DECEMBER 2007 QUARTERLY REPORT

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1 This report summarises the Company s activities for the 3 months ended 31 December HIGHLIGHTS Gold production for the quarter of 39,320 ounces at a cash cost of A$381 per ounce. This took Equigold s production for the half year ended 31 December 2007 to 81,240 ounces at a cash cost of A$363 per ounce. Construction of the Bonikro Gold Project proceeding well with forecast commissioning of the plant in May 2008 and first gold production in June Highly significant results returned from resource drilling at the Akissi So deposit, 12km from Bonikro, including: - 21 metres at 9.70g/t from 45 metres - 20 metres at 7.15g/t from 19 metres - 9 metres at 10.50g/t from 17 metres - 13 metres at 4.56g/t from 59 metres - 14 metres at 3.32g/t from 50 metres - 16 metres at 3.25g/t from 18 metres Encouraging results from the first two holes in the Bonikro Deeps diamond drilling programme including: - 17 metres at 10.70g/t from 98 metres - 23 metres at 2.63g/t from 324 metres - 14 metres at 3.71g/t from 360 metres - 19 metres at 3.33g/t from 153 metres Encouraging results from the shallow resource drilling at Dougbafla East, 15km from Bonikro, including: - 39 metres at 2.91g/t from 46 metres - 33 metres at 2.21g/t from 76 metres - 8 metres at 19.83g/t from 5 metres - 23 metres at 1.52g/t from 7 metres Significant RAB intersection on previously untested anomaly TSA003 on the Timbe licence with mineralisation open to the north, south and east metres at 4.68g/t from 4 metres Trench sampling on the TSA001 anomaly (Timbe licence) returned a significant intersection: - 92 metres at 1.39g/t Completion of in excess of 21,000 metres of exploration drilling, testing 12 prospects on 5 project areas with results from almost 5,000 metres of this drilling pending. Cash, bullion and liquid investments of $68.3 million (September 2007: $88.7 million). Sale of the Kirkalocka project (excluding stockpiles, mill and all other infrastructure) for $1.5 million in cash and $3.5 million in shares in the acquirer. Page 1 25/01/08

2 CORPORATE Gold Forward Sales At the end of the December 2007 quarter Equigold had 30,396 ounces of gold forward sold on a spot deferred basis at A$907 per ounce and 177,600 ounces forward sold under flat forward contracts at A$600 per ounce with quarterly deliveries through until September The Company also has 151,980 ounces of sold gold call options at a strike price of A$700 per ounce expiring in 2011 and Forward sales contracts and call options represent approximately a 20% commitment of total gold reserves. The average cash delivery price achieved for gold sales during the quarter was A$754 per ounce, which was affected by the preferential delivery to lower priced forward sale contracts. Cash Holdings At the end of the quarter, Equigold had cash, bullion and liquid investments totalling $68.3 million (Sept 07: $88.7 million). The Company s operations generated a cash surplus of $14.6 million during the quarter (Sept 07: $17.5 million). During the quarter, capital expenditure on the development of the Bonikro project was $21.1 million (Sept 07: $15.1 million). The Company had no secured debt as at 31 December OPERATIONS PRODUCTION Production for the quarter is summarised below: Dec 2007 Sept 2007 June 2007 Mar 2007 Gold Production (oz) 39,320 41,920 36,342 37,756 Cash Cost (A$/oz) Gold production of 39,320 ounces at a cash cost of $381 per ounce reflected another strong operating performance from Equigold s two Australian projects and took production for the half year to 31 December 2007 to 81,240 ounces at a cash cost of A$363 per ounce. MOUNT RAWDON (EQUIGOLD 100%) Production Operating results at the Mt. Rawdon project for the December 2007 quarter are tabled below: Dec 2007 Sept 2007 June 2007 Mar 2007 Ore mined (tonnes) 918, , , ,114 Ore milled (tonnes) 901, , , ,093 Head grade (g/t) Recovery (%) Plant Availability (%) Total production (oz) 29,543 31,919 27,747 28,319 Cash cost (A$/oz) Page 2 25/01/08

3 Gold production of 29,543 ounces for the quarter was 7% lower than the near record production of the prior quarter due to the lower grade of 1.09g/t (Sept 07: 1.30g/t) in the areas of the open pit mined during the quarter. This had a consequential effect on the cash cost of production, which rose 15% from the prior quarter to $357 per ounce. The mine grade for the second half of FY 2008 is forecast at 0.99g/t, in line with the overall reserve grade. This will see production from the Mt. Rawdon project in the second half of FY 2008 of around 50,000 ounces at a cash cost in the order of A$380 - A$400 per ounce. This will take the full year gold production forecast for the Mt. Rawdon project to 111,000 ounces. KIRKALOCKA (EQUIGOLD 100%) The operating results at the Kirkalocka Gold Mine for the December 2007 quarter were as follows: Dec 2007 Sept 2007 June 2007 Mar 2007 Ore milled (tonnes) 354, , , ,080 Head grade (g/t) Recovery (%) Plant Availability (%) Total production (oz) 9,840 10,001 8,595 9,437 Cash cost (A$/oz) Gold production of 9,840 ounces for the quarter was 2% lower than the prior quarter due to the lower grade milled of 0.99g/t, offset by better mill throughput. This was due to the milling during the quarter of mainly softer but lower grade run of mine stockpiles. The cash cost of production was $28 per ounce (6%) lower than the September 2007 quarter due to the absence of the $80 per ounce cost associated with mining the small satellite pits in the prior quarter. This saving was offset by the effect of milling the lower grade run of mine stockpile ore. Milling of the run of mine stockpiles is expected to be completed in May 2008, at which time the project will move into the closure and final rehabilitation phase. DEVELOPMENT BONIKRO PROJECT (IVORY COAST) By the end of the December 2007 quarter, significant progress had been made towards the development of the Bonikro project. Work completed in the December quarter is summarised below: Engineering Practical completion of the mechanical design was achieved in the September 2007 quarter. Electrical design was completed this quarter. Detailing of design drawings was 99% complete by the end of the quarter. Procurement By the end of the quarter procurement was approximately 98% complete. Remaining procurement items are predominantly spares and construction materials. Approximately 95% of all equipment procured is scheduled to arrive in Ivory Coast by the end of February Page 3 25/01/08

4 Site Works By the end of the quarter concrete work was approximately 90% complete with the key areas of the mill and crusher foundations poured during the quarter. Erection of the CIL tanks was completed during the quarter, with painting of the tanks now in progress and scheduled for completion by the end of January Construction of all site buildings was 95% complete. In country fabrication of structural steel is progressing with several contracts let during the quarter. Contracts for the pre-cast ROM retaining wall panels and reclaim tunnel have been let, with erection due to commence in late February The primary crusher main frame is on site together with the two SAG mill shells. Delivery of the cyclone tower, mill platform and top of tank structural steelwork has commenced with the erection expected to commence in the third week of February Mining By the end of the quarter the bulk of the Company s mining fleet was operational with two excavators and five dump trucks being utilised in operator training, topsoil clearing in the pit and ROM area, waste mining and tailings dam construction. Subsequent to the end of the quarter the final two Cat 777F dump trucks and the Cat 988H loader were delivered and are now operational. The major remaining items of equipment in the earthmoving fleet, a Cat D9R bulldozer and a Cat 16M grader are expected to arrive in Abidjan in late February and early March 2008 respectively. By the end of December 2007 quarter 25,000 cubic metres of waste had been mined from the Bonikro pit. Removal of topsoil from the pit area was 40% complete and from the ROM area was 80% complete. Waste from the pit was placed on the ROM pad base to form part of the delivery platform for ore feed to the crusher. Topsoil was stockpiled in separate storage areas. Drilling and sampling of blast holes in some thick lateritic zones in the Bonikro open pit commenced during the quarter and at the end of the quarter approximately 3,200 metres of drilling and sampling had been completed in initial shot patterns. The construction of the explosives magazine commenced during the quarter with mounding completed and all fence post holes drilled or dug. Work commenced on placement of the first two magazines. Tailings Dam By the end of the quarter the base of the initial wall of the tailings dam had been cleared and had been prepared (80% complete) by removal of unsuitable materials for receiving waste on the flanks of the walls. Part of the keyway had been dug (20% complete) and digging of a toe drain and placement of gravel had commenced (20% complete). Placement and compaction of suitable materials in the dam wall commenced early in the March 2008 quarter. Process Water Supply Previous ground water exploration and water balance studies have indicated that sufficient process water is available for Bonikro operations from bore developments and dam catchment in the project area. Three process water supply bores have been completed and await final pump testing. Development of further bores is planned in the March 2008 quarter using a contract drill rig due to arrive in Ivory Coast in late January Two flow through dams for rainfall runoff harvesting in the wet seasons have been planned and designed. Construction of these dams will commence in the March 2008 quarter on completion of the crop compensation process for the areas concerned. The development of a small dividing wall in the tailings dam is due to commence shortly and will provide a location for storage of harvested water prior to start up, assisting with water recovery in the early stages of operations. Page 4 25/01/08

5 Three bores remain to be developed in the Bonikro pit area for pit dewatering purposes. These bores will be completed in the March 2008 quarter. Water from pit dewatering will be used for process water and dust suppression. Project Schedule and Expenditure The current construction schedule forecasts commissioning of the plant in May 2008 and commencement of gold production in June By the end of the December 2007 quarter, the Company had committed approximately A$54.4 million and spent approximately A$48.2 million on the development of the Bonikro project. At the end of the quarter, the total construction cost is forecast to be materially in line with the original budget of A$98.4 million. Page 5 25/01/08

6 EXPLORATION IVORY COAST Equigold NL effective 94% and Manager. The December 2007 quarter was a very successful one for Equigold, both in terms of exploration work completed and discovery. A total of 21,252 metres of drilling was completed, including 645 holes of RAB for 13,400 metres, 82 holes of RC drilling for 6,518 metres and 4 deep diamond holes for 1,334 metres. The RAB drill programmes were focussed continuing the first pass drilling on the Timbe licence and on following up previously reported anomalous results on the Kokoumbo and Didievi licences. A significant intersection on the TSA003 (Timbe) anomaly warranted a follow up RAB programme which was also completed this quarter. RC drilling alternated between infilling resource drilling on the Akissi-So deposit and drilling pre-collars for the Bonikro deeps diamond programme. The diamond drill rig drilled 1,334 metres of diamond core, completing deep holes at Bonikro. The December 2007 quarter also saw the granting of two important exploration licence extensions. An eastern extension of the highly prospective Timbe licence was granted and a regional soil sampling programme was immediately started on this area. A partial relinquishment of the Didievi licence was completed to facilitate its western extension to cover the prospective Blaffo Guetto soil anomaly. At the end of the quarter, Equigold s total granted tenement holdings was 8,033 square kilometres with a further 13,919 square kilometres under application. Hiré permit (828 square kilometres) The Hire permit is located approximately 12 kilometres south east of the Bonikro mine site. The current calculated inferred gold resources contained within the Akissi-So and Assonji-So prospects amount to 365,000 ounces. Page 6 25/01/08

7 Akissi-So The focus during the December 2007 quarter was to reduce the Akissi-So resource drilling spacing down to a 25 x 25 metres pattern to allow the calculation of a measured and indicated resource. During the December 2007 quarter, 81 RC drill holes for 6,091 metres were drilled. A few holes in the south-eastern end were unable to be completed due to poor ground conditions, so diamond drilling may be required in this area. At the time of writing the results from the last 31 holes drilled were still pending. Significant intersections from drilling during the quarter are listed below: Hole No Drill Type Easting Northing Azimuth Dip Final depth From To Interval Gold Grade (g/t) HRC129 RC HRC130 RC HRC133 RC HRC134 RC HRC135 RC HRC138 RC HRC138 RC HRC139 RC HRC141 RC HRC144 RC HRC144 RC HRC145 RC HRC145 RC HRC147 RC HRC148 RC HRC150 RC HRC151 RC HRC152 RC HRC154 RC HRC155 RC HRC156 RC HRC156 RC HRC157 RC HRC157 RC HRC158 RC HRC161 RC HRC162 RC HRC163 RC HRC164 RC HRC166 RC HRC169 RC HRC171 RC HRC174 RC HRC175 RC An updated resource calculation will be completed in the March 2008 quarter. It appears likely that the results from drilling this quarter will increase the tonnes and grade of the current JORC resource calculation of 2,420,000 tonnes at 3.43 g/t for 267,000 ounces. In light of the results, further infill RC drilling is required for another 200 metres along strike towards the North-east where the deposit is still open. Page 7 25/01/08

8 Akissi So Long Section showing December 2007 drilling Assonji-So The Assonji-So deposit has an inferred resource of 98,100 ounces. Shortly before the end of the quarter the Assonji- So infill drill programme commenced. The 37 hole, 2,500 metre, RC programme is designed to test the northeastern and south-western strike extensions of the prospect and to reduce the drill spacing in order to upgrade the resource from inferred to measured and indicated. Results are pending. Oume permit (473 square kilometres) Bonikro Deeps By the end of the December 2007 quarter, five out of the nine planned drill holes from the Bonikro Deeps diamond drilling programme had been completed. Only two of these holes have the complete down hole assays returned. Significant intersections from the assays received are summarised below: Hole No Drill Type Easting Northing Azimuth Dip Final depth From To Interval Gold Grade (g/t) ODD011 DD ODD011 DD ODD011 DD ODD011 DD ODD013 RC ODD013 RC ODD013 DD ODD013 DD ODD013 DD ODD013 DD ODD013 DD ODD013 DD ODD013 DD ODD014 RC Page 8 25/01/08

9 This drilling has shown that the host rock of the mineralisation, the Bonikro granodiorite, isn t as vertical as previously thought. It thickens to over 300 meters in places and has a much more moderate dip towards the west at depth. The drilling has shown that the mineralisation does continue beneath the current open pit design. The deepest high grade drill sample returned to date is 12.8 grams per tonne gold in ODD013, at 143 metres below the current pit shell. Results are still pending on three other completed diamond holes where core logging indicates similar zones of prospective alteration assemblage within the felsic host rock. The diamond drilling programme is expected to be completed in the March 2008 quarter. An updated resource calculation will be undertaken once all assay results are returned. Dougbafla East The Dougbafla East deposit is located approximately 15 kilometres north of Bonikro. During the previous quarter 9,000 metres of RC drilling were completed to reduce the drill spacing on the Dougbafla East deposit down to a 25 x 50 metre pattern. All the results from this drill programme have been received and some of the more significant intersections are tabled below: Hole No Drill Type Easting Northing Azimuth Dip Final depth From To Interval Gold Grade (g/t) ORC372 RC ORC385 RC ORC391 RC ORC394 RC ORC400 RC ORC402 RC ORC403 RC ORC404 RC ORC410 RC ORC411 RC ORC412 RC ORC421 RC ORC427 RC ORC428 RC ORC429 RC ORC430 RC ORC431 RC ORC438 RC ORC439 RC ORC442 RC ORC444 RC ORC447 RC ORC449 RC ORC452 RC An inferred resource calculation will be completed during the March 2008 quarter. The mineralisation is still open to the north and further drilling is being planned. Further infill drilling is also required in areas where, until now, standing water has restricted access. Timbe Permit (527 square kilometres) During the December 2007 quarter 6,711 metres of RAB drilling were completed on the TSA003 (131 holes for 4,058 metres) and TSA006 (124 holes for 2,653 metres) prospects. Trenching was also completed on the TSA001 and TSA005 anomalies. Page 9 25/01/08

10 TSA001 A 108 hole (2,791 metres) first pass RAB programme was completed on the TSA001 soil anomaly in the prior quarter. The results indicated a zone of mineralisation with over 1,200 metres strike length. The most significant results are listed below: Hole No Drill Type Easting Northing Azimuth Dip Final depth From To Interval Gold Grade (g/t) TRA003 RAB TRA044 RAB TRA052 RAB TRA088 RAB TRA099 RAB TRA100 RAB TRA101 RAB TRA102 RAB TRA104 RAB TRA104 RAB In addition to the RAB drilling, two trenches (3 metres deep) were dug over the core of the soil anomaly. The trenches were mapped and sampled. TTR001 returned a highly significant intersection of 92 metres at 1.39 g/t, and TTR002, 12 metres at 0.73 g/t. The trench mapping showed that the near surface mineralisation is associated with stock work quartz veining along an andesite-basalt lithological contact. Further mapping is currently being undertaken before follow up with a RC drill programme. Page 10 25/01/08

11 TSA003 The results from the first pass RAB drill programme (1,739 metres) showed a low grade corridor of mineralisation with a strike length of 2,000 metres. However, TRA109 returned a very promising intersection of 29 metres at 4.68 g/t. This high grade intersection is east of the interpreted low grade mineralised zone and could be associated with a higher grade parallel structure. It is associated with quartz veining hosted in undifferentiated schist. The results are summarised below: Hole No Drill Type Easting Northing Azimuth Dip Final depth From To Interval Gold Grade (g/t) TRA109 RAB TRA124 RAB TRA160 RAB The mineralisation in TRA109 is open to the north, south and east. On receipt of this intersection an immediate follow-up RAB drill programme (62 holes for 2,194 metres) was planned and completed late in the quarter. These results are pending. TSA005 In order to better understand the structure of the TSA005 soil anomaly area, a 50 metre trench was dug over the high value southern portion of the anomaly. Trench sampling returned an intersection of 16 metres at 0.86 g/t. The mineralisation is associated with a three metre thick, north-south striking quartz vein and surrounding stock work veining. Further mapping and a follow up RAB drill programme will be undertaken during the March 2008 quarter. Kokoumbo permit (456 square kilometres) During the quarter 3,471 metres of RAB drilling (200 holes) were completed on the Kokoumbo South, KSA014, KSA015 and Sin Aboisso prospects. Results for most of that drilling were received as well as from previously reported drilling on KSA010 and Ahouekro prospects. The significant results are listed below: Prospect Hole No Drill Type Easting Northing Azimuth Dip Final depth From To Interval Gold Grade (g/t) KSA010 KRA422 RAB KSA010 KRA422 RAB KSA015 KRA581 RAB Sin Aboisso KRA600 RAB Sin Aboisso KRA603 RAB The KSA010, KSA015 and Sin Aboisso intersections are hosted in a strongly oxidised mafic protolith. A follow-up drill programme of 59 RAB holes for 653 metres to test the strike extension of the significant intersection at KSA015 was completed in the December 2007 quarter. The results from this programme are pending. Further field investigations are required on all three prospects before the planning of any future drilling. Didievi permit (490 square kilometres) During the quarter the exploration focus on the Didievi licence was on the DSA004 (103 RAB holes for 1,810 metres) and Pranoi (87 RAB holes for 1,408 metres) prospects. Page 11 25/01/08

12 DSA004 The 1,810 metre follow-up drill programme was designed to test the eastern and southern extent of the DSA004 prospect. Previous drilling has confirmed mineralisation over a strike length of 800 metres with a best result of 4 metres at 5.62g/t. The mineralisation is hosted in quartz veins within an andesite unit. Assay results are pending. Pranoi The 1,408 metres of RAB drilling at Pranoi were the completion of an earlier infill drill programme. This drilling was following up previously reported significant results including 4 metres at 1.43g/t from surface, 8 metres at 1.5g/t from 24 metres, 1 metre at 35.38g/t from 56 metres and 3 metres at 3.4g/t from 11 metres. Assay results are pending. The largely unprospective northern portion of the Didievi licence was relinquished during the December 2007 quarter to facilitate an extension of the licence to the west covering the very significant Blaffo Guetto gold in soil anomaly with dimensions of 1.5 x 2.5 kilometres with a peak value of 1,300ppb. The Blaffo Guetto prospect is a walk-up drill target and a first pass air-core programme is currently being planned and will be completed as a priority in the March 2008 quarter. MOUNT RAWDON Equigold NL 100% and manager. Mount Perry Rutile Reserve A scheduled meeting with the native title claimants should facilitate the completion of this 450 metre drill programme in the March 2008 quarter. Outer Rawdon, Mount Shamrock and Yeatman A detailed aeromagnetic survey (covering 640 square kilometres on 100 metre spacing) over these three licences has been approved and is schedule to commence in the March 2008 quarter. Also in the March quarter, a 600 metre RC drill programme will be conducted in the Kent s Knob and Mount Ophir areas to test for higher-grade mineralisation within known intrusive breccia pipes that exist within the area. Mount Rawdon Gold Mine In the second half of December 2007, a 2,750 metre RC and diamond drill programme commenced. The 5 planned drill holes are designed to test for the high grade feeder system below the current pit design. A total of 282 metres of RC drilling and metres of diamond core drilling were completed with the results pending. KIRKALOCKA Equigold NL 100% and manager. During the quarter Equigold signed a heads of agreement with Mount Magnet South NL (ASX: MUM) to sell to that company all of the exploration and mining tenements at the Kirkalocka project. Consideration payable to Equigold on settlement is a $1.5 million cash payment and the issue of MUM shares to the value of $3.5 million (based on a 90 day average closing price). Equigold retains ownership of all current broken ore stockpiles, the processing plant and infrastructure at the project and is responsible for completing current environmental rehabilitation obligations. Page 12 25/01/08

13 CORPORATE DIRECTORY Directors N. Giorgetta Chairman M. Clark Managing Director M. Hart Executive Director R. Kestel Non Executive Director P. Lee Non Executive Director D. Netherway Non Executive Director Company Secretary D. Lim Shareholder Enquiries Enquiries concerning shareholdings should be addressed to: Security Transfer Registrars Pty Ltd PO Box 535, Applecross, WA 6953 Australia Tel: Fax: registrar@securitytransfer.com.au Registered Office First Floor, 7 Sleat Road Applecross, WA, Australia, 6153 Tel: Fax: Web: Stock Exchange Australian Stock Exchange Codes: EQI Capital Shares on issue: million QUALIFICATION STATEMENT The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Morgan Hart. Mr Hart is a full-time employee of Equigold NL and a member of the Australasian Institute of Mining and Metallurgy. Mr Hart 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. Mr Hart consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Page 13 25/01/08