Quarterly Report January – March 2015

Key Points

• HENTY:
  • Continued strong operational performance from Henty with quarterly production of 15,829 oz gold at a cash operating cost of $650/oz and AISC of $656/oz –  continuing to deliver well ahead of plan
  • Head grade increased to 8.3 g/t (5.6 g/t gold in December Qtr)
• DARGUES:
  • Planning modification submitted- public exhibition period to commence shortly
• CORPORATE:
  • Cash build of $10.5M during the quarter
  • $26.8M combined cash at bank and gold in transit
  • An additional $9.5M held in cash-backed performance bonds

Summary

Andrew McIlwain, Managing Director & CEO comment “With Henty delivering its fourth consecutive quarter of strong operating results, coupled with tight  cost control and improved prices, Unity has substantially grown its cash position.

“Stopes mined from Read Zone and Darwin South yielded higher than forecast grades, with an average milled head grade of 8.3 g/t gold. Importantly, the quarterly production of 15,829 ounces has come at a time of buoyant A$ gold prices and resulted in a substantial increase in cash at bank, which now stands at $26.8M including the proceeds of gold sold that was transit at the end of the quarter.

“While ore grades and production rates are anticipated to moderate over the remainder of the mine plan, the Henty team will continue to focus on the safe and profitable recovery of the known mining inventory.

”In NSW, we have submitted the Environmental Assessment to modify the approved processing route at Dargues and are working with the regulatory authorities to progress this as quickly as possible. A positive outcome will substantially enhance the Project’s economics” said Mr McIlwain.

Production

• Henty Gold Mine produced 15,829 oz at a cash cost of $650/oz including royalties, with all-in sustaining cost (AISC) of $656/oz, (11,370 oz gold at a cash cost of $968/oz and AISC of $986/oz in December quarter).

Development

• Planning modification for the Dargues project was submitted during the quarter. Public exhibition period to commence shortly.

Exploration

• List of prioritised in-mine exploration drill targets developed at Henty.
• Renewal of Red Hills exploration lease in Tasmania.

Corporate

• Gold sales were $24.4 million during the quarter from the sale of 15,708 oz gold at an average price of $1553/oz.
• Cash at bank increased by $10.5M during the quarter, with a total of $22.8M million held at 31 March 2015 ($12.3 million at 31 December 2014).
• An additional ~$4M of gold was in transit at the end of the quarter.