Equigold Shareholders Approve Merger With LGL

Lihir Gold Ltd (TSX: LGG)(ASX: LGL)(NASDAQ: LIHR) (“LGL” or “Lihir”) is pleased to announce that the merger of Lihir and Equigold NL has been approved overwhelmingly by Equigold shareholders.

At a meeting in Perth to consider the proposed merger, 94.29% of shares voted were in favour of the Scheme of Arrangement.

“This is an excellent result for both LGL and Equigold,” said Chairman Ross Garnaut.

“It is gratifying to see Equigold shareholders strongly supporting the Scheme and recognizing the potential in the new merged group. The union of these two companies will create a major gold producer with an attractive growth profile, low cost structure and more diversified operations,” he said.

“By the end of 2008, we expect to have four mines in operation in three countries, producing at an annual rate of more than 1.2 million ounces of gold.

“We are pleased to bring Equigold’s shareholders on to the LGL register and look forward to sharing with them in the future development of the mines at Lihir, Ballarat, Mt Rawdon and in Ivory Coast,” he said.

LGL CEO Arthur Hood also welcomed Equigold’s 150 employees who bring with them a range of expertise and experience and a proud track record of consistent delivery.

“The addition of these people will strengthen our skill base. In particular, I am pleased to have the Equigold CEO Mark Clark and Chief Operating Officer Morgan Hart joining the management team,” he said.

“The combination of LGL and Equigold promises to deliver excellent returns for shareholders in future years. The Bonikro mine will be coming into production early in the second half of 2008, and then at the end of the year, Ballarat will commence commercial production. This will add to the strong growth coming through at Lihir Island, following the expansion of the process plant last year, and the very consistent, low cost performance of the Mt Rawdon mine.

“Together, this portfolio of producing mines will provide diversified cashflow streams for the company, improved operational consistency and reduced overall risk.

“Beyond 2008, we have significant expansion plans under way at Lihir Island, and major potential for expansion at Ballarat and in the Ivory Coast. So the merged group represents a very attractive investment and I am pleased to see Equigold shareholders recognizing that potential,” Mr Hood said.

The next step in the merger process will be to obtain final Court approval, with the Second Court Hearing scheduled for June 3. The full schedule is set out in the following table:

 ———————————————————————– —– Second Court Hearing Date for approval of the Scheme                  3 June —————————————————————————- Scheme Effective Date. Suspension of Equigold NL Shares from          4 June  trading —————————————————————————- Trading of New Lihir Shares on ASX on a deferred settlement basis     5 June —————————————————————————- Record Date for determining entitlements to Scheme Consideration     12 June —————————————————————————- Implementation Date – Allotment of New Lihir Shares to Scheme        17 June  Participants —————————————————————————- Trading of New Lihir Shares on ASX on a normal settlement basis   18(i) June —————————————————————————- All dates are indicative only and may change. (i) The date for commencement of trading of New Lihir Shares on a normal settlement basis has been revised from that published in the Scheme booklet. 

 Contacts: LGL Joe Dowling General Manager Corporate Affairs +617 3318 3308  LGL Josie Brophy Communications Officer +617 3318 3317 Website: www.lihir.com.pg

SOURCE: Lihir Gold Limited