Troy Completes Sale of Sandstone Property to Southern Cross Goldfields

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

PERTH, WESTERN AUSTRALIA -- (Marketwire - March 26, 2013) - Profitable gold producer Troy Resources Limited (TSX:TRY)(ASX:TRY) is pleased to advise that it has completed the sale of its Sandstone property in the East Murchison region of Western Australia (excluding any nickel interests), to Australian gold development company Southern Cross Goldfields (ASX:SXG).


In accordance with the terms of the agreement, the Company has:

- received payment of A$2,281,000 (with environmental bonds in the amount of A$2.7 million to be replaced after completion, which will result in the retirement of Troy's existing bonds); and

- been issued with 43.665 million options for Southern Cross shares, with an exercise price of 10c per share and a term expiring on 10 October 2017.

In addition, the Company is entitled to receive a 2% uncapped NSR (net smelter return) royalty on all production from the Sandstone property.

Commenting on the announcement, Troy's CEO, Paul Benson, said: "We are delighted to have completed the sale of Sandstone to Southern Cross Goldfields which realises cash for the Company, but also retains exposure to royalties on future production from the Sandstone."

"In addition, Troy will emerge with a significant interest in Southern Cross Goldfields as it moves towards commencement of gold production at its Marda property, benefiting from the growth and re-rating of that company going forward."


ABOUT TROY RESOURCES

Troy Resources (TSX:TRY) (ASX:TRY) is a dividend-paying junior gold producer, with a clear growth strategy. The Company has two producing gold operations; Andorinhas mine in Para State, Brazil and the Casposo gold and silver mine, in San Juan province, Argentina.

Troy has an experienced Board and management team with a track record of successful, fast-track mine development and low-cost operations.

Troy has an annual exploration budget in excess of A$15 million and a proven track record in exploration discoveries and strategic acquisitions.

Following the development of the Casposo project in Argentina, Troy has entered a renewed growth phase which has lifted the Company's annual gold production above 100,000oz of gold per annum.

The Company is well positioned to continue its path of strong growth and profitable operations, and on track to achieve its vision of becoming a highly profitable mid-tier gold producer with a portfolio of quality long-life assets.

The Company maintains a robust balance sheet and forecasts continued strong cash flow from its current assets. Troy's gold production is unhedged; allowing its shareholders access to the full benefit of current and future gold price upside.

Troy is a responsible corporate citizen, committed to the best practice of health and safety, environmental stewardship and social responsibility.

ABN: 33 006 243 750



Contact

Troy Resources Limited
Paul Benson, Chief Executive Officer
+61 8 9481 1277
+61 8 9321 8237 (FAX)
troy@troyres.com.au
www.troyres.com.au

Cannings Purple
Annette Ellis / Warrick Hazeldine
Media Relations
+61 8 6314 6300
aellis@canningspurple.com.au