Centamin Egypt Reports on Activities in the Quarter Ended December 31, 2008

Centamin Egypt Limited ("Centamin" or "the Company") (TSX:CEE)(ASX:CNT)(AIM:CEY)
is providing the following report on its activities in the quarter ended
December 31, 2008.


Highlights

Construction and Development

- Commissioning and gold production remains on track for Q2 2009

- Site works advancing well across all fronts with sound progress in crusher and
mill areas


- Power station engine infrastructure delivered and in place with structural
steel erection underway


- 25km seawater pipeline earthworks and piping completed

- Construction of non-process buildings proceeding

Operations

- Award of blasting permits ahead of scheduled mining operations in early 2009

- Underground tender process underway with site visits from shortlisted
underground mining contractors


- 13,120m of diamond drill ("DD") and 538m of reverse circulation ("RC")

- 375,000m of drilling has been completed to date

- Drilling continues targeting the Hapi Zone, Amun Deeps, the deeper "Horus"
Zone and the northern Pharaoh Zone


- Grade Control RC drilling - 19,112m completed to date

- Regional Exploration continues

- Deepest hole drilled at Sukari to date (1,176m) stopped due to rig capacity in
porphyry mineralisation


- Significant intersections received for the quarter include:



Amun Deeps (9900N - 10700N)    Pharaoh Zone (11200N - 12100N)
- D1388 - 20m @ 7.39g/t Au     - RCD571 - 27m @ 1.31g/t Au & 48.3m
- D1391 - 189m @ 2.51g/t Au      @ 1.42g/t Au
- D1392 - 14m @ 6.28g/t Au     - D1393 - 6m @ 4.03g/t Au
                               - D1397 - 4m @ 7.84g/t Au
                               - D1400 - 47m @ 1.27g/t Au



Corporate

- During January 2009, the Company entered into a C$60m bought deal arrangement
with a syndicate of underwriters led by Thomas Weisel Partners Canada Inc


http://media3.marketwire.com/docs/centaminphoto130.pdf

SUKARI GOLD PROJECT CONSTRUCTION

The project remains on track for the second quarter of 2009 commissioning and
production.


Current activity continues to focus on the civil works, power generation, CIL
tank erection, tailing storage facility and the seawater pipeline. There has
been a significant increase in personnel throughout the quarter in order to
advance civil works and associated structural steel templates. Construction
activities continue to progress across a number of fronts including: primary
crusher, Conveyor 01 ("CV01"), reclaim tunnel, mills, CIL tanks, gold room,
reverse osmosis ("RO") plant, non process buildings, fuel farm, power station
and sea water pipeline.


Progress pictures can be viewed on the Company's website - www.centamin.com.

Project Engineering and Design

MetPlant Engineering Services Pty Ltd, an Australian based company, continued
with engineering and design work for the Process Plant. SENET in South Africa
have made significant progress on the design scopes of pipe work and associated
installations.


Crusher & Conveyor Systems

Crusher concrete works have advanced significantly with the completion of
crusher civil works in early January 2009. Structural steel installation has
commenced and will be the focus of the crusher area during the first quarter of
2009. Structural work on conveyor system "CV01" was completed during the
quarter.


Reclaim and Grinding Systems

All civil works relating to the reclaim tunnel were completed during the quarter
and backfilling of the top bunker is complete. Steelwork for the first apron
feeder was erected during the quarter following satisfactory completion of
reclaim tunnel steel assembly.


Installations are underway with all mill plinths and jacking points being in
place. SAG Mill and Ball Mill #1 shells and heads have been erected with focus
on mill fasteners scheduled for early in the first quarter of 2009.


CIL Circuit & Gold Recovery

Civil works have progressed well during the quarter with all retaining walls
complete and work nearing completion of cyclone feed pump bases. Structural CIL
tank erection works is 98% complete with top of tank steel to be erected early
in the next quarter. Gearboxes are ready to be installed upon completion of top
of tank steelwork.


Gold room foundations were completed during the quarter with steelworks and
precast tilt up panels scheduled for next quarter.


Power Plant

Erection of structural steel is well advanced following the completion of Power
Plant civil works and installation of the Cummins and MAK engines during the
quarter. All four engines are now in position in the main power station with a
further six engines in place within the second Cummins power station facility.
Delivery of piping and valve installations are expected early in the first
quarter of 2009.


Kori Kollo Process Plant Refurbishment

Refurbishment of the Kori Kollo processing facility continues to progress well.
Sand blasting and painting of key structures has advanced significantly and
activity is currently focussed on bearing housings for pinion lubrication
systems and fitting of new bearings to intertank screens. Refurbishment of apron
feeders is practically complete with feed sprockets being fitted.


Site Buildings and Infrastructure

During the quarter, the reverse osmosis plant steelworks were completed with
building erection and equipment pedestals in place.


Fabrication of fuel storage facilities including a required 500m3 diesel tank
was awarded during the quarter. Civil works for the fuel storage and
distribution facility were substantially completed during the quarter.


Site buildings including the administration and plant site offices were
completed. Design works were completed on the warehousing and mobile fleet
maintenance buildings and infrastructure, with building fabrication and erection
scheduled for the first quarter of 2009.


Tailings Storage Facility ("TSF")

Knight Piesold Pty Ltd has been appointed to carry out the design and
construction supervision of the TSF. Bulk earthworks for the TSF have now been
completed with only drainage channels to be completed. HDPE liner has been
delivered to site and lining has commenced following the completion of lining
with gypsum.


Seawater Supply System

The Seawater Supply System will draw in and transport raw seawater, via a staged
pumped pipeline, to the Sukari site where it will be processed through a
desalination plant for end use as process plant water, mine site dust
suppression water and, after secondary processing and treatment for construction
camp, drinking water.


Earthworks associated with the seawater pipeline were completed during the
quarter. Pressure testing of pumping stations is progressing and remaining works
include pipe tie-ins at pumping stations in conjunction with final civil works.


To view the Progress Picture: Primary Crusher civil works nearing completion,
please view the following link:
http://media3.marketwire.com/docs/progresspica0130.pdf


To view the Progress Picture: Power Station civil and structural works nearing
completion with 4 x sets in place, please view the following link:
http://media3.marketwire.com/docs/progresspicb0130.pdf


To view the Progress Picture: SAG Mill and Ball Mill 1 in place, please view the
following link: http://media3.marketwire.com/docs/progresspicc0130.pdf


EXPLORATION

During the Quarter, resource definition drilling continued in the south of the
Sukari porphyry from Wadi Fault, targeting the down thrust extension of the Amun
Deeps porphyry block and the deeper "Horus" Zone beneath Amun Deeps and the Hapi
Zone. In the northern Pharaoh Zone, drilling targeted the upper parts of the
porphyry; near surface west dipping Cleopatra Zones; the Hapi Zone and deeper
mineralisation zones, moving north of 11200N. Drilling will continue with five
contractor and three Pharaoh Gold Mines NL ("PGM") rigs in all of the above
areas for the foreseeable future.


Several diamond core geotechnical holes were also completed for the underground
mine decline planning, and RC water bore pilot holes were completed at the
planned process plant water intake borefield on the coast.


To view Figure 1 - Schematic Long section - 10650E; showing main target areas
and recent high grade drilling results - Amun Deeps, Downthrust Zone and Pharaoh
Zones, please view the following link:
http://media3.marketwire.com/docs/ceefig10130.pdf


Amun Zone (9900 - 10700N)

Drilling continued to infill the Amun Deeps porphyry block and test the
continuity of the west dipping Downthrust zone extending from the base of it.
Following up strong mineralisation in D1384 on 10125N (reported last quarter),
hole D1388 at 10050N intersected a high grade zone at the western extension of
the footwall contact of the Amun Deeps porphyry, in the downthrust zone, of 20m
@ 7.39g/t Au from 439m (Figure 2 & Table 2). Mineralisation is still open along
strike and at depth in this area.


To view Figure 2 - 10050N - D1388 - high grade mineralisation in the downthrust
zone at the base of Amun Deeps porphyry block, please view the following link:
http://media3.marketwire.com/docs/ceefig20130.pdf


Hole RCD1391 on 10475N was drilled to test and infill resource blocks in the
Hapi Zone and Amun Deeps block and continue through to the Horus Zone. Results
have been received for the Amun Deeps block, essentially all mineralised,
returning 189m @ 2.51g/t Au from 356m with a high grade zone at the hanging wall
contact (Figure 3 & Table 2). The Horus Zone porphyry was successfully
intersected from 860m downhole, intercalated with dacite dykes and strongly
altered zones of serpentinitic rocks, assay results are awaited.


To view Figure 3 - Section 10475N - hole RCD1391 displaying the broad high grade
intersection in the Amun Deeps Block and a thick mineralised porphyry in the
Horus Zone, assays awaited, please view the following link:
http://media3.marketwire.com/docs/ceefig30130.pdf


Horus Zone

Several holes greater than 900m depth have now been drilled into the Horus Zone
porphyry block beneath the Main and Amun Deeps porphry blocks. Over 200m of
north - south strike, it appears to be a block some 400m down dip thickness
(open at depth) and steeply east dipping (apparent dip 75 degrees). The across
strike thickness is around 150m, also open to the east. Assays to date have
shown it is weakly though consistently mineralised, typically around 0.4g/t Au
average grade, with sporadic, narrow +1g/t assays in higher sulphide and
brecciated/sheared zones. The Horus porphyry is similar to the Amun Deeps and
Main porphyry, but is more strongly silicified, giving it a massive, glassy
appearance. Higher grades seem to occur at the upper contact shear zone, along
the Downthrust Zone.


Hole RCD1187 on 11450N appears to have intersected these higher Au grades at the
sheared top part of the Horus Zone, possibly the intersection of it and the
Downthrust Zone (Figure 4 & Table 2). The hole could not continue due to ground
conditions, so RCD1391 was continued beneath it to test the full width of the
Horus Zone. Drilling was terminated in serpentinites and sediments, indicating
the possible footwall contact.


To view Figure 4 - 10450N RCD1187; showing mineralisation in the upper portion
of the Horus Zone, please view the following link:
http://media3.marketwire.com/docs/ceefig40130.pdf


Drilling has intersected the Horus Zone from 10350N to 10525N and so far
indicates the zone is a thick and continuous unit. Mineralisation is open in all
directions, and further wide spaced holes are planned to the north and south
along strike to test continuity and for areas of higher grade. There is still
strong potential to continue defining the Sukari mineralisation system at depth
and along strike, and to locate higher grade structures within the massive
silicified porphyry block. Drilling is also planned to infill and track possible
porphyry mineralisation between high grade zones such as the 111m @ 15.1g/t Au
in RCD553 on 11100N, south to hole D1280 (35m @ 164g/t Au) on 10575N.


Pharaoh Zone (11200N - 12100N)

Drilling continued during the quarter in the Pharaoh Zone, targeting infill and
along strike extension of the up-dip, high grade Hapi Zone mineralisation, and
deeper high grade zones at the base and contact of the main porphyry to the
sedimentary country rock package.


Hole RCD571 on 11450N intersected moderate to strong, thick zone of
mineralisation at the footwall contact (Table 2), deeper and down dip of the
Hapi Zone, and 50m to the north of a previous high grade zone intersected in
RCD756 (58m @ 3.76g/t Au from 791m). A 50m thick porphyry unit below the initial
footwall contact returned 48.3m @ 1.42g/t from 763.7m. This zone is similar to
others in the area, showing the continuity of mineralisation at depth in the
Pharaoh Zone, and highlights conjugate west and east dipping mineralised
structures continuing to be significant throughout the Sukari porphyry.


To view Figure 5 - Sukari outcrop and porphyry outline, please view the
following link: http://media3.marketwire.com/docs/ceefig50130.pdf


Drilling also confirmed the continuity and extent of a thick, west dipping
central zone of mineralisation, higher up in the porphyry outcrop, generally
from 200 - 300m below surface, centred around 10650E. Hole D1408 on 11575N
intersected several anomalous Au zones in a thick mineralised envelope from 268m
(Table 2), similar to D1393 on 11475N (Table 2) and several other previously
drilled holes to the north and south.


Several holes have returned significant surface mineralisation, confirming the
previous drilling and interpretation of the strongly mineralised west dipping
Cleopatra structures. Holes D1402, 1405 and 1408 (Table 2) highlight this zone,
which is also related to recent hole D1400 (Table 2), 500m along strike to the
north.


Drilling will continue during the coming quarters, targeting these
mineralisation zones heading north along the drill tracks available in the
Pharaoh Zone.


REGIONAL EXPLORATION

Regional exploration work continued during the quarter, with mapping and
sampling completed in the north east corner of the licence area, and continuing
in a SW direction on wide spaced east-west traverse lines across the regional
shear in which Sukari sits, highlighting stronger alteration and structurally
complex zones with shear zones and quartz veining (Figure 6). 1,897 samples were
collected for the quarter, with over 3,800 completed in the programme in total.
Work has now been completed down to Kurdeman.


To view Figure 6 - Regional sampling programme - Assays and locations, please
view the following link: http://media3.marketwire.com/docs/ceefig60130.pdf


Mapping shows a generally north east striking rock package dominated by
intermediate dioritic to andesitic rocks, grading to felsic volcanics
(rhyolites, dacites) in the north east quadrant of the licence, with subordinate
granitic to granodiorite intrusive rocks north and east of Sukari Hill.
Intercalated sedimentary units, from fine grained siltstone and shales, to
sandstones and some greywacke units are intercalated with the igneous rocks,
mainly north and east of Sukari, to the licence margin. Minor but consistent
lenses of serpentinitic ultramafics occur to the north and east of Sukari Hill,
and in the south near Kurdeman. Interpretation and compilation of the mapping is
ongoing.


1,420 assays were returned during the period, with several strongly anomalous
results returned (Table 1). In addition to the regional wide spaced work,
exploration has focussed on the newly discovered prospect areas to the east and
south of Sukari at Quartz Ridge and the V Shears. These areas were covered with
more detailed mapping and chip-line sampling to test for width and tenor of
alteration and Au mineralisation. Several additional high grade assays were
returned from both areas, confirming the mineralised continuity along the 400m
east-west striking milky quartz vein and sheared gabbro - diorite trend at
Quartz Ridge (Figure 7). Additional high grades were returned from some quartz
veins and alteration 300m to the south. Interpretation of these zones is
ongoing, a drill test programme is being planned, as there is significant strike
length to the high grade assays, contained in a massive 1-2m thick quartz vein
and enveloping 1-2m of strongly altered and sheared dioriotic rocks.


To view Figure 7 - Quartz Ridge prospect, several additional high grade assays
were returned, confirming the mineralised continuity along 400m of strike,
please view the following link:
http://media3.marketwire.com/docs/ceefig70130.pdf


Sampling of the "V Shear" prospect was also completed. Results confirm strong Au
anomalism in two shear zones (Figure 8). Compilation, interpretation and field
checking of the mapping, alteration and mineralisation throughout the licence is
continuing.


To view Figure 8 - V Shear prospect, results confirm strong Au anomalism in two
shears, please view the following link:
http://media3.marketwire.com/docs/ceefig80130.pdf




Table 1 - Anomalous Geochemistry - Regional Rock Chip Samples
(greater than 0.5ppm Au) Sep - Dec 2008
-------------------------------------------------------------------
               Au_
        Rock  Ar1_
SAMPLE  type   ppm      UTM_N     UTM_E                  Comments
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
325929   GBD 0.761    2762639    676635        Southern Extension
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
325932   GBD  1.48    2762637    676640        Southern Extension
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
325946   GBD  7.51 2762641.25 676645.38        Southern Extension
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
325947   GBD  1.86    2762644 676643.44        Southern Extension
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
325984   GBD 0.759    2762669    676662              Infill Lines
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
328220   LST  3.87    2762723    676657        Northern Extension
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
328222   LST  1.29    2762721    676659        Northern Extension
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
328223   LST  8.17    2762718    676664        Northern Extension
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
328224   LST  3.49    2762720    676664        Northern Extension
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
328270    VQ  1.23 2762585.75 676567.88           SW Infill Lines
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
328273    Ux  2.82  2762591.5 676555.13           SW Infill Lines
-------------------------------------------------------------------
                                              V Shear - N-S Shear;
328274    Ux  1.78  2762585.5 676550.94           SW Infill Lines
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328307   GBD  1.93    2760274    677178          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328308   GBD  4.89    2760270    677160          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328331   GBD 0.772 2760219.25 677346.25          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328332    VQ  1.78 2760220.75 677345.81          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328352   GBD  4.76  2760279.5 677490.69                Main Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328353   GBD  4.47 2760280.25 677488.75                Main Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328354   GBD  1.26 2760279.75 677487.25                Main Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328358   GBD 0.968  2760280.5 677478.38                Main Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328359   GBD 0.764    2760281 677476.06                Main Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328360   GBD  3.04    2760281 677474.88                Main Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328361   GBD  4.02    2760281 677472.94                Main Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328362   GBD  2.25 2760281.25 677471.44                Main Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
328363   GBD 0.809 2760281.25  677469.5               Main Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
329208    VQ  26.7    2760283 677479.88          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
329227    VQ 0.608  2760253.5 677434.81          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
329252   GBD 0.724 2760231.75 677388.06          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
329279    VQ 0.949  2760217.5 677309.25          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
329280    VQ  1.82    2760222 677310.38          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
329281   GBD   7.5  2760223.5 677309.94          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
331272    VQ 0.555  2760220.5 677296.13          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
331273    VQ 0.527 2760222.25 677289.94          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
331274    VQ  0.74 2760224.25 677280.69          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
331362   GBD  1.04    2759897    677460            South of Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
331365   GBD 0.942    2759961    677508            South of Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
331366   GBD  1.17    2759968    677511            South of Vein
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
332371    VQ  0.54    2760309 677519.25          Infill Sampling
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
                                                 Infill Sampling -
332373    VQ  7.02 2760324.75 677534.06           east extension
-------------------------------------------------------------------
                                              Qtz Ridge Prospect -
                                                 Infill Sampling -
332374    VQ  13.4    2760329 677538.25           east extension
-------------------------------------------------------------------
                                                 Zone of altered
                                                       rocks/qtz
                                                   veins - south
333252    VQ  6.08    2758995    676818             of Qtz Ridge
-------------------------------------------------------------------
                                             V Shear - N-S Shear;
337548   GBD  2.33    2762796    676962       Northern Extension
-------------------------------------------------------------------
                                             V Shear - N-S Shear;
337559   GBD 0.507    2762793    676975       Northern Extension
-------------------------------------------------------------------
Notes: GBD - Gabbro-Diorite; Ux - Ultramafic; VQ - Quartz Veining;
       LST - Silica-Carb Alt Rock



Assay results were received for the five RC hole programme at Sukari North B
quartz vein prospect, confirming the tenor of the surface sampling of the quartz
veining and structural interpretation. Drilling intersected hard, massive
siliceous intermediate to felsic dioritic rock unit with minor felsic and mafic
dykes. A peak assay of 1m @ 9.96g/t Au from 15m was intersected in hole 4,
drilled north into the south dipping quartz vein-shear, west of the main quartz
lode. The 1m high grade assay was the quartz vein, in a 12m halo of 0.1 - 0.4g/t
Au alteration. Results are similar to previous work at nearby Sukari North
prospect, with higher (+1g/t Au) grade quartz veins and shear zones being hosted
in massive, siliceous brittle rocks with a weak and narrow alteration assemblage
being defined immediately adjacent to the structure.


GRADE CONTROL

Grade control ("GC") RC drilling continued during the quarter in the Amun Zone
and North Pharaoh Zone around 11500N and 12000N; testing the northwest dipping
Cleopatra mineralized structure to 1142RL. 1,693m was drilled during the
quarter, completing the planned programme on the available tracks and benches
pre-blasting. To date, 19,112m of GC drilling has been completed; 7,292m by the
PGM owned and operated Atlas Copco rig. Conditional simulation modeling of ore
benches from the available drilling data was completed. Results compare well
with the exploration drilling Multiple Indicator Kriging ("MIK") model in the
areas drilled, and confirms the structural interpretation of significant
mineralised north west and south east dipping structures.


MINING

Caterpillar, through their Egyptian authorised dealer Mantrac, was selected
through a competitive tender as the supplier of haulage trucks, articulated dump
trucks, excavators, graders and dozers for the project. The initial mining fleet
sufficient to commence mining pre-strip work will largely comprise:-




           CAT 785C Rear Dump Trucks (5)
           CAT 785C Water Truck (1)
           O&K RH120E Excavator (1)
           CAT D10T Dozers (2)
           CAT 14H Grader (1)
           CAT 16M Grader (1)
           CAT 365 BLME Excavator (1)
           CAT 988G Wheel Dozers (2)
           H180D Rock Breaker (1)



Atlas Copco has been selected to supply grade control and blast hole drilling
equipment. Initial fleet selection comprises:-




           ROC F9 Pioneer Drill (1)
           L8 MKII Production Drill (1)
           L8 MKII RC Rig (1)



The majority of the initial fleet is on site and has been utilised for plant
site and Tailings Storage Facility ("TSF") civil work. Plant site civil works
were completed during the first calendar quarter of 2008. Bulk earth works for
the TSF were completed during the second calendar quarter. During the current
quarter, haul roads, access ramps and run of mine ("ROM") pads have been
established in preparation for the commencement of mining activity next quarter.
A total of 475,000 bank cubic metre ("BCM") of material was moved throughout the
quarter.


Mining pre-strip activity and blasting is scheduled to commence in the first
quarter of 2009 following the receipt of permits for blasting during December
2008. Contracts have been finalised with the supplier of explosives and
mobilisation of explosives, accessories and the required emulsion plant was
completed in the quarter.


Further deliveries of mining fleet have been shipped from suppliers and are
scheduled for assembly and delivery at the Sukari site in the first quarter of
2009. The shipment includes a further five CAT 785C Dump Trucks and the second
O&K RH120E excavator which will be used to advance development activities during
2009.


UNDERGROUND MINE PLANNING

Studies were completed during the quarter with a continued focus on an initial
underground mining rate of 500,000 tonnes per annum with grade expected to be in
the range of 5g/t to 10g/t, thus bringing higher grade ore feed into production
earlier than otherwise would have been the schedule through surface mining.


During the quarter, underground mining contractors were invited to attend on
site meetings and a detailed tender process is currently underway with scheduled
closing of 31 January 2009. Following selection of the underground mining
contractor during the first quarter 2009, it is anticipated that underground
development will commence with the procurement and mobilisation of key personnel
and equipment.


To view Progress Pictures: Ramp Construction in the Amun Zone and
Commissioning of blast hole rig, please view the following link:
http://media3.marketwire.com/docs/progresspicde20130.pdf


CORPORATE

During the quarter, there were unforeseen, unprecedented and large movements in
the USD versus almost all other currencies. This unprecedented and rapid shift
in foreign exchange markets impacted the Company through its substantial
Canadian dollar holdings. As a result, the Company incurred a US$20.5M
unrealised foreign exchange loss during the quarter (at one point, the
unrealised foreign exchange loss was as high as US$26M). The Company has always
held a policy of not hedging its currency positions and to date this policy has
been attributable for unrealised foreign exchange gains of US$13M over the past
two financial years.


However, potential crystallisation of the unrealised foreign exchange position
incurred in the current quarter may have required the Company to proceed with a
plan to reduce a combination of exploration, underground development and capital
expenditure associated with mining fleet, and possibly deferral of expenditure
for the stage two sulphide plant, in order to be fully funded through to the
completion of Sukari Process Plant construction.


These positions were evaluated throughout December, and in January the Board
resolved that if the equity market was supportive, then a small capital raising
was the preferred funding option. As such, on 20 January 2009, the company
entered into an agreement with a syndicate of underwriters led by Thomas Weisel
Partners Canada Inc under which the underwriters agreed to buy 92,308,000
ordinary shares (the "Ordinary Shares") from Centamin Egypt Limited on a
bought-deal basis and sell them to the public at a price of C$0.65 per Ordinary
Share. The Company also granted to the underwriters an over-allotment option to
purchase up to an additional 13,846,200 Ordinary Shares at the same price,
exercisable by the underwriters in whole or in part for a period of 30 days on
or following the closing of the offering. The gross proceeds raised from the
offering will be C$60,000,200 (C$69,000,230 if the over-allotment option is
exercised).


Centamin Egypt Limited intends to use the net proceeds of the offering for the
continued development of the Sukari Gold Project, underground development,
exploration and working capital purposes. The Company is currently debt free,
unhedged and able to aggressively pursue further exploration and development
activities, including the underground development of the high grade Amun Deeps
zone.


To minimise future foreign exchange losses, the Company is currently forecasting
currency use to cost of completion, and plans to convert the proceeds of the
offering to those currencies following the closing of the issue.


SUKARI GOLD PROJECT (BACKGROUND)

Centamin is a mineral exploration and development company that has been actively
exploring in Egypt since 1995. The principal asset of Centamin is its interest
in the Sukari Gold Project, located in the Eastern Desert of Egypt. The Sukari
Gold Project is at an advanced stage of development, with construction having
commenced in the second quarter of 2007 and first gold production expected
during the second quarter of 2009.


A definitive feasibility study ("DFS") for the development to commercial
production of the Sukari Gold Project was completed in February 2007.


A summary of the findings of the DFS were:-



    - the DFS concluded that a 4mpta plant producing on average 200,000
      ounces per annum, over 15 years of mining, is economically robust; and
    - total Capital Construction costs are estimated at US$216m with average
      cash operating costs of US$290/oz (inclusive of 3% royalty) over the
      15 year mining period. As at 30 June 2008, the Company is of the
      opinion that due to increased commodities prices and currency
      movements since finalisation of the DFS that the capital estimate is
      at risk by 20%. Average cash operating costs have also been
      revalidated as at 30 June 2008 due the higher cost of consumables, and
      are forecast to be US$365/oz.



The Sukari Gold Project will be the first large-scale modern gold mine to be
developed in Egypt. Centamin's operating experience in Egypt gives it a
significant first-mover advantage in acquiring and developing other gold
projects in the prospective Arabian-Nubian Shield.


The Sukari Gold Project is hosted by a large, sheeted vein-type and
brittle-ductile shear zone hosted gold deposit developed in a granitoid
intrusive complex. Gold mineralization is hosted exclusively by a granitoid body
of granodiorite - tonalite composition referred to as the Sukari Porphyry. The
Company has entered into a Concession Agreement with the Egyptian Government
that provides for exploration and exploitation rights at the Sukari Gold Project
and whereby the Operating Company, owned 50% by the Company's wholly owned
subsidiary, Pharaoh Gold Mines NL and 50% by Egyptian Mineral Resource Authority
("EMRA"), has been established. Centamin is entitled to recover all of its
exploration, operating and capital costs from operating surpluses of the
operating company.


The Sukari Mining Licence covers an area of 160 km2 and is for a period of 30
years, with an option for a further 30 years.


The Sukari Gold Project has been scheduled for open pit mining over an initial
15-year period. During that time 78 Mt ore @ 1.5 g/t Au is expected to be mined,
producing 3.7Moz gold. A further 374 Mt of waste material is also expected to be
mined resulting in a waste to ore strip ratio of 4.8:1.


Ore and waste will be mined using conventional open pit mining methods. The
operation is planned to utilize selective mining techniques to separate ore and
waste. Provision has been made for drilling and blasting all primary and oxide
materials. Ore will be hauled to the run of mine pad next to the Processing
Plant and either direct tipped to the crusher or stockpiled for future reclaim
at the 4 Mtpa Process Plant throughput rate.


Mining will be progressed at an increased rate compared to processing;
approximately 5 Mt of ore is expected to be mined and 4 Mt of ore will be
processed annually. Operating at an increased mining rate allows the cut off
grade for feed to the Plant (referred to as "cutover" grade) to be increased in
the early years of the schedule. This in turn increases the metal output and
project revenue in these early years, thus increasing the discounted operating
surplus cashflow. According to current schedules, the low-grade stockpile
produced as a result of applying a cutover grade, will be processed after mining
has ceased, extending the current operating life of the project for a further
six years. As a result, the average milled grade during the mining period is
forecast to be 1.87 g/t Au, compared to 0.66 g/t Au for the low-grade stockpile.


Centamin will own and operate its mining fleet. The production fleet will be
based on 380 t class excavators and 150 t class rigid body trucks. At full
production, three production fleets, each comprising a single excavator and
sharing a maximum of 21 trucks, will be required. The capital cost of the
initial mining fleet has been estimated at US$49.3 million.


The proposed process route entails:-




      - crushing;
      - stockpiling crushed ore;
      - grinding;
      - flotation of a (bulk sulphide) concentrate containing the precious
        metals;
      - thickening of the concentrate;
      - fine milling of the concentrate;
      - leaching the precious metals from the concentrate in a dilute
        cyanide solution;
      - adsorbing the precious metals onto activated carbon;
      - stripping the precious metals from the carbon;
      - recovering the precious metals as gold dore; and
      - placing the concentrate tailing in the tailings storage facility.



Tailings from the treatment of weathered oxide ore early in the mining schedule
contain too much gold to discard. Hence, the bulk flotation tail is further
treated by:-





      - thickening;
      - leaching the precious metals into a dilute cyanide solution;
      - adsorbing the precious metals onto activated carbon;
      - stripping the precious metals from the carbon;
      - recovering the precious metals as gold dore; and
      - placing these tailings in the tailings storage facility.



Process water will be drawn from a bore field located adjacent to the Red Sea.
The seawater will be pumped approximately 25 km to the mine site to satisfy all
Process Plant and mining requirements. Most of the seawater will be pumped into
a raw water pond located near the Processing Plant, whilst around 500m3/day will
be pumped to a Water Treatment Plant for potable and fresh water supplies.


Power will be generated on site by a 28 MW primary power station, operated on
heavy fuel oil. A modern camp facility was constructed to cater for
approximately 700 occupants. The camp currently houses approximately 550
occupants, with another 150 occupants being housed in the old exploration camp.


On behalf of Centamin Egypt Limited

Josef El-Raghy, Managing Director/CEO

30 January 2009

Information in this report which relates to exploration, geology, sampling and
drilling is based on information compiled by geologist Mr Richard Osman who is a
full time employee of the Company, and is a member of the Australasian Institute
of Mining and Metallurgy with more than five years experience in the fields of
activity being reported on, and is a 'Competent Person' for this purpose and is
a "Qualified Person" as defined in "National Instrument 43-101 of the Canadian
Securities Administrators". His written consent has been received by the Company
for this information to be included in this report in the form and context which
it appears.


The assay samples were analysed by Ultra Trace Pty Ltd, Canning Vale, Western
Australia.


The information in this report that relates to mineral resources is based on
work completed by Mr Nicolas Johnson, who is a Member of the Australian
Institute of Geoscientists. Mr Johnson is a full time employee of Hellman and
Schofield Pty Ltd and has sufficient experience which is relevant to the style
of mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a "Competent Person" as defined in the
2004 edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in
"National Instrument 43-101 of the Canadian Securities Administrators". Mr
Johnson consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.


Refer to the Technical Report which was filed in March 2007 for further
discussion of the extent to which the estimate of mineral resources/reserves may
be materially affected by any known environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant issue.




Table 2 - Significant Intersections December 2008 Quarter
-------------------------------------------------------------------------
                                     EOH   FROM     TO  INTERVAL    Gold
HOLE     NORTH   EAST    DIP  AZI     (m)    (m)    (m)       (m)   (g/t)
-------------------------------------------------------------------------
RCD571   11450   10652   -88   90  867.8    687    714        27    1.31
-------------------------------------------------------------------------
                                    incl.   702    703         1    9.77
-------------------------------------------------------------------------
                                          763.7    812      48.3    1.42
-------------------------------------------------------------------------

-------------------------------------------------------------------------
RCD1187  10450   10742   -70  270  864.4    799    803         4    5.84
-------------------------------------------------------------------------
                                    incl.   800    801         1   20.00
-------------------------------------------------------------------------
                                            806    808         2   10.52
-------------------------------------------------------------------------
                                            817    820         3    1.41
-------------------------------------------------------------------------
                                            826  864.4      38.4    0.54
-------------------------------------------------------------------------

-------------------------------------------------------------------------
D1345    10350   10730   -80  270   1151    918    921         3    2.13
-------------------------------------------------------------------------
                                            932    975        43    0.87
-------------------------------------------------------------------------
                                           1004   1019        15    0.72
-------------------------------------------------------------------------
                                           1036   1057        21    0.69
-------------------------------------------------------------------------

-------------------------------------------------------------------------
D1388    10050   10550   -83  270  670.7    291    294         3    1.54
-------------------------------------------------------------------------
                                            439    459        20    7.39
-------------------------------------------------------------------------
                                    incl.   454    459         5   25.30
-------------------------------------------------------------------------

-------------------------------------------------------------------------
RCD1391  10475   10795   -75  270 1136.7    337    349        12    2.61
-------------------------------------------------------------------------
                                    incl.   346    349         3    6.49
-------------------------------------------------------------------------
                                            356    545       189    2.51
-------------------------------------------------------------------------
                                    incl.   367    372         5   34.52
-------------------------------------------------------------------------
                                    incl.   407    408         1    5.21
-------------------------------------------------------------------------
                                    incl.   435    438         3   10.31
-------------------------------------------------------------------------
                                    incl.   484    485         1   99.70
-------------------------------------------------------------------------
                                            846    848         4    7.90
-------------------------------------------------------------------------

-------------------------------------------------------------------------
D1392    10525   10587   -86  270 1076.1    314    328        14    6.28
-------------------------------------------------------------------------
                                    incl.   323    328         5   14.30
-------------------------------------------------------------------------
                                            346    352         6    2.15
-------------------------------------------------------------------------
                                    incl.   347    348         1    7.52
-------------------------------------------------------------------------

-------------------------------------------------------------------------
D1393    11475   10650   -85  270  665.5     12     18         6    4.03
-------------------------------------------------------------------------
                                            230    235         5    1.07
-------------------------------------------------------------------------
                                            248    264        16    1.22
-------------------------------------------------------------------------
                                            284    289         5    1.02
-------------------------------------------------------------------------
                                            354    365        11    1.26
-------------------------------------------------------------------------
                                    incl.   356    357         1    7.41
-------------------------------------------------------------------------
                                            490    492         2    1.58
-------------------------------------------------------------------------

-------------------------------------------------------------------------
D1397    11500   10670   -75  270  631.9    233    237         4    7.84
-------------------------------------------------------------------------
                                    incl.   236    237         1   24.90
-------------------------------------------------------------------------

-------------------------------------------------------------------------
D1400    12050   10845   -25  270 390.92      5     52        47    1.27
-------------------------------------------------------------------------
                                    incl.    19     20         1    5.33
-------------------------------------------------------------------------

-------------------------------------------------------------------------
D1402    11525   10678   -83  270  810.2     29     50        21    1.61
-------------------------------------------------------------------------
                                    incl.    44     45         1    7.28
-------------------------------------------------------------------------

-------------------------------------------------------------------------
D1405    11550   10660   -75  270  675.8     48     58        10    1.96
-------------------------------------------------------------------------
                                    incl.    55     56         1   10.80
-------------------------------------------------------------------------
                                             71     79         8    1.11
-------------------------------------------------------------------------
                                            204    209         5    1.61
-------------------------------------------------------------------------
                                            235    247        12    1.12
-------------------------------------------------------------------------
                                            295    298         3    2.83
-------------------------------------------------------------------------

-------------------------------------------------------------------------
D1408    11575   10683   -87  270    788     21     23         2    1.35
-------------------------------------------------------------------------
                                             41     51        10    1.78
-------------------------------------------------------------------------
                                             55     58         3    1.92
-------------------------------------------------------------------------
                                             99    101         2    1.27
-------------------------------------------------------------------------
                                            302    311         9    1.41
-------------------------------------------------------------------------
                                            329    340        11    0.98
-------------------------------------------------------------------------
                                            351    353         2    2.08
-------------------------------------------------------------------------
                                            381    383         2    2.69
-------------------------------------------------------------------------
Note: Intervals shown in the table are down hole intercepts, drilled
      at high angles relative to the internal mineralized structures and
      the Sukari Porphyry; true widths do not apply or are not used in
      drilling the stockwork style mineralization at Sukari.