November 18th, 2002

LANGLEY, Canada - Australian-based AGR Ltd. and appointed project engineers The Clough Group, have selected Knelson Gravity Solutions and ConSep Pty. as the key gravity circuit suppliers for the Boroo Gold Project located in Northern Mongolia.

The new gravity circuit consists of two fully automated Knelson KC-CD30 concentrators and a fully automated ConSep CS1000 ACACIA Reactor.

"We see this as a significant development as Boroo is the first Greenfield project that has selected both the Knelson Concentrator and the ConSep ACACIA Reactor since we established our global joint venture marketing agreement earlier this year," stated Knelson VP of Sales Doug Corsan.

The Clough Group will design and build a 1.75mtpa gold processing plant that will entail dismantling and refurbishing an existing plant located in Western Australia and shipping it to Mongolia for re-assembly.

"The fact that the client has chosen to integrate a brand new gravity circuit into this gold plant is a strong indication of the importance they have placed on the early and efficient removal of the gravity- recoverable component of the ore," added Corsan.

"When you consider that typically Knelson Concentrators installed in this duty will account for 40-50% of the total plant recovery and combine this with typical ACACIA Reactor efficiency of +98% on Knelson concentrates, all of a sudden you have created a very compelling and logical argument to combine these technologies."

The Boroo project is located 140 kms northwest of the capital of Ulaanbaatar and within 5 kms of the main road connecting Mongolia and Russia. Annual production from the open pit mine is forecast at 150,000oz/y at a cost of $162/oz. Cameco Gold Inc. holds 52% interest AGR Ltd.

Knelson Gravity Solutions (KGS) is a technical services division catering to international clients requiring gravity concentration expertise and turnkey processing solutions. KGS provides gravity testing, circuit modeling, process development, detail engineering, procurement, fabrication, installation, commissioning and project management services for fully integrated modular gravity circuits worldwide.

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