Initial Drill Results from Kremnica Gold Project

Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration

21 June 2011

Ortac Resources Ltd ('Ortac' or 'the Company')

Initial Drill Results - Kremnica Gold Project, Slovakia

Ortac Resources Ltd, the AIM listed exploration and development company focussed on precious metal projects in Europe, is pleased to report encouraging initial results from its geological exploration drilling programme, on the Company's 100% owned Kremnica Gold Project in Central Slovakia ('Kremnica' or 'the Project').

Key Points

·; Positive results from first two diamond drill ('DD') holes which has the potential to increase the current JORC compliant resource of 1.1 million ounces of gold equivalent

·; Best results include 24m @ 3.65 g/t Au from 161m from borehole STOR-3.5 (including 1m @ 21.9 g/t Au from 161m and 1m @ 11.75 g/t Au from 164m) and 11m @ 1.85 g/t Au from 40.6m from borehole STOR-3.1 (includes 1.6m @ 4.06 g/t Au from 40.60m)

·; Reported grade intervals generally higher than modelled grades and highlight continuity of the mineralisation

·; Increased confidence in conversion of Inferred resource ounces into higher confidence Indicated and Measured categories

·; Borehole ID STOR-3.5, from which 24m @ 3.65 g/t Au from 161m was intersected, was prematurely terminated while still in mineralisation due to difficult drilling conditions

Ortac CEO Vassilios Carellas said, "I am delighted to announce the first set of results from our 5,000 metre drilling campaign at our Kremnica project, through which we are gaining a better geological understanding of areas of the deposit where we have limited information. The results are extremely encouraging, particularly as the grades reported are generally better than the modelled grades for the same area and clearly demonstrate the continuity of the mineralisation in these areas. This will naturally result in these areas being re-classified into higher confidence categories as part of the next resource update, in line with our stated strategy to expand and upgrade our current JORC Resource of 1.1 million ounces of gold equivalent."

Detailed Results

The first two DD holes were drilled in the northern part of the project area and were designed to target near surface inferred mineralisation. While borehole STOR-3.1 was able to reach its targeted depth, borehole STOR-3.5 had to be terminated half way through the mineralised zone due to the difficult drilling conditions encountered while drilling through the crush zone.

The Company is waiting for the silver assays to be completed, which is expected in the near term and as soon as they have been provided to the Company, a further release detailing the complete set of results will be made.

The third hole has also been completed down to its targeted depth and the fourth hole is currently being drilled. Again these holes are targeting the northern part of the project where there is sparse geological information. Upon completion of the fourth hole, samples will once again be sent off for external assay.

Table 1: Results to recent diamond drill programme at Kremnica

* Interval includes voids that are a result of the historical underground mining activities and or difficult drilling conditions in the 'crush zone'.

QA\QC

The reported intervals in the table above are intersecting the mineralised structures at angles of around 65º. The DD holes were drilled with a combination of PQ (85mm core diameter), HQ (63.5 mm core diameter) and NQ (47.6 mm core diameter) size in order to be able to obtain larger sample volumes from the mineralised zones and to reach the targeted depths.

The holes are started with PQ, which is drilled as deep as the drill can drill or until the ground conditions are such that a reduction to HQ is required to further deepen the hole, which is similarly drilled as deep as the drill can drill or until the ground conditions are such that a reduction to NQ is required to further deepen the hole. All bore holes are down hole surveyed at 30m intervals to determine constant azimuth and dip.

The core is delivered to the core shed where it is photographed with hole numbers and depths clearly visible. The core is then logged with detailed descriptions of sample location, nature of material sampled, representative characteristics of the sample, type of lithology, alteration, structure and mineralisation, if any, recorded from the drill core. Most of the drill core is sawed or split longitudinally with half cores sampled to geological boundaries at approximate one metre intervals.

Sampling of the core is carried out after the core has been logged. Mineralised, altered and silicified sections of the core are sampled separately. The sample is marked in the core box and in the sample interval book. A sample ticket book is used to record each sample interval and to give each sample a unique identifying number. The first part of the sample ticket book is used to record: Hole Name, Depth, From, To and any important features. The second part of the sample interval page is stapled to the box at the start of every sample interval. No ticket is stapled to the box for blank samples. The third part of the sample interval page goes with the core for preparation (drying, crushing and milling/pulverising) and accompanies the sample to the Company's independently approved sample preparation laboratory, which is equipped to treat rock and soil samples.

Assays are conducted through ALS Minerals, Romania, with all samples being fire assayed with an Atomic Absorption finish. Any samples with grades of over 10g/t Au are fire assayed again and finished by gravity.

The information in this report is based on information compiled by Mr Vassilios Carellas (who takes responsibility for the data and geological interpretation).

Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the Chief Executive Officer of 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. Mr Carellas consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

**ENDS**

Notes:

Ortac Resources Limited is an AIM listed exploration and development company focussed on the development of precious metal projects in Europe. Its focus is on the Carpatho Balkan Metallogenic Belt, initially the Central Slovakian Volcanic Field.

The Company has a current JORC compliant resource of 1.1Moz of gold equivalent from its Kremnica Gold Project in Slovakia, and is in the process of preparing a preliminary scoping study on the project, which is expected in H2 2011. The Company's objective is to complete a definitive feasibility study and environmental impact assessment with a view of bringing the Kremnica Gold Project into production. 

The Company's strategy is to utilise its highly experienced board and management team and its solid foothold in Central Europe to consolidate additional precious metal development opportunities to build shareholder value.

Glossary

'Crush Zone'

Is a highly fractured zone, initially caused by the mixing of hot hydrothermal magmatic fluids and cooler meteoric waters in combination with syn-and post-tectonic activity and further complicated by recent underground mining activities.