Commencement of Drill Programme by Andiamo

Ortac Resources Ltd Reports Commencement of Drill Programme by Andiamo Exploration Ltd

Ortac Resources Ltd ('Ortac'), the AIM listed exploration and development company, today announces that Andiamo Exploration Limited ('Andiamo'), a company that it entered into a strategic alliance with on 13 January 2014, has signed a contract with Colonnade Mining Group Ltd for a drilling programme expected to start within the next two weeks. The diamond core drill programme will target the Yacob Dewar gold and copper discovery and the Ber Gebey mineralised zone, in the Haykota Exploration Licence in Eritrea. The programme will involve approximately 1,400 metres of core drilling.

The objectives of the programme are:

· To delineate copper oxide mineralisation which occurs as a flat-lying zone within the top 50m or so at Yacob Dewar

· To improve understanding of and extend the high-grade gold-bearing "silica-barite" zone which contains the Yacob Dewar oxide gold resource.

· To investigate additional silica-barite outcrops mapped at Ber Gebay, 3km north of Yacob Dewar

In addition to the drilling, a programme of geological mapping and geochemical surveys has been underway in the Yacob Dewar - Ber Gebay area since early February.

Ortac is also pleased to announce selected results from Andiamo's past drilling at Yacob Dewar during 2012 and 2013, previously reported only to Andiamo's shareholders. The historic results are available on the Andiamo website at http://andiamoexploration.co.uk/. The historic results provide the context for the drilling programme commencing shortly.

Ortac CEO Vassilios Carellas commented, "I look forward with great interest to seeing the results of this drill programme. Andiamo's past drilling results show the potential of Yacob Dewar. The oxide gold deposit has been investigated in greatest detail and Andiamo's internal calculations indicate that it can probably be developed as a viable stand-alone project. Ortac believes that the copper oxide mineralisation may have even better potential, especially in the current markets, and the new drill programme will principally target this zone. Ortac will assist Andiamo to re-interpret the structure and genesis of the copper mineralisation and to establish a mineral resource estimate in the near future. ".

Selected historic drilling results at Yacob Dewar:

Gold mineralisation highlights include:

· 9.0 metres at 22.47grammes per tonne (g/t) of gold from 8m downhole in borehole YDD-035;

· 19.9 metres at 6.16 g/t of gold from 28.0 metres in borehole YDD-030;

· 16 metres at 10.81 g/t of gold from 6.0 metres in borehole YDRC-33;

· 13.3 metres at 5.31 g/t of gold from 4.5 metres in borehole YDD-005;

· 7.0 metres at 8.11 g/t of gold from 12.0 metres in borehole YDD-001; and,

· 16.2 metres at 4.10 g/t of gold from 5.0 metres in borehole YDD-002.

Copper mineralisation highlights include:

· 63.0 metres at 2.4% of copper from surface, including 28.0 metres at 3.11% from 35 metres in borehole YDD-025;

· 11.0 metres at 2.03% of copper from 18.5 metres in borehole YDD-022;

· 7.9 metres at 2.11% of copper from 76.2 metres in borehole YDD-015; and,

· 7.0 metres at 1.92% of copper from 17.0 metres in borehole YDRC-015.

· The Yacob Dewar deposit is a volcanogenic massive sulphide ('VMS') deposit located in the same geological setting as the operating Bisha mine (60% owned by Nevsun Resources Ltd.) and other VMS deposits within the Nubian Shield.

· The primary mineralisation at Yacob Dewar is a sulphide unit now dipping west at about 40⁰. Near-surface secondary geological processes have generated a high-grade oxide gold zone and a shallow region of copper oxide enrichment.

· The northern and southern limits of the gold enriched cap at Yacob Dewar are still undefined. Geophysical evidence indicates that deposit may continue north for 1km or more beneath thin alluvial cover.

· The high grade copper oxide mineralisation at Yacob Dewar, offset to the west of the gold mineralisation, has so far been relatively little explored.

· A similar VMS system outcrops at Ber Gebay, 3km north-northeast of Yacob Dewar, with siica barite and oxide copper mineralisation mapped for 600m south of an outcropping gossan.

Detailed Historical Drilling Results

These holes were all drilled during 2012 and 2013 using a combination of Air Core, Reverse Circulation ('RC') and Diamond Coring techniques. The holes were drilled at an angle of 50o to horizontal in order to intersect the mineralised body approximately perpendicular.

Table 1: Selected results of holes drilled by Andiamo at Yacob Dewar in 2012 and 2013 intersecting Gold Mineralisation

Table 2: Selected results of holes drilled by Andiamo at Yacob Dewar in 2012 and 2013 intersecting Copper Mineralisation

Notes:

HYR = Air Core holes

YDD - Diamond Core holes

YDRC = Reverse Circulation holes

All drill holes inclined at 50 degrees from horizontal (except HYR-2)

Intercepts approximately equal the true width for the gold mineralisation (except HYR-2).

The information in this report is based on information provided by Andiamo Exploration Ltd and compiled on behalf of Ortac by Mr Owen Mihalop. The Andiamo exploration results are reported under CIM guidelines and have been previously audited by SRK Consulting (UK) Ltd in respect to National Instrument 43-101, as prescribed by the Canadian Exchange Commission, and reported to be compliant as per its guidelines. Mr Mihalop has reviewed the third party data on behalf of Ortac Resources and takes responsibility for the data and geological interpretation. Mr Owen Mihalop (MCSM, BSc (Hons), MSc, MIMMM, CEng) is Technical Director for Ortac Resources Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012) and as a Qualified Person under NI 43-101. Mr Mihalop consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

**ENDS**

Glossary

Au - The chemical symbol for gold.

Cu - The chemical symbol for copper

g/t - grammes per tonne

m - metre

Mineralisation - The process or processes by which a mineral is introduced into a rock, resulting in a valuable or potentially valuable deposit. It is a general term, incorporating various types; e.g., fissure filling, impregnation, and replacement.

Mineralised Structure - A volume of rock which contains mineralisation.

Triple Tube - A wireline core drilling system designed for undisturbed sampling in soft or broken formations, using a split inner tube within the core barrel.