Quarterly Report April – June 2015

Key Points

• HENTY:
  • Gold production for the year totalled 50,450 ounces – ahead of revised full year production guidance of 50,000 ounces.
  • Gold production for the quarter ended 30 June 2015 totalled 10,419 ounces
  • Cash cost per ounce for the quarter was $AUD 967/oz (full year to 30 June 2015 of $AUD 870/oz).
  • “All In Sustaining Cost” for the quarter was $AUD 976/oz (full year to 30 June 2015 of $AUD 891/oz).
  • Landmark Farm-In Agreement completed with PYBAR for $5m exploration program at Henty.
• DARGUES:
  • Application to modify existing approvals finalised and submitted.
  • Extensive community engagement program underway.
  • Strategic review of project ongoing.
• CORPORATE:
  • Combined cash and gold in transit at the end of 30 June 2015 of approximately $31.4 million.
  • Cash build of approximately $5 million during the quarter.
  • An additional $9.5 million held in cash backed performance bonds.
  • Announced planned return of capital to Shareholders of $0.005 (0.5 cents) per share with a Shareholders Meeting planned for late August 2015.
  • PYBAR secures an approximate 12% stake in Unity, following the departure of Moly Mines and LionGold from the Unity share register.
  • Appointment of experienced gold mining executive Mr Frank Terranova to the Unity Board.
  • Positive share price performance during the quarter – from $0.008 per share at 31 March 2015 (end of the previous quarter) to a close at 30 June 2015 of $0.025 per share with a high of $0.031 during the quarter.
  • Further cost reductions implemented, and Executive remuneration reduced.

Summary

Andrew McIlwain, Managing Director & CEO commented “The final quarter of the financial year saw continued strong production performance at the Henty  Gold Mine, with 10,419 ounces produced for the quarter, bringing our full year production to 50,450 ounces, well in excess of budgeted and revised guidance levels.  This strong production, in conjunction with our continuing focus on cost management and control, resulted in a cash cost per ounce for the full year of  $AUD 870 per ounce, and contributed to our Group cash position in excess of $30 million at the end of the year.

“Combined with the significant production result, we were also pleased to see the exploration drilling program at Henty commence in early June 2015 under our Farm-In-Agreement with PYBAR. With 2 rigs now operating, we eagerly await the start of news flow from this exploration program.

“Plans are well advanced for a General Meeting of Shareholders in late August 2015, in relation to our previously announced return of capital to shareholders of 0.5 cents per share”.