Ann: CentroGold Scoping Study, page-2

CentroGold – Scoping Study ASX: AVB (‘AVANCO’ OR ‘THE COMPANY’) is pleased to report highly encouraging results from the evaluation of the Company’s 100% owned CentroGold Project 1 situated within the Gurupi Greenstone Gold Belt in Northern Brazil. The results of the Scoping Study 2 indicates strong potential for a high-grade-low-CapEx gold mining operation. This outcome underscores confidence in the pending Pre-Feasibility Study (PFS) which is well advanced. Key results from the base case development, pre-tax financial modelling , are:

• 2.5 Mt/pa production for 129,900 Oz/pa Gold per annum 4
• 170,300 Oz per year for first three years
• $445.5 Million Life of Mine (LOM) net cash flow
• Pre-production CapEx circa $108 Million
• Pre-Tax NPV10 $231.6 Million 6,7
• Pre-Tax IRR 73% 6,8 • Capital Payback < 24 months
• AISC cost First 3 Years $587/Oz gold
• AISC cost LOM $862/Oz gold
• Initial Life of mine (LOM) of 11 years

The Scoping Study is completed to an overall ±35% level of accuracy and examined all facets of geology, mining, processing and supporting infrastructure at a $1,250 gold price with a long-term foreign exchange rate of USD1.00:BRL3.50. All amounts are USD unless otherwise stated.