OceanaGold Corporation 2008 Third Quarter Results



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

    MELBOURNE, Australia, Oct. 30 /CNW/ -

    CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

    This Management Discussion & Analysis contains "forward-looking
statements and information" within the meaning of applicable securities laws
which may include, but is not limited to, statements with respect to the
future financial and operating performance of the Company, its subsidiaries
and affiliated companies, its mining projects, the future price of gold, the
estimation of mineral reserves and mineral resources, the realisation of
mineral reserve and resource estimates, costs of production, estimates of
initial capital, sustaining capital, operating and exploration expenditures,
costs and timing of the development of new deposits, costs and timing of the
development of new mines, costs and timing of future exploration, requirements
for additional capital, governmental regulation of mining operations and
exploration operations, timing and receipt of approvals, consents and permits
under applicable mineral legislation, environmental risks, title disputes or
claims, limitations of insurance coverage and the timing and possible outcome
of pending litigation and regulatory matters. Often, but not always,
forward-looking statements and information can be identified by the use of
words such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "targets", "aims", "anticipates" or
"believes" or variations (including negative variations) of such words and
phrases, or may be identified by statements to the effect that certain
actions, events or results "may", "could", "would", "should", "might" or
"will" be taken, occur or be achieved. Forward-looking statements and
information involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company
and/or its subsidiaries and/or its affiliated companies to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include, among others,
future prices of gold; general business, economic, competitive, political and
social uncertainties; the actual results of current production, development
and/or exploration activities; conclusions of economic evaluations and
studies; fluctuations in the value of the United States dollar relative to the
Canadian dollar, the Australian dollar, the Philippines Peso or the New
Zealand dollar; changes in project parameters as plans continue to be refined;
possible variations of ore grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labour disputes
and other risks of the mining industry; political instability or insurrection
or war; labour force availability and turnover; delays in obtaining financing
or governmental approvals or in the completion of development or construction
activities or in the commencement of operations; as well as those factors
discussed in the section entitled "Risk Factors" contained in the Company's
Annual Information Form in respect of its fiscal year-ended December 31, 2007,
which is available on SEDAR at www.sedar.com under the Company's name.
Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements and information, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. Forward-looking statements and information
contained herein are made as of the date of this Management Discussion &
Analysis and, subject to applicable securities laws, the Company disclaims any
obligation to update any forward-looking statements and information, whether
as a result of new information, future events or results or otherwise. There
can be no assurance that forward-looking statements and information will prove
to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements and information due to the
inherent uncertainty therein.

    
    October 30, 2008

                   Management's Discussion and Analysis of
                Financial Condition and Results of Operations
                  for the Quarter Ended September 30, 2008

                                 HIGHLIGHTS

    -   Sold 62,753 ounces during the quarter which represents an increase of
        49% over the same period in 2007

    -   Settled 78,312 ounces of fixed-forward contracts in September
        representing a 25% reduction in the Company's total fixed-forward
        hedging position

    -   Achieved EBITDA (earnings before interest, taxes, depreciation and
        amortisation) of $19 million for the third quarter and $41.8 million
        for the first nine months of 2008

    -   Improved process recoveries for the second consecutive quarter to
        achieve more than an 8% improvement over the same period in 2007.

    -   Achieved record quarterly production of 14,130 ounces from the
        Frasers Underground mine

    -   Increased Reefton production rate to 313,321 tonnes or 25% above
        design capacity

    -   Continued limited construction work at Didipio and took delivery
        major componentry of the process plant SAG and ball mills.

    (*) All statistics are compared to the corresponding 2007 period.

    (xx) OceanaGold has adopted USD as its presentation currency, the
    financial statements are presented in USD and all numbers in this
    document are expressed in USD unless otherwise stated.
    

    OVERVIEW

    OceanaGold sold 62,753 ounces during the third quarter of 2008 at a cash
operating cost of $640 per ounce.
    Production increased 9% over the previous quarter as the Frasers
Underground operation continued to demonstrate improved performance and the
Reefton mine operated consistently above nameplate throughput capacity.
    Despite a declining average gold price for the third quarter in a row,
the Company managed to increase the cash operating margin per ounce over the
previous quarter by an additional $61 and by $259 over the same period in
2007.
    Operating costs declined from the previous quarter despite the global
inflationary environment which has affected virtually all inputs into the
operations.
    Electricity costs declined steadily during the quarter as hydro storage
reservoirs returned to near normal levels and by quarter end, spot rates were
NZ$ 0.06 per kilowatt-hour. Oil prices declined following the peak in mid July
but this coincided with the continued decline in the New Zealand dollar/US
dollar exchange rate minimizing the cost savings on diesel fuel in NZ dollar
terms. However, the weaker local currency has resulted in a stronger NZ dollar
gold price and higher revenues.
    The Company settled the fixed forward hedge contracts that had been
rolled from the first nine months of the year to the end of the third quarter.
78,312 ounces were eliminated from the hedge position resulting in a 25%
reduction in the fixed forward position.
    Earnings before interest, taxes, depreciation and amortisation (excluding
gains/losses on hedges) for the quarter was a $19.0 million profit compared to
$8.5 million loss in the third quarter of 2007. A 26% increase in the NZD gold
price over the same period in 2007 and increased production were the key
influencers to the strong earnings.
    The Macraes Goldfield produced 45,843 ounces for the quarter. The average
mill feed grade was 1.23 g/t which represents a 34% improvement over the same
period in 2007 due predominantly to higher grade material from the Frasers
Underground and from the open pit.
    Frasers Underground continued to show improved performance and is now
operating consistently to plan. A high grade quartz vein was intersected by
the decline which also boosted the overall production for the quarter from
this operation.
    The Reefton mine performed to expectations and produced 17,427 ounces
during the quarter with a mill feed grade of 2.51 g/t. The mine is now
operating at 25% above nameplate throughput capacity.
    Limited construction activities were undertaken at the Didipio
Gold-Copper while the project remained in temporary suspension of high cash
expenditure activities. These activities focused on low capex projects that
will assist with facilitating rapid ramp up of full construction activities in
the future.
    Long lead-time items such as the mills, jaw crusher, cyclones, floatation
cells and gravity concentrators are being completed and will remain secure at
the vendor premises until they are required at site.
    The Company is currently working through a strategic process to address
the funding shortfall and expects to update the market during the fourth
quarter.

    Preliminary 2009 Production Guidance

    Preliminary production guidance for 2009 is expected to be in the range
of 280,000 - 300,000 ounces at a cash cost of $425 - $475 per ounce. The
Company will update market guidance in January following the closeout of 2008.

    
                                 - Table 1 -
                   Key Financial and Operating Statistics

    -------------------------------------------------------------------------
                                            Quarter     Quarter     Quarter
                                             Ended       Ended       Ended
    Financial Statistics                  Sep 30 2008 Jun 30 2008 Sep 30 2007
    -------------------------------------------------------------------------

    Gold Sales (Ounces)                       62,753      58,831      42,107

                                                 USD         USD         USD
                                                 ---         ---         ---
    Average Price Received ($ per
     ounce)                                      861         902         681
    Cash Operating Cost ($ per ounce)            640         741         718
    Cash Operating Margin ($ per ounce)          222         161         (37)

    Non-Cash Cost ($ per ounce)                  181         203         234
    Total Operating Cost ($ per ounce)           821         944         952

    Total Cash Operating Cost ($ per
     tonne processed)                          23.29       26.21       15.82
    -------------------------------------------------------------------------


    -------------------------------------------------------------
                                         Nine Months  Nine Months
                                            Ended        Ended
    Financial Statistics                 Sep 30 2008  Sep 30 2007
    -------------------------------------------------------------

    Gold Sales (Ounces)                      189,308     118,919

                                                 USD         USD
                                                 ---         ---
    Average Price Received ($ per
     ounce)                                      895         670
    Cash Operating Cost ($ per ounce)            620         563
    Cash Operating Margin ($ per ounce)          273         107

    Non-Cash Cost ($ per ounce)                  198         181
    Total Operating Cost ($ per ounce)           818         744

    Total Cash Operating Cost ($ per
     tonne processed)                          23.35       12.41
    -------------------------------------------------------------



    -------------------------------------------------------------------------
                                            Quarter     Quarter     Quarter
                                             Ended       Ended       Ended
    Combined Operating Statistics         Sep 30 2008 Jun 30 2008 Sep 30 2007
    -------------------------------------------------------------------------

    Gold produced (ounces)                    63,270      58,289      43,194

    Total Ore Mined (tonnes)               1,381,744   1,199,533   1,125,425
    Ore Mined grade (grams/tonne)               1.66        1.66        1.35

    Total Waste Mined (tonnes) -
     incl pre-strip                       12,644,334  13,797,244  14,423,152

    Total Material Mined (tonnes) -
     incl pre-strip                       14,026,078  14,996,777  15,548,574

    Total Material Moved (tonnes)         14,881,646  15,939,561  16,553,904

    Mill Feed (dry milled tonnes)          1,722,753   1,662,933   1,624,064
    Mill Feed Grade (grams/tonne)               1.46        1.34        1.11
    Recovery (%)                               81.9%       79.5%       73.7%
    -------------------------------------------------------------------------


    -------------------------------------------------------------
                                         Nine Months  Nine Months
                                            Ended        Ended
    Combined Operating Statistics        Sep 30 2008  Sep 30 2007
    -------------------------------------------------------------

    Gold produced (ounces)                   184,394     119,704

    Total Ore Mined (tonnes)               4,069,329   3,245,835
    Ore Mined grade (grams/tonne)               1.64        1.27

    Total Waste Mined (tonnes) -
     incl pre-strip                       39,946,451  42,185,538

    Total Material Mined (tonnes) -
     incl pre-strip                       44,015,780  45,431,373

    Total Material Moved (tonnes)         46,218,242  48,029,627

    Mill Feed (dry milled tonnes)          5,046,451   4,590,367
    Mill Feed Grade (grams/tonne)               1.46        1.04
    Recovery (%)                               78.6%       77.3%
    -------------------------------------------------------------



    -------------------------------------------------------------------------
                                            Quarter     Quarter     Quarter
                                             Ended       Ended       Ended
                                          Sep 30 2008 Jun 30 2008 Sep 30 2007
    Combined Financial Results               $'000       $'000       $'000
    -------------------------------------------------------------------------
    EBITDA (excluding unrealized gain/
     (loss) on hedges)                        18,991       1,131      (8,522)
    -------------------------------------------------------------------------
    Earnings/(loss) after income tax
     and before undesignated gain/
     (loss) on hedges                          2,806     (12,051)    (16,169)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Reported EBITDA (including
     unrealized gain/(loss) on hedges)          (596)     (9,152)    (55,627)
    -------------------------------------------------------------------------
    Reported earnings/(loss) after
     income tax (including unrealized
     gain/(loss) on hedges)                  (10,905)    (19,248)    (47,730)
    -------------------------------------------------------------------------


    -------------------------------------------------------------
                                         Nine Months  Nine Months
                                            Ended        Ended
                                         Sep 30 2008  Sep 30 2007
    Combined Financial Results              $'000        $'000
    -------------------------------------------------------------
    EBITDA (excluding unrealized gain/
     (loss) on hedges)                        41,812        (329)
    -------------------------------------------------------------
    Earnings/(loss) after income tax
     and before undesignated gain/
     (loss) on hedges                         (5,462)    (20,534)
    -------------------------------------------------------------

    -------------------------------------------------------------
    Reported EBITDA (including
     unrealized gain/(loss) on hedges)        (9,398)    (32,182)
    -------------------------------------------------------------
    Reported earnings/(loss) after
     income tax (including unrealized
     gain/(loss) on hedges)                  (41,309)    (41,876)
    -------------------------------------------------------------
    

    PRODUCTION

    Production for the third quarter of 2008 totalled 63,270 gold ounces, a
46% increase over the same period in 2007. Total gold sales were 62,753
ounces.
    The higher production for the quarter compared to 2007 is due to the
supplemental contribution from the Reefton mine and recently commissioned
Frasers Underground.
    Total combined cash operating costs were $640 per ounce for the quarter.
This was in line with expectations and the Company is still on target to meet
market guidance for cash costs of $560-$595 per ounce for 2008. Operating
costs were higher compared to the corresponding quarter in 2007 due to higher
diesel and other commodity costs. Oil prices peaked in mid July and then
declined throughout the quarter. This coincided with a weakening New Zealand
dollar which off-set a portion of the gains that were made in USD terms.
    For the second quarter in a row the mining cycle dictated that the
Company expense rather than capitalise a larger amount of waste stripping,
resulting in an additional charge to cash operating costs of US$25 per ounce.
This in part, was undertaken to reach higher grade benches that will be mined
during the fourth quarter at the Macraes pit. Normal capitalized pre-stripping
activities will re-commence in the fourth quarter once the vertical advance
has been achieved.

    
    OPERATIONS

    Macraes Goldfield (New Zealand)
    

    The Macraes Goldfield operations (open-cut and underground) incurred nil
lost time injuries (LTI) for the quarter. This marks the fourth consecutive
quarter totals 1,313,149 man hours without an LTI.
    Production from the Macraes Goldfield for the quarter was 45,843 gold
ounces, a 51% increase over the same period in 2007. The increase was
attributed to contribution from the new underground mine as well as higher
grades from the open pit compared to 2007.
    Total material moved at Macraes Goldfield (open pit and underground) was
11.8 million tonnes compared to 13.4 million tonnes for the same period in
2007 and was slightly behind expectations. By the end of the quarter total
movement was close to plan and near budget rock movement rates are expected
during the fourth quarter. A new 3.5 panel roster was developed which will be
implemented in the fourth quarter and this combined with the training and
maintenance programs are expected to be key components to improved truck and
digger availabilities.
    Frasers Underground had another strong quarter and is operating to plan.
Ore mined averaged higher grade than predicted partially due to a high grade
quartz vein intersected during the decline development. The underground
explosives magazine was commissioned and the primary ventilation
infrastructure was extended to the higher grade Panel 2 where mining will be
initiated during the fourth quarter.
    The Processing Plant operated to plan with throughput at Macraes for the
quarter at 1.41 million tonnes compared to 1.42 million tonnes during the same
period in 2007. Mill feed grade averaged 1.23 g/t Au compared to 0.92 g/t Au
for the third quarter of 2007. This 34% increase can be attributed to higher
grade ore processed from the pit compared to low grade stockpiles in 2007 and
production from the higher-grade underground operation.
    Grades through the mill are expected to improve in the fourth quarter as
the higher grade portions of the Macraes open pit are accessed. This will be
the key driver to increased production and increased revenue this coming
quarter.
    Mill recoveries were 81.7% for the quarter, a further improvement over
the second quarter and an increase of 8% compared to the same period in 2007.
The past six months have demonstrated consistent improvements in this area and
the processing plant is now consistently achieving recoveries in line with
plan.

    Reefton Goldfield (New Zealand)

    One LTI was incurred in the third quarter at Reefton compared with two
LTIs in the third quarter of 2007.
    Mined ore totalled 328 thousand tonnes exceeding plan however total
material moved (including waste) fell slightly below expectation. This was
primarily due to increased weather delays from heavier rainfall and due to
lower availabilities of the mobile equipment.
    Production from Reefton concentrate was 17,427 gold ounces which met
expectations. Total material through the mill was 313 thousand tonnes and
about 25% above design throughput capacity. It appears that Reefton can
achieve this rate on a consistent basis. Overall gold recovery for Reefton was
82.8%, up from 73.1% during the same period of 2007 and in-line with
expectations.

    Community Relations

    OceanaGold has been an active member of the local communities surrounding
its Macraes mine in Otago, New Zealand since 1990, as well as the Reefton
community where the company commissioned its second mine in 2007.
    Some of the major community initiatives which the Company supports in New
Zealand include:

    
    -   Macraes Trout Hatchery - a cooperative venture with Fish & Game New
        Zealand. The hatchery is believed to be the only one of its type
        located at an active mine site.
    -   Heritage and Art Park - a rehabilitation initiative to create a
        public park at Macraes. In August, our most recent artwork by
        internationally renowned Jae Hoon was installed in the Macraes
        historic Catholic Church.
    -   LEARNZ - a program enabling New Zealand students to 'visit' our
        operations through virtual reality field trips at both Macraes and
        Reefton.
    -   Inangahua Vision 2010 - a fundraising initiative which covers 16
        community projects located in the Reefton district and to which
        OceanaGold is a major sponsor.
    

    OceanaGold is the proud and continued supporter of a number of education
and youth training programs throughout the local communities in which it
operates.
    The Macraes Trout Hatchery had a successful start to the season with an
above average harvest of trout eggs. Last year more than 10,000 trout fry were
raised from what is believed to be the only government sanctioned Trout
Hatchery actively operating at a mine site.

    
                                 - Table 2 -
                        Macraes Operating Statistics

    -------------------------------------------------------------------------
                                            Quarter     Quarter     Quarter
                                             Ended       Ended       Ended
    Macraes Goldfield                        Sep 30      Jun 30      Sep 30
    Operating Statistics                      2008        2008        2007
    -------------------------------------------------------------------------

    Gold produced (ounces)                    45,843      40,698      30,438

    Total Ore Mined (tonnes)               1,053,701     916,107     892,681
    Ore Mined grade (grams/tonne)               1.49        1.48        1.18

    Total Waste Mined (tonnes) - incl
     pre-strip                             9,921,061  10,475,518  11,517,535

    Total Material Mined (tonnes) - incl
     pre-strip                            10,974,762  11,391,625  12,410,216

    Total Material Moved (tonnes)         11,803,712  12,299,863  13,415,546

    Mill Feed (dry milled tonnes)          1,409,432   1,401,322   1,418,022
    Mill Feed Grade (grams/tonne)               1.23        1.14        0.92
    Recovery (%)                               81.7%       79.0%       73.7%
    -------------------------------------------------------------------------


    -------------------------------------------------------------
                                         Nine Months  Nine Months
                                            Ended        Ended
    Macraes Goldfield                       Sep 30       Sep 30
    Operating Statistics                     2008         2007
    -------------------------------------------------------------

    Gold produced (ounces)                   131,172      98,494

    Total Ore Mined (tonnes)               3,114,852   2,682,593
    Ore Mined grade (grams/tonne)               1.47        1.08

    Total Waste Mined (tonnes) - incl
     pre-strip                            30,818,559  33,097,359

    Total Material Mined (tonnes) - incl
     pre-strip                            33,933,411  35,779,952

    Total Material Moved (tonnes)         36,055,451  38,378,207

    Mill Feed (dry milled tonnes)          4,172,892   4,247,521
    Mill Feed Grade (grams/tonne)               1.25        0.93
    Recovery (%)                               78.0%       77.6%
    -------------------------------------------------------------


                                 - Table 3 -
                        Reefton Operating Statistics

    -------------------------------------------------------------------------
                                            Quarter     Quarter     Quarter
                                             Ended       Ended       Ended
    Reefton Goldfield                        Sep 30      Jun 30      Sep 30
    Operating Statistics                      2008        2008        2007
    -------------------------------------------------------------------------

    Gold produced (ounces)                    17,427      17,591      12,756

    Total Ore Mined (tonnes)                 328,043     283,426     232,741
    Ore Mined grade (grams/tonne)               2.20        2.26        2.01

    Total Waste Mined (tonnes) - incl
     pre-strip                             2,723,273   3,321,726   2,905,617

    Total Material Mined (tonnes) - incl
     pre-strip                             3,051,316   3,605,152   3,138,358

    Total Material Moved (tonnes)          3,077,934   3,639,698   3,138,358

    Mill Feed (dry milled tonnes)            313,321     261,611     206,042
    Mill Feed Grade (grams/tonne)               2.51        2.42        2.48
    Recovery (%)                               82.8%       82.3%       73.1%
    -------------------------------------------------------------------------


    -------------------------------------------------------------
                                         Nine Months  Nine Months
                                            Ended        Ended
    Reefton Goldfield                       Sep 30       Sep 30
    Operating Statistics                     2008         2007
    -------------------------------------------------------------

    Gold produced (ounces)                    53,222      21,210

    Total Ore Mined (tonnes)                 954,477     563,242
    Ore Mined grade (grams/tonne)               2.17        2.14

    Total Waste Mined (tonnes) - incl
     pre-strip                             9,127,892   9,088,179

    Total Material Mined (tonnes) - incl
     pre-strip                            10,082,369   9,651,421

    Total Material Moved (tonnes)         10,162,791   9,651,420

    Mill Feed (dry milled tonnes)            873,559     342,846
    Mill Feed Grade (grams/tonne)               2.45        2.46
    Recovery (%)                               81.2%       73.5%
    -------------------------------------------------------------
    


    DEVELOPMENT

    Didipio Gold & Copper Project (Philippines)

    Development at the Didipio Gold and Copper project in Luzon, Philippines
remained under a temporary suspension to manage cash expenditures. The Company
is currently working through a strategic process to source supplemental
funding for Didipio and expects to update the market during the fourth
quarter.
    No LTIs were recorded in the quarter for a total of 333,936 man hours
without an LTI.
    During the third quarter, a limited number of activities that will
facilitate rapid ramp up of full construction activities were conducted at
site. Work has been focused on low cost - high impact initiatives to retain
value in the project such as road drainage and environmental management
activities, construction of a permanent accommodation camp, as well as the
establishment of administrative offices and storage facilities. These low
capex/labour intensive projects allow for retention of the majority of the
local workforce during this suspension period.
    Long lead-time items such as the mills, jaw crusher, cyclones, floatation
cells and gravity concentrators are being completed and will remain secure at
the vendor premises until they are required at site. Other vendor equipment
contracts have been suspended with the intent to restart activities as soon as
funding issues are resolved.

    Community Relations

    OceanaGold has been working with the local communities of Northern Luzon
to develop capacity building programs in a number of areas including health,
education and the environment.
    During the third quarter, OceanaGold announced that it will again partner
with the Global Fund Movement Against Malaria to help combat malaria in
Northern Luzon. Through the Municipal Health Clinic of the Local Government
Unit of Cabarroguis, this program supports cerebral malaria and dengue fever
prevention as well as testing programs throughout the region. Under this
program, the number of malaria cases reported declined from 59 in 2006 to only
5 over the first six months of 2008.
    Recently, another memorandum of agreement (MOA) was renewed to provide
salary assistance in the form of salaries to eight teachers of Didipio Green
Valley Institute (DGVI). DGVI is a community school operating in Didipio that
provides much needed secondary education in the area. This partnership between
OceanaGold and the community has been an important building block to improving
opportunities for many of the local youth. Students can continue their
education through OceanaGold sponsored scholarships to local colleges and
universities.

    EXPLORATION

    The exploration programs in New Zealand and the Philippines have been
temporarily reduced as a measure to manage expenditures pending finalization
of a funding solution for the Didipio project.

    New Zealand

    Macraes Goldfield

    Exploration drilling focussed both on the Frasers Underground Extension
program and open-pit targets along strike of the Hyde Macraes Shear Zone. With
Frasers Panel 2 now well defined, it is expected that future exploration
drilling there will be accessed from underground drilling. Surface drilling
will continue to focus on shallow targets that are potential open-pittable
resources.
    The Company is currently analysing the data from a airborne geophysical
survey that was flown over the Macraes tenements as part of a larger program
conducted by a New Zealand-based exploration company, Glass Earth Resources.
This data set will increase our knowledge of the extent and tenor of the
Macraes mineralisation along strike.

    Reefton Goldfield

    The detailed modelling of grade control data has been completed for the
Reefton deposits and similar work is ongoing for Macraes. These modelled data
will be combined with geological information from mapping and drilling to
further investigate the controls on grade distribution. Ultimately, the
intention is to generate additional targets for future exploration.

    Philippines

    Didipio & Near-Mine Prospects

    Near mine exploration drilling targeted the Morning Star, Midnight J,
Bongo-Bongo and D'Beau prospects. Results to date have shown the existence of
several monzonite dykes which is the mineralization consistent with Didipio
but drilling has yet to intersect the main monzonite body.
    The first phase of near-mine drilling should be completed in the fourth
quarter. The assay data from this program will be used to identify followup
targets for testing.

    
                              FINANCIAL SUMMARY

    The table below provides selected financial data relating to the quarter
ended September 30, 2008, with comparative data from the quarters ending
June 30, 2008 and September 30, 2007.

    -------------------------------------------------------------------------
                                            Quarter     Quarter     Quarter
                                             Ended       Ended       Ended
                                            Sep 30      Jun 30      Sep 30
                                             2008        2008        2007
    STATEMENT OF OPERATIONS                  $'000       $'000       $'000
    -------------------------------------------------------------------------
    Gold sales                                54,038      53,068      24,367
    -------------------------------------------------------------------------
    Cost of sales, excluding
     depreciation and amortization           (39,658)    (42,953)    (25,126)
    -------------------------------------------------------------------------
    General & Administration                  (3,784)     (4,684)     (3,790)
    -------------------------------------------------------------------------
    Foreign Currency Exchange Gain/(Loss)      8,367      (4,340)     (3,983)
    -------------------------------------------------------------------------
    Other income                                  28          40          10
    -------------------------------------------------------------------------
    Earnings before interest, tax,
     depreciation & amortization (EBITDA)
     (excluding gain/(loss) on
     undesignated hedges)                     18,991       1,131      (8,522)
    -------------------------------------------------------------------------
    Depreciation and amortization            (11,420)    (12,050)     (8,447)
    -------------------------------------------------------------------------
    Net interest expense                      (4,823)     (4,873)     (3,277)
    -------------------------------------------------------------------------
    Earnings/(loss) before income tax
     and gain/(loss) on undesignated
     hedges                                    2,748     (15,792)    (20,246)
    -------------------------------------------------------------------------
    Earnings/(loss) after income tax and
     before gain/(loss) on undesignated
     hedges                                    2,806     (12,051)    (16,169)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Release from OCI of deferred
     unrealized gain/(loss) on
     designated hedges                             0         122         501
    -------------------------------------------------------------------------
    Gain/(loss) on fair value of
     undesignated hedges                     (19,587)    (10,404)    (47,607)
    -------------------------------------------------------------------------
    Tax on (gain)/loss on undesignated
     hedges                                    5,876       3,085      15,545
    -------------------------------------------------------------------------
    Net earnings/(loss)                      (10,905)    (19,248)    (47,730)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Basic earnings/(loss) per share           ($0.07)     ($0.12)     ($0.30)
    -------------------------------------------------------------------------
    Diluted earnings/(loss) per share         ($0.07)     ($0.12)     ($0.30)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    CASH FLOW
    -------------------------------------------------------------------------
    Cash flows from Operating Activities      (2,730)     10,803         149
    -------------------------------------------------------------------------
    Cash flows from Investing Activities       8,940     (64,670)    (24,188)
    -------------------------------------------------------------------------
    Cash flows from Financing Activities     (30,650)    (11,598)     88,921
    -------------------------------------------------------------------------


    -------------------------------------------------------------
                                         Nine Months  Nine Months
                                            Ended        Ended
                                           Sep 30       Sep 30
                                            2008         2007
    STATEMENT OF OPERATIONS                 $'000        $'000
    -------------------------------------------------------------
    Gold sales                               169,369      67,780
    -------------------------------------------------------------
    Cost of sales, excluding
     depreciation and amortization          (115,611)    (55,874)
    -------------------------------------------------------------
    General & Administration                 (12,377)     (8,290)
    -------------------------------------------------------------
    Foreign Currency Exchange Gain/(Loss)        330      (4,141)
    -------------------------------------------------------------
    Other income                                 101         196
    -------------------------------------------------------------
    Earnings before interest, tax,
     depreciation & amortization (EBITDA)
     (excluding gain/(loss) on
     undesignated hedges)                     41,812        (329)
    -------------------------------------------------------------
    Depreciation and amortization            (37,674)    (18,428)
    -------------------------------------------------------------
    Net interest expense                     (14,163)     (8,820)
    -------------------------------------------------------------
    Earnings/(loss) before income tax
     and gain/(loss) on undesignated
     hedges                                  (10,025)    (27,577)
    -------------------------------------------------------------
    Earnings/(loss) after income tax and
     before gain/(loss) on undesignated
     hedges                                   (5,462)    (20,534)
    -------------------------------------------------------------

    -------------------------------------------------------------
    Release from OCI of deferred
     unrealized gain/(loss) on
     designated hedges                           279     (16,741)
    -------------------------------------------------------------
    Gain /(loss) on fair value of
     undesignated hedges                     (51,489)    (15,112)
    -------------------------------------------------------------
    Tax on (gain)/loss on undesignated
     hedges                                   15,363      10,511
    -------------------------------------------------------------
    Net earnings/(loss)                      (41,309)    (41,876)
    -------------------------------------------------------------

    -------------------------------------------------------------
    Basic earnings/(loss) per share           ($0.26)     ($0.30)
    -------------------------------------------------------------
    Diluted earnings/(loss) per share         ($0.26)     ($0.30)
    -------------------------------------------------------------

    -------------------------------------------------------------
    CASH FLOW
    -------------------------------------------------------------
    Cash flows from Operating Activities      27,807       5,495
    -------------------------------------------------------------
    Cash flows from Investing Activities     (87,667)    (95,114)
    -------------------------------------------------------------
    Cash flows from Financing Activities     (44,610)    140,784
    -------------------------------------------------------------



    -------------------------------------------------------------------------
                                                           As at       As at
                                                          Sep 30      Dec 31
                                                           2008        2007
    BALANCE SHEET                                          $'000       $'000
    -------------------------------------------------------------------------
    Cash and cash equivalents                             17,193     119,837
    -------------------------------------------------------------------------
    Restricted Cash                                            -           -
    -------------------------------------------------------------------------
    Other Current Assets                                  28,758      35,401
    -------------------------------------------------------------------------
    Total Non Current Assets                             655,512     652,704
    -------------------------------------------------------------------------
    Total Assets                                         701,463     807,942
    -------------------------------------------------------------------------
    Total Current Liabilities                             90,869      78,095
    -------------------------------------------------------------------------
    Total Non Current Liabilities                        321,109     375,682
    -------------------------------------------------------------------------
    Total Liabilities                                    411,978     453,777
    -------------------------------------------------------------------------
    Total Shareholders' equity                           289,485     354,165
    -------------------------------------------------------------------------
    

    RESULTS OF OPERATIONS

    The company reported earnings before interest, tax, depreciation and
amortization (EBITDA) and gains/losses on undesignated hedges in the third
quarter of 2008 of $19.0 million compared to a loss of $8.5 million in the
same period of 2007. This result was characterised by higher gold sales
revenue from increased production at Macraes open pit, Reefton and Frasers
Underground mines and an increased average realised gold price per ounce.
    Cash and non cash costs per ounce were favourable to third quarter 2007
due to increased gold production. However on a year to date basis, operating
costs are higher than the prior year reflecting increased consumable commodity
costs, higher expensed waste stripping and increased depreciation and
amortisation expenses associated with the start of the Reefton and Frasers
Underground mines. Increased interest costs associated with higher levels of
debt and foreign exchange losses also impacted the result.

    
    Sales Revenue
    -------------
    

    Gold sales revenue in the third quarter exceeded the comparative quarter
in 2007 by 122% or $29.7 million due to strong gold sales of 62,753 ounces,
augmented by a 26% ($180/oz) increase in the average gold price received.
    Overall gold sales volume for the September quarter was 49% higher than
the same quarter of 2007. This was due to increased production from the
Macraes open pit mine, the commissioning of the Frasers Underground mine,
increased contribution from the Reefton mine and improved gold recoveries.
    All gold produced for the quarter was sold into the spot market. This
compares to 30% of gold being sold into fixed forward contracts for the
September quarter 2007.
    Sales revenue for the September quarter was up 1.8% against June quarter
revenue. Increased sales volume of 6.6% was offset by a reduction in average
gold price received against the prior quarter of 4.5%.
    On a year to date basis, September 2008 results improved over the prior
year period due to a 59.2% increase in volume and 33.6% increase in average
price received. This generated a $101.6 million increase in revenue.

    
    Undesignated Hedges Gains/Losses
    --------------------------------
    

    Unrealised gain/loss on the fair value of undesignated hedges is brought
to account to reflect the movement in the spot gold price.
    The derivative instruments used to manage impact of movements in gold
prices are summarised below under "Current and non-current derivative
liabilities".

    
    Operating Costs & Margins
    -------------------------
    

    Cash costs per ounce sold were $78 lower in the third quarter of 2008
compared to the same quarter of 2007. During September quarter 2007 the
Frasers Underground mine was in development and Reefton mine was newly
commissioned. The reduction in cash costs per ounce reflects improvements in
the ore grade and the improving contribution from the Frasers Underground
mine. The New Zealand dollar has also weakened by 10% against the USD this
quarter which has improved the USD cash cost per ounce.
    September quarter cash operating costs were $101 per ounce favourable to
June quarter results. This reflects the reduction in consumable costs, as well
as electricity prices which have come back to moderate levels after
significant increases in the June quarter.
    On a year to date basis, the cash operating cost per ounce sold was $57
higher than the nine months to September 2007. The impact of sharp increases
in the market price of electricity; high diesel fuel prices; and the timing of
capital waste stripping activities are reflected in the higher year to date
cash cost results.
    Average gold price received in the September quarter was favourable on
both a quarterly and year to date basis versus 2007. This along with improved
cash costs resulted in an operating margin increase of $259 per ounce versus
September quarter 2007 and $166 per ounce on a year to date basis.
    The increased margin resulted in earnings before interest, tax,
depreciation & amortisation (excluding undesignated hedge losses) of
$19.0 million in the quarter and $41.8 million in the nine months to September
compared to losses of $8.5 million and $0.3 million in the same periods of
2007 respectively.
    The September quarter EBITDA results were impacted by foreign exchange
gains of $8.4 million. Year to date September results included a foreign
exchange gain of $0.3 million. A significant factor in exchange gains and
losses is the requirement for the group to revalue US Dollar cash holdings
into Australian Dollars at period end for functional currency reporting.
Revaluation back to US Dollars is then made for group financial statement
presentation purposes.

    
    Depreciation and Amortization
    -----------------------------
    

    Depreciation and amortization charges are calculated on a unit of
production basis and are consequently higher in the third quarter and nine
months of 2008 compared with the comparative periods of 2007.
    The favourable movement of $0.6 million in September 2008 quarter
depreciation against the June 2008 quarter is the net effect of small
production increases offset by the impact a strengthening US Dollar.
    The commissioning of both the Reefton mine in 2007 and Frasers
Underground mine in Q1 2008 and the commencement of depreciation of these
assets, together with the amortisation of deferred waste stripping costs has
increased the charges on a year to date basis.
    In the nine months to September, depreciation and amortisation expense
increased due to the start up of the new mines which added $5.6 million and
$13.6 million from the amortisation of deferred stripping costs.

    
    Net Interest expense
    --------------------
    

    Net interest for the September quarter is in line with June quarter 2008.
Unfavourable variances to September quarter 2007 results relate to reduced
interest income.
    The increase in net interest expense in the nine months to September is a
result of the higher levels of net debt carried by OceanaGold compared with
the same periods of 2007.
    This debt mainly relates to the convertible notes issued in 2006 and
2007, adding $3.4 million to interest for the 9 months to September.
Additional equipment lease liabilities add a further $1.1 million for the nine
months to September 2008, offset by the impact of the stronger US dollar.

    
    Net earnings/(loss)
    -------------------
    

    The company reported a third quarter net loss of $10.9 million compared
with a net loss tax of $47.7 million in the same quarter of 2007. The impact
of undesignated hedge gains and losses was influential in both periods with
undesignated hedge losses of $19.6 million in the third quarter 2008 and
$47.6 million for the corresponding period in 2007. EBITDA before undesignated
hedge gains/losses enables operating performance to be measured on a
consistent basis.
    The company produced EBITDA (excluding undesignated hedge gains/losses)
of $19.0 million in the quarter, compared with loss of $8.5 million in the
same period of 2007.
    For the nine months to September 2008 the EBITDA (excluding undesignated
hedge losses) was $41.8 million, compared with a loss of $0.3 million in the
same period of 2007. Improvements in EBITDA for the quarter and first nine
months of the year was primarily the net result of higher gold production from
the combined operations and the increased average realised gold price
received. Higher cash costs per ounce offset some of these gains.

    
    DISCUSSION OF CASH FLOWS

    Operating Activities
    --------------------
    

    September quarter 2008 cash flows from operating activities were
unfavourable to the comparative quarter 2007. Increased gold sales were offset
by higher cash expenditures associated with termination of a number of Didipio
contracts. Excluding Didipio, cash flow generated from New Zealand operations
was $5.4 million.
    Cash flows from operating activities for the nine months to September
2008 were favourable compared to 2007. Gold sales were significantly higher
than the 2007 results. Resulting improvements to EBITDA were partially offset
by increased working capital requirements, hedge settlements and higher net
interest payments.

    
    Investing Activities
    --------------------
    

    Cash inflows due to investing activities in the third quarter were
$8.9 million. A cash inflow of $27.0 million resulted from transfers from
restricted bank account to cash during the period supporting settlement of
gold forward sales contracts. This was offset by Didipio Project spend of
$9.1 million and sustaining capital and pre-stripping for the NZ operations.
    On a September year to date basis, cash outflows from investing
activities of $87.7 million reflect the expenditures on the Didipio Project
development, as well as pre-stripping and sustaining capital for the New
Zealand operations.

    
    Financing Activities
    --------------------
    

    Cash flows from financing activities in the quarter were a net outflow of
$30.7 million. This was comprised of a $3.2 million part repayment of the
project debt facility and a $1.5 million repayment of finance lease
liabilities. Gold forward hedge contracts were settled for $25.9 million.
    Financing cash outflow for the nine months to September 2008 was
$44.6 million resulting from repayments of borrowings of $12.8 million and
finance lease liabilities of $5.9 million and the Q3 gold hedge settlement.

    DISCUSSION OF FINANCIAL POSITION AND LIQUIDITY

    Company's funding and capital requirements

    The Company expects to continue to fund its operations and development
through a combination of cash balances as at September 30, 2008 of
$17.2 million, cash flow from operations (including sales through derivative
instruments), financing facilities, the capital markets or the strategic
opportunities available through discussions with various parties regarding the
Didipio project.
    The company has a number of financing facilities in place as shown on the
balance sheet. As at September 30, 2008 all of the facilities are fully
utilised.
    The company is pursuing a number of alternatives to secure additional
capital including a combination of asset sales or restructure, additional
funding facilities or equity raising. Nevertheless, there is no assurance that
these initiatives would be successful.
    The company's ability to continue as a going concern is dependent upon
its ability to generate positive cash from the above strategies. The September
financial statements do not reflect the adjustment to the carrying values of
the assets and liabilities and the reported expenses and balance sheet
classifications that would be necessary where the going concern assumption is
inappropriate.

    Capital commitments

    OceanaGold's existing capital commitments as at September 30, 2008 are as
follows:

    
    -------------------------------------------------------------------------
                                             Payments due by period as at
                                                  September 30, 2008
    -------------------------------------------------------------------------
                                                        $'000       $'000
                                            $'000     less than     1 - 5
                                            Total       1 year      years
    -------------------------------------------------------------------------
    Capital commitments                     6,739        6,712         27
    -------------------------------------------------------------------------


    Financial position

    Total Current Assets
    --------------------

    Total current assets have declined by $109.3 million since December 2007.
This is the net result of reductions in cash, inventories and future income
tax assets.

    Total Non Current Assets
    ------------------------
    

    During the period to September 2008 the asset increase of $2.8 million
included mine development activities at the Didipio project and the
pre-stripping and sustaining capital activities of the New Zealand mines.
These were offset by depreciation and the appreciation in the U.S. dollar
which has generated foreign currency translation differences associated with
Property, Plant and Equipment and Mining Assets.

    
    Total Current Liabilities
    -------------------------
    

    The increase of $12.8 million in the nine months to September 30, 2008
was a result of a $13.5 million increase in the current unrealised derivative
liabilities as well as increases in the spot price of gold and increased
accounts payables as a result of timing of creditor payments. These were
offset by reductions in interest bearing liabilities in line with project debt
payments repayment schedules adjusted for the depreciation of the U.S. dollar.

    
    Total Non Current Liabilities
    -----------------------------
    

    The decrease of $54.6 million in the quarter was due to a $32.9 million
decrease in interest-bearing loans and borrowings, a $7.8 million reduction in
future income tax liabilities related to capital expenditure deductions in NZ
and a $9.0 million reduction in non current derivative liabilities balance due
to reclassification to current derivatives.

    
    Current and non-current derivative liabilities
    ----------------------------------------------
    

    OceanaGold holds certain derivative instruments to manage the impact of
movements in the spot gold price.
    During September the Company settled fixed forward gold hedge contracts
that had been rolled from the first nine months of the year to the end of the
third quarter. Contracts for 78,312 ounces were settled from the hedge
position resulting in a 25% reduction in the fixed forward position. The out
of the money position of $25.9 million was settled by cash against hedge
liabilities.
    Current instruments held include undesignated forward gold sales
contracts for 241,476 ounces (2007: 319,788 ounces) at NZ$773, undesignated
gold put options for 187,728 ounces (2007: 248,538 ounces) with an average
exercise price of NZ$1,000 and undesignated gold call options sold for 104,024
ounces (2007: 104,024 ounces) of forecast 2010 production with an average
exercise price of NZ$1,062.

    
    A summary of OceanaGold's derivatives is:

                                                     Sep 30 2008  Dec 31 2007
                                                           $'000        $'000
    Current Assets
    Gold put options                                         787       1,084
                                                    -------------------------
    Non Current Assets
    Gold put options                                        3005       4,097
                                                    -------------------------
    Total Assets                                           3,792       5,181


                                                     Sep 30 2008  Dec 31 2007
                                                           $'000        $'000

    Gold forward sales contracts                          43,906      30,402

    Non Current Liabilities
    Gold forward sales contracts                          49,268      67,322
    Gold call options                                     29,849      20,894
                                                    -------------------------
                                                          79,117      88,216
                                                    -------------------------
    Total Liabilities                                    123,023     118,618
                                                    -------------------------


    Shareholders' Equity
    --------------------

    A summary of OceanaGold's changes in shareholders' equity is set out
below:

                                                              9 months ended
                                                                Sept 30 2008
                                                                       $'000
                                                            -----------------
    Total equity at beginning of financial period                    354,165
    Profit/(loss) after income tax                                   (41,309)
    Movement in other comprehensive income                           (24,645)
    Movement in contributed surplus                                    1,274
                                                            -----------------
    Total equity at end of financial period                          289,485
                                                            -----------------
    

    Shareholders' equity has decreased to $289.5 million as at September 30,
2008 primarily as a result of the loss incurred during the nine months to
September 2008 and currency translation differences reflected in other
comprehensive income.

    CRITICAL ACCOUNTING ESTIMATES AND ACCOUNTING POLICIES

    The accounting policies that involve significant management judgement and
estimates are discussed in this section. For a complete list of the
significant accounting policies, reference should be made to Note 1 of the
2007 audited consolidated financial statements of OceanaGold Corporation.

    Exploration and Evaluation Expenditure

    Exploration and evaluation expenditure is stated at cost and is
accumulated in respect of each identifiable area of interest.
    Such costs are only carried forward to the extent that they are expected
to be recouped through the successful development of the area of interest (or
alternatively by its sale), or where activities in the area have not yet
reached a stage which permits a reasonable assessment of the existence or
otherwise of economically recoverable resources, and active work is
continuing.
    Accumulated costs in relation to an abandoned area are written off to the
Statement of Operations in the period in which the decision to abandon the
area is made.
    A regular review is undertaken of each area of interest to determine the
appropriateness of continuing to carry forward costs in relation to that area
of interest.

    
    Mining Properties in Production or Under
    Development
    

    Expenditure relating to mining properties in production (including
exploration, evaluation and development expenditure) are accumulated and
brought to account at cost less accumulated amortisation in respect of each
identifiable area of interest. Amortisation of capitalised costs, including
the estimated future capital costs over the life of the area of interest, is
provided on the production output basis, proportional to the depletion of the
mineral resource of each area of interest expected to be ultimately
economically recoverable.
    A regular review is undertaken of each area of interest to determine the
appropriateness of continuing to carry forward costs in relation to that area
of interest. Should the carrying value of expenditure not yet amortised exceed
its estimated recoverable amount, the excess is written off to the Statement
of Operations.

    Asset Retirement Obligations

    OceanaGold recognises the fair value of a future asset retirement
obligation as a liability in the period in which it incurs a legal obligation
associated with the retirement of tangible long-lived assets that results from
the acquisition, construction, development and/or normal use of the assets.
OceanaGold concurrently recognises a corresponding increase in the carrying
amount of the related long-lived asset that is depreciated over the life of
the asset.
    The key assumptions on which the fair value of the asset retirement
obligations are based include the estimated future cash flow, the timing of
those cash flows and the credit-adjusted risk-free rate or rates on which the
estimated cash flows have been discounted. Subsequent to the initial
measurement the liability is accreted over time through periodic charges to
earnings. The amount of the liability is subject to re-measurement at each
reporting period if there has been a change to certain of the key assumptions.

    Asset Impairment Evaluations

    The carrying values of exploration, evaluation, development costs and
plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable. If any such
indication exists and where the carrying value exceeds the undiscounted future
cash flows from these assets, the assets are written down to the fair value of
the future cash flows based on OceanaGold's average cost of borrowing.

    Stock Option Pricing Model

    Stock options granted to employees or external parties are measured by
reference to the fair value at grant date and are recognised as an expense in
equal instalments over the vesting period and credited to the contributed
surplus account. The expense is determined using an option pricing model that
takes into account the exercise price, the term of the option, the impact of
dilution, the non-tradable nature of the option, the current price and
expected volatility of the underlying share, the expected dividend yield and
the risk free interest rate for the term of the option.

    Income Tax

    The Group follows the liability method of income tax allocation. Under
this method, future tax assets and liabilities are determined based on
differences between the financial reporting and tax bases of assets and
liabilities and are measured using the substantially enacted tax rates and
laws that will be in effect when the differences are expected to reverse. A
valuation allowance is provided to the extent that it is more likely than not
that those future income tax assets will not be realised.

    ESTIMATES, RISKS AND UNCERTAINTIES

    The preparation of financial statements, in conformity with Canadian
GAAP, requires management to make estimates and assumptions that affect the
amounts reported in the consolidated financial statements and related notes.
Significant areas where management's judgment is applied include ore reserve
and resource determinations, exploration and evaluation assets, mine
development costs, plant and equipment lives, contingent liabilities, current
tax provisions and future tax balances and asset retirement obligations.
Actual results may differ from those estimates.
    In addition, this document contains some forward looking statements that
involve risks, uncertainties and other factors that could cause actual
results, performance, prospects and opportunities to differ materially from
those expressed or implied by those forward looking statements. Factors that
could cause actual results or events to differ materially from current
expectations include, among other things: volatility and sensitivity to market
prices for gold; replacement of reserves; procurement of required capital
equipment and operating parts and supplies; equipment failures; unexpected
geological conditions; political risks arising from operating in certain
developing countries; inability to enforce legal rights; defects in title;
imprecision in reserve estimates; success of future exploration and
development initiatives; operating performance of current operations;
environmental and safety risks; seismic activity, weather and other natural
phenomena; failure to obtain necessary permits and approvals from government
authorities; changes in government regulations and policies including tax and
trade laws and policies; ability to maintain and further improve labour
relations and other development and operating risks.

    FOREIGN CURRENCY TRANSLATION

    The consolidated financial statements are expressed in United States
dollars ("US$") and have been translated to US$ using the current rate method
described below. The controlled entities of OceanaGold have either Australian
dollars ("A$") or New Zealand dollars ("NZ$") as their functional currency.
    OceanaGold employs the current rate method of translation for its
self-sustaining operations. Under this method, all assets and liabilities are
translated at the period end rates and all revenue and expense items are
translated at the average exchange rates for recognition in income.
Differences arising from these foreign currency translations are recorded in
shareholders' equity as a cumulative translation adjustment until they are
realized by a reduction in the net investment.
    OceanaGold employs the temporal method of translation for its integrated
operations. Under this method, monetary assets and liabilities are translated
at the period end rates and all other assets and liabilities are translated at
applicable historical exchange rates. Revenue and expense items are translated
at the rate of exchange in effect at the date the transactions are recognized
in income, with the exception of depreciation and amortization which is
translated at the historical rate for the associated asset. Exchange gains and
losses and currency translation adjustments are included in income.

    
    CHANGES IN ACCOUNTING POLICIES INCLUDING INITIAL ADOPTION

    There have been no material changes from the accounting policies detailed
in Note 1 of the 2007 audited consolidated financial statements of OceanaGold
Corporation.

                 SUMMARY OF QUARTERLY RESULTS OF OPERATIONS
    

    The following table sets forth unaudited information for each of the
eight quarters ended December 31, 2006 through to September 30, 2008. This
information has been derived from our unaudited consolidated financial
statements which, in the opinion of management, have been prepared on a basis
consistent with the audited consolidated financial statements and include all
adjustments, consisting only of normal recurring adjustments, necessary for
fair presentation of our financial position and results of operations for
those periods.

    
    -------------------------------------------------------------------------
                                 Dec 31      Mar 31      Jun 30      Sep 30
                                  2006        2007        2007        2007
                                 $'000       $'000       $'000       $'000
    -------------------------------------------------------------------------

    Gold sales                    21,635      20,769      22,644      24,367
    EBITDA (excluding
     undesignated gain/(loss)
     on hedges)                      975       5,404       2,787      (8,522)
    Earnings/(loss) after
     income tax and before
     undesignated gain/(loss)
     on hedges                      (536)       (300)     (4,066)    (16,169)

    Net earnings/(loss)           (2 431)    (10 656)     16 510     (47 730)

    Net earnings per share
    Basic                         ($0.02)     ($0.08)      $0.12      ($0.30)
    Diluted                       ($0.02)     ($0.08)      $0.11      ($0.30)
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                 Dec 31      Mar 31      Jun 30      Sep 30
                                  2007        2008        2008        2008
                                 $'000       $'000       $'000       $'000
    -------------------------------------------------------------------------

    Gold sales                    36,615      62,263      53,068      54,038
    EBITDA (excluding
     undesignated gain/(loss)
     on hedges)                    9,057      21,690       1,131      18,991
    Earnings/(loss) after
     income tax and before
     undesignated gain/(loss)
     on hedges                    (5,880)      3,783     (12,051)      2,806

    Net earnings/(loss)          (27 162)    (11 156)    (19 248)    (10,905)

    Net earnings per share
    Basic                         ($0.17)     ($0.07)     ($0.12)     ($0.07)
    Diluted                       ($0.17)     ($0.07)     ($0.12)     ($0.07)
    -------------------------------------------------------------------------
    

    The most significant factors causing variation in the results are the
commissioning of both the Reefton open pit and Frasers underground mines, the
variability in the grade of ore mined from the Macraes open pit mine and
variability of cash cost of sales due to the timing of waste stripping
activities. The volatility of the gold price has a significant impact both in
terms of its influence upon gold sales revenue and its impact upon
undesignated gains/(losses) on hedges.

    NON-GAAP MEASURES

    Throughout this document, we have provided measures prepared according to
Canadian generally accepted accounting principles ("GAAP"), as well as some
non-GAAP performance measures. Because non-GAAP performance measures do not
have any standardized meaning prescribed by GAAP, they are unlikely to be
comparable to similar measures presented by other companies.
    We provide these non-GAAP measures as they are used by some investors to
evaluate OceanaGold's performance. Accordingly, such non-GAAP measures are
intended to provide additional information and should not be considered in
isolation, or a substitute for measures of performance in accordance with
GAAP.
    Earnings before interest, tax, depreciation and amortization (EBITDA) is
one such non-GAAP measure and a reconciliation of this measure to net
earnings/(loss) is provided on page 12.
    Cash and non cash costs per ounce are other such non-GAAP measures and a
reconciliation of these measures to cost of sales including depreciation and
amortisation is provided below.

    
    -------------------------------------------------------------------------
                                             Quarter     Quarter    Quarter
                                              Ended       Ended      Ended
                                             Sep 30      Jun 30     Sep 30
                                              2008        2008        2007
                                              $'000       $'000      $'000
    -------------------------------------------------------------------------
    Cost of sales, excluding depreciation
     and amortisation                         39,658      42,953      25,126
    Depreciation and amortisation             11,420      12,050       8,447

    Total cost of sales                       51,078      55,003      33,573

    Add operating general &
     administration                              552         630         545
    Less selling costs                          (114)       (112)        (50)

    Total operating cost of sales             51,516      55,521      34,068

    Gold Sales from operating mines
     (ounces)                                 62,753      58,831      35,760
    Total Operating Cost ($ per ounce)           821         944         952
    Less Non-Cash Cost ($ per ounce)             181         203         234

    Cash Operating Cost ($ per ounce)            640         741         718
    -------------------------------------------------------------------------


    -------------------------------------------------------------
                                         Nine Months  Nine Months
                                            Ended        Ended
                                           Sep 30       Sep 30
                                             2008         2007
                                            $'000        $'000
    -------------------------------------------------------------
    Cost of sales, excluding depreciation
     and amortisation                        115,611      55,874
    Depreciation and amortisation             37,674      18,428

    Total cost of sales                      153,285      74,302

    Add operating general &
     administration                            2,090       1,454
    Less selling costs                          (362)       (230)

    Total operating cost of sales            155,013      75,526

    Gold Sales from operating mines
     (ounces)                                189,308     101,133
    Total Operating Cost ($ per ounce)           818         744
    Less Non-Cash Cost ($ per ounce)             198         181

    Cash Operating Cost ($ per ounce)            620         563
    -------------------------------------------------------------
    

    ADDITIONAL INFORMATION

    Additional information referring to the Company, including the Company's
Annual Information Form, is available on SEDAR at www.sedar.com.

    DISCLOSURE CONTROLS AND PROCEDURES

    The Chief Executive Officer and Chief Financial Officer evaluated the
effectiveness of the Company's disclosure controls and procedures as at
September 30, 2008. Based on that evaluation, the Chief Executive Officer and
the Chief Financial Officer concluded that the design and operation of these
disclosure controls and procedures were effective as at September 30, 2008 to
provide reasonable assurance that material information relating to the
Company, including its consolidated subsidiaries, would be made known to them
by others within those entities.

    INTERNAL CONTROL OVER FINANCIAL REPORTING

    As at December 31, 2007 and September 30, 2008, the Chief Executive
Officer and Chief Financial Officer evaluated the design of the Company's
internal control over financial reporting. Based on that evaluation, the Chief
Executive Officer and the Chief Financial Officer concluded that the design of
internal control over financial reporting was effective as at those dates to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in
accordance with Canadian GAAP.

    REVIEW BY AUDITORS

    The unaudited interim consolidated financial statements for the quarter
ended September 30, 2008 have been reviewed in accordance with Canadian
generally accepted standards for a review of interim financial statements by
the company's auditor, PricewaterhouseCoopers. Such an interim review consists
principally of applying analytical procedures to financial data, and making
enquiries of, and having discussion with, persons responsible for financial
and accounting matters. An interim review is substantially less in scope than
an audit, whose objective is the expression of an opinion regarding the
financial statements; accordingly, they do not express such an opinion. An
interim review does not provide assurance that they would become aware of any
or all significant matters that might be identified in an audit.

    FULL COMPANY

    To view the full company release, including images please refer to the
company's website www.oceanagold.com





For further information:

For further information: www.oceanagold.com


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