Lihir Gold Limited
ASX : LGL
NASDAQ : LIHR
TSX : LGG

Lihir Gold Limited

October 30, 2007 09:08 ET

LGL Increases Ballarat East Resource

BRISBANE, AUSTRALIA--(Marketwire - Oct. 30, 2007) - Lihir Gold Ltd (TSX:LGG)(ASX:LGL)(NASDAQ:LIHR)("LGL") has lifted its Indicated Mineral Resource estimate at the Ballarat East project by 27% to 305,000 ounces, following encouraging drilling and trial mining activities over the past year.

Ore in the Indicated Resource category has increased from 560,000 tonnes to 952,000 tonnes.

Inferred Mineral Resource has remained steady at 1.2 million ounces.

Gold grade of Indicated Resource has reduced from 13.4 g/t to 10.0 g/t. This was primarily because the focus of drilling efforts over the past 15 months has been to convert Inferred to Indicated Resources in the initial production zones of the mine. Drill access has therefore been limited to shallower, lower grade Inferred Resource areas accessible from the Sulieman, Prince and Woah Hawp Declines. This can be clearly seen in the long section below (to view map, please follow this link: http://www.ccnmatthews.com/docs/LGLmap.pdf).

The increase in resource was achieved despite the adoption of more conservative modelling parameters in the estimate which have led to much greater confidence in the resource model.

For example, resources located close to old mine workings which are considered to be difficult to access, or uneconomic, have been excluded. This greater conservatism reduced the resource by approximately 66,000 ounces.

The estimates assume a coarse gold upgrade of 25%, which compares to the results of test work suggesting a coarse gold upgrade of up to 50%.

The drilling program since the June 2006 resource statement has included 262 holes, for 44,000 additional drill metres. A total of 1521 assays have now been included in the Ballarat East resource, up from 1449 at June last year. This excludes 400 assays which were transferred to the inaccessible category. Significant results over the past 15 months have included the following:

Full drilling results have been released and are available on the LGL web site at www.lglgold.com.

In addition, drill results have demonstrated the stronger mineralisation from targets at depth, in line with expectations and reconfirming the geological model.

"This resource upgrade demonstrates we are making good progress in the development of the Ballarat East project," said LGL chief executive Arthur Hood.
"I am particularly pleased to see the growth in indicated category and tonnes of resource, which will provide us with greater certainty in mining.

"The work we have been doing at Ballarat confirms that this is a great deposit, commencing production in the second half of next year," he said.



Ballarat East Resource 2007

Indicated Mineral Resource
--------------------------------------------------------------
--------------------------------------------------------------
Coarse gold component Tonnes Grade (g/t) Ounces
--------------------------------------------------------------
0% 0.9Mt 7.5 0.23Mozs
--------------------------------------------------------------
25% 0.9Mt 10.0 0.31Mozs
--------------------------------------------------------------
50% 0.9Mt 15.0 0.46Mozs
--------------------------------------------------------------

Inferred Mineral Resource
--------------------------------------------------------------
--------------------------------------------------------------
Coarse gold component Tonnes Grade (g/t) Ounces
--------------------------------------------------------------
0% 3.0Mt 9.3 0.9Mozs
--------------------------------------------------------------
25% 3.0Mt 12.4 1.2Mozs
--------------------------------------------------------------
50% 3.0Mt 18.6 1.8Mozs
--------------------------------------------------------------

Previous Ballarat East Resource 2006

Indicated Mineral Resource
--------------------------------------------------------------
--------------------------------------------------------------
Coarse gold component Tonnes Grade (g/t) Ounces
--------------------------------------------------------------
0% 0.6Mt 10.0 0.18Mozs
--------------------------------------------------------------
25% 0.6Mt 13.4 0.24Mozs
--------------------------------------------------------------
50% 0.6Mt 20.1 0.36Mozs
--------------------------------------------------------------

Inferred Mineral Resource
--------------------------------------------------------------
--------------------------------------------------------------
Coarse gold component Tonnes Grade (g/t) Ounces
--------------------------------------------------------------
0% 3.3Mt 8.2 0.8Mozs
--------------------------------------------------------------
25% 3.3Mt 10.9 1.2Mozs
--------------------------------------------------------------
50% 3.3Mt 16.4 1.7Mozs
--------------------------------------------------------------


The information in this report that relates to Exploration Results, Mineral Resources and Exploration Potential is based on information compiled by Charles Carnie and Bradley Cox. Charles Carnie is an employee of Lihir Gold Ltd, is a member of the Australian Institute of Geoscientists and is a Competent Person under the definition of the 2004 JORC Code. Bradley Cox is an employee of Lihir Gold Ltd, is a member of The Australasian Institute of Mining and Metallurgy and is a Competent Person under the definition of the 2004 JORC Code. Both Mr Carnie and Mr Cox consent to the publication of this information in the form and content in which it appears. The term Mineral Resources are used in accordance with their definitions in the 2004 JORC Code, which is available at www.jorc.org.

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website (or press release), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 000-26860, which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml.



LIHIR GOLD LIMITED
Incorporated in Papua New Guinea
ARBN 069 803 998

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