Troy Resources NL
ASX : TRY
FRANKFURT : TRW

Troy Resources NL

October 31, 2006 04:18 ET

Troy Resources NL: Quarterly Report for the Three Months Ending 30 September 2006

WEST PERTH, WESTERN AUSTRALIA--(CCNMatthews - Oct. 31, 2006) - Troy Resources NL ("Troy") (ASX:TRY)(FWB:TRW) -

OPERATIONS

- The Sandstone Mill (Troy 100%) treated 148,558 tonnes of ore at 5.7 g/t Au to produce 25,679oz of gold at a cash cost of A$267 per ounce.

- The SML Mill (Troy 70%) in Brazil treated 56,141 tonnes of ore at 4.0 g/t Au to produce 6,830oz of gold at a cash cost of A$388 per ounce (US$289).

- Total attributable gold is well ahead of forecast with production of 30,460 ounces for the September quarter at an average cash cost of A$286/oz.

- A production milestone was achieved this quarter with a total of 10t gold produced for Troy at our Sandstone Operations since 2000.

EXPLORATION - AUSTRALIA

- Troy committed to at least A$3 million exploration expenditure over the next two years at Sandstone.

- The regional drilling program continued at Sandstone. Best results were achieved at Bulletin with 10m @ 3.79 g/t Au and at Phoenix with 22m @ 3.11 g/t Au.

- The Blackman's JV has completed another 18 RC holes with the best gold results being 5m @ 14.54 g/t and 2m @ 18.58 g/t gold.

EXPLORATION - BRAZIL

- Two diamond drill holes were completed to test the down plunge extension of the Xupe Orebody. Gold assay results included 5.9m @ 3.46 g/t Au.

EXPLORATION - MONGOLIA

- At Gutain Davaa, soil sampling and costeans at the Toordogiin Shil Zone have defined a 400m long target zone which is open to the northwest, with peak gold values of 240ppb. A 2,000m drill program will commence later this week.

- At Tsagaan Chuluut rock chip sampling on the Uhaa Shar Uul tenement has returned gold values up to 213 g/t.

CORPORATE

- Record Annual profit of $16.0 million after tax and minorities for 2005/06 year announced.

- Dividend increased to 7.0 cents per share fully franked (from 6.5 cents previously).

- Group cash and equivalent liquid assets of $ 61.4 million.



Troy Resources NL
ABN 33 006 243 750

44 Ord Street
West Perth
Western Australia 6005

Corporate Details

ASX Code: TRY

Issued Capital:
49.6M ordinary shares
6.0M party paid
0.4M unlisted partly paid
1.4M unlisted options

Directors:

Chairman:
John Jones
Executive Directors:
Tommy McKeith
Ken Nilsson
Non-Executive Directors:
Denis Clarke
John Dow
Alan Naylor



Contact Information