OceanaGold 2007 fourth quarter activity report & 2008 market guidance



    /NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR
    DISTRIBUTION TO US NEWSWIRE SERVICES./

    MELBOURNE, Australia, Jan. 31 /CNW/ - OceanaGold Corporation
("OceanaGold" or "the Company") is pleased to release its Fourth Quarter
Activity Report for the quarter ended 31 December 2007, in accordance with
Australian Stock Exchange ("ASX") Listing Rule 5.1.
    The 2007 full financial year-end results with detailed commentary will be
released following ASX market close on 27 February 2008 with a conference call
scheduled for 8:00am Melbourne time on 28 February 2008 (details to follow in
February).

    Mine Production
    ---------------
    Production from all mining operations in the fourth quarter of 2007
exceeded plan and totalled 63,505 ounces of gold compared to 43,194 ounces in
the third quarter.
    The Macraes complex produced 46,818 ounces with 36,537 ounces coming from
the open pit and 10,281 ounces from the Frasers Underground. The major waste
overburden removal campaign in the Macraes open pit was completed during the
third quarter. As a result, Macraes ore grade through the mill improved by 56%
over the third quarter to 1.43 g/t.
    At Reefton, gold production totalled 16,687 ounces, a 31% increase over
the third quarter. Mill throughput has improved significantly and is
performing at expected levels due to successful modifications in the grinding
circuit, water clarifying circuits and concentrate handling facilities.
    Corporate gold sales for 2007 totalled 177,722 ounces at a cash cost of
US$556/ounce which was better than the Company's revised market guidance of
US$570-$580/ounce. Performance in December was particularly strong and the
Company sold 19,305 ounces at a cash cost of US$372/ounce.

    Development
    -----------
    The Frasers Underground development continued with trial production
mining and mine panel development in the fourth quarter. Raisebore development
was completed to provide an escapeway as well as additional ventilation for
the mine. On January 17th the Company announced the successful commissioning
of the Frasers Underground on schedule.
    The development of the Didipio project on Luzon Island, Philippines
continued as planned. A tender process for the open-cut mining contract was
initiated and finalization is expected in the first quarter of 2008.
Mobilization and commencement of the pre-stripping for the open-cut is
scheduled to start in the second quarter. Hiring of key personnel continued
and included appointments to senior roles for the Construction, Project and
Process Manager positions. Ausenco also continued to increase manpower for
construction activities at site.
    Total corporate expenditure incurred at all projects on mining production
and development activities (excluding depreciation and amortisation) in the
quarter totalled US$53.1 million.

    Exploration
    -----------
    Expenditures for exploration totalled US$1.6 million during the fourth
quarter of 2007.
    Infill diamond drilling at the Macraes Goldfield continued at Frasers
Underground Panel 2 extension. Results have continued to increase confidence
in the resource and these holes will be integrated into an updated
resource/reserve model expected in Q1/08.
    Drilling at the Reefton Goldfield demonstrated strong results from areas
within, and adjacent to, the current open pit design. High grade mineralized
structures (RRC0051 - RRC0054; table attached) splaying northward from the
main Globe pit have identified significant upside potential. Results from
drilling at the Empress deposit (RRC0045 - RRC0047) suggest that the
mineralized structure at depth contains a higher-grade zone that has
continuity for 40 metres along strike. Mining has commenced at the Empress
deposit and these new results are being incorporated to optimise the mine
design.

    
    -------------------------------------------------------------------------
    Prospect            Hole ID   From   To    Length  True Width      Grade
                                    (m)   (m)     (m)        (m)     (g/t Au)
    -------------------------------------------------------------------------
    Empress             RRC0045     71    93      22       12.5         5.63
                        RRC0046    101   102       1        0.8         1.09
                                   104   112       8        6.3         3.17
                        RRC0047     81    82       1        0.7         2.04
                                    94   100       6        4.2         2.37

    Globe               RRC0051     10    31      21       17.2         3.59
                        RRC0052      3     7       4        3.3         0.47
                                    18    29      11        9.0         6.31
                                    31    33       2        1.6         1.99
                        RRC0053      7    15       8        4.6         1.59
                                    20    21       1        0.6         0.75
                                    29    37       8        4.6         4.33
                                    78    85       7        4.0         1.59
                                    92    94       2        1.1         1.42
                                    96    97       1        0.6         1.20
                                   105   106       1        0.6         3.31
                                   108   110       2        1.1         0.93
                                   126   127       1        0.6         0.62
                        RRC0054     10    12       2        1.6         4.55
                                    17    27      10        8.2         5.20
                                    61    62       1        0.8         0.77
    -------------------------------------------------------------------------
                                    64    69       5        4.1         2.46
    -------------------------------------------------------------------------
                                    72    73       1        0.8         0.53
    -------------------------------------------------------------------------
                                    76    79       3        2.5         1.72
    -------------------------------------------------------------------------
    

    Exploration drilling in the Philippines focused on a program to upgrade
resources to reserves at Didipio and results are pending. Near-mine
exploration has commenced with targets being prioritized and drilling is
expected the first quarter of 2008. The exploration permit was granted over
the Manhulayan project located in the Surigao Peninsula, Eastern Mindanao. An
exploration team has mobilized to site with field work and an IP/Magnetics
survey slated for completion during the first quarter. Previous drilling in
2001 identified gold-copper anomalies with good continuity over long
intervals. A drill program will be designed based on the outcomes of field
studies and is expected to commence in late March to early April.

    2008 Market Guidance
    --------------------

    Gold sales (FY 2008)  280,000 - 300,000 ozs

    Cash Costs (FY 2008)  US$440 - US$460 per oz.

    Production in 2008 is expected to reach record levels now that the
Reefton and Frasers mines are commissioned and the cutback at the Macraes
open-cut is completed. Cash cost guidance for 2008 in NZD terms has remained
virtually unchanged reflecting the continued focus by our New Zealand team on
cost management. While expenditures in New Zealand are not expected to
increase from our 2008 plan, the appreciation of the NZD against the USD over
the past year has resulted in an increase to the USD cash cost guidance for
2008.
    The Company is forecasting gold sales of 71,000 - 74,000 oz for the first
quarter of 2008.

    About OceanaGold

    OceanaGold currently operates in the South Island of New Zealand and in
the Philippines. The Company's assets encompass New Zealand's largest gold
mine at Macraes which includes the recently commissioned Frasers Underground
operation, Reefton Gold Mine also in New Zealand and the Didipio Gold-Copper
Project in northern Luzon, Philippines scheduled for commissioning in H1 2009.
The Company expects to achieve gold production of approximately 500,000 gold
equivalent ounces (AuEq) in 2009.
    OceanaGold is listed on the Toronto, Australian and New Zealand stock
exchanges under the symbol "OGC".

    Cautionary Statement

    Statements in this release may be viewed as forward-looking statements.
Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always, using
words or phrases such as "expects" or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "estimates" or "intends", or
stating that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved) are not statements of
historical fact and may be forward-looking statements. Forward-looking
statements are subject to a variety of risks and uncertainties which could
cause actual events or results to differ from those reflected in the
forward-looking statements. There are no assurances the Company can fulfil
such forward-looking statements and the Company undertakes no obligation to
update such statements. Such forward-looking statements are only predictions;
actual events or results may differ materially as a result of risks facing the
Company, some of which are beyond the Company's control.

    Quality Control

    Mr Jonathan Moore, B.Sc (Hons) Geology and Dip.Grad. Physics, Resource
Geologist is the Qualified Person for the technical disclosure in this
release. Sampling of sawn diamond drill core was completed at the OceanaGold
facilities at Reefton and Macraes, New Zealand. Samples were prepared and
assayed by fire assay methods at the AMDEL laboratory located at Macraes Flat,
New Zealand. Standard reference materials were inserted to monitor the quality
control of the assay data.





For further information:

For further information: Mr Darren Klinck, Vice President, Corporate and
Investor Relations, OceanaGold Corporation, Tel: 61 3 9656 5300


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