Troy Resources NL
ASX : TRY
TSX : TRY

Troy Resources NL

August 18, 2009 00:05 ET

Updated Mineral Reserves and Resources-Troy's Largest Inventory Yet

Highlights - 96% increase in Gold Reserves from 275,700oz (June 30th 2008) to 539,500oz - 60% increase in Measured and Indicated Gold Resources from 556,100oz (June 30th 2008) to 893,400oz - 240% increase in Inferred Gold Resources from 186,000oz (June 30th 2008) to 648,400oz - In addition to the Gold Reserves and Resources, Troy has Silver Reserves of 6.7moz and Indicated Silver Resources of 15.4moz - This is the largest inventory of Gold Reserves and Resources in Troy’s history and demonstrates significant growth potential

PERTH, WESTERN AUSTRALIA--(Marketwire - Aug. 18, 2009) -

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

Growing junior producer, Troy Resources NL ("Troy") (TSX:TRY)(ASX:TRY) today announced its updated Mineral Resources and Reserves statement; with a significant year on year increase of 96% in Gold Reserves, a 60% increase in Measured and Indicated Resources and a 240% increase in Inferred Gold Resources.

Paul Benson, Troy Resources' CEO confirmed the updated Reserve and Resource inventory is the largest ever reported in the Company's history and demonstrates significant growth potential.

"Today's update includes the recently announced Inferred Resource at the Two Mile Hill Prospect at Sandstone in Western Australia and the updated Casposo Project Resource in Argentina; however this is the first time we have shown the cumulative impact on our Reserve and Resource position.

"This is the largest gold and silver inventory in the Company's history; resulting from successful greenfields exploration at Sandstone, exploration drilling at Andorinhas and the acquisition of Casposo.

"Importantly, although we have updated and increased the Mineral Resource at Casposo, we haven't yet updated the Mining Reserve at that project.

"These increases have put Troy in a strong growth position with development of the Casposo Project commencing in the September quarter 2009. Drilling at Sandstone aimed at identifying higher grade BIF hosted Resources at the Two Mile Hill Prospect will also commence during the current quarter.

"With excellent potential on all three of our sites, Troy has built a precious metals inventory that will allow the Company to continue to grow and achieve its vision of becoming a profitable mid tier producer," Mr Benson said.

A summary of the 2009 statement is shown in Table 1.



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Table 1 - Resource and Reserve Summary
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Grade
Category Tonnes g/t Ounces
------------------------------------------------------
Gold Mineral Reserves
------------------------------------------------------
Proven 582,000 1.4 26,400
Probable 2,742,000 5.8 513,100
TOTAL 3,324,000 5.0 539,500
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Silver Mineral Reserves
------------------------------------------------------
Probable 1,734,000 120.0 6,695,500
TOTAL 1,734,000 120.0 6,695,500
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Gold Mineral Resources
------------------------------------------------------
Measured 582,000 1.4 26,400
Indicated 6,250,000 4.3 867,000
Inferred 13,358,000 1.5 648,400
------------------------------------------------------
Silver Mineral Resources
------------------------------------------------------
Indicated 2,369,000 201.7 15,363,000
Inferred 261,000 255.1 2,141,000
------------------------------------------------------
------------------------------------------------------


SANDSTONE, WA

Exploration drilling programs at Sandstone resulted in the significant discovery of the Two Mile Hill tonalite mineralisation that added 452,000 ounces of gold to the Resource inventory (ASX announcement July 31st 2009). In addition, drilling is also targeting extensions to the adjacent high grade Banded Iron Formation ("BIF") hosted mineralisation that has yet to be included in the Resource statement.

CASPOSO, ARGENTINA

Troy acquired the Casposo Project from Intrepid Mines Limited in March 2009. Immediately following the acquisition, Troy commenced an update to the Mineral Resource using drilling data that had not been previously used (ASX announcement July 29th 2009). Notably, although Troy has updated the Casposo Mineral Resource, with a 32% increase in the contained equivalent gold, it has yet to update the Mineral Reserve. As such the Mineral Reserve data presented in this report is the estimate produced in 2008 based on the smaller 2008 Mineral Resource.

ANDORINHAS, BRAZIL

In Brazil, Mineral Reserves at Andorinhas decreased due to production depletion but a positive reconciliation was achieved from block model to production. Development on the M2 Lode has delineated high grade ore outside of the current Reserve limits. On-ore development and planned underground drilling during the coming year targeted on potential Resource additions will focus on extensions of the known mineralised lodes (Melechete, M2 and Arame).

Figures 1 and 2 illustrate the growth in Resources and Reserves since the last statement in 2008. To view Figures 1 and 2, please click on the following link: http://media3.marketwire.com/docs/try818a.jpg

Table 2 outlines the model to production reconciliation for Mineral Reserves during the 12 months to June 30th 2009. A negative reconciliation at Andorinhas was due to stockpile survey errors inherent in carrying such large stockpiles. Both the Mamao underground and Lord Nelson pit returned positive reconciliations.



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Table 2: Gold Production Reconciliation 2008/09
----------------------------------------------------------------------------
Gold
Grade
Andorinhas - Lagoa Seca Pit Tonnes g/t Ounces
----------------------------------------------------------------------------
Reserve and stocks - June 30, 2008 420,537 2.88 38,892
Mined 2008-09 215,641 3.28 22,740
Processed 2008-09 178,851 3.91 22,458
Stocks - June 30, 2008 215,382 2.21 15,304
Adjustments -26,304 1.34 -1,130
Reserve - June 30, 2008 0 0.00 0
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Gold
Grade
Andorinhas - Mamao Underground Tonnes g/t Ounces
----------------------------------------------------------------------------
Reserve - June 30, 2008 747,237 8.67 208,351
Mined 2008-09 34,910 9.35 10,494
Processed 2008-09 34,910 9.35 10,494
Stocks - June 30, 2009 0 0.00 0
Adjustments 2,553 22.72 1,865
Reserve - June 30, 2009 714,880 8.69 199,722
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Gold
Grade
Sandstone - Lord Nelson Cutback Tonnes g/t Ounces
----------------------------------------------------------------------------
Reserve 313,522 2.72 27,418
Mined 2008-09 37,761 1.66 2,015
Processed 2008-09 19,634 1.14 720
Stocks - June 30, 2009 32,960 1.52 1,612
Adjustments 32,072 0.50 514
Reserve - June 30, 2009 293,000 2.70 25,600
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A more detailed breakdown of the Resources and Reserves is contained in Table 3.



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Table 3: Troy Resources NL - Mineral Resources and Reserves
August 10, 2009
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Gold Mineral Reserves
----------------------------------------------------------------------------
Gold
grade Gold
Country Project Deposit Category Tonnes g/t ounces
----------------------------------------------------------------------------
Argentina Casposo Kamila/Mercado Probable 1,734,000 5.2 287,600
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Brazil Andorinhas Mamao underground Probable 715,000 8.7 199,800
-------------------------------------------------------
Lagoa Seca stockpiles Proven 215,000 2.2 15,300
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Australia Sandstone Lord Nelson pit Probable 293,000 2.7 25,600
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Lord Nelson stockpiles Proven 33,000 1.5 1,600
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Lord Henry stockpiles Proven 334,000 0.9 9,500
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Total Proven 582,000 1.4 26,400
Total Probable 2,742,000 5.8 513,100
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TOTAL MINERAL RESERVES GOLD 3,324,000 5.0 539,500
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Silver Mineral Reserves
----------------------------------------------------------------------------
Silver
grade Silver
Country Project Deposit Category Tonnes g/t ounces
----------------------------------------------------------------------------
Argentina Casposo Kamila/Mercado Probable 1,734,000 120.0 6,695,500
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TOTAL MINERAL RESERVES SILVER 1,734,000 120.0 6,695,500
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Gold Mineral Resources (inclusive of Mineral Reserves)
----------------------------------------------------------------------------
Gold
grade Gold
Country Project Deposit Category Tonnes g/t ounces
----------------------------------------------------------------------------
Argentina Casposo Kamila/Mercado Indicated 2,369,000 5.4 414,600
Inferred 261,000 3.6 30,000
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Brazil Andorinhas Mamao Indicated 783,000 9.9 249,700
Inferred 82,000 6.4 16,700
------------------------------------------------------
Lagoa Seca Measured 215,000 2.2 15,300
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Lagoa Seca West Indicated 577,000 2.2 40,400
Inferred 171,000 1.3 7,000
------------------------------------------------------
Luiza Inferred 258,000 2.5 20,300
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Australia Sandstone Lord Nelson Measured 33,000 1.5 1,600
Indicated 1,019,000 2.2 72,700
Inferred 84,000 1.8 4,900
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Lord Henry Measured 334,000 0.9 9,500
Indicated 987,000 1.9 58,700
Inferred 39,000 1.7 2,100
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Two Mile Hill Inferred 10,541,000 1.3 452,100
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Sandstone other Indicated 515,000 1.9 30,900
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Sandstone other Inferred 1,922,000 1.9 115,300
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Total Mineral Resources Gold Measured 582,000 1.4 26,400
Indicated 6,250,000 4.3 867,000
Inferred 13,358,000 1.5 648,400
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Silver Mineral Resources (inclusive of Mineral Reserves)
----------------------------------------------------------------------------
Silver
grade Silver
Country Project Deposit Category Tonnes g/t ounces
----------------------------------------------------------------------------
Argentina Casposo Kamila/Mercado Indicated 2,369,000 201.7 15,363,000
Inferred 261,000 255.1 2,141,000
----------------------------------------------------------------------------
Total Mineral Resources Silver Indicated 2,369,000 201.7 15,363,000
Inferred 261,000 255.1 2,141,000
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Notes to Table 3
- Cut-off grades for reporting mineral resources are applied as follows:
Casposo- 0.8g/t Aueq and 2.0g/t Aueq
Mamao underground- 2.0g/t Au
Lagoa Seca West- 0.8g/t Au
Luiza- 0.8g/t Au
Lord Nelson - 0.5g/t Au
Lord Henry- 0.8g/t Au
Two Mile Hill- 0.5g/t Au
Sandstone- 1.0g/t Au
Cut-off grades for reporting mineral reserves are as follows:
Mamao underground- 4.5g/t Au
Casposo- Open Pit 1.56g/t Aueq, Underground 3.5g/t Aueq
Lord Nelson Open Pit- 1.1g/t Au
- Casposo Mineral Resources have been constrained by an optimized pit shell
using a gold price of US$1000/oz and silver price of US$15/oz. Resources
within the pit shell have been reported at a cut-off grade of 0.8g/t Aueq.
Mineral Resources outside the pit shell have been reported at a cut-off
grade of 2.0g/t Aueq
- Casposo Mineral Reserves have been estimated using a gold price of
US$690/oz and silver price of US$11.80/oz
- Gold equivalency at Casposo for Mineral Resources has been calculated by
the formula Aueq equals Au g/t + (Ag g/t divided by 81.82). The gold:
silver ratio of
81.82 has been determined using metal prices of US$915/oz for gold and
US$13/oz for silver and processing recoveries of 93.7% for gold and 80.6%
for silver. For Mineral Reserve estimation the gold: silver ratio used was
70.56 due to different metal prices being used.
- The Lord Nelson open pit Mineral Reserve was estimated using a gold price
of A$1,100/oz.
- The Mamao underground Mineral Reserve was estimated using a gold price of
US$580/oz.
- Proven Reserves and Measured Resources represent stockpiled ore at the
mine site and/or processing plant.
- Sandstone other Resources include several, small, non-material resources
that are located within the Sandstone Project. These Resources are
currently under investigation for their potential to provide short-term
mill feed to the Sandstone processing facility.
- Mineral Resources are reported inclusive of Mineral Reserves. Mineral
Resources that are not Mineral Reserves do not have demonstrated economic
viability.


Technical reports in compliance with NI 43-101 for Sandstone and Casposo are being compiled detailing the new resource estimates and will be posted on SEDAR and on the Troy Website when complete.

Troy's Andorinhas Iron Ore Resources and Reserves remain unchanged since last reported. Mineral Reserves and Resources - Iron Ore, as of August 10th 2009:



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Mineral Reserves - Iron Ore
---------------------------------------------------------------
Reporting
cut-off Al2O3 SiO2 P
Deposit (% Fe) Tonnes Fe % % % % LOI
---------------------------------------------------------------
BRAZIL
---------------------------------------------------------------
Andorinhas - Abacaxi
---------------------------------------------------------------
Probable No cutoff 2,118,000 63.1 4.7 2.7 0.048 1.4
---------------------------------------------------------------
Andorinhas - Estrela
---------------------------------------------------------------
Probable No cutoff 692,000 64.9 1.9 4.8 0.023 1.0
---------------------------------------------------------------
TOTAL 2,810,000 63.6 3.9 3.2 0.042 1.3
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Mineral Resources - Iron Ore (inclusive of Mineral Reserves)
---------------------------------------------------------------
Reporting
cut-off Al2O3 SiO2 P
Deposit (% Fe) Tonnes Fe % % % % LOI
---------------------------------------------------------------
BRAZIL
---------------------------------------------------------------
Andorinhas - Abacaxi
---------------------------------------------------------------
Indicated No cutoff 4,898,200 50.7 8.5 7.7 0.065 4.1
---------------------------------------------------------------
Andorinhas - Estrela
---------------------------------------------------------------
Indicated No cutoff 1,593,900 51.2 6.0 8.1 0.04 2.8
---------------------------------------------------------------
TOTAL 6,495,000 50.8 7.9 7.8 0.06 3.8
---------------------------------------------------------------

Details of the Andorinhas Iron Ore Project can be found in the technical
report "Andorinhas Iron Project, Para State, Brazil - September 2008". The
report was lodged on Troy's corporate profile on the SEDAR website on
October 22nd 2008.


ENDS

Geological information in this Report has been compiled by Troy's Vice President Exploration & Business Development, Peter Doyle, who:

- Is a full time employee of Troy Resources NL

- Has sufficient experience which is relevant to the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'

- Is a Member of the Australasian Institute of Mining and Metallurgy

- Has consented in writing to the inclusion of this data

Information of a scientific or technical nature in this report was prepared under the supervision of Peter J. Doyle, Vice President Exploration and Business Development of Troy, a "qualified person" under National Instrument 43-101 - "Standards of Disclosure for Mineral Projects", a member of the Australasian Institute of Mining and Metallurgy. Mr. Doyle has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a "competent person" as defined in the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Doyle has reviewed and approved the information contained in this report. For further information regarding the Company's projects in Brazil, Australia and Argentina, including a description of Troy's quality assurance program, quality control measures, the geology, samples collection and testing procedures in respect of the Company's projects please refer to the technical reports filed which are available under the Company's profile at www.sedar.com or on the company's website.

This news release contains "forward-looking statements" and "forward-looking information", based on assumptions and judgements of management regarding future events and results. Such "forward-looking statements" and "forward-looking information which may include, but are not limited to statements with respect to the expected development of the Casposo and Two Mile Hill projects. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "is expecting", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Troy and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, future prices of gold and silver, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in ore grade or recovery rates, plant and/or equipment failure, delays in obtaining governmental approvals or in the commencement of operations, the possibility of cost overruns, as well as those factors disclosed in the Company's filed documents. There can be no assurance that the development of the Casposo and Two Mile Hill projects will proceed as planned or that they will be successfully completed within expected time limits and budgets or that, when completed, the mines will operate as anticipated or that expected production levels will be achieved.

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; at Sandstone in Western Australia and the Andorinhas Mine in Para State, Brazil and a gold-silver development project, Casposo, in San Juan province, Argentina.

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

Troy has an annual exploration budget of $5 million and a proven track record in exploration discoveries and strategic acquisitions.

Troy is currently focused on developing its Casposo Project, which it acquired in May 2009. With the acquisition and development of Casposo, Troy is entering a renewed growth phase which will again lift the Company's annual gold production above 100,000 ounces of gold per annum.

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

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

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

PROJECT LOCATIONS

To view the project locations map, please click on the following link: http://media3.marketwire.com/docs/try818b.jpg

ABN 33 006 243 750

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