ASX ANNOUNCEMENT ASX Code: NAV 7 December 2010 STRONG OPERATIONAL CASH FLOWS AND UPDATE OF FINANCIAL POSITION Highlights Record gold production of 7,600oz in November Total gold sales revenue of $19.3 million during October & November Gold sales revenue for first week of December of $3 million (2,095oz) Cash balance of $17.7 million as at 8 December 2010 (excluding $6.55 million restricted cash) Debt reduced by $2 million to $13.187 million Newly established mid-tier gold producer, Navigator Resources Limited (ASX: NAV) (Navigator) is pleased to provide the following corporate update on the Companys recent cash flows and an update of the financial position. Since the September 2010 quarterly report, the financial position of the Company has strengthened substantially during the ensuing two months due to several important developments. As advised in the ASX announcement of 6 December 2010, gold production rose to 7,266oz in October and then to 7,600oz in November.

This has generated significantly increased deliveries during the month of November culminating with more than 2,000oz of gold being out-turned in each of the past two weeks. Gold sales revenue received for the two months of October and November totalled $19.3 million from 14,040oz* of metal sold at an average price of A$1,374/oz.

The gold sales revenue for the first week of December is $3 million from 2,095oz at A$1,432/oz.

All gold sales were at spot prices. Combined with this strong cash return, Bronzewing operational costs are running at budget levels to give a robust net cash inflow for the Company. On 25 October 2010, it was announced that the Company would undertake a placement of 50 million shares at 22 cents to occur in two tranches.

The first tranche was completed in early November and the second tranche, which was subject to shareholder approval at the AGM, was completed on 3 December 2010 raising a total of $11 million before costs. Due to this strong financial position, the Company made an early loan repayment of $2 million to its debt provider, RMB, on 1 December 2010 thereby reducing the outstanding debt amount to $13.187 million.

The Company will make another repayment of $1 million on 31 December 2010. In addition to reducing interest payments, the early debt repayments have allowed the Company to renegotiate the number of options required to be paid to RMB under the original terms of the loan agreement from the 23.4 million (as approved at the AGM) to 19.964 million, a reduction of almost 3.5 million options. As of tomorrow, 8 December 2010, following the receipt of the gold sale from last weeks delivery, the Companys cash balance will be approximately $17.7 million.

This amount excludes $6.55 million of restricted cash dedicated to secure environmental bonds.

With the inclusion of the restricted cash deposits, total cash is approximately $24.3 million. Please click here for the full announcement: http://www.navigatorresources.com.au/files/files/776_101207_NAVASX_Corporate_Update_Final.pdf
For further information David Hatch Managing Director Navigator Resources Tel: (08) 9226 5311 Email: James Harris Professional Public Relations Tel: (08) 9388 0944
ACN: 063 366 487 Ground Floor, 45 Richardson Street, West Perth WA 6005 Tel: (08) 9226 5311 Fax: (08) 9226 5411 Email: Website: www.navigatorresources.com.au
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