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PENINSULAR GOLD LIMITED

('Peninsular' or the 'Company')

AIM: PGL

First gold pour from Raub plant

Transition from explorer to unhedged producer

The Company is pleased to announce that its wholly owned subsidiary, Raub Australian Gold Mining Sdn. Bhd. , has completed its first gold pour following the construction and commissioning of its new Plant at its Raub gold project.  

As previously announced the anticipated production output from the treatment of tailings is approximately 25,000 ounces per annum, at an estimated average cash cost of less than US$300 per ounce.

The Company's gold reserve and resource inventory at its Raub project area presently stands at 435,000 ounces, which includes proven tailings reserves of 202,000 ounces, as previously stated in its annual report for the year to 30, June 2008.

Peninsular's entire gold production is unhedged and it is therefore well placed to take advantage of any future strengthening of the price of gold.

Chairman and Chief Executive, Dato' Sri Andrew TY Kam stated: 'This important occasion is a major milestone in the development of Peninsular as it marks the transition from an explorer to a gold producer. This promises to be an exciting year, as this news follows our recent agreement to repurchase Peninsular's outstanding convertible loan notes.' 

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Further information:

 

Dato' Sri Andrew TY Kam

Chairman and Chief Executive

Peninsular Gold Limited

Tel: +60 12 3310828

Patrick Watson 

Finance Director

Peninsular Gold Limited

Tel: +44 7799 885 653

David Nabarro / Richard Greenfield

Ambrian Partners Limited

Tel: +44 20 7634 4700

Mark Stephenson

Blue Oar Securities Ltd.

Tel: +44 2074484 471

Ed Portman

Conduit PR Ltd.

Tel: +44 (0) 20 7429 6607

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