Vatukoula Gold Mines plc Update on Operations

Vatukoula, the Fijian based gold producer, today responds to the share price movement amid speculation of excessive water ingress at the Company’s Vatukoula gold mine.

Due to effects of the recent heavy rainfall in Fiji, the country’s infrastructure has been impaired. As a result some of our employees whom live outside of the Vatukoula and Tavua communities have been unable to attend work or have had to attend to their homes.

Ingress of water into the mine has rendered some minor areas inaccessible but otherwise production areas remain unaffected.

On Sunday evening water ingress into the Smith Shaft carried debris into the shaft which at the time was transporting 11 miners in a man-riding cage to the underground workings and in the process causing minor injuries. All of the injured miners were taken to the neighbouring medical clinic.

David Paxton, CEO of Vatukoula Gold Mines, commented:

“To date, we believe that there has been no material effect on the production forecasts as a result of the ongoing rains or the minor accident in the shaft.”