Gold Ridge Project The proposed project is a $134 million investment to restart operations of Gold Ridge mine, owned and operated by Gold Ridge Mining Limited (GRML), an indirect wholly owned subsidiary of Australian Solomons Gold Limited (ASG or the Company). The Gold Ridge mine is an open pit gold mine on Guadalcanal Island (the largest of the Solomon Islands) which operated from August 1998 before closing due to civil unrest in June 2000. Following an international tender, the mine assets were purchased in December 2004 by ASG, a company listed on the Toronto Stock Exchange (TSX), which was established to acquire and redevelop the Gold Ridge mine.   The Gold Ridge mine area consists of 4 adjacent deposits together with a crusher, mill and processing plant located 27 km by road from Honiara, the capital city of the Solomon Islands. The proposed investment program will rehabilitate and replace existing equipment and redevelop the mine area with a view to restarting production by 4th quarter 2010. At full production GRML is expected to produce an average of 124,000 oz. of gold annually. The projected mine life, based on current reserve estimates is just under 8 years, with potential to extend mine life to 12  15 years and beyond. The Gold Ridge Mine redevelopment is the largest private sector project in the Solomon Islands and is a strong fit with IFC investment strategy in the Pacific area and in support of financing of poorer (IDA eligible) countries. At full production the project can be expected to account for as much as 20% of Solomon Islands GDP, which relies today on external aid and rapidly dwindling revenues from logging. If successful, the project would also encourage investment in other mining developments and generally would enhance the reputation of  the Solomon Islands as an investment destination. The Project is expected to generate a range of positive development impacts including:  Revenues for the Government of Solomon Islands and provincial government: The Solomon Islands government will receive an export tax of 1.5% of revenues for the life of mine, with an additional royalty of 0.3% to provincial government. GRML will pay corporate taxes of 30%, which are expected (depending on gold prices) to become payable in the fourth year of operations. GRML will also pay a 15% goods tax on consumables and fuel.  Benefits to local communities: In addition to new housing and direct compensation to meet the Companys obligations to compensate households affected by the mine redevelopment, local landowners will receive, through a representative local landowner council, a royalty of 1.2% of revenues for the life of the mine. In addition the Company will implement community development initiatives under a Community Economic Development Plan.   Job Creation In addition to employment during construction, the Project would create approximately 500 full time jobs. Additional employment will be generated in downstream service businesses (food services, various local contractor services, fuel supply, haulage, travel  and bank services).   Development indicators to be monitored during the life of the IFC investment are:    - direct employment levels - payments to Government in the form of royalties and taxes - annual Company expenditures on domestic goods and services - community development expenditures by the company.