Gold Fundamentals Remain Strong Says WGC

LONDON, February 2 - Suggestions of a gold price 'bubble' do not take account of gold's market
fundamentals, which remain robust, said World Gold Council. The gold price
has been building steadily for nine consecutive years, ending 2009 25% higher
than on 31 December 2008 at US$1087.50/oz. The PM gold fix in London on
Monday 1 February, 2010 was US$1086.50/oz.

Aram Shishmanian, Chief Executive Officer, World Gold Council on gold's
trading range:

"The sustained break above the key US$1000/oz level came in early
September, with record highs being tested repeatedly over the remainder of
2009. The current trading range should not be regarded as an overnight spike,
but the result of a measured rise, supported by favourable and robust gold
fundamentals."

Marcus Grubb, Managing Director, Investment, World Gold Council on gold
demand:

"Investor flows, more specifically from western markets, have
provided a key means of support during the course of the credit crisis as
investors sought to diversify their exposures to other assets and protect
their wealth against the current ravages of the global economy as well as
future market shocks. These western investor flows appear to have remained
resilient even as the global economy has shown signs of recovery.
Furthermore, evidence suggests that even the more tactical elements active in
the gold market are being firmly driven by positive sentiment toward gold's
fundamentals. Further price support was provided by a progressive recovery in
jewellery demand after a pressured first quarter.

"The diversity in gold demand cited above is expected to
continue across multiple sectors and geographies. It is this diversity which
has helped insulate the precious metal from shocks impacting other assets.
More tangible signs of economic recovery in the second half of 2009,
especially in developing economies, also continue to provide support to the
gold price."

Aram Shishmanian, Chief Executive Officer, World Gold Council on gold
supply:

"Robust demand should also be viewed in the context of
constrained supply. Significant drivers of the gold price were also apparent
on the supply side in 2009. Traditionally, central banks have been suppliers
of gold, but this is starting to change. Over the course of 2009, the market
saw a structural shift in central bank reserve management as western central
banks slowed gold sales and developing nations added to their gold reserves.
Other factors contributing on the supply side were sizeable pockets of
de-hedging activity, although most major producer hedge books have now been
unwound, and a reduction in the supply of recycled gold to market from the
extremely high levels seen in the first quarter of 2009."

Notes to editors:

World Gold Council

World Gold Council's mission is to stimulate and sustain the demand for
gold and to create enduring value for its stakeholders. It is funded by the
world's leading gold mining companies. For further information visit
www.gold.org.

For further information please contact: Matt Graydon, Director, Corporate Communications, World Gold Council on: +44(0)207-826-4716, or e-mail matt.graydon at gold.org; Sonia Kribi, Capital MS&L on + 44(0)-207-307-5337, or email: sonia.kribi at capitalmsl.com