Page 31 Page 30 Cont’d from pg. 28 current operating capacity of 2,000 tonnes per day and is processing ore from the T immins W est and Bell Creek Mines. An expansion of the mill to 3,000 tonnes per day from 2,500 is tar geted during the second quarter of 2013. The Bell Creek Complex also hosts a number of exploration properties, in - cluding V ogel, Marlhill, W etmore and others. The company’ s third gold complex is the Fenn-Gib project, located approx - imately 60 kilometres east of Bell Creek along the eastern extension of the Destor Porcupine and Pipestone Fault Zones. Fenn-Gib is a potential lar ge-scale, open-pit gold project with a signifcant resource and excellent potential for further growth. Cash earnings from mine operations in 2012 were $53.7 million , an in - crease of approximately 70% from 201 1. Fourth quarter 2012 cash earn - ings from mine operations totalled $14.3 million compared with $8.7 million for the same period in 201 1. (In 2012, T immins W est Mine, includ - ing the T immin s Deposit and Thunder Creek, and Bell Creek Mine were in commercial production, while only T immins Deposit was in commercial production in 201 1) • Reported cash operating costs per tonne in 2012 of $1 15, below tar get levels. On a per ounce basis, cash op - erating costs were US$996 in 2012 (including $30 relating to royalties). For the fourth quarter 2012, cash op - erating costs totalled $124 per tonne or US$990 per ounce (including $36 relating to royalties). • During 2012, the compan y raised more than $220 million of capital to fund its growth by completing a roy - alty and equity investment transaction with Franco-Nevada Corporation for $50 million; completing a credit fa - cility with Sprott Resource Lending Partners (Sprott) for $70 million, with $35 million from a gold-linked note drawn on July 16, 2012 and a $35 mil - lion standby line drawn subsequent to year end; and issuing Convertible Un - secured Debentures for an aggregate principal amount of $103.5 million. Of the funds raised, US$50 million was used to repay a credit faci lity with UniCredit Bank AG. • Cash and gold bullion inventory at Dec. 31, 2012 totalled approximately $61 million, including $48.7 million of cash and the remainder in bullion inventory (valued at market prices). • Ef fectively managed capita l invest - ment during peak investment phase of T immins W est Mine development and mill expansion projects with to - tal investment of $160.7 million for projects and $9.1 million for explora - tion, in line with the company’ s tar get for total capital investment of $170 to $175 million. • Capital investment during the fourth quarter 2012 totaled $36.6 million, with $1.5 million invested in explora - tion. • Completed 1 1,900 metres of mine development at its T immins W est and Bell Creek mines, as well as approxi - mately 140,000 metres of delineation and infll drilling. Development and drilling during the year was com - pleted to bette r defne resources and outline mineralization in support of production growth and to optimize mine planning. • Extended T immins Deposit ramp to 790 Level and connected lower mine at Thunder Creek from 660 Level to 765 Level. Ramp at Bell Creek driven to 610 Level with drill drift estab - lished to support evaluation of the Bell Creek deposit at depth. • Completed phase one of company’ s mill expansion in December , in - creased processing capacity by 25% to 2,500 tonnes per day . LSG Cash earnings fr om mine operations in 2012 wer e $53.7 million, an incr ease of appr oximately 70% fr om 201 1