Placer Dome provides 2005 outlook All amounts in U.S. dollars VANCOUVER, Dec. 6 /PRNewswire-FirstCall/ -- Placer Dome Inc. (NYSE, TSX, ASX: PDG) today announced its operating outlook for 2005. Gold production is expected to total 3.7 million ounces in 2005, up from 3.6 million ounces forecast in 2004 due to the resumption of milling at the Golden Sunlight mine in Montana, and increased production at the North Mara mine in Tanzania and the Granny Smith mine in Australia. These increases will be partially offset by lower projected production at the Cortez mine in Nevada. Continued strong currencies against the U.S dollar are expected to result in higher production costs for 2005 in U.S. dollar terms. Cash costs are forecast to be between $250 and $260 per ounce, and total costs are expected to be in the $315 to $325 per ounce range, assuming prevailing foreign exchange rates. Copper production for 2005 is expected to total 430 million pounds, up from 415 million pounds forecast in 2004 due to higher recoveries at the Zaldivar mine in Chile and increased throughput at the Osborne mine in Australia. Cash costs are expected to be in the range of $0.60 to $0.65 per pound, and total costs are forecast at $0.75 to $0.80 per pound. "Our production costs will continue to be influenced by currency and input cost movements," said Peter Tomsett, Placer Dome President and CEO. "However, at prevailing gold and copper prices our margins remain healthy, which combined with forecast increased production will maintain financial performance." Capital expenditures are planned at $250 million in 2005. Deferred stripping expenditures are expected to total an additional $35 million. Exploration expenditures are forecast at $90 million, up from $75 million in 2004. Two-thirds of 2005 exploration spending will be directed toward exploration at existing mine sites. "Our investments in mine site exploration are delivering results, which will be reflected in our year-end reserve estimates," Tomsett said. "Given our recent successes and the opportunities in our portfolio, the increased budget in 2005 is fully warranted. In addition, we will be making key decisions in 2005 on our development projects in Nevada, Chile and the Dominican Republic." Placer Dome employs 13,000 people at 17 mines in seven countries. The Vancouver-based company's shares trade on the Toronto, New York, Swiss and Australian stock exchanges and Euronext-Paris under the symbol PDG. For further information please contact: Investor/Media Relations: Greg Martin, (604) 661-3795 Meghan Brown, (604) 661-1577 e-mail: Head Office Suite 1600, Bentall IV 1055 Dunsmuir Street (PO Box 49330, Bentall Postal Station) Vancouver, British Columbia Canada V7X 1P1 Tel: (604) 682-7082 Toll-free: 1-800-565-5815 On the internet: http://www.placerdome.com/ CAUTIONARY NOTE Some of the statements contained in this news release are forward-looking statements, such as estimates and statements that describe Placer Dome's future plans, expectations, objectives or goals, including words to the effect that Placer Dome or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "intends", "expects", "estimates", "may", "could", "would", "will" or "plan". Such forward-looking statements are made pursuant to the safe harbour provisions of the United States Private Securities Litigation Reform Act of 1995. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, mineral reserves, resources, results of exploration, reclamation and other post-closure costs, capital costs, mine production costs, taxes, and Placer Dome's financial condition and prospects, could differ materially from those currently anticipated in such statements by reason of factors such as the productivity of Placer Dome's mining properties, the speculative nature of mining exploration and development activities, changes in general economic conditions and conditions in the financial markets, including changes to the interest rate on borrowings, changes in demand and prices for the minerals Placer Dome produces, changes in the worldwide price of other commodities such as diesel fuel and electricity, the accuracy of Placer Dome's reserve and resource estimates and estimates of future production and future cash and total costs of production, litigation, environmental, legislative and other judicial, regulatory, political and competitive developments in domestic and foreign areas in which Placer Dome operates, technological and operational difficulties encountered in connection with Placer Dome's mining activities, mineral rights ownership in countries where Placer Dome's mineral deposits are located, including the effect of the South Africa Mineral and Petroleum Resources Development Act, labour relations matters, the effects of hedging instruments to protect against fluctuations in gold and copper prices and the risks of counterparty defaults, costs and changing foreign exchange rates and other matters discussed under "Management's Discussion and Analysis" or detailed in Placer Dome's filings with securities regulatory authorities. This list is not exhaustive of the factors that may affect any of Placer Dome's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Placer Dome's forward-looking statements. Further information regarding these and other factors which may cause results to differ materially from those projected in forward-looking statements are included in the filings by Placer Dome with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Placer Dome does not undertake to update any forward-looking statement that may be made from time to time by Placer Dome or on its behalf, except in accordance with applicable securities laws. DATASOURCE: Placer Dome Inc. CONTACT: Investor/Media Relations: Greg Martin, (604) 661-3795; Meghan Brown, (604) 661-1577, e-mail: ; Head Office: Suite 1600, Bentall IV, 1055 Dunsmuir Street, (PO Box 49330, Bentall Postal Station), Vancouver, British Columbia, Canada V7X 1P1, Tel: (604) 682-7082, Toll-free: 1-800-565-5815, On the internet: http://www.placerdome.com/

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