OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) (the “Company”) increased Second Quarter gold production to 67,541 ounces, bringing total Half Year production to 132,832 ounces.

In its Second Quarter and Half Year 2010 Results released today, the Company announced a 226% increase to its quarter on quarter cash operating margin to US$627 per ounce. This significant increase is due to closing out of the gold hedgebook in March 2010 resulting in the Company now selling 100% of its gold production into the spot market.Other highlights of the Second Quarter and Half Year Results include:

• Sold 67,347 ounces of gold during the quarter, an increase of 3.5% on First Quarter 2010, bringing the half year gold sales total to 132,388 ounces.
• Posted EBITDA (earnings before interest, taxes, depreciation and amortisation and excluding unrealised gains/losses on undesignated hedges) of $39.2 million for the Second Quarter.
• Achieved significant improvement on process recoveries to 84% across the New Zealand operations compared with 80.4% for the same period last year.
• Announced down-dip extensions to gold mineralisation at the General Gordon, Empress and Souvenir open pits at the Reefton mine (New Zealand) in April.
• Announced the discovery from a surface drilling program down-dip from Panel 2 at the Frasers underground mine (New Zealand) in May.
• Continued to evaluate various strategic and funding options for the Company’s Didipio Gold and Copper project in the Philippines, with good progress made during the quarter. Mine design optimisation studies are nearing the final stages of completion.

During the quarter, OceanaGold’s exploration program continued to deliver promising results at both the Reefton and Macraes goldfields on the South Island of New Zealand. Drill results from Reefton announced in April outlined the continuation of mineralization below the current planned pit floors leading to an expectation that the pit shells are likely to be expanded. A follow-up drill program commenced in April. At the Frasers underground mine, a new discovery of mineralization down-dip from Panel 2 was announced in May. This was followed up with results from a second program earlier this month that demonstrated good continuity of mineralization between Panel 2 and the new discovery.

OceanaGold CEO, Paul Bibby, said the Company’s Second Quarter and Half Year Results demonstrated a solid outcome with the expectation of further production increases in the second half of the year.

Mr. Bibby commented, “This was the first quarter in the Company’s history where OceanaGold has been hedge free and 100% exposed to the spot market. This has significantly increased our ability to strengthen the balance sheet and has provided the flexibility to direct investment back into the business as demonstrated by the recent announcement to increase the exploration budget at Reefton.”

“With forecast increased gold production in Quarters Three and Four 2010, OceanaGold is on track to further strengthen the business and unlock value within the Company.”

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