remittance, income taxes, maintenance of claims, environmental legislation, expropriation of property, land use, land claims of local people, water use and safety. The effect of these factors cannot be accurately predicted.

Exploration and Development Risks

The successful exploration and development of mineral properties is speculative and subject to a number of uncertainties which even a combination of careful evaluation, experience and knowledge may not eliminate. There is no certainty that the expenditures made or to be made by the Company in the exploration and development of its mineral properties or properties in which it has an interest will result in the discovery of mineralized materials in commercial quantities. Most exploration projects do not result in the discovery of commercially mineable deposits. While discovery of a base metal or precious metal bearing structure may result in substantial rewards, few properties that are explored are ultimately developed into producing mines. Major expenses may be required to establish reserves by drilling and to construct mining and processing facilities at a site. It is impossible to ensure that exploration programs carried out by the Company will result in profitable commercial mining operations. The Company's operations are subject to all of the hazards and risks normally incident to mineral exploration, mine development and operation, any of which could result in damage to life or property, environmental damage and possible legal liability for any or all damage. Hazards such as unusual or unexpected formations, pressures or other conditions may also be encountered.

Environmental and Other Regulatory Requirements

The current or future operations of the Company, including development activities and, if warranted, commencement of production on properties in which it has an interest, require permits from various governmental authorities, and such operations are and will be governed by laws and regulations governing prospecting, development, mining, production, exports, taxes, labour standards, occupational health and safety, waste disposal, toxic substances, land use, environmental protection, mine safety and other matters. Companies engaged in the development and operation of mines and related facilities generally experience increased costs and delays in production and other schedules as a result of the need to comply with applicable laws, regulations and permits. The Company believes it is in substantial compliance with all material laws and regulations that currently apply to its activities. However, there can be no assurance that all permits which the Company may require for the conduct of mineral exploration and development can be obtained or maintained on reasonable terms or that such laws and regulations would not have an adverse effect on any such mineral exploration or development which the Company might undertake. Amendments to current laws, regulations and permits governing operations and activities of mineral exploration companies, or more stringent interpretation, implementation or enforcement thereof, could have a material adverse impact on the Company.

Mining and Investment Policies

Changes in mining or investment policies or shifts in political attitude may adversely affect the Company's business. Operations may be affected in varying degrees by government regulations with respect to restrictions on production, price controls, export controls, income taxes, expropriation of property, maintenance of claims, environmental legislation, land use, land claims of local people, water use and safety regulations. The effect of these factors cannot be accurately predicted.

Hedging and Foreign Exchange

While hedging of commodity prices and exchange rates is possible, there is no guarantee that appropriate hedging will be available at an acceptable cost should the Company choose or need to enter into these types of transactions. Gold is sold throughout the world, based principally on a U.S. dollar price, but a portion of Centamin's operating expenses are incurred in non-U.S. dollar currencies. Fluctuations in non-U.S. dollar currencies may materially and adversely affect the Company's profitability, results of operation and financial position.

FINANCIAL INSTRUMENTS

At 31 December 2008, the Company has exposure to interest rate risk which is limited to the floating market rate for cash.

The Company does not have foreign currency risk for non-monetary assets and liabilities of the Egyptian operations as these are deemed to have a functional currency of United States dollars. The Company has no significant monetary foreign currency assets and liabilities apart from Canadian dollar, United States dollar and Australian dollar cash term deposits which are held for the purposes of funding a portion of the mine construction for the Sukari Project.

The Company currently does not proactively engage in any hedging or derivative transactions to manage interest rate or foreign currency risks.

RELATED PARTY TRANSACTIONS

The related party transactions for the three months ended 31 December 2008 are summarised below:

Salaries, superannuation contributions, consulting and Directors fees paid to Directors during the three months ended 31 December 2008 amounted to A$371,750 (31 December 2007: A$257,175).

Mr S El-Raghy and Mr J El-Raghy are Directors and shareholders of El-Raghy Kriewaldt Pty Ltd ('ELK'), which provides office premises to the Company in Australia. All dealings with ELK are in the ordinary course of business and on normal terms and conditions. Rent paid to ELK during the three months ended 31 December 2008 amounted to A$16,119 (31 December 2007: A$15,601).

Mr S El-Raghy provides office premises to the Company in Alexandria, Egypt. All dealings are in the ordinary course of business and on normal terms and conditions. Rent paid during the three months ended 31 December 2008 amounted to GBP 1,950 (31 December 2007: GBP 1,950).

Mr C Cowden, a non-executive director, is also a director and shareholder of Cowden Limited, which provides insurance broking services to the Company. All dealings with Cowden Limited are in the ordinary course of business and on normal terms and conditions. Cowden Limited was paid A$37,104 during the three months ended 31 December 2008 (31 December 2007: A$24,292). In addition, amounts of A$222,404 (31 December 2007: A$143,205) were paid to Cowden Limited to be passed on to underwriters for premiums during the three months ended 31 December 2008.

SUBSEQUENT EVENTS

Other than as set out above and in Note 3 below, there has not arisen in the interval between the end of the financial period and the date of this report any item, transaction or event of a material and unusual nature likely in the opinion of the Directors of the Company to affect significantly the operations of the company, the results of those operations, or the state of affairs of the Company in subsequent financial periods.

UNAUDITED INTERIM CONSOLIDATED INCOME STATEMENT

	Three Months Ended		Six Months Ended
	31 December		31 December
	2008	2007	2008	2007
	US$	US$	US$	US$

Revenue	998,626	1,777,407	2,106,408	3,290,245

Other income	10,283	199,940	10,283	201,780

Corporate administration expenses	(379,706)	(1,518,328)	(914,330)	(2,071,919)

Foreign exchange gain / (loss)	(21,876,482)	412,502	(25,204,038)	5,927,574

Share based payments	106,193	(593,947)	(359,881)	(1,381,402)

Other expenses	(84,788)	(145,412)	(72,823)	(304,241)

Profit (loss) before income tax	(21,225,874)	132,162	(24,434,381)	5,662,037

Tax (expense) / income	-	-	-	-

Net profit (loss) for the period	(21,225,874)	132,162	(24,434,381)	5,662,037

Earnings per share
- Basic (cents per share)			(2.781)	0.745
- Diluted (cents per share)			(2.781)	0.733

The above Unaudited Interim Consolidated Income Statements should be read in conjunction with the accompanying notes.

unaudited INTERIM CONSOLIDATED BALANCE SHEET

	31 December 2008	30 June 2008
	US$	US$

CURRENT ASSETS
Cash and cash equivalents	97,504,763	182,328,604
Trade and other receivables	16,330	24,753
Inventories	2,998,226	2,584,430
Prepayments and deposits	933,562	591,518
Total current assets	101,452,881	185,529,305

NON-CURRENT ASSETS
Plant and equipment	42,953,583	37,801,586
Exploration, evaluation and development expenditure - Note 5	190,944,528	137,166,299
Total non-current assets	233,898,111	174,967,885

Total assets	335,350,992	360,497,190

CURRENT LIABILITIES
Trade and other accounts payable	3,764,365	5,687,063
Tax liabilities	443,869	443,869
Provisions	558,626	737,192
Total current liabilities	4,766,860	6,868,124

NON-CURRENT LIABILITIES
Trade and other accounts payable	150,000	150,000
Provisions	740,554	522,236
Total non-current liabilities	890,554	672,236

Total liabilities	5,657,414	7,540,360
NET ASSETS	329,693,578	352,956,830

EQUITY
Issued Capital - Note 7	354,093,085	352,947,841
Reserves	7,594,120	7,568,235
Accumulated losses	(31,993,627)	(7,559,246)
TOTAL EQUITY	329,693,578	352,956,830

The above Unaudited Interim Consolidated Balance Sheets should be read in conjunction with the accompanying notes.

unaudited INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Issued Capital US$	Reserves US$	Options Reserve US$	Accumulated Losses US$	Total US$
At 30 June 2007	217,915,069	2,294,794	3,752,946	(11,762,365)	212,200,444
Profit for the period	-	-	-	4,203,119	4,203,119
Share options exercised	2,562,876	-	(2,562,876)	-	-
Cost of share based payments	-	-	4,083,371	-	4,083,371
Contributions of equity	132,469,896	-	-	-	132,469,896
At 30 June 2008	352,947,841	2,294,794	5,273,441	(7,559,246)	352,956,830
Loss for the period	-	-	-	(24,434,381)	(24,434,381)
Share options exercised	811,248	-	-	-	811,248
Cost of share based payments	-	-	359,881	-	359,881
Transfer to issued capital	333,996	-	(333,996)	-	-
At 31 December 2008	354,093,085	2,294,794	5,299,326	(31,993,627)	329,693,578

The above Unaudited Interim Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

unaudited INTERIM CONSOLIDATED CASH FLOW STATEMENT

	Three Months Ended			Six Months Ended
	31 December			31 December
	2008		2007	2008	2007
	US$		US$	US$	US$

CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees		(636,474)	(883,503)	(1,422,831)	(1,881,205)
Payments for exploration		(2,913,488)	(2,337,362)	(5,141,975)	(5,115,174)
Other income		10,283	199,940	10,283	201,780
Net cash generated by/(used in) operating activities		(3,539,679)	(3,020,925)	(6,554,523)	(6,794,599)

CASH FLOWS FROM INVESTING ACTIVITIES
Payments for development		(22,990,742)	(14,805,841)	(48,167,182)	(25,202,293)
Payments for plant & equipment		(3,166,127)	(10,239,010)	(7,742,704)	(19,656,802)
Interest received		998,626	1,777,407	2,106,408	3,290,245
Net cash generated by/(used in) investing activities		(25,158,243)	(23,267,444)	(53,803,478)	(41,568,850)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of equity & conversion of options		142,404	132,961,245	811,248	133,029,564
Project finance due diligence costs		-	(650,135)	-	(926,435)
Financial activity (bank charges and realised foreign exchange gain / (loss))		(1,383,200)	(447,401)	(1,573,374)	(620,478)
Net cash generated by/(used in) financing activities		(1,240,796)	131,863,709	(762,126)	131,482,651

Net increase / (decrease) in cash and cash equivalents		(29,938,718)	105,575,340	(61,120,127)	83,119,202

Cash and cash equivalents at the beginning of the financial period		147,974,068	119,722,952	182,328,604	136,501,015

Effects of exchange rate changes on the balance of cash held in foreign currencies		(20,530,587)	819,099	(23,703,714)	6,497,174

Cash and cash equivalents at the end of the financial period		97,504,763	226,117,391	97,504,763	226,117,391

The above Interim Consolidated Cash Flow Statements should be read in conjunction with the accompanying notes.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations, Going Concern and Accounting Policies

Statement of Compliance

Centamin Egypt Limited (the 'Company') and its subsidiaries (collectively 'the Group') are engaged in the exploration and development of precious and base metals located in the eastern desert region of Egypt. The Company was incorporated under the Corporations Law of South Australia on 24 March 1970.

These consolidated financial statements have been prepared in accordance with Australian general accepted accounting principles, as applicable to a going concern. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realise its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying consolidated financial statements. The Company has a need for financing for working capital, and the exploration and development of its mineral properties. The Company's continuance as a going concern is dependent upon its ability to obtain adequate financing and to reach profitable levels of operations. It is not possible to predict whether financing efforts will be successful or if the Company will attain profitable levels of operations.

Basis of Preparation

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in Australia. The financial statements are prepared using the same accounting policies and methods of application as those disclosed in note 3 to the consolidated financial statements for the year ended 30 June 2008, but they do not include all the disclosures required by Australian Accounting Standards for annual financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included in these financial statements. Operating results for the six months ended 31 December 2008 are not necessarily indicative of the results that may be expected for the full year ending 30 June 2009. For further information see the Company's consolidated financial statements, including notes thereto, for the year ended 30 June 2008.

The significant accounting policies which have been adopted in the preparation of these unaudited interim consolidated financial statements are:

(A) CASH AND CASH EQUIVALENTS

Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(B) FINANICAL INSTRUMENTS ISSUED BY THE COMPANY

Debt and equity instruments are classified as either liabilities or as equity in accordance with the substance of the contractual arrangement. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.

Other financial liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave when it is probable that settlement will be required and they are capable of being measured reliably. Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognized in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash flows to be made by the consolidated entity in respect of services provided by employees up to reporting date.

Superannuation

The Company contributes to, but does not participate in, compulsory superannuation funds on behalf of the Employees and Directors in respect of salaries and directors' fees paid. Contributions are charged against income as they are made.

(D) EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE

Exploration and evaluation expenditures in relation to each separate areas of interest, are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:

i) the rights to tenure of the area of interest are current; and

ii) at least one of the following conditions is also met:

a) the exploration and evaluation expenditures are expected to be recouped through successful development and exploration
of the area of interest, or alternatively, by its sale; or

                                b)  exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits
                                       a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant
                                       operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploration drilling, trenching and sampling and associated activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.

Exploration and evaluation assets are assessed for impairment when facts and circumstances (as defined in AASB 6 'Exploration for and Evaluation of Mineral Resources') suggest that the carrying amount of exploration and evaluation assets may exceed its recoverable amount. The recoverable amount of the exploration and evaluation assets (or the cash-generating unit(s) to which it has been allocated, being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years. Where a decision is made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment, reclassified to development properties, and then amortised over the life of the reserves associated with the area of interest once mining operations have commenced.

Development expenditure is recognised at cost less accumulated amortisation and any impairment losses. When commercial production in an area of interest has commenced, the associated costs are amortised over the estimated economic life of the mine on a units of production basis. Changes in factors such as estimates of proved and probable reserves that affect unit-of-production calculations are dealt with on a prospective basis.

(E) FINANCIAL ASSETS

Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as at fair value through the profit or loss which are initially measured at fair value. Subsequent to initial recognition, investments in subsidiaries are measured at cost in the company financial statements.

Other financial assets are classified into the following specified categories: financial assets 'at fair value through profit or loss', 'held to maturity investments', available for sale' financial assets, and 'loans and receivables'. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Interest income is recognised on an effective interest rate basis for debt instruments other than those financial assets 'at fair value through profit and loss'.

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest rate method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of financial assets

Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that as a result of one or more events that occurred after the initial recognition of the financial asset the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables where the carrying amount is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.

With the exception of available-for-sale equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

In respect of available-for-sale equity instruments, any subsequent increase in fair value after an impairment loss is recognised directly in equity.

(F) FOREIGN CURRENCY

The individual financial statements of each group entity are presented in its functional currency being the currency of the primary economic environment in which the entity operates. For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in United States dollars, which is the functional currency of Centamin Egypt Limited and the presentation currency for the consolidated financial statements.

In preparing the financial statements of the individual entities, transactions in currencies other than the entity's functional currency are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing at the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences are recognised in profit or loss in the period in which they arise.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity on or after the date of transition to A-IFRS are treated as assets and liabilities of the foreign entity and translated at exchange rates prevailing at the reporting date. Goodwill arising on acquisitions before the date of transition to A-IFRS is treated as an Australian dollar denominated asset.

(G) GOODS AND SERVICES TAX

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

i. Where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition
of an asset or as part of an item of expense; or

ii. For receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing
activities which is recoverable from, or payable to, the taxation authority is classified as operation cash flows.

(H) IMPAIRMENT OF ASSETS (OTHER THAN EXPLORATION AND EVALUATION AND FINANCIAL ASSETS)

At each reporting date, the consolidated entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the asset for which the estimates of future flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. Each cash generated unit is determined on an area of interest basis.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash generating unit) in prior years.

(I) INVENTORIES

Inventories are valued at the lower of cost and net realisable value. Costs including an appropriate portion of fixed and variable overhead expenses, are assigned to inventory on hand by the method appropriate to each particular class of inventory, with the majority being valued on a weighted average cost basis. Net realisable value represents the estimated selling price less all estimated costs of completion and costs necessary to make the sale.

(J) JOINT VENTURE ARRANGEMENTS

Jointly controlled assets

Interests in jointly controlled assets in which the Group is a venturer (and so has joint control) are included in the financial statements by recognising the Group's share of jointly controlled assets (classified according to their nature), the share of liabilities incurred (including those incurred jointly with other venturers) and the Group's share of expenses incurred by or in respect of each joint venture.

The Group's interests in assets where the Group does not have joint control are accounted for in accordance with the substance of the Group's interest. Where such arrangements give rise to an undivided interest in the individual assets and liabilities of the joint venture, the Group recognises its undivided interest in each asset and liability and classifies and presents those items according to their nature.

Jointly controlled operations

Where the Group is a venturer (and so has joint control) in a jointly controlled operation, the Group recognises the assets that it controls and the liabilities that is incurs, along with the expenses that it incurs and the Group's share of the income that it earns from the sale of goods or services by the joint venture.

(K) LEASED ASSETS

Leased assets are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. All other leases are classified as operating leases.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where other systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

(L) PLANT AND EQUIPMENT

Plant and equipment, and equipment under finance lease are stated at cost less accumulated depreciation and impairment. Plant and equipment will include capitalised development expenditure. Cost includes expenditure that is directly attributable to the acquisition of the item as well as the estimated cost of abandonment. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition.

Depreciation is provided on plant and equipment. Fixed assets are calculated on a straight line basis so as to write off the net cost or other re-valued amount of each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, with the affect of any changes recognised on a prospective basis.

The following estimated useful lives are used in the calculation of depreciation:

Plant & Equipment, & Office Equipment: 4 - 10 years

Motor Vehicles: 2 - 8 years

Land & Buildings: 4 - 20 years

(M) REVENUE

Revenue is measured at the fair value of the consideration received or receivable.

Interest revenue

Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.

(N) PRINCIPLES OF CONSOLIDATION

The consolidated financial statements are prepared by combining the financial statements of all the entities that comprise the consolidated entity, being the company (the parent entity) and its subsidiaries as defined in Accounting Standard AASB 127 'Consolidated and Separate Financial Statements'. Consistent accounting policies are employed in the preparation and presentation of the consolidated financial statements.

The consolidated financial statements include the information and results of each subsidiary from the date on which the company obtains control and until such time as the company ceases to control such entity. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

In preparing the consolidated financial statements, all intercompany balances and transactions, and unrealized profits arising within the consolidated entity are eliminated in full.

(O) SHARE-BASED PAYMENTS

Equity-settled share-based payments granted are measured at fair value at the date of grant. Fair value is measured under the Black and Scholes model. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the consolidated entity's estimate of shares that will eventually vest.

The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations. At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss over the remaining vesting period, with corresponding adjustment to the equity-settled employee benefits reserve.

(P) TAXATION

Current tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).

Deferred tax

Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of those items.

In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that sufficient taxable amounts will be available against which deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial recognition of assets and liabilities (other than as a result of a business combination) which affects neither taxable income nor accounting profit.

Furthermore, a deferred tax liability is not recognised in relation to taxable temporary differences arising from goodwill.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the company/consolidated entity intends to settle its current tax assets and liabilities on a net basis.

Current and deferred tax for the period

Current and deferred tax is recognised as an expense or income in the income statement, except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a business combination, in which case it is taken into account in the determination of goodwill or excess.

Tax Consolidation

The Company and all its wholly-owned Australian resident entities are part of a tax-consolidated group under Australian taxation law. Centamin Egypt Limited is the head entity in the tax-consolidated group. Tax expense/income, deferred tax liabilities and deferred tax assets arising from temporary differences of the members of the tax-consolidated group are recognised in the separate financial statements of the members of the tax consolidated group using the 'separate taxpayer within group' approach. Current tax liabilities and assets and deferred tax assets arising from unused tax losses and tax credits of the members of the tax-consolidated group are recognised by the company (as the head entity in the tax-consolidated group).

Due to the existence of a tax funding arrangement between the entities in the tax-consolidated group, amounts are recognised as payable to or receivable by the company and each member of the group in relation to the tax contribution amounts paid or payable between the parent entity and the other members of the tax-consolidated group in accordance with the arrangement. Where the tax contribution amount recognised by each member of the tax consolidated group for a particular period is different to the aggregate of the current tax liability or asset and any deferred tax asset arising from unused tax losses and tax credits in respect of that period, the difference is recognised as a contribution to (or distribution to) equity participants.

(R) RESTORATION AND REHABILITATION

A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of exploration, development and production activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the costs of dismantling and removal of facilities, restoration and monitoring of the affected areas. The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the restoration obligation at the reporting date. Future restoration costs are reviewed annually and any changes in the estimate are reflected in the present value of the restoration provision at each reporting date.

The initial estimate of the restoration and rehabilitation provision relating to exploration, development and mining production activities is capitalised into the cost of the related asset and amortised on the same base as the related asset, unless the present obligation arises from the production of the inventory in the period, in which case the amount is included in the cost of production for the period. Changes in the estimate of the provision of restoration and rehabilitation are treated in the same manner, except that the unwinding of the effect of discounting on the provision is recognised as a finance cost rather than being capitalised into the cost of the related asset.

NOTE 2: SEGMENT REPORTING

Primary reporting - Business Segments

The economic entity is engaged in the business of exploration for precious and base metals only, which is characterised as one business segment only.

Secondary reporting - Geographical Segments

The principal activity of the economic entity during the year was the exploration for precious and base metals in Egypt and funding is sourced from Canada.

NOTE 3: EVENTS SUBSEQUENT TO BALANCE DATE

On 20 January 2009, the Company entered into an agreement with a syndicate of underwriters led by Thomas Weisel Partners Canada Inc under which the underwriters agreed to buy 92,308,000 ordinary shares (the 'Ordinary Shares') from Centamin Egypt Limited on a bought-deal basis and sell them to the public at a price of C$0.65 per Ordinary Share. The Company also granted to the underwriters an over-allotment option to purchase up to an additional 13,846,200 Ordinary Shares at the same price, exercisable by the underwriters in whole or in part for a period of 30 days on or following the closing of the offering. The gross proceeds raised from the offering was C$69,000,230.

Blasting and mining pre-strip activity commenced on 01 February 2009, following the receipt of permits for blasting during December 2008.

Other than as set out above, there has not risen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely in the opinion of the Directors of the Company to affect significantly the operations of the company, the results of those operations, or the state of affairs of the Company in subsequent financial years.

NOTE 4: REVENUE AND OTHER INCOME

	Three Months Ended		Six Months Ended
	31 December		31 December
	2008	2007	2008	2007
	US$	US$	US$	US$

(a) Revenue
Interest revenue	998,626	1,777,407	2,106,408	3,290,245

(b) Other income
Sale of plant and equipment	-	199,940	-	199,940
VAT refund	10,283	-	10,283	1,840

	1,008,909	1,977,347	2,116,691	3,492,025

NOTE 5: EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE

	Three months ended 31 December 2008	Six months ended 31 December 2008
	US$	US$
Exploration and evaluation phase expenditure - At Cost (a)
Balance at the beginning of the period	18,520,074	16,235,660
Expenditure for the period	2,991,069	5,275,483
Balance at the end of the period	21,511,143	21,511,143

Development expenditure - At Cost (b)
Balance at the beginning of the period	143,275,545	120,930,639
Expenditure for the period	29,322,420	56,245,452
Transfers to Property, Plant & Equipment	(2,750,785)	(7,328,911)
Transfers to Inventory	(413,795)	(413,795)
Balance at the end of the period	169,433,385	169,433,385
Net book value of exploration, evaluation and development phase expenditure	190,944,528	190,944,528

(a) Included within the cost amount of exploration evaluation and development assets is $5,311,744 being the excess of consideration over the net tangible assets acquired on the acquisition of Pharaoh Gold Mines NL in January 1999. This amount has been treated as part of the cost of exploration, evaluation and development. Management believe that the recovery of these amounts will satisfactorily be made through the exploitation of the project in due course.

(b) Development of the Sukari Gold Project commenced in March 2007. Items of development phase expenditure relevant to the project are being separately accounted for as development phase expenditure.

NOTE 6: CONTINGENT LIABILITIES

The Directors are not aware of any contingent liabilities as at the date of these unaudited interim consolidated financial statements.

NOTE 7: ISSUED CAPITAL

Fully Paid Ordinary Shares	Three months ended 31 December 2008		Six months ended 31 December 2008
	Number	US$	Number	US$
Balance at beginning of the period	878,519,163	353,847,459	877,419,163	352,947,841
Issue of shares under Employee option plan	1,000,000	142,404	2,100,000	811,248
Transfer from share options reserve	-	103,222	-	333,996
Placements (net of equity raising costs)	-	-	-	-

Balance at end of the period	879,519,163	354,093,085	879,519,163	354,093,085

Change to the then Corporations Law abolished the authorised capital and par value concept in relation to share capital from 01 July 1998. Therefore, the Company does not have a limited amount of authorised capital and issued shares do not have a par value.

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

Share options granted under the employee share option plan

In accordance with the provisions of the employee share option plans, as at 31 December 2008, executives and employees have options over 10,435,000 ordinary shares. Share options granted under the employee share option plan carry no rights to dividends and no voting rights. Further details of the employee share option plan are contained in Note 10 to the financial statements.

Share warrants on issue

As part of the Canadian listing process undertaken during the previous financial year on the Toronto Stock Exchange (TSX) the Company was required to issue to its nominated share broker share warrants as part of the arrangement. Share warrants are identical in nature to share options however they are differentiated as such because the latter in Canada typically relates to options issued to employees under employee share plans. As at 31 December 2008 there were 9,607,260 broker warrants on issue over an equivalent number of ordinary shares (all of which are vested). Further details of the share warrants are contained in Note 11 to the financial statements.

NOTE 8: RELATED PARTY TRANSACTIONS

The related party transactions for the three months ended 31 December 2008 are summarised below:

Salaries, superannuation contributions, consulting and Directors fees paid to Directors during the three months ended 31 December 2008 amounted to A$371,750 (31 December 2007: A$257,175).

Mr S El-Raghy and Mr J El-Raghy are Directors and shareholders of El-Raghy Kriewaldt Pty Ltd ('ELK'), which provides office premises to the Company in Australia. All dealings with ELK are in the ordinary course of business and on normal terms and conditions. Rent paid to ELK during the three months ended 31 December 2008 amounted to A$16,119 (31 December 2007: A$15,601).

Mr S El-Raghy provides office premises to the Company in Alexandria, Egypt. All dealings are in the ordinary course of business and on normal terms and conditions. Rent paid during the three months ended 31 December 2008 amounted to GBP 1,950 (31 December 2007: GBP 1,950).

Mr C Cowden, a non-executive director, is also a director and shareholder of Cowden Limited, which provides insurance broking services to the Company. All dealings with Cowden Limited are in the ordinary course of business and on normal terms and conditions. Cowden Limited was paid A$37,104 during the three months ended 31 December 2008 (31 December 2007: A$24,292). In addition, amounts of A$222,404 (31 December 2007: A$143,205) were paid to Cowden Limited to be passed on to underwriters for premiums during the three months ended 31 December 2008.

The amount of US$150,000 appearing in non-current liabilities of the unaudited interim consolidated balance sheet as at 31 December 2008 represents an unsecured loan payable 14 days after commencement of commercial production at the Sukari Project to Egyptian Mineral Commodities, a company which Mr S El-Raghy has a financial interest in. This transaction was entered into by the Company on 27 September 2001.

NOTE 9: EARNINGS PER SHARE

Basic earnings per share are calculated using the weighted average number of shares outstanding. Diluted earnings per share are calculated using the treasury stock method. In order to determine diluted earnings per share, the treasury stock method assumes that any proceeds from the exercise of dilutive stock options and warrants would be used to repurchase common shares at the average market price during the period, with the incremental number of shares being included in the denominator of the diluted earnings per share calculation. The diluted earnings per share calculation exclude any potential conversion of options and warrants that would increase earnings per share.

The weighted average number of ordinary shares used in the calculation of basic earnings per share is 878,655,576 (31 December 2007: 759,650,488). The weighted average number of ordinary shares used in the calculation of diluted earnings per share is 878,655,576 (31 December 2007: 772,852,988). The earnings used in the calculation of basic and diluted earnings per share are US$24,434,381 (31 December 2007: US$5,662,037).

NOTE 10: SHARE BASED PAYMENTS

The consolidated entity has an Employee Share Option Plan in place for executives and employees.

Options are issued to key management personnel under the Employee Option Plan 2006 (previously the Employee Option Plan 2002) as part of their remuneration. Options are offered to key management personnel at the discretion of the Directors, having regard, among other things, to the length of service with the consolidated entity, the past and potential contribution of the person to the consolidated entity and in some cases, performance.

Each employee share option converts into one ordinary share of the Company on exercise. The options carry neither rights to dividends nor voting rights. Options vest over a period of 12 months, with 50% vesting and exercisable after six months and the other 50% vesting and exercisable after 12 months of issue. All options are issued with a term of three years. At the discretion of the Directors part or all of the options issued to an executive or employee may be subject to performance based hurdles. No performance based hurdles have been applied for issues granted to date.

In addition 4,250,000 options (Series 5) were issued to three employees outside of the Employee Share Option Plan on 31 October 2005. Details of those options were:

2,500,000 of those options were subject to performance based hurdles. Due to the cessation of employment by the employee to whom the options were issued they lapsed in May 2007.
1,000,000 of those options vest and are exercisable over a period of two years, with 50% vesting and exercisable after 12 months and the other 50% vesting and exercisable after 24 months of issue. These options have a term of 5 years.
750,000 of those options vest and are exercisable immediately. These have a term of 5 years.

In addition 2,000,000 options (Series 8) were issued to the Company's share broker in Canada as part compensation for professional services provided during the listing process on the Toronto Stock Exchange in January 2007, and subsequent capital raising in November 2007. Those options are exercisable any time within 2 years of grant date.

The following reconciles the outstanding share options granted under the Employee Share Option Plan, and other share based payment arrangements, at the beginning and end of the financial period:

	Three months ended 31 December 2008	Three months ended 31 December 2007
	Number of options	Number of options

Balance at beginning of the period (a)	10,935,000	13,370,000
Granted during the period (b)	2,000,000	250,000
Forfeited (expired or lapsed) during the period (d)	(1,500,000)	-
Exercised during the period (c)	(1,000,000)	(2,517,500)
Balance at the end of the period (e)	10,435,000	11,102,500
Exercisable at the end of the period	6,435,000	7,030,000

a) Balance at the start of the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 5	1,070,000	31 Oct 05	31 Oct 10	0.3500	0.1753
Series 6	1,500,000	08 Dec 05	08 Dec 08	0.4355	0.1495
Series 9	1,700,000	31 Jan 07	31 Jan 10	0.7106	0.3518
Series 10	2,165,000	24 May 07	24 May 10	1.0500	0.4661
Series 11	500,000	25 Jun 07	25 Jun 10	1.1636	0.3210
Series 12	250,000	15 Oct 07	15 Oct 10	1.4034	0.4002
Series 13	3,500,000	16 Apr 08	16 Apr 11	1.7022	0.4015
Series 14	250,000	25 Aug 08	25 Aug 11	1.1999	0.2763
	10,935,000

b) Issued during the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 15	750,000	28 Oct 08	28 Oct 11	0.7033	0.1279
Series 16	250,000	28 Nov 08	28 Nov 11	0.6750	0.2764
Series 17	1,000,000	19 Dec 08	19 Dec 11	1.0000	0.2451
	2,000,000

c) Exercised during the period

Options series

Number exercised

Exercise Date

Share price at exercise date

Series 6

500,000

01 Oct 08

25 Nov 08

0.8100

0.7200

1,000,000

d) Forfeited (expired or lapsed) during the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 6	500,000	08 Dec 05	08 Dec 08	0.4355	0.1495
Series 9	500,000	31 Jan 07	31 Jan 10	0.7106	0.3518
Series 11	500,000	25 Jun 07	25 Jun 10	1.1636	0.3210
	1,500,000

e) Balance at the end of the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 5	1,070,000	31 Oct 05	31 Oct 10	0.3500	0.1753
Series 9	1,200,000	31 Jan 07	31 Jan 10	0.7106	0.3518
Series 10	2,165,000	24 May 07	24 May 10	1.0500	0.4661
Series 12	250,000	15 Oct 07	15 Oct 10	1.4034	0.4002
Series 13	3,500,000	16 Apr 08	16 Apr 11	1.7022	0.4015
Series 14	250,000	25 Aug 08	25 Aug 11	1.1999	0.2763
Series 15	750,000	28 Oct 08	28 Oct 11	0.7033	0.1279
Series 16	250,000	28 Nov 08	28 Nov 11	0.6750	0.2764
Series 17	1,000,000	19 Dec 08	19 Dec 11	1.0000	0.2451
	10,435,000

NOTE 11: SHARE WARRANTS

a) Balance at the start of the period

Warrants series	Number	Grant date	Expiry Date	Exercise price C$	Fair value at grant date A$
Series 2	3,393,678	13 Apr 07	11 Apr 09	0.8600	0.2743
Series 3	613,582	20 Apr 07	20 Apr 09	0.8600	0.2868
Series 4	5,600,000	10 Jan 08	23 Nov 09	1.2000	0.3790
	9,607,260

b) Exercised during the period

There were no broker warrants exercised during the quarter.

c) Issued during the period

There were no broker warrants issued during the quarter.

d) Balance at the end of the period

Options series	Number	Grant date	Expiry / Exercise Date	Exercise price A$	Fair value at grant date A$
Series 2	3,393,678	13 Apr 07	11 Apr 09	0.8600	0.2743
Series 3	613,582	20 Apr 07	20 Apr 09	0.8600	0.2868
Series 4	5,600,000	10 Jan 08	23 Nov 09	1.2000	0.3790
	9,607,260

Following a general meeting of the Company's shareholders held on 10 January 2008 a resolution was passed to approve the issue of 5,600,000 share warrants with an exercise price of C$1.29 each and an expiry date of 23 November 2009.

Share warrants are specific to the Company's listing on the Toronto Stock Exchange (TSX) and retain the same characteristics as share options but are referred to separately under the TSX listing rules.

CERTIFICATE OF INTERIM FILINGS

Form 52-109F2

Certification of interim filings

I, Mark Di Silvio, Chief Financial Officer of Centamin Egypt Limited, certify that:

1. I have reviewed the interim financial statements and interim MD&A (together, the 'interim filings') of Centamin Egypt Limited, (the issuer) for the interim period ended 31 December 2008;

2. Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings;

3. Based on my knowledge, having exercised reasonable diligence, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date of and for the periods presented in the interim filings;

4. The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5. Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the issuer is made known to us by others, particularly during the period in which
the interim filings are being prepared; and

                           (ii)        information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or
                                       submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods
                                       specified in securities legislation; and

               (b)       designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding
                          the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
                          with the issuer's GAAP.

5.1 The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is based upon the Principles of Good Corporate Governance, as published by the Australian Securities Exchange.

5.2 N/A

5.3 N/A

6. The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on 1 October 2008 and ended on 31 December 2008 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Mark Di Silvio

Chief Financial Officer

Egypt: 11 February 2009

Form 52-109F2

Certification of interim filings

I, Josef El-Raghy, Managing Director/CEO of Centamin Egypt Limited, certify that:

1. I have reviewed the interim financial statements and interim MD&A (together, the 'interim filings') of Centamin Egypt Limited, (the issuer) for the interim period ended 31 December 2008;

5. Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim
filings are being prepared; and

                           (ii)        information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted
                                       by it under securities legislation is recorded, processed, summarized and reported within the time periods specified
                                       in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.2 N/A

5.3 N/A

Josef El-Raghy

Managing Director/CEO

Egypt: 11 February 2009

This information is provided by RNS

The company news service from the London Stock Exchange

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