Troy Resources NL
ASX : TRY
TSX : TRY

Troy Resources NL

August 28, 2011 21:54 ET

Strong Production Growth Returns Troy to Profit

PERTH, WESTERN AUSTRALIA--(Marketwire - Aug. 28, 2011) - Troy Resources NL (TSX:TRY)(ASX:TRY) -

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HIGHLIGHTS FOR FY2011

  • A 17% increase in gold production to 71,614 ounces
  • Cash costs fall by 25% to US$554/oz net of silver credits
  • Net profit after tax of A$14.6 million
  • Casposo ramping up to full production and Andorinhas at record production
  • New Kamila SE Extension Resource announced representing a 19% increase in the Casposo Measured and Indicated Resource in gold equivalent ounces, (refer separate announcement also 29 August 2011)

Growing dividend paying gold producer, Troy Resources NL today announced a profit of A$14.6m for the financial year ended 30 June 2011. This result compares to a loss of A$6.8m in FY 2010.

Commenting on the results, Troy's CEO, Paul Benson said the profit for the year came from a 17% increase in gold production to 71,614oz, a 25% reduction in cash costs to US$554/oz net of silver credits and an increase in gold and silver sales revenue of 36% to A$102.5m (FY2010: 61,453oz, US$741/oz and A$75.2m).

"In the FY2011 results, we are beginning to see the rewards for our investment and hard work over recent years, with record production at Andorinhas and the ramp up of operations at Casposo more than compensating for the closure of Sandstone, which was placed on care and maintenance during the year.

"We expect the September quarter production will be similar to, or marginally lower than, the June quarter, as the region around Casposo experienced its harshest winter in 50 years which continued to impact the Casposo operations through to mid-August. Fortunately this was partially offset by record performance at Andorinhas in July. We expect to see production ramp up again in the December quarter.

"Today we also reported the new Resource estimate for the high-grade Kamila South East discovery at Casposo. This will have a significant impact on the operation's mine life and production profile going forward.

"We have commenced the relevant planning and, due to the relatively simple access to this block from the current planned underground development, expect to convert a significant proportion of this Mineral Resource into the Mineral Reserve by the end of the calendar year.

"Importantly, the main structure remains open to the south east and we will recommence step out drilling to test the remaining 1 km of this structure in the December quarter.

"We were pleased to pay the Company's 11th consecutive, fully franked dividend during the period under review. The Board will make a final decision on an annual dividend in October."

A copy of the ASX Appendix 4E Preliminary Financial Results for the year ended 30 June 2011 can be accessed via the Troy website under "Latest News". The report can also be found under the Company's profile on the SEDAR website.

This report contains forward-looking statements, including those relating to expected production levels. These forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in the forward looking statements. Such factors include, among others, future prices of gold, 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.

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 $15 million and a proven track record in exploration discoveries and strategic acquisitions.

With the development of the Casposo project, Troy has entered a renewed growth phase which will again lift the Company's annual gold production above 100,000 ounces of gold per annum.

The Company is positioned to continue its path of strong growth and profitable operations, and is 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

To view the Map associated with this release, please visit the following link: http://media3.marketwire.com/docs/try28_Fig01.pdf.

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