Troy Resources Limited: Corporate and Operational Update

NOT FOR RELEASE TO UNITED STATES NEWSWIRE SERVICES

PERTH, WESTERN AUSTRALIA -- (Marketwired - June 10, 2014) - Gold producer Troy Resources Limited (ASX:TRY)(TSX:TRY) (Troy or Company) gives the following update:


Casposo

The Company advises that a series of rockfalls have occurred in one of the high grade stopes within the INCA 1 zone at its Casposo gold and silver mine in Argentina. There has been no injury to employees or damage to equipment.

The area impacted is directly above level 9 and 10, the highest grade levels within the INCA 1 zone. It appears that a clay rich zone approximately 2 metres into the hanging wall initiated a zone of weakness that resulted in waste material falling into the stope. In the short term, the impact of the fall is to increase dilution of ore with waste, thus lowering the grade drawn from the stopes and delaying mining of the very high grade level 9.

With the help of a specialist external rock mechanics expert, we are reviewing the mine plan to minimise the risk of such an incident re-occurring in the very high grade zones. At this stage, we expect that a re-sequencing of mining blocks and the introduction of cemented rock fill in selected areas, and adjustments to the mining method and ground support protocols will be undertaken. It is too early to determine whether this will impact production guidance for FY2015. The Company will update the market at the appropriate time.

Separately, an inspection of mill liners has resulted in a decision to bring forward into June a 6 day maintenance shut that had been scheduled for early July. These two issues will result in the June quarter production being lower than planned at around 27,000 oz gold equivalent.


Andorinhas

The Company has received the SEMA Environmental Permit to mine the Coruja open pit deposit (which is within the Mamão permit) at its Andorinhas mine in Para State, Brazil. Ore is currently being sourced from a limited number of Mamão underground shrinkage stopes and low grade stockpiles. Approval of Coruja ensures that sufficient high grade ore tonnes will now be delivered to the processing plant. Without Coruja, Andorinhas would have closed early in the second half of calendar 2014. The approval, however, means that the operation will continue through to the end of FY2015 and is expected to produce approximately 27,000 to 30,000 oz in that year.

Following a final site inspection by the DNPM, we expect to mobilise a contract mining fleet in late June with first Coruja ore entering the mill feed in the September quarter.

ABN: 33 006 243 750



Contact

Troy Resources Limited
Paul Benson, Chief Executive Officer
+61 8 9481 1277
troy@troyres.com.au

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