CORPORATE UPDATE - MILESTONES

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CORPORATE UPDATE - MILESTONES

• Prefeasibility Study completed 7 May 2006
• Independent Experts report completed 26 May 2006
• Audit completed and signed on 7 June 2006
• Form 10 filed with SEC on 25 July 2006
• Operational performance better than forecast
• Phase 1 Exploration Programme completed

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RESULTS OF INDEPENDENT EXPERTS REPORT

• Confirm commencement of underground production in
  mid 2007 using existing infrastructure
• Carry out additional diamond drilling to enhance
  Mineral Reserve estimate and improve mining plan
• Construction of new processing plant based on
  completed full Feasibility Study

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CURRENT STATUS AUGUST 2006

• Mineral Rights 14,000 ha
• Mineral Resources 1,010,000 oz
• Mineral Reserves 208,000 oz
• Current Production 15,000 oz pa
• Forecast Cash Operating Profit 2.5 M
• Debt free
• New Technical Manager employed

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EXPLORATION PROGRAM
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3 YEAR PRODUCTION FORECAST ON EXISTING ASSETS
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STATUS OF CURRENT OPERATIONS
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LILY GOLD MINE - SCHEMATIC PLAN OF OPERATIONS
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RESULTS FOR THE YEAR TO DATE (AUGUST 2006)
UNDERGROUND MINING EXTENSION (DIAMOND
DRILLING) Metres Drilled 6 724 Ounces
Discovered 320 000 Total Cost (US) 704
000 Discovery Cost (US/oz) 2.20 OPEN
PIT MINING EXTENSION - LILY EAST (RC
DRILLING) Metres Drilled 1 100 Ounces
Discovered 10 000 Total Cost (US) 65
000 Discovery Cost (US/oz) 6.50
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REGIONAL EXPLORATION STRATEGY
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EASTERN GOLDFIELDS' MINERAL HOLDINGS IN RELATION
TO REGIONAL GEOLOGY
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EASTERN GOLDFIELDS EXPLORATION PROGRAMME - 2006
REGIONAL ANALYSIS AND PROSPECT EVALUATION OF 14
000 ha

• Phase 1 - Desktop Study (Jan - Aug.)
• Analysis of previous prospect work
• Delineation of 18 prospects for detailed
  prospects
• Historical Cost US 2.2 million (approx.)
• EGI cost to date US 30 000
• Phases 2 and 3 - Prospect Evaluation (Sept. -
  Dec.)
• Detailed Geochemical soil sampling
• Ground magnetic survey and mapping
• EGI estimated cost US 185 000

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EASTERN GOLDFIELDS' MINERAL HOLDINGS AND
PROSPECTS IN RELATION TO REGIONAL GEOLOGY
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STATUS OF EASTERN GOLDFIELDS EXPLORATION
PROSPECTS
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19 Lily Mine Prospect name 18 Lily East 17 Lily
West 16 Crystal Stream S 15 Crystal Stream N 14
Golden Mamba 13 Montys Mine 12 Bonanza 11 Mary
Hope 10 Hercules 9 Swazi Queen 8 Bonnie Dundee 7
Worcester N 6 Worcester Mine 5 Lancaster 4 Great
Britain 3 Madelaine 2 Condor 1 North Sheba
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EGI EXPLORATION PROGRAMME - 2006
PROPOSED BUDGET TO YEAR END

• Lily Mine
• Phase 3 Diamond Drilling ( 7 500m) US 700 000
• Lily East RC Drilling US 50 000
• Underground Feasibility Study US 185 000
• US 935 000
• Regional Exploration (including Worcester)
• Phase 2 and 3 field work US 735 000
• Corporate Compliance
• Legal, audit, finance fees, etc US 330 000
• US 2 000 000

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STRATEGIC OBJECTIVES 3 YEAR PLAN

• EXPLORATION
• Accelerate exploration programme to find new 1
  million ounce deposit
• Increase Mineral Resources to 2 million ounces
• PRODUCTION
• Increase production to 100,000 ounces pa
• Maintain operating costs below 350/oz
• Improve profits to 20 M per annum

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6 MONTH PLAN

• Complete private placement of 2 M
• Accelerate Exploration Programme
• Extend life of open pit (6 months)
• Complete Lily underground Feasibility Study
• Recruit highly skilled staff to complement
  experienced management team
• Promotion to NASDAQ Small Cap market
• Seek AIM listing to raise capital for expansion

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