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A requirement of the $40M convertible notes issued to fund the acquisition of Paddington was a
hedging strategy to provide credit providers comfort over the company’s future cash flow.

Accordingly, Norton sold forward 330,000 oz at an average rate of A$875 oz. The company also
purchased 145,000 oz of gold put options at A$760 per oz covering the period to June 2010.

As at June 2008 Norton has sold forward 280,000 oz at an average A$875 as follows:

Financial Year


2009
2010
2011
2012

Volume
(oz)

70,000
70,000
70,000
70,000

Price
(A$/oz)

875
875
875
875