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May 07 Businessexcellence 37 In order to demonstrate the actual value of kimberlite, the value of a substantial parcel greater than 200 carats of diamonds must be determined. When a parcel of 3000 carats had been extracted using the shaft method, independent valuations of the diamonds (by third parties in Antwerp, Belgium) indicated that the parcel had a value of $135 per carat (compared to an industry average of $70), and this valuation aroused the interest of Newmont in the project. In March 2005, Newmont participated in a $116.5 million fi nancing by Shore, of which Newmont took $51 million and gained a 9.9 percent interest in the company. Newmont participated in another fi nancing, $120 million, in late 2005, when it invested a further $46 million, thereby re-instating its 9.9 percent position; Read describes Shore’s relationship with Newmont as “very good.” He describes the three methods Shore uses to evaluate the very large, relatively low grade kimberlite: “Core drilling gives us the internal structure and various kimberlite phases we need to map in great detail; large diameter drilling gives us large samples from which we can recover macro diamonds across the kimberlite to look at grade variation and diamond value; bulk samples from an underground shaft give us an accurate look at a run-of-mine type sample for diamond valuation and accurate grade determination. Underground bulk sampling of kimberlite is fairly new in Canada, and we’ve Shore Gold A.C.A. Howe International Limited is a Canadian/ UK based mining and geological consulting fi rm that has offered a wide variety of services to the minerals industry since 1960. Since 1999, Howe’s services to Shore’s Star Diamond Project have included the implementation and supervision of QA/QC for the company’s various drilling, bulk sampling and diamond processing programs, plus the completion of independent NI 43-101 technical reports. A.C.A. Howe Encore Coring & Drilling provides wireline coring and drilling services to the oil & gas, and diamond exploration industries. We will support development of your project with our industry-leading safety performance and recordsetting production. Our services span conventional contract/ turnkey drilling, through to complete service supply and project management of a coring program. We persistently endeavor to set the standard in every market we pursue with continual improvement and progressive innovation. Encore Coring & Drilling

Businessexcellence May 07 38 learned the hard way.” The Star project is in the fi nal stages of phase three of the underground bulk sample, with more large diameter drilling to come, then a pre-feasibility study; FALC-JV is about two years behind Star, a 20-hole large diameter drilling program on Orion North is nearing completion on the cluster of nine kimberlites stretching contiguously for seven kilometers. “We aim to defi ne our mineral resource on Star late this year or early next,” says Read, “then we hope to upgrade the resource to a reserve on Star by mid-2008, which will move it to bankable feasibility by the end of 2008. We anticipate two years of mine construction and open pit stripping, and potential production in 2011.” The plan is to construct one large plant that will process both Star and FALC-JV kimberlite. “A future mine will probably be an open pit operation. We anticipate that our operating costs will be one-tenth of what they would be for the Canadian diamond mines in the remote north.” Shore Gold “We aim to defi ne our mineral resource on Star late this year or early next, then we hope to upgrade the resource to a reserve by mid-2008. We anticipate two years of mine construction and open pit stripping, and potential production in 2011”