Strong Gold Demand Expected for 2010

Economic Uncertainty, Sovereign Risk in Western Markets and Appetite for Gold From Asia to Underpin Market

LONDON, May 26, 2010 - The World Gold Council ("WGC") expects that demand for gold will be
strong during 2010, driven by growing demand for jewellery in China and India
as well as an increase in European and US investment in the context of
continued economic instability, sovereign risk and the threat of a 'double
dip' recession.

According to WGC's Gold Demand Trends report, published today, demand in
India and China will continue to grow, driven by jewellery demand, in spite
of high local currency gold prices. In Q1 2010, India was the strongest
performing market as total consumer demand surged 698% to 193.5 tonnes.[i] In
China, demand proved resilient; demand increased 11% in Q1 2010 to 105.2
tonnes.

This strong demand is despite high local gold prices, which on 12 May in
India increased to Rs 56,032/oz, the highest level for the year, while at the
same time in China prices reached an all-time high of RMB8,480/oz, suggesting
that consumers in India and China are becoming accustomed to higher gold
prices.

Concerns over Greece's public finances and debt contagion fears in Europe
have led to strong buying in particular for gold coins, bars and gold
exchange traded funds (ETFs) during May which may show up in the Q2 2010
figures. While momentum in ETF tonnage paused during Q1 2010, gold ETF flows
started to rise strongly again in April and May as investors sought less
volatile investments in which to protect their funds against economic
turmoil. On 20 May, SPDR Gold Shares (GLD) held a record 1,200 tonnes, with a
value of US$46.88 billion.

Aram Shishmanian, CEO of the World Gold Council commented:

"Currently, European gold investment demand is exceptionally strong,
especially from German and Swiss investors. This is mainly attributable to
concern over public debt levels in the Eurozone and the potential
inflationary impact of the European Central Bank's (ECB) announcement of the
US$1 trillion rescue package to purchase Eurozone government bonds to address
the Greek debt crisis."

"With the global economic recovery still burdened by high and rising debt
levels in Western economies, as well as the renewed threat of recession
driving down the US dollar and equities, the outlook for gold as a liquid,
reliable asset class and as a store of wealth remains highly favourable."

According to the WGC, global jewellery demand in non Western countries
will continue to recover after reaching 470.7 tonnes in Q1 2010. Economic
recovery in Europe and the US will add to this demand, as a potential return
to restocking in the jewellery sector is likely, given that existing
inventories have been run down since the first half of 2009 to very lean
levels. This should provide fundamental support to the gold price.

Aram Shishmanian continued:

"The diversity of demand for gold, both by sector and geography ensures
that the outlook for gold remains strong for the remainder of 2010. Despite
increasing gold prices, consumers in China and India will continue to drive
market growth, particularly in jewellery. In Western markets, the uncertain
economic outlook and sovereign risk fears will add further impetus to growth
in investment as investors seek to protect wealth. In the instance that we
continue to see elevated levels of risk around the world, however, investment
demand will remain strong in 2010."

Whilst total investment demand during Q1 2010 fell in comparison with Q1
2009, this decrease was driven by the very strong level of demand in Q1 2009
for investment particularly ETFs. This exceptional activity created a bias
for the total demand figures for Q1 2010 when ETF demand paused. However, the
strong recovery in jewellery demand which was driven by China and India in Q1
2010, combined with recent high inflows into ETFs, has created a firm basis
for an optimistic outlook for the remainder of 2010.

    DEMAND STATISTICS FOR Q1 2010

    - While the volume of total identifiable gold demand was down 25% on Q1
      2009 levels at 760.2 tonnes, in US$ value terms, the decline was a
      more moderate 9%.

    - Consumers are more comfortable with a higher local price environment,
      borne out by demand in non-western markets where jewellery demand
      increased 43%.

    - Indian jewellery demand rose 291% to 147.5 tonnes, there was continued
      strong demand from China and signs of recovery in Turkey and the
      Middle East.

    - Net retail investment demand, which covers retail bar and coin demand,
      was 26% up on the first quarter of 2009 at 182.5 tonnes.

    - Industrial and dental demand was up 31% at 103.2 tonnes, driven by a
      solid recovery in the electronics and other industrial sectors owing
      to the improved economic conditions.

The full 2010 Q1 Gold Demand Trends report, which includes
comprehensive data for the first quarter 2010, can be viewed at:
www.mediacentre.gold.org

    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.

    ---------------------------------

    [i] According to figures compiled independently for WGC by GFMS Limited

For further information regarding Gold Demand Trends: Stephanie Mackrell, Head of Media Relations, World Gold Council, on +44(0)207-826-4763, or stephanie.mackrell at gold.org ; Clare Allison, Associate Director, MS&L, on +44(0)207-307-5342, or clare.allison at capitalmsl.com