Dioro secures A$14M financing facility with BNP Paribas to underpin development of key WA gold assets



    
    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION THROUGH A
    U.S. NEWSWIRE SERVICE/

    ASX Announcement                                            ASX/TSX: DIO

         ------------------------------------------------------------
          Key points:
          -----------

          -  Dioro enters into A$14M standby debt and performance
             guarantee facility with BNP Paribas,

          -  Facility will provide sufficient cash reserves to meet
             ongoing development cost requirements at key Western
             Australian assets,

          -  Funds will also finance a large gold stockpile adjacent
             to the company's Jubilee Mill, and

          -  Dioro forecasting to produce in excess of 90,000oz for
             calendar year 2009 with an expected average mill grade
             significantly higher than currently being obtained.
         ------------------------------------------------------------
    

    PERTH, Western Australia, Aug. 26 /CNW/ - Australian gold mining company
Dioro Exploration NL ("Dioro" or "the company") has significantly strengthened
its finances for the completion of the development of certain of its key
Kalgoorlie assets following completion of a A$10 million standby debt facility
and a A$4 million performance guarantee facility with leading financial
institution BNP Paribas.
    The standby debt facility ensures Dioro has sufficient cash reserves to
meet ongoing development cost requirements, both for the company's 49% share
of the Frog's Leg joint venture project and for its 100% owned South
Kalgoorlie Project ("SKO"). The facility will also help finance a large ore
stockpile that Dioro plans to establish at the Jubilee Mill, within the SKO
project area.
    The A$4 million performance guarantee facility will allow Dioro to
replace cash backed environmental rehabilitation bonds with debt funded bonds,
further increasing the company's available cash reserves.
    As part of the debt facility Dioro and BNP Paribas have used the
stockpile that is being established at HBJ as the primary source of security
and the financier has required the company to 'insure' the future value of the
stockpile by entering into short term 'forward' hedging of 38,000oz of gold
over four quarters commencing 30 June 2009 at an average price of A$1004/oz.
    As a further condition for establishing the loan, Dioro has also issued
BNP Paribas with options to purchase up to three (3) million shares in Dioro
at any time before 30 June 2011 at a price of A$0.64 cents per share.

    OPERATIONAL UPDATE

    Dioro is forecasting to produce in excess of 9,000oz of gold per month
between September 08 and December 08 and produce in excess of 90,000oz for
calendar 2009.
    Dioro's gold production will mainly be obtained from three major ore
sources over the next 12 months. Two of these orebodies form part of Dioro's
100% owned SKO assets, whilst the ore from the company's 49% share of the
developing Frog's Leg underground will represent a progressively more
important source of gold for the company as this mine approaches its rated
production capacity.
    It is planned to process all of the company's ore at its 1.2million tpa
efficient Jubilee processing facility within SKO.

    Frog's Leg
    ----------
    Dioro is continuing to contribute its share of the costs of establishment
of the new underground mine at Frog's Leg (Dioro 49%, operated by La Mancha
51%). Development is progressing well and this will result in steadily
increasing tonnages of development and stoping ore being produced until steady
state production of some 50,000 tonnes per month (100% project) is achieved in
the second half of 2009. Dioro has elected to preferentially mill its 49%
share of the ore from this mine at its Jubilee plant.

    Mt Marion
    ---------
    Following the completion of overburden stripping activities and other
preparation work, Dioro recently detonated the main blast to extract the crown
pillar of high-grade ore that had deliberately been left between the
historical open cut and underground operations at Mt Marion. It is estimated
that within this blast, in excess of 17,000 ounces of gold is contained in
over 125,000 tonnes of ore. This will be extracted at a stripping ratio of
1.5:1 over the next two months and processed over the next four months. This
represents a significant increase in tonnage and ounces of gold over the
December 2007 15,000 ounce ore reserve when added to the 4,574 ounces mined up
to the end of July.

    HBJ Pit
    -------
    The main aim of activities at the Hampton-Boulder-Jubilee open pit
("HBJ") over the past nine months has been the removal of overburden and
'pushing back' the walls of the southern cut back to the HBJ pit. Over this
period the mine has operated at an average stripping ratio of 13:1. These
stripping activities are nearing completion and have exposed for mining a
large reserve block of ore in the deepest part of the open pit. This ore has
been subdivided into relatively 'high' (720,000 tonnes @ 2.49g/t AU), 'medium'
(200,000 tonnes @ 1.14g/t AU) and 'low' (274,000 tonnes @ 0.78g/t AU)
components and will be mined and stockpiled in these categories.
    Mining of this ore has now commenced and will be extracted over the next
seven months at a stripping ratio of 3.4:1. The optimal mining rate of this
exposed ore unfortunately significantly exceeds the milling capacity of the
HBJ mill and this will result in the build up of a large broken ore stockpile,
which is anticipated to contain in excess of 440,000 tonnes of high and medium
grade ore on the run of mine ("ROM") pad adjacent to the Jubilee mill.
    The HBJ southern cutback and stockpiling represents stage one of a two
stage mine plan for the HBJ orebody. The HBJ northern cutback is currently
scheduled to commence late in 2009.

    Jubilee Mill
    ------------
    It is estimated that by June 2009 the stockpile will contain in excess of
40,000 ounces of gold contained in high and medium grade HBJ, Mt Martin and
Frog's Leg ore respectively, and is expected to have a value (calculated by
subtracting the costs of milling, administration and royalties from the value
of the estimated recoverable gold content (based on a gold price of A$950 per
ounce) in the stockpiles) in excess of A$20 million.
    This stockpile will be blended with Dioro's share of the ore from the
Frog's Leg mine and be milled in a sequence that will maximise cash flow in
the second half of 2009.

    -------------------------------------------------------------------------
    The information in this report that relates to Exploration Results,
Mineral Resources and/or Ore Reserves is based on information provided by Mark
Cossom MAusIMM and Mark Pitt FAusIMM, employees of Dioro Exploration NL and
compiled by Mr R Grivas, MAIG, MAusIMM an employee of Dioro Exploration NL. Mr
Grivas, Mr Cossom and Mr Pitt have sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined
in the 2004 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. Mr Grivas, Mr Cossom and Mr Pitt
consent to the inclusion in the report of the matters based on his information
in the form and context in which it appears.

    Caution Regarding Forward-Looking Statements: The forward-looking
statements made in this release are based on assumptions and judgments of
management regarding future events and results. Such forward-looking
statements, including but not limited to those with respect to the operations
at the company's South Kal operations and the Frog's Leg joint venture and the
company's capital expenditures and expected future production involve known
and unknown risks and uncertainties which may cause the actual results,
performance or achievements of the company to be materially different from any
anticipated future results, performance or achievements expressed or implied
by such forward-looking statements. Such factors include, among other things,
the actual market prices of gold, the actual results of current exploration,
the actual results of future mining, processing and development activities,
changes in project parameters as plans continue to be evaluated, as well as
those factors disclosed in the company's public documents.

    Currency; Unless otherwise noted, all figures in this news release are
expressed in Australian Dollars
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For further information:

For further information: David McArthur, Director & Co Secretary, Dioro
Exploration, Ph: +61 8 9389 8799; David Tasker/Allan Francis, Professional
Public Relations, Ph: +61 8 9388 0944

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DIORO EXPLORATION NL

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