Exploration and Production Update

AIM: GMA

22 June 2011

GMA Resources plc

("GMA" or the "Company")

Exploration and Production Update

GMA announces an update on its exploration activities at the Amesmessa Gold Mine within the Tirek - Amesmessa Concession in South West Algeria and production results for April and May.

Highlights

·; By the end of May GMA had completed 417 RC drill holes totalling 25,124 metres with 245 holes reported

·; Results to date from Vein 7 continue, new results include;

o ARC 289- from 44m, 19m at 3.04 g/t

o ARC 290- from 38m, 10m at 6.31 g/t

o ARC 293- from 68m, 13m at 3.22 g/t

·; Independent review of drilling to date of coincident gold in soil over Aster anomalies completed.

·; Gold production of 862.8 oz (April) and 838.9 oz (May).

Exploration Update-Drill Holes ARC 218-236 & 286-235

By the end of May GMA had completed 417 reverse circulation (RC) drill holes totalling 25,124 metres with 245 holes reported to date including those holes reported below. A number of the more recent RC drill holes have been drilled for internal grade control using the Amesmessa assay laboratory and will not be reported as exploration results.

A summary of the results for the most recent drill hole assays for ARC 218-236 and ARC 286-295 appear in Table 1.

Table 1- Newly Reported RC Drill Hole Results

*Drilled at 60 degrees to the horizontal from west to east.

Independent Review of Exploration Results of Coincident Gold in Soils Over Aster Anomalies

Commencing late April 2011, Mr Phil Fillis, Principal Geologist (MSc, FAusIMM), Fillis Geological Services, at the request of the GMA Board, conducted an independent review of Tirek - Amesmessa Concession exploration program and results specifically relating to the coincident gold in soils over the Aster anomalies. Mr Fillis concluded that:

·; GMA embarked upon a systematic programme of exploration which was appropriate and warranted due to wide zones of metasomatic alteration identified around the quartz veins.

·; These alteration zones were auriferous at low grades and indicated that the gold mineralising system was large and widespread over great widths and a strike length of at least 80kms.

·; The exploration programme at Amesmessa has been well executed for the type of mineralisation.

·; Identification of alteration zones, followed by soil sampling and trenching identified new zones of gold mineralisation in the substrate. These methods worked well and this phase of the programme may be considered successful.

·; Follow-up reverse circulation drilling was appropriate given the results of the geographical size and amplitude of the soil geochemistry over the Aster anomalies.

·; The amount of drilling carried out has allowed GMA to build up a very clear picture of the style of mineralisation at Amesmessa.

·; To date drilling of the wide zones of metasomatic alteration has not identified economic mining widths of sufficient gold grades.

In summary Mr Fillis confirmed that while there remains some probability that a substantial gold resource could be present at Tirek - Amesmessa, the likelihood of delineating such a resource is not obvious, nor indicated by the exploration results generated to date. Continued exploration within the Tirek - Amesmessa belt for a large tonnage gold resource of greater than 10 million tonnes he concluded must be considered a high risk venture.

Mr Fillis advised the Board to refocus exploration activities on opportunities that may offer a realistic chance of delineating small, shallow, low tonnage opportunities in the existing quartz veins similar to those currently mined as a higher priority.

Known Quartz Vein Drill Results

Since the last update in April GMA has focused exploration on near term opportunities to increase the resource base for 2011 and 2012 from the traditionally mined quartz veins and other nearby quartz veins. This included focusing on drilling in Vein 7 where 76 holes have been drilled to date, of which 33 (including those reported in this report) have been reported on. Those holes not reported on to date are in transit to the assay laboratory. Ongoing exploration will continue focusing on near term potential resources as a priority and Vein 7.

To date the majority of the mineralized intercepts in Vein 7 have not provided near surface resource potential due primarily to the difficulties in drilling the near surface zone because of the presence of existing workings and other access issues. Currently all of the mining at Amesmessa occurs at depths typically less than 35m from the surface. This is due to the thin nature of the steeply dipping quartz veins (typically dipping west 60-70 degrees from the horizontal), the gold grades and the rapidly increasing cost of mining of the waste material to access these deepening quartz veins.

Table 2- Newly Reported Significant Intercepts for Vein 7

*Drilled at 60 degrees to the horizontal from west to east.

To date some drilling has been completed at Veins 3, 4, 11, 17S, 18, 31 and 36 and results to date have not warranted follow-up drilling as a priority due to narrow vein widths and low gold grades. Some results to date from Vein 12 and possibly Veins 17N and Zones 1 & 2 have some limited potential to host near surface open pittable ore and will be considered under the ongoing programme of follow-up drilling.

Production Update

Gold production for April was 862.8 oz. and for May was 838.9 oz. Overall production is summarized in Table 3. Grade remains the critical issue with limited high grade available for mining in the last two months and lower grades coming for the heap leach operation. Until grade increases gold production will be heavily impacted.

Table 3 - Amesmessa Production

ENOR has taken the following actions to help improve production:

·; ENOR has hired 4 hire excavators and 4 additional trucks to increase mine production as the lowest cost option to increase production.

·; A tender to hire a local crusher to assist with crushing capacity has not yielded a crushing unit available to start crushing in the near term- all offers required ENOR to wait until the bidders could source a crusher outside of Algeria.

·; A critical spare part for the ball mill that required specialist manufacture has been delayed due to the supplier's existing backlog of work.

·; ENOR has now placed orders for new primary and secondary crushers after it was identified that the existing units require refurbishing and no short term solution was available; these units will arrive September. Financing for these units was provided by ENOR's bank as part of an existing debt facility.

·; The Amesmessa crusher will undergo maintenance in June for 7-10 days and this will impact production.

·; Grade control drilling is focusing on identifying high grade zones in Vein 8 & 9.

Qualified Person (referring specifically to sections 'Exploration Update- Drill Holes ARC 218-236 & 286-295' and 'Known Quartz Vein Drill Results')

Information in this announcement relating to the Company's exploration activities is based on data reviewed by Mr Geoff Blackburn AOM BSc FAusIMM, who has been engaged as Consulting Geologist to the Company. Mr Blackburn is a member of The Australasian Institute of Mining & Metallurgy and has 40 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Blackburn consents to the inclusion of the information in the form and context in which it appears.

Qualified Person (referring specifically to section 'Independent Review of Exploration Results of Coincident Gold in Soils Over Aster Anomalies')

Information in this announcement relating to the Company's exploration activities is based on data reviewed by Mr Phil Fillis MSc FAusIMM (CP), who has been engaged as Consulting Geologist to the Company. Mr Fillis is a member of The Australasian Institute of Mining & Metallurgy and has 40 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Fillis consents to the inclusion of the information in the form and context in which it appears.

Enquiries:

Notes to Editors:

GMA owns a controlling 52% stake in ENOR spa ("ENOR"), the Algerian based operating company for the Tirek-Amesmessa project, with the remainder owned by Sonatrach, the Algerian state-owned oil and gas company.

ENOR holds the exploitation authorisation to the Tirek-Amesmessa property, an area of some 1,417 km2, located approximately 450km south west of the city, Tamanrasset, in southern Algeria. Amesmessa is an open pit heap leach gold mine located in the extreme south of the permit area. The Tirek gold mine is located centrally in the northern third of the exploration permit area, some 60 km north of Amesmessa. Research to date suggests that the Zita Zone, which lies between Tirek and Amesmessa, offers considerable potential for the development of additional prospects amenable to open-pit mining. GMA plans to quickly expand upon resources outside of the major 80km Tirek-Amesmessa fault north/south of the concession.

GMA's shares are traded on the AIM market of the London Stock Exchange (AIM: GMA).

For further information on the Company, please visit: www.gmaresources.co.uk