Third Batch of Assay Results at Eritrea

Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration 2014

19 May 2014

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

Third Batch Assay Results from the Yacob Dewar Project, Eritrea

Reveal High Grade Oxide Copper & Gold Mineralisation

Ortac Resources Ltd, the AIM listed exploration and mine development company, today announces that it has received the third batch of assay results from the drilling programme recently completed at the Andiamo Exploration Ltd ("Andiamo") Yacob Dewar prospect in Eritrea, further confirming near surface high grade oxide copper and gold mineralisation are present in the deposit.

Oxide Copper Drilling Highlights:

· 1.27 per cent copper over 10.7 metres from 38.8 metres down the hole, in hole YDD-049, including:

o 2.66 per cent copper over 4.7 metres from 44.8 metres down the hole.

Gold Drilling Highlights:

· 4.14 grammes per tonne gold over 22.4 metres from 21.6 metres down the hole, in hole YDD-048, including:

o 34.43 grammes per tonne gold (1.11 ounces per tonne) over 2.0 metres from 34.5 metres down the hole.

· 3.60 grammes per tonne gold over 11.3 metres from 25.5 metres down the hole, in hole YDD-049; including:

o 6.05 grammes per tonne gold over 3.0 metres from 30.5 metres down the hole.

Vassilios Carellas, Ortac CEO, commented:

"These results, and those received to date, continue to demonstrate that the oxide copper and gold mineralization intersected at Yacob Dewar is of economic grade, which bodes well for a future resource estimate for both the copper and gold and the development of this project. I am also very pleased that the results to date confirm that both oxide copper and gold mineralisation is present as predicted by our exploration model.

The results from YDD-048 are especially encouraging as they demonstrate that the high grade gold mineralisation, announced in our trenching results published on 13 May 2014, continues from the surface and is present in areas where previous drilling provided an inconclusive result due to poor drill core recoveries. I look forward to reporting further news from Andiamo's technical work programme at Yacob Dewar where Ortac remains positive that our investment in Andiamo, Eritrea and Yacob Dewar has great potential to return value back to Ortac shareholders."

Results Discussion

The third batch of samples sent for analysis contained core from two diamond drill holes.

Drill hole YDD-049 is located 100 metres to the east of an area that Ortac and Andiamo's geologists believe to be the core of the near surface copper oxide mineralisation, towards the underlying volcanogenic massive sulphide ("VMS") deposit. The hole was angled at 50o to the east and was designed to test both the oxide copper and gold targets. This hole, along with the other drilling to date, continues to confirm that in the weathered zone, the copper appears to have been leached out of the VMS, resulting in separate ore bodies for the oxide copper and gold mineralisation respectively.

YDD-049 initially intersected shallow oxide copper mineralisation at 12.5 metres down the hole before drilling through the 'leached' gold-bearing silica-barite rock ("SBR") horizon between 25.5 and 36.8 metres and then re-intersecting further oxide copper mineralisation from 38.8 metres down the hole. The hole terminated at 53.0m at the base of the oxide layer. The table below details the assay results received:

Drill Hole YDD-049

Drill hole YDD-048 is located approximately 900m north of YDD-049 and was designed to intersect gold mineralisation in the SBR horizon of the underlying VMS deposit. This drill hole is located in an area where previous drilling showed strong indications that the SBR horizon should be present, but poor drill core recovery resulted in the mineralised horizon being absent in some of the drilling in this area.

A triple tube drilling technique was employed to improve recovery of SBR in this area and this drill hole was drilled down dip of hole YDD-035 that assayed 22.47 g/t Au over 9 metres from 8 metres down the hole, including 33.47 grammes per tonne gold (1.08 ounces per tonne gold) over 6 metres. The subsequent assay results confirm Ortac's theory that the VMS deposit in the weathered zone consists of a very high grade gold core surrounded by a lower grade halo. The table below details the results and assays received:

Drill Hole YDD-048

The information in this release is based on information provided by Andiamo Exploration Ltd and compiled on behalf of Ortac by Mr Owen Mihalop. All samples were sent to Intertek Genalysis Laboratories in Perth, Australia for sample preparation and assaying. All sample collection, storage, transport, security, sample preparation and assay methodologies employed by Andiamo 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

Cu - the chemical symbol for copper.

Au- the chemical symbol for gold.

m - metre, a unit of length as per the International System of Units.

g/t- grammes per tonne, the quantity of the an element expressed as the number of grammes contained in one tonne of the host rock.

Triple Tube - a diamond drilling technique which employs a third barrel inside the main core barrel in order to improve recovery of core.

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.