A five year exploration programme has commenced, the objective being to accelerate the conversion of mineral resources to reserves and in so doing accelerate the preparation of further deposits for production, as well as to define new resources.

AGF is targeting an increase in JORC classified gold reserves from the current 2.4 million ounces to over 7 million ounces as a result of the proposed five year exploration programme, after allowing for mining depletion. The total exploration potential (JORC and Soviet classified) at AGF is currently identified as approximately 24 million ounces of gold and 480 million ounces of silver.

The total budget for the five year programme is approximately $22 million, of which $2.5 million has been committed from current cash resources to be spent during 2010.

In accordance with Uzbek law AGF has the exclusive rights to explore and mine within the Project Territory, subject to the relevant operating permits. AGF has therefore applied for specific exploration licences within the Project Territory based on the detailed exploration work schedules for each of the deposits included in the overall programme. Work is currently being undertaken with the approval of The State Committee of Geology and Mineral Resources of the Republic of Uzbekistan pending the issuance of those licences.

As of the end of July, over 9,100m of trenching (163 trenches) has been carried out at Sarybatyr, Yasaul, Taskazgan and Nukrakon (formerly Vysokovoltnoye), of which over 5,500m have been mapped and sampled, and over 5,000 preliminary assay results already received (see NOTE below). This is already more than the 8,250m of trenching scheduled for 2010.