Who Macraes Mining Company Limited is can be summed up by
the following statements:

We
have been New Zealand's largest gold producer for seven
years

We
have one of the lowest market capitalisation per reserve ounce of the gold
producers in the Australian Gold
Index

We
have a resource finding cost of less than NZ$l0 per ounce

We
have a large land bank with proven reserves

We
have an Operating Cash Margin of approximately NZ$200 per
ounce

We have reduced our Dry Milled Tonne Cost by 34% since
1992

Our Mission is to continually
grow our gold business, through maximising cashflow and focusing on our value
drivers being:

Increasing
reserves

Increasing cash operating
margins

Increasing production

The real challenge is the reduction of operating costs and
the optimisation of revenue, particularly in the current gold price environment.

The Company has as at 31 December
1996 total mineral resources of 6.1 million ounces and reserves of 3.4 million
ounces. This together with our current cash position of approximately NZ$15
million and strong hedging book of approximately 800,000 ounces places the
Company on a sound financial footing whilst positioning itself to aggressively
pursue its growth strategy when gold price and market conditions
improve.