Raises JORC Resource to 1.1Moz Au Eqv.

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

25 January 2011

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

Increases JORC Code Compliant Resource to 1.1 Moz Au Equivalent

Ortac Resources Limited (AIM: OTC), the AIM listed exploration and development company focussed on precious metal projects in Europe, is pleased to announce that Snowden Mining Industry Consultants (Pty) Ltd ('Snowden') has completed an updated mineral resource estimate for its wholly owned flagship Kremnica Gold Project in Slovakia ('Kremnica' or 'the Project'), which has increased the total JORC Code compliant resource to 1.1 Moz of gold equivalent ('Au Eq').

Highlights

·; Total gold equivalent resource increased by 323,000oz to 1.1 Moz Au at a 0.75 g/t Au cut-off;

·; Resource upgrade and remodelling provides the Company with a clearer understanding of the mineralisation of the Project ahead of the publication of a preliminary scoping study during the second half of 2011; and

·; Exploratory drilling to commence on wider Kremnica Mining Licence area focusing on existing and additional Au targets.

Ortac Resources Limited CEO Vassilios Carellas said, "This resource upgrade, which increases the total gold equivalent resource at Kremnica by over 40%, is a key milestone for Ortac as we move into our development phase on this highly prospective project. The Company can now focus on delineating further resources through its planned drilling campaign targeting 2 million ounces of gold equivalent ('Au Eq'), and commence the preliminary scoping study that should provide an outline for bringing the project into production."

A summary for the updated resource estimate for the Kremnica Gold project is tabulated below.

Further Information

The Kremnica Mineral Resource estimate is in accordance with the widely accepted international reporting standard as defined using the December 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia ('JORC Code'). 

The resource has been estimated by Snowden Mining Industry Consultants ('Snowden'), and been tabulated above block model cut-offs of 0.5 g/t Au, 0.75 g/t Au and 1.0 g/t Au. The Mineral Resource has been classified by Snowden as Measured, Indicated and Inferred according to the JORC Code and is based on interpretations and data supplied by Ortac.

Table 2. Grade-tonnage reports - 0.5 g/t Au, 0.75 g/t Au and 1.0 Au g/t cut-off grades

1. Tonnes rounded to 2 significant figures. Ounces to 3 significant figures

2. Rounding of numbers can result in small discrepancies in the table

3. Au Eq. (Gold Equivalent) has been calculated for each block with an Au Eq. ratio of 50 parts Ag for every 1 part Au. This is based on LME values: Au $1344 per ounce, Ag $27.14 per ounce (24/1/2011)

4. The figures above are gross and net, i.e. 100% attributable to the holder, Kremnica Gold Mining s.r.o., a 100% subsidiary of Ortac Resources Limited.

5. The holder/ operator of this asset is Kremnica Gold Mining, ie a 100% subsidiary of Ortac Resources Limited.

Snowden's grade-tonnage estimate used data from the sampling of adits, surface and underground diamond drill core, surface reverse circulation and trench samples. The database was compiled and verified by Ortac. Snowden's checks indicate that the data is of sufficient quality to support the resource classifications applied.

Multiple Indicator Kriging was used to estimate the gold and silver grades into a block model constrained by the Ortac geological interpretation. This model reflects the interpreted structure and geology. Search ellipse and ranges used in estimation reflect the spatial continuity and trends of the mineralisation in each of the mineralised domains.

Snowden based the classification of the Mineral Resource upon a number of criteria, including the confidence in the geological interpretation, the integrity of the data, the spacing between the data, the grade continuity as demonstrated by the variography. The resource estimate has been classified using the guidelines of the JORC Code (2004).

The information in this report that relates to Mineral Resources as defined under the JORC Code is based on information compiled by Mr Vassilios Carellas (who takes responsibility for the data and geological interpretation) and Mr Ivor Jones (who takes responsibility for the estimation).

Mr Ivor Jones, (BSc (Hons), MSc, FAusIMM, CPgeo), is the Group General Manager of Geosciences at Snowden and produced the resource estimate based upon the data and interpretations provided by Ortac. Mr Jones has sufficient experience relevant to the 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 Jones consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the Chief Executive Officer of Ortac Resources Limited and provided the sample database as well as geological interpretations for the Mineral Resource estimation. Mr Carellas 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**

For further information please visit www.ortacresources.com or contact:

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, where its Kremnica gold deposit forms part of a large low-sulphidation quartz-sericite-adularia epithermal-hydrothermal system hosted in Tertiary andesite volcanic flows, tuffs, lesser diorites and rhyolite dikes. The Company has produced an interim JORC compliant resource statement of 1.1 million ounces of gold equivalent and has appointed Snowden Mining Industry Consultants Pty to prepare a preliminary scoping study which is expected during the course of the year.

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

''adit'' a nearly horizontal passage from the surface by which a mine is entered, dewatered or mined;

''Ag'' the chemical symbol for the element silver;

"andesite" a volcanic rock of intermediate composition characteristic of the basalt-andesite-dacite-rhyolite association and the extrusive equivalent of a diorite;

''Au'' the chemical symbol for the element gold;

''Au Eq'' gold equivalent;

"core drilling" the process of obtaining cylindrical rock samples by means ofannular-shaped rock-cutting bits rotated by a borehole-drilling machine;

"cut-off grade" the lowest grade of mineralized material considered economic; used in the calculation of the ore reserves in a given deposit;

''diorite'' intermediate, coarse-grained igneous rock with up to 10% quartz;

"epithermal" vein deposit formed at shallow depths from unstable hot solutions;

"grade" the relative quantity or the percentage of ore-mineral or metal contentin an orebody;

''hydrothermal'' the name given to any processes associated with igneous activity which involve heated or superheated water;

"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'' the code for reporting of the Australasian Joint Ore Reserves Committee, which is sponsored by the Australian mining industry and its professional organisations. The code is widely accepted as a standard for professional reporting purposes for reporting of mineral resources and ore reserves;

"Kriging" a method of interpolation which predicts unknown values from data observed at known locations. It uses the variogram to express spatial variation, and minimizes the error of predicted values that are estimated by spatial distribution of the predicted values;

''low sulphidation'' a type of epithermal mineral deposit formed from low temperature magmatic fluids;

"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 based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity;

"orebody" continuous, well-defined mass of material of sufficient ore content tomake extraction economically feasible;

''oz(s) ounce'' Troy ounce - 1 ounce is equal to 31.1034807 grammes;

"resource (mineral)" a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories;

"rhyolite" a fine-grained acidic volcanic rock compositionally equivalent of a granite;

"specific gravity" the ratio of the weight of a substance to the weight of an equal volume of water;

"trench" a long, narrow excavation dug through overburden, or blasted out of rock, to expose a vein or ore structure;

"tuff" a general term for all consolidated pyroclastic rocks;

"vein" a tabular deposit of minerals occupying a fracture, in which particles may grow away from the walls toward the middle;

"wireframe" a visual model of an electronic representation of a three-dimensional object;