June 30th, 2004

STATE OF PAHANG; Malaysia - With gold production in excess of 100,000 ounces per year, the Penjom Gold Mine is the largest gold producer in Malaysia. Owned and operated by Avocet Gold Ltd., the Penjom Mine has become the latest gold mine in the region to place an order for a high capacity 300tph KC-XD48 Knelson Concentrator.

"We are extremely pleased to have been awarded this order," stated Grant Steward, M.D. of ConSep Pty., Knelson's Australasian representative and manufacturing licensee, in a conference call from Sydney, Australia.

"Over the years, Penjom has innovatively tried the full range of gravity equipment available to the market place in many applications. This new installation will replace a very complex gravity circuit with a simplified gravity circuit consisting of Knelson Concentrators only," added Steward.

The new 300tph Knelson will result in making some equipment redundant, including multiple in-line pressurised jigs, a complete bank of cleaner spirals, a large continuous intensive leach reactor and a shaking table.

The new simplified gravity circuit will consist of a KC-CD30, which is the only part of the existing Penjom gravity circuit that will remain, and a new KC-XD48 which together will allow Penjom to treat the entire -2mm fraction of the cyclone U/F stream. The Knelson concentrate will then be further upgraded by shaking tables prior to final smelting.

The KC-XD48 concentrator will be configured using Knelson's recently developed concentrate cone selection and configuration system known as CONE*Logic. The CONE*Logic system is an application-driven approach to concentrating cone selection, design and supply.

"CONE*Logic is the result of +25 years of gravity concentration expertise we've amassed within our organization," stated Doug Corsan, VP Sales. This selection system enables us to work with our clients to configure a concentrating cone that is tailored to their specific application. It's an extremely powerful approach that has changed the way we look at gravity circuit design."

The key considerations in the CONE*Logic selection system include: optimal gravity effort, water balance, maximum capture area, ore abrasivity, target concentrate grade and mass, GRG (gravity recoverable gold) value and Au size distribution. Most of this information is derived as a result of a standard GRG test and the modelling outputs generated by KC*MODPro.

In the case of Penjom, the GRG laboratory testwork indicated that a FLEX*Flo cone cast in KNEL*Thane 220R ultra high wear resistant urethane with FF-R01R ring configuration will provide the Knelson Concentrator with the optimum inner cone recovery performance on the Penjom Ore. The unit will be delivered in mid-July and commissioning is slated for August 2004.

Knelson Gravity Solutions (KGS) caters to global clients requiring gravity concentration expertise and turnkey processing solutions. KGS provides gravity testing, circuit modeling, process development, detail engineering, procurement, fabrication, installation and commissioning services for fully integrated modular gravity circuits.

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