19 September 2014

(refer ASX announcement 4 March 2014).

Preliminary assessment of the pre-final tender mining costs resulting from these submissions, indicates a potential reduction of up to 20% for overall open pit mining costs compared to the mining costs utilised in the PFS. The higher PFS mining cost structure was also applied to the recent mining schedule developed for the Paddington co-operative ore processing scenario (refer ASX announcement 29 August 2014).
The significant reduction in the open pit mining costs, when applied to the multi-pit operation planned for the Project, has the potential to both increase the size of the open pits, in particular at depth allowing access to additional higher grade sulphide material, and improve
cash flows from the operations.

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Excelsior Gold Limited ABN 38 123 629 863

Address: Unit 2, 124 Stirling Highway, North Fremantle WA 6159 Postal:PO Box 520, North Fremantle WA 6159 Telephone:08 9335 7770 Facsimile: 08 9335 6231

Excelsior Gold's Chairman, Mr Peter Bird, said: "We are seeing significant competition for long-term mining contracts in a still reasonably challenging market. A considerable reduction in mining and earth moving costs opens up the possibility for Excelsior Gold to increase the mine tonnages hence expanding mine life, or maintain the existing mining profile and transfer the savings to higher margins."
Excelsior Gold will continue to work in conjunction with its consulting engineers, Auralia Mining Consulting, to assess the pricing submissions with a view to narrow down the preferred submissions by the end of September 2014. Further engagements with the selected contractors will commence shortly thereafter leading to the preparation of final submissions based on revised open pit mine optimisations and pit designs for assessment by the Company by the end of October 2014.
For further information visit http://www.excelsiorgold.com.au/www.excelsiorgold.com.auor contact

Excelsior Gold Limited

David Hamlyn
Managing Director
T: + 61 8 9335 7770
E: mailto:dhamlyn@excelsiorgold.com.audhamlyn@excelsiorgold.com.au

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Excelsior Gold Limited ABN 38 123 629 863

Address: Unit 2, 124 Stirling Highway, North Fremantle WA 6159 Postal: PO Box 520, North Fremantle WA 6159

Telephone: 08 9335 7770 Facsimile: 08 9335 6231

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