Indonesia

Bakan Project

The Bakan District contains a prospective, epithermal system located approximately 25 km west of the Company’s North Lanut gold mine on the same CoW. Drilling commenced at Bakan in 2005 and was completed in 2007. An internal pre-feasibility study completed shortly thereafter showed that the project was viable at a production rate of approximately 50,000 ounces per annum over a 4.5 year mine life and warranted a full feasibility study. Since then, delays to the permitting process have been encountered on account of areas of protected forest that overlap one of the two primary deposits. These permitting delays have meant that the start of construction is now likely to be pushed back to beyond 2010. The environmental impact assessment, known locally as an AMDAL, was approved in July 2007. The technical aspects of the project remain robust and the feasibility study remains close to completion, pending all permitting approvals. Meanwhile, limited cash resources are being spent on the project.

The table below shows the JORC-compliant Mineral Resources at Bakan, as quoted in the Company’s 2009 Annual Report.

Bakan; Mineral Resources as at 31 December 2009

Mineral Resources Measured Indicated Measured + Indicated Inferred Resources subtotal		Gross Tonnes__   5,420,000__ 4,899,000__ 10,319,000__ 6,555,000__ 16,874,000__ Grade–– (g/t)––   1.21__ 0.93__ 1.07__ 0.77__ 0.96__ Contained–– Ounces––   210,200__ 146,400__ 356,600__ 162,500__ 519,100__		Net attributable (80%) Tonnes__   4,336,000__ 3,919,200__ 8,255,200__ 35,244,000__ 13,499,200__ Grade–– (g/t)––   1.21__ 0.93__ 1.07__ 0.77__ 0.96__ Contained–– Ounces––   168,160__ 117,120__ 285,280__ 130,000__ 415,280__

(Bakan’s Mineral Resources are calculated at a cut-off grade of 0.35 g/t Au for oxidised material,
0.5 g/t Au for transitional material, and 1.2 g/t Au for fresh material.)

Doup Project

The Doup project is located in the Kotabunan district, North Sulawesi, approximately 25 km north east of North Lanut gold mine. The project is located in an area that is free of restricted forest, which removes a major impediment to its development. Avocet has a 60% economic interest in the project with 40% held by local shareholders.

The Doup project is divided into five prospects, namely the Benteng, Panang, Tungow, Tapabeken and Parabo prospects. The Panag and Benteng prospects were explored by Placer Dome in the 1980s. Placer Dome estimated a grade-tonnage inventory of 17 Mt @ 2.15 g/t for 1.2 Moz of gold, although this figure was never officially reported.

In February 2009 Avocet announced an Inferred Mineral Resource of 1.0 million ounces at Doup based on 11,288 m of diamond and reverse circulation drilling undertaken in 2007 and 2008. The table below shows the presently defined resource at Doup, which includes the Panang and Benteng prospects.

Doup; Mineral Resources as at February 2009

Mineral Resources Inferred (Benteng) Inferred (Panang) Resources subtotal		Gross Tonnes__   11,590,000__ 13,430,000__ 25,020,000__ Grade–– (g/t)––   1.30__ 1.10__ 1.20__ Contained–– Ounces––   489,400__ 476,900__ 966,300__		Net attributable (60%) Tonnes__   6,954,000__ 8,058,000__ 15,012,000__ Grade–– (g/t)––   1.30__ 1.10__ 1.20__ Contained–– Ounces––   293,640__ 286,140__ 579,780__

(Doup’s Mineral Resources are calculated at a cut-off grade of 0.5 g/t Au)

Avocet is currently undertaking metallurgical test work on 2.8 tonnes of samples from Benteng and Panang. In-fill drilling to 25 metre centres is scheduled to commence once metallurgical investigations are complete with the aim of defining Measured and Indicated Mineral Resources to JORC Code standard. Following Indonesia’s transition from the older KP-based permit system, to the new IUP-system, Avocet has now acquired the necessary IUPs for Doup.

Seruyung Project

Successful due diligence was completed on the Seruyung project, located in Kalimantan, in 2008. Following this due diligence period, an IP survey commenced in early 2009. Thirteen lines totalling 14,500 m in length were completed. Geological mapping and sampling continued at Ada Isut, Dulun and Block 2, while partial leach soil sampling was completed at Dulun. A drill programme was commissioned with the objective of testing and expanding the resource that previous operators, both Canadian listed, have quoted as being in excess of 300,000 ounces of gold. Avocet can earn up to an 80% interest at Seruyung based on the level of expenditure.

The drill programme at Seruyung was completed in February 2009 with a total of 14 holes for 1,970 m drilled. Metallurgical sampling has been completed and the samples have since been dispatched from site to Penjom, where testing is ongoing.

As with Doup above, Avocet has successfully transferred all licences at Seruyung over to the new IUP-system of permits.