• Second quarter net loss was $1.8 million, or $0.01 per share. Year-to-date loss was $8.8 million, or $0.03 per share.

• A total of $18.5 million was spent on our development projects during the second quarter increasing the year-to-date amount to $34.8 million.

• Cash, cash equivalents and short term investments at June 30, 2009 totaled $142.8 million.

• The base budget for 2009 to operate the corporate office, complete EIA permitting activities, complete construction of Recea (resettlement site), begin construction of Piatra Alba, and pay final installment payments for long-lead-time equipment is $85 million of which $38 million remains to be spent over the second half of the year.

• On June 11, 2009, the Company closed a private placement and public offering financing through the issuance of 51.8 million common shares at $2.25 for aggregate gross proceeds of approximately Cdn$117 million. The Company intends to put the net proceeds of the equity raise towards costs associated with developing the Rosia Montana gold project and for general corporate purposes.

• Once the EIA is approved, the activity level will increase, including the acquisition of remaining surface rights, completion of a control estimate, payment of land use taxes and other payments required to obtain construction permits and mobilization for construction.

• These additional activities are expected to cost approximately US$70 million, which is over and above the equity raised in the second quarter. These activities can only commence once additional financing is raised.

• Management has been advised by its financial advisors that while financing the Project will be challenging due to the financial crisis, financing from government agencies and non traditional lenders should be available even in the current environment because of the economic and other benefits resulting from the Project.

• Management began the process of executing on its financing plan during the first quarter 2009. Based on the initial feedback, management believes that the financing plan is achievable. However, management can not advance financing discussions any further until the permitting process recommences.

• The estimated cost to complete the development of the Rosia Montana Project -- including interest, financing and corporate costs -- is US$1 billion, consisting of capital costs of US$876 million and interest, financing and corporate costs of US$124 million.

• Once completed, the Project is expected to produce approximately 626,000 ounces of gold annually at an average total cash cost of approximately $272/ounce over first five years.

• A new coalition government was formed on December 22nd 2008, comprising the Democrat-Liberal Party ("PDL") and the Social Democrat Party ("PSD"), the two largest parties in the country. Together the two parties received over 70 percent of the electoral seats in the new Parliament.

• The country held its elections for the European Parliament in early June. The results evidenced no significant change in the support for the various political parties. Political attentions are currently focused on the Presidential elections anticipated in late 2009.

• The government anti-crisis measures remain a visible policy issue. The Company continues to draw public and political attention to the significant economic opportunity its project represents, while conforming to the highest standards on environment, patrimony and social matters.

• Since the beginning of the year the Project has received strong support from members of the local and regional political leadership of both coalition parties. This support has been manifested through, among other things, a series of open letters to various Ministers of the government, including the current Minister of Environment ("MOE"). These open letters have all requested that the government restart the EIA review process immediately.

• In mid July there were two separate, official government visits made to Rosia Montana, one by the President of Romania and the other by the Minister of Culture. Both went on their own agendas, but with a common theme of gathering information. Though no formal public statements were made, we are encouraged by their interest in and comments on the Project.

• Since the fall of 2007, review of the Project's Environmental Impact Assessment (the "EIA") has been suspended as a result of a decision taken by the former MOE. Since that time, management has worked diligently to advocate in favour of a restart of the EIA review process and advance the permitting process for the Project.

• Throughout the first two quarters of 2009, management has been focused on initiating and maintaining dialogue with the various ministries in the new government with respect to the EIA review process, but can not predict when the process will restart.

• During the first quarter, the Company received a positive court ruling compelling the MOE to issue our dam safety permits. Recently, the reasons for this decision were issued by the Bucharest Court of Appeal and the MOE exercised its right of appeal to the Supreme Court of Justice -- the first hearing is scheduled for December 2009.

• The Company is moving forward with the amended industrial zonal urbanistic plan, having completed four public participation meetings and prepared responses to the questions received from these public consultations. In addition, the Local Council has initiated the process for the zonal urbanistic plan for the protected area.

• Once the EIA for the Project is approved by the Romanian Government, in the absence of any other extraordinary events, legal or otherwise, management and its advisory team anticipates that it would take at least 6 months to:
  • Complete the purchase of the outstanding properties;
  • Receive all other permits and approvals, including initial construction permits; and
  • Complete the control estimate and complete the financing.
• Throughout the first two quarters management has been focused on initiating and maintaining dialogue with the various ministries in the new government with respect to the EIA review process, but can not predict when the process will restart.
• The estimated time line could be extended due to the global financial crisis, as the Company may pursue certain activities sequentially that had previously been planned to run in parallel.
• Once construction of the mine begins, it is expected to take approximately 24 months to complete. Ultimately, the Romanian Government determines the timing of issuance of the EIA approval and all other permits and approvals required for the Rosia Montana Project, subject to the Romanian courts dealing with litigation from NGOs in a timely manner.

• As a result of the suspension of the EIA review process in September 2007, the home purchase program was suspended indefinitely in February 2008.
• The Company owns 77 percent of the homes in the industrial zone, protected area and the buffer zone.
• Once we complete the agreements for institutional properties, our ownership will rise to approximately 85 percent of the three zones of the Project, further demonstrating strong local support for the Project.

• Construction of the Alba Iulia resettlement site, known as Recea, began in summer 2007. Infrastructure was completed during the third quarter 2008.
• To date, 92 of the 125 homes have been handed over to their respective owners with the remaining 33 expected to be handed over by year end, a delay of one quarter over previous guidance. Recent extreme heavy rainfall delayed completion of the remaining homes and resulted in some additional work being required to the homes which were already completed. These repairs and rectifications are expected to be completed by the fourth quarter.
• The Company is also working to obtain permits for the construction of Piatra Alba. In the first quarter, the Company was hoping to begin construction during the fall of 2009. Delays in the permitting process have changed the expected time to obtaining the construction permit towards the end of the year and because of the winter, the construction start up pace is expected to be reduced and delayed.

• The Supreme Court annulled archaeological discharge certificate number 4 ("ADC 4") in December 2008.
• The Company has reviewed the Court's written reasons for this decision and intends to apply for a new ADC 4 through a revised application that it believes will address all deficiencies identified by the Court. The Company anticipates applying for a new ADC 4 once the Company sees some positive momentum in the permitting process.
• The Company commissioned two independent audits (from highly regarded UK based firms), one on archaeology and the other on architecture in the third quarter of 2008. The overall conclusions of the reports were positive and at the same time returned some constructive comments which are currently being acted on and incorporated into the Company's ongoing program.

• The Company has formed a selection committee and an executive search firm has been engaged.

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