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AIM : VGM

24 November 2009

Vatukoula Gold Mines Plc

("Vatukoula" or "The Company")

Interim Operational Update

Vatukoula Gold Mines Plc, the AIM quoted Fijian gold mining producer, announces an interim operational update from its wholly-owned Vatukoula Gold Mine in Fiji. An increase in production has been seen as a result of the recent capital expenditure in underground development, underground mining equipment and at our power generating facility. 

Of particular note and as a result of the planned capital expenditure, for the period 12 October 2009 to 23 November 2009, the Vatukoula Gold Mine has mined 24,926 tonnes of underground sulphide ore with a delivered grade to the mill of 11.22 grams per tonne of gold (8,994 ounces).

In addition, during this same period, the oxide circuit of the mill has mined 21,583 tonnes of open pit oxide ore with a delivered grade to the mill of 1.98 grams per tonne of gold (1,376 ounces).

These results, in particular the grade being delivered to the mill are above management expectations for the period and as a result the Company's first quarter results are expected by management to show an improvement in both production and cash costs per ounce over the previous quarter. The Company plans to release its operational update for the first quarter in December 2009 which will also detail other aspects of the operations over the quarter ending November 2009 including the gold recovered.

Colin Orr Ewing, Chairman of Vatukoula Gold Mines commented - "These positive results are due to the Company pursuing its stated strategy of capital investment to bring this historic gold mine back up to full production capacity and as a result we should see a commensurate reduction in operating cash cost per ounce in the next quarterly update." 

Qualified Person Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) degree from the Camborne School of Mines and an MBA (Finance) from CASS Business School. Kiran is the Finance Director of VGM.

Enquiries:

Vatukoula Gold Mines plc

David Paxton        + 44 20 70167861

Kiran Morzaria

Religare Hichens, Harrison plc.

Daniel Briggs        + 44  20 74440503

Colin Rowbury      + 44  20 74440504

W.H. Ireland Limited

David Porter          + 44 20 72201666

James Joyce

Bishopsgate Communications

Michael Kinirons    +44 20 7562 3350

Notes to Editors

The Company acquired the Vatukoula Gold Mine in April 2008 and has since then re-established gold mining operations. The mine has operated for over 75 years and over that time has produced approximately 6.9 million ounces of gold. Current planning is to restore mine operations at a rate of 110,000 ounces of gold per year. The mine has a Proven and Probable Reserve of 830,000 ounces of gold and a Measured, Indicated and Inferred resource of 5.15 million of ounces of gold. These current reserves and resources provide for a mine life at the current rate of production of approximately over 40 years. The Company has no forward gold sales.

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