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1 Positive Scoping Study: Aphrodite Gold Project 9 February 2012 Company Announcements Office Australian Securities Exchange Limited Positive Scoping Study for Aphrodite Gold Project Potential to Become a Significant Cost Competitive Producer Independent Consultants Recommend Commencement of PFS Aphrodite Gold Ltd s (ASX:AQQ) market capitalisation was around $8M prior to the release of this Scoping Study. In my opinion, the results of the Study demonstrate significant potential for growth said Aphrodite s Technical Director, Leon Reisgys. HIGHLIGHTS Positive Scoping Study completed by independent consultants Potential to become a significant cost competitive producer Technical and economic assessments justify proceeding with pre feasibility study (PFS) A combined open pit and underground mining operation over a project life of 9 years Gold production over life of project estimated at 550,000 oz 1Mtpa processing plant on site to treat all ore types to produce gold doré Nominal plant throughput of 750,000 tpa at an average grade of 3.8g/t gold

2 Peak gold production of 84,000 oz per annum for Years 2 to 6 Pressure oxidation method preferred for treatment of refractory ore Anticipated + 90% gold recoveries for all ore types Potential to increase gold production and project life with expansion in resources - a revised resource estimate expected end Q incorporating all 2011 drill results with further drilling planned Estimated average cash cost of $756/oz gold Significant reduction in costs possible should the plant be run at a higher throughput NPV (8%DF) estimated at $129M with IRR 25% at current gold price of around $1650/oz. NPV (8%DF) estimated at $51M with IRR 15% at $1450/oz gold price Significant upside if gold price continues its long term upward trajectory Project close to key infrastructure including road, rail, power and housing Possibility for toll treating other local deposits Introduction In September 2011 Aphrodite Gold commissioned a Scoping Study to determine a preferred mining and processing scenario for economically exploiting the Aphrodite Gold Deposit located 65 km north of Kalgoorlie, Western Australia. Two internationally recognised consultancy firms were selected to complete the Study. The mining related part of the Study, including estimates for capital and operating costs, and the overall economic analysis for the Project was completed by Tetra Tech Australia Pty Ltd (Tetra Tech). Tetra Tech is a leading engineering group with offices worldwide (including Perth, Western Australia) servicing mining, environmental and energy projects. Mineral Engineering Technical Services Pty Ltd (METS) was engaged to determine the preferred method for processing the Aphrodite ore including associated capital and operating costs. METS is an independent consulting group based in Perth, Western Australia, providing specialist processing services to the global mining industry. The preferred mining scenario selected by Tetra Tech is a contractor operated, selective open pit and underground mine providing feed to an onsite process plant at a nominal rate of 750,000tpa. The total project life is estimated at nine (9) years, with the open pit operating from Year 0 to Year 5 and the underground operating from Year 2 to Year 8. METS has developed a process flow sheet incorporating a pressure oxidation plant for processing the refractory component of the deposit. The proposed processing plant is designed to treat 1 Mtpa of ore to producing gold doré onsite. A more detailed description of the project follows. All cost/revenue estimates, and gold prices, are reported in Australian dollars.

3 Resources Current JORC compliant resource estimates prepared by independent resources consultants McDonald Speijers (MS) in March 2011 were used for the Scoping Study. These are summarised in Table 1 with further details contained in the Company s previous ASX announcements. Ore Type Table1: Aphrodite JORC Resource Tonnes (t) Indicated Gold (g/t) Gold (oz) Tonnes (t) Inferred Surface Accessible Mineralisation, 0-150m Depth (cutoff = 0.5 g/t gold) Gold (g/t) Oxidised 180, ,700 Gold (oz) Transition 200, ,900 3,200, ,500 Primary 1,720, ,000 1,760, ,600 Total Surface 1,920, ,900 5,140, ,800 Underground Accessible Mineralisation, Below 150 m Depth (cutoff = 3.0 g/t gold) Primary 1,750, ,900 1,250, ,200 Total Underground 1,750, ,900 1,250, ,200 Resource Block Models were developed by MS for the Scoping Study based on the resource estimate. The models contained attributes representing the amount of potential ore and gold above 0.8 g/t and 2.8g/t cut-off grades, for open pit and underground mining respectively, after allowing for dilution and ore loss. Pit optimisation software was then applied to evaluate the deposit for potential open pit and underground mining inventories. Mining A number of mining scenarios were analysed to identify a preferred mining option that maximises resource recovery and project Net Present Value (NPV). Pit optimisation was performed using $1,350/oz gold price to determine potential open pit and underground mining inventories and select a target plant throughput. 90% process recovery was assumed for all material types during the pit optimisation process. Tetra Tech has selected a combined open pit and underground approach as the preferred mine plan, which aims to recover near surface ore via an open pit while recovering the deeper high grade resource via an underground extension. This option provides the following advantages: Reduced pre-strip and therefore initial capital cost Access to the underground mine via an in-pit portal, reducing decline development and sustaining capital cost Increased extraction of known resources resulting from lower total cash costs.

4 An open pit versus underground trade off optimisation was conducted using pit optimisation software to identify a conceptual open pit below which ore may be mined more economically by underground methods. Figure1: Illustration of Proposed Mine Design Open Pit Mining Open pit movement will be evenly distributed between two pushbacks to create two near symmetrical linked pits, on the Alpha and Phi lodes with an adjoining saddle from which a portal will be developed to access higher grade underground ore. Mineralised linking structures (referred to as Epsilon) between the lodes may reduce the size of the saddle between Alpha and Phi pits in the future. The combined pit will be around 670 metres in diameter with a maximum depth of 195 metres on the Alpha lode and 190 metres on Phi. The average waste-to-ore ratio is estimated at 12:1. Approximately 60 metres of sand, clay and weathered rock overburden will be removed from the deposit and used for tailings dam construction or placed in the waste storage facility. Conventional, contractor operated, truck and shovel and drill and blast methods have been assumed for open pit mining.

5 Underground Mining A conceptual mine design was created to illustrate access, ventilation, decline and level development requirements. The in-pit portal, for development of the decline, would be located on the saddle between pits Alpha and Phi, approximately 75 m below the surface. The central decline extends from the portal down to approximately 450 metres below the surface, spiralling down between the Alpha and Phi lodes (see Figure 1). Level access would be via horizontal drives branching from the central decline to the stoping panels every 25 m vertically. For the purpose of the Study, a longitudinal up-hole retreat stoping method was selected as the preferred mining method. This method relies mainly on gravity to carry the broken ore from the stoping panel to the lower level development where it is recovered by a Load-Haul-Dump (LHD) unit before being trucked to the surface. Two independent ventilation raises are proposed. These raises will also act as the second means of egress. Mine Scheduling A total of 5.0Mt will be scheduled for processing at an average grade of 3.8g/t containing 610,000 oz of gold over a project life of 9 years. The estimated average (diluted) gold grade of open pit and underground ore is 2.3 g/t and 5.5 g/t respectively. Open pit and underground development will run in parallel to prioritise the extraction of high grade ore from underground. An initial pre-strip will be required to ensure a sustainable mill feed of 750,000tpa is achieved early in the mine life. This will be done while the processing plant is being constructed. Pre-strip will be prioritised to the Alpha pit to speed up exposure of fresh rock for development of the portal. Underground pre-production development commences in Year 1, after the portal position is exposed. Full underground production starts in Year 2 and is maintained until Year 8, targeting an average of 365,000tpa of high grade ore. Gold production over life of project is estimated at 550,000 ounces with peak production of around 85,000 ounces per annum in Years 2 to 6. An estimated mining and production summary is presented in Table 2.

6 Table 2: Mining and Production Summary Description Values Open pit : Ore Mined (Mt) 2.8 Open pit: Ore Mined Grade (g/t) 2.3 Open pit: Metal Mined (000 s oz) 207 Underground : Ore Mined (Mt) 2.3 Underground: Ore Mined Grade (g/t) 5.5 Underground: Metal Mined (000 s oz) 403 Total Ore Mined (Mt) 5.0 Total Ore Grade (g/t) 3.8 Total Metal Mined (000 s oz) 610 Total Metal Produced* (000 s oz) 550 Note: * Assumes 90% metallurgical recovery Metallurgical Testwork To provide a basis for the Scoping Study a metallurgical testwork program was undertaken immediately prior to the commencement of the Scoping Study to determine the metallurgical properties of the mineralisation. The testwork showed that the deposit contains both free milling and refractory ore. Significantly, the refractory material performed very well during the flotation tests where a high gold grade, sulphide concentrate was produced at a very low mass pull. Gold recoveries of 91.3% were achieved in 2.9% of the mass at a grade of g/t gold. Further testwork has been recommended by METS. Process Selection and Plant Design As the Aphrodite deposit contains both free milling and refractory ore, a processing plant has been designed to treat both ore types to the final stage of producing gold doré on site. The majority of feed to the mill will be primary refractory ore and therefore this processing option was the primary focus for the Study. However, consideration has also been given to the free milling circuit to treat oxide and transition ore types. An oxidation process options study was completed to assess the various oxidation processes used in industry and their suitability to treat the refractory Aphrodite ore. From this study it was determined that Pressure Oxidation (POX) was the most appropriate treatment method for use in the proposed processing plant.

7 The proposed processing plant developed by METS is designed to treat 1 Mtpa of ore to producing gold dorè onsite. The process plant contains: A crushing circuit consisting of a primary jaw and secondary cone crusher. A grinding circuit containing a grate discharge ball mill, Falcon concentrator and intensive leach, gravity gold recovery circuit, flash float cell, pebble crusher and cyclone cluster. A flotation circuit consisting of rougher flotation cells, scavenger flotation cells, cleaner flotation cells and a concentrate thickener. A POX circuit consisting of an Isamill, autoclave, flash vessel and wash thickeners. A CIL circuit containing leach and adsorption tanks. An elution and metals recovery circuit containing an acid wash column, elution column, electrowinning cells and carbon regeneration kiln. A tailing detox and thickener to destroy any residual cyanide before the thickened slurry is pumped to the tailings storage facility. Further to the design of this POX plant, a refractory circuit bypass was integrated into the process so that free milling oxide and transition ore could be treated through the same plant with minimal modification or additional equipment required. Infrastructure The Aphrodite Project is located 65km north of Kalgoorlie, placing the project conveniently close to key infrastructure and utilities. Key infrastructure within the area includes: The Goldfields highway located immediately west of the project which can be used for consumable and employee transport. The Kalgoorlie Township which can be used to house employees, thus eliminating the requirement for onsite accommodation. The Goldfields Gas Pipeline which, can be used for site power generation, is located approximately 10 km east of the project. The Kalgoorlie to Esperance rail line which can be used if concentrate sale overseas is considered. Water resources will need to be identified and developed as there is no known large water source in the immediate vicinity. Environment, Permitting and Community Flora, fauna, ethnographic and archaeological baseline surveys have been completed over the project area. No significant adverse impacts are expected to occur as a result of the Project. Additional baseline data may be required in order for the regulators to assess the potential impacts of the Project before permitting can be finalised. Aphrodite Gold has undertaken preliminary stakeholder engagement activities with local landowners, Traditional Owners and government regulators.

8 Capital and Operating Cost Estimates Capital and operating cost estimates have been developed by METS for the proposed process plant with a capacity of 1 Mtpa with an accuracy of ±35%. The capital cost estimate for a new processing plant is $108M. The estimate is calculated through the addition of direct and indirect costs and a contingency allowance to cover the level of risk associated with a project of this level and scope. Other initial capital items include infrastructure ($10M) and pre-stripping ($37M). An additional sustaining capital cost over the life of the project is estimated at $89M, including underground development. The operating cost estimates are summarised below. The total operating cost is $83/t ore (see Table 3). This equates to an average $756/oz gold produced. Table 3: Operating Cost Estimates Operating Cost $/t ore Mining* 46 Processing 27 General and Administrative 5 Offsite 1 State Government Royalties 4 Total 83 * weighted for open pit and underground. $26/t ore for open pit at a stripping ratio of approx. 12:1, and $78/t ore for underground mining. Significant saving in processing costs could be achieved by running the plant at a higher throughput. The processing plant is designed for 1 Mtpa, however the mine plan used in the Study has a nominal mill throughput of 750,000 tpa. Increased throughput could result from the availability of more ore as a result of exploration and/or the mining and treatment of lower grade material as a result of higher gold prices. Project Economic Analysis An economic evaluation for the project was prepared by Tetra Tech based on a pre-tax financial model. Financial parameters at gold prices of $1,450 and $1,650 per oz (the approximate current gold price) are summarised in Table 4. The project NPV is most sensitive to the metal price and metallurgical recovery, and in decreasing order: operating costs, plant capital costs, sustaining capital costs and underground development costs. Similarly, the IRR is most sensitive to metal price and metallurgical recovery.

9 Table 4: Financial Summary Financial Parameter Base Case Gold $1450/oz Alternative Case Gold $1650/oz NPV at 8% discount rate ($M) IRR (%) 15 25% Gross Revenue ($M) Total Capital ($M) Total Operating Costs ($M) Cash Cost ($/oz) Undiscounted Cash Flow ($M) Payback (years) 4 3 Mine Life (years) 8 8 Project Life (years) 9 9 Opportunities Various opportunities exist to further optimise the Project and economic returns, including: Resource drilling completed post the March 2011 resource estimate (used in the Scoping Study) has the potential to increase the mining inventory together with the discovery of additional resources below the currently planned mine and from numerous gold prospects (such as Chameleon) located within the Aphrodite area. An increased resource inventory has the potential of increasing plant throughput, reducing operating costs, increasing annual gold production and project life. Drilling has identified gold bearing linking structures between Alpha and Phi lodes. The linking structures may reduce the size of the saddle between the Alpha and Phi pits. Pit optimisation to determine potential open pit and underground mining inventories was performed using $1,350/oz gold price. There may be significant upside if the gold price increases. 90% process recovery was assumed for all material types during the pit optimisation process. Actual recoveries may yield an extra 5% depending on material type. Investigation of these opportunities should form part of future studies by way of a further drilling, metallurgical testwork and comprehensive review of existing data. Risks There are risks associated with the project (as with all mining ventures), the most important of which include: Higher than estimated capital costs reflecting the impact of the current mining boom.

10 Sustained increases in costs during the life of the project. Lower than forecast resource grades and/or metallurgical recovery. Lower than forecast gold prices. Higher than anticipated ore dilution and waste recovery. Recommendations Both Tetra Tech and METS recommend that the project should move to Pre-Feasibility Study (PFS). Tetra Tech state that there is strong justification for additional expenditures and efforts to develop the Aphrodite deposit. They recommend that both the fully integrated process plant option (outlined in this report) and processing of ore to produce a high gold grade concentrate for toll treatment or outright sale, be examined in the next stage of project development. The latter option would result in significant savings in plant costs; however reduced gold receipts would be expected. METS assessed the Aphrodite Gold Project and considered the project positive for a number of reasons including: Reasonable capital and operating costs for a standalone refractory processing plant. Possibility of becoming a toll treatment plant for local ore bodies once Aphrodite Gold deposits have been depleted. A flotation plant on site followed by toll treatment or sale of the high grade product could also yield favourable economics. Proximity of the site to Kalgoorlie, the Goldfields Gas Pipeline and the Goldfields Highway reduces the need for excessive spending on project infrastructure. METS state that a pre-feasibility study should be performed to confirm parameters for processing and to provide further design data for the plant. Yours Sincerely, Leon Reisgys Exploration and Development Director Notes Information in this report that relates to Mineral Resources is based on information compiled by Diederik Speijers who is a Fellow of the Australasian Institute of Mining and Metallurgy. Diederik Speijers is employed by independent consultants McDonald Speijers and 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. Diederik Speijers consents to the inclusion in the report of the matters based on his information in the context in which it appears. Information in this report that relates to technical information reflects information compiled by Leon Reisgys FAusIMM and Exploration and Development Director of Aphrodite Gold Ltd who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is reporting on as a competent person as defined in the 2004 Edition of The Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Mr. Reisgys consents to the inclusion in this report of the matters based on the information compiled by him, in the form and context in which it appears. The scoping study has been prepared based on a delineated inferred and indicated mineral resource estimate and any investment decision should be considered based on this information.