1 Ma n a ge men ts D is cus si o n a nd A n a ly si s o f F in a n ci a l Co nd i t ion a n d R esult s o f Oper a ti o n s o f St And rew Goldfiel ds L td This ma n a ge me n t s disc us s i on a n d a n a l ys is M D A of S t And r ew G old field s L t d S AS or th e C omp a n y a n d o pe r a tin g a s S AS G old mines s hou l d b e r e a d i n c o n ju n c tion wi th the C on de n s e d Int e r im F in a n c ia l R e p or t F ina nc ia l Rep o r t fo r th e s e c on d q ua r t e r e n d e d J un e 30 2013 a n d is in t e n d e d to p r ovi de th e r e a de r wi th a r e v ie w of th e fa c tor s tha t a ff e c t e d the C o mpa n ys p e r fo r ma n c e duri n g th e thr e e a n d s ix mon ths e n d e d J u n e 30 20 13 a n d 201 2 a n d s hou l d a l s o b e r e a d i n c on juncti on wi th SA S a udit e d fi n a n c ia l s ta te m e n ts a n d r e l a te d n o te s a s a t a n d fo r the y e a r e n d e d De c e mb e r 31 2 01 2 a l l of whic h a r e p r e pa r e d und e r the pr in c ipl e s of the I n t e r n a tion a l F in a n c ia l R e por tin g Sta n da r ds IFR S Unl e s s oth e r wi s e in dic a te d a l l dol l a r a moun ts s ta te d i n this M DA a r e de n omi n a t e d in thous a n ds o f C a n a dia n dol l a r s othe r tha n p e r s ha r e a n d p e r u n it a mo unts The disc us s ion a n d a n a l ys is wi thin this M DA a r e e ff e c tive a s of A u gus t 13 2 013 This doc u me n t c on ta i n s fo r wa r d l ook in g s ta te me n ts a n d fo r wa r d l ook in g in for ma ti on Pl e a s e r e fe r to th e c a utio n a r y l a n gua g e u n de r F or wa r d L ook in g Inf o r ma tio n o n pa ge s 29 30 of t his M DA T he f ol low i n g a bb re v i a t i o n s a re u s ed t o d es cr i be t he p er i o d s u n d er re v i e w t hro u g hou t t hi s M D A Thr ough out t his doc um e n t t he Hol t Hol l ow a y a n d Hisl o p M in e s a n d th e Ta yl or P r oj e c t a r e r e f e r r e d to a s H olt Hol l o wa y H isl op a n d T a yl o r r e s pe c t ive l y TAB L E OF C ON TEN TS High l ights 2 O p er a t i ng a nd F in a nci a l S u mm a r y 3 O ver vi ew 4 S u mm a r ized Q u a r t er l y Re su l t s 4 O p er a t io n a l Re vie w 7 Hol t M in e 7 Hol l ow a y M in e 9 Hisl op M in e 10 Ex p ens es 12 Inco me a nd Mi nin g T a x es 14 Ex p l or a t io n Pr oj ec t s R evie w a nd Up d a t e 15 N on G AAP Me a su r es 16 L iqu id it y a nd C a p it a l Res o u r ces 20 O u t l oo k fo r 2 01 3 22 F ina nc ia l I nst r u men t s a nd O t h er Ins t r u me nt s 23 Uncer t a int ies a nd Risk F a c t or s 23 C r it ic a l Acc ounti ng Est i ma t es a nd P olicie s a nd C h a n g es in Acc ounti ng P olicie s I ncl u d ing Init i a l Ad op t io n 25 Ma n a g emen t s Rep or t o n I nt er na l C on t r ol O v er F in a ncia l R ep or t in g 28 F or w a r d L oo k ing Inf or m a t io n 29 Ad d it io n a l I nfo r ma t io n 30 A b b r e v ia t io n P e r io d A b b r e v ia t io n P e r io d FY 2 0 1 3 J a n u a r y 1 2 0 1 3 De c e m b e r 3 1 2 0 1 3 Y T D 2 0 1 2 J a n u a r y 1 2 0 1 2 J u n e 3 0 2 0 1 2 Y T D 2 0 1 3 J a n u a r y 1 2 0 1 3 J u n e 3 0 2 0 1 3 Q 4 2 0 1 2 O c t o b e r 1 2 0 1 2 De c e m b e r 3 1 2 0 1 2 H 2 2 0 1 3 J u ly 1 2 0 1 3 De c e m b e r 3 1 2 0 1 3 Q 3 2 0 1 2 J u ly 1 2 0 1 2 S e p t e m b e r 3 0 2 0 1 2 Q 4 2 0 1 3 O c t o b e r 1 2 0 1 3 De c e m b e r 3 1 2 0 1 3 Q 2 2 0 1 2 A p r il 1 2 0 1 2 J u n e 3 0 2 0 1 2 Q 3 2 0 1 3 J u ly 1 2 0 1 3 S e p t e m b e r 3 0 2 0 1 3 Q 1 2 0 1 2 J a n u a r y 1 2 0 1 2 M a r c h 3 1 2 0 1 2 Q 2 2 0 1 3 A p r il 1 2 0 1 3 J u n e 3 0 2 0 1 3 Q 4 2 0 1 1 O c t o b e r 1 2 0 1 1 De c e m b e r 3 1 2 0 1 1 Q 1 2 0 1 3 J a n u a r y 1 2 0 1 3 M a r c h 3 1 2 0 1 3 Q 3 2 0 1 1 J u ly 1 2 0 1 1 S e p t e m b e r 3 0 2 0 1 1 FY 2 0 1 2 J a n u a r y 1 2 0 1 2 De c e m b e r 3 1 2 0 1 2