Positive silver assay results - Kremnica, Slovakia

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

5 July 2011

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

Silver assay results from 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 that further to the encouraging initial gold assays reported from its geological exploration drilling programme on the Company's 100% owned Kremnica Gold Project in Central Slovakia ('Kremnica' or 'the Project') on 21 June, the Company is now in receipt of positive silver assays for the first two drill holes. Importantly, these silver assays demonstrate higher grade intervals than previously modelled grades.

Key Points

·; Best results include 11m @ 112.66 g/t Ag from 40.6m from borehole STOR-3.1 (including 4m @ 202.45 g/t Ag from 47m) and 24m @ 36.05 g/t Ag from 161m from borehole STOR-3.5 (includes 1m @ 70 g/t Ag from 164m)

·; Reported grade intervals 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

Ortac CEO Vassilios Carellas said, "Once again, these results from our 5,000 metre drilling campaign at our Kremnica project are extremely encouraging, as combined with the gold assays reported a fortnight ago, the gold equivalent grades1 for the main intercepts are in excess of four grams per tonne. This further demonstrates that in this particular part of the deposit, the gold and silver grades being intersected are better than the modelled grades. These positive results help us to better understand the Kremnica mineralisation and increase our confidence in converting Inferred resource ounces into higher confidence Indicated and Measured categories in line with our stated strategy to expand and upgrade our current JORC Resource of 1.1 million ounces of gold equivalent."

Detailed Results

These results are from multi-element assays received for the same holes from which the gold assay results were announced on 21 June 2011.

The first two diamond drill ('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 now drilling its fifth hole, with the fourth hole drilled having to be prematurely terminated due to the difficult drilling conditions encountered while drilling through the crush zone. Both the third and fourth holes have been sent off for assay and results for these will be announced when they are made available.

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'.

1 Using the Company's long-term gold equivalency ratio of 50:1

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 gold samples being fire assayed with an Atomic Absorption finish. Any samples with grades of over 10 g/t Au are fire assayed again and finished by gravity. The silver samples were assayed using conventional ICP-AES analysis and any grades of silver in excess of 100 g/t were re-assayed by aqua regia digestion with a AAS finish.

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

Au

The chemical symbol for gold.

Ag

The chemical symbol for silver

Aqua Regia Digestion

A mixture of Hydrochloric Acid (HCI), Nitric Acid (HNO3) and de-mineralised water (2:2:2). A strong acid digestion capable of decomposing metal salts, carbonates, sulphides, most sulphates and some oxides and silicates. Aqua Regia will digest precious metals including Au, Ag, Pt and Pd.

Atomic Absorption Finish (AAS Finish)

The final stage in determining the grade of a sample by a method that measures the concentration of atoms of an element by passing light, emitted by a hollow cathode lamp of that element, through a cloud of atoms from that sample. Only those atoms that are the same as those in the lamp will absorb the light from the lamp. A reduction in the amount of light reaching the detector is seen as a measure of the concentration of that element in the original sample.

'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.

g/t

grams per tonne

Gold equivalent

Gold equivalent ounces include silver ounces, converted to a gold equivalent based on a ratio of 50:1.

HQ

The size (63.5mm core diameter) of hole in rock or other material made by a rotational and downward force, to recover a sample of the material.

ICP-AES

Often referred to simply as ICP, is a multi-element analysis technique that uses an inductively coupled plasma source to dissociate the sample into its constituent atoms or ions, exciting them to a level where they emit light of a characteristic wavelength. A detector measures the intensity of the emitted light, and calculates the concentration of that particular element in the sample.

Indicated Mineral Resource

 That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

Inferred Mineral Resource

 That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes which may be limited or of uncertain quality and reliability.

JORC Resource

Resource estimated according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

m

metre

Measured Mineral Resource

 That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is basedon detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drillholes. The locations are spaced closely enough to confirm geological and grade continuity.

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.

NQ

The size (47.6mm core diameter) of hole in rock or other material made by a rotational and downward force, to recover a cylindrical sample of the material.

PQ

The size (85mm core diameter) of hole in rock or other material made by a rotational and downward force, to recover a sample of the material.

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