Update on Mining & Exploration Activities

20 September 2010

GMA Resources plc

("GMA" or the "Company")

Update on Mining and Exploration Activities

GMA Resources announces the progress of its mining and exploration activities at the Amesmessa Gold Mine within the Tirek - Amesmessa Concession in South West Algeria.

HIGHLIGHTS

·; Amesmessa Carbon in Leach ("CIL") plant operating continuously for one month

·; Commissioning performance to date indicates 1,000 ounces per month additional gold production.

·; Grades and daily recoveries to date greater than 10 g/t and 85 per cent.

·; First 4,900 metres of RC Drilling Program completed - 3,920 samples taken and 1,620 samples in transit to accredited laboratory for assaying.

Re-commissioning of the Tirek CIL Plant at the Amesmessa Mine Site

Re-commissioning of the former Tirek CIL plant, now relocated to the Amesmessa mine site, commenced on 14 August 2010. The CIL is now operating continuously and as of 13 September 2010, had processed 3,420 tonnes of high grade ore (>10 g/t) at a rate of 6.3 tonnes per hour. Daily gold recoveries have consistently been greater than 85 per cent. throughout the month-long commissioning phase.

The addition of the CIL plant will allow the Amesmessa operation to selectively process the highest grade ores in order to maximize gold production. Historically, the deeper higher grade ores have been found less amenable to the heap leach process. The Board believes that the opportunity to selectively increase the recovery of the highest grade ores in the current mine plan, with no additional mining or crushing costs and which incurs only the small incremental costs of running the CIL, will have a positive impact on the cash flow for the operation.

The target production for the CIL plant is an additional 1,000 ounces per month, at current mine production rates. This will be in addition to the existing heap leach operation which has been producing at a rate of around 2,000 ounces per month during 2010.

Update on Exploration Drilling Program

Since drilling commenced, during June 2010, more than 4,900 metres of reverse circulation drilling has been completed. In total, 94 holes have been drilled, with 82 of the holes within the existing Amesmessa Mine focussing on increasing resources for the coming two years.

To date 3,920 samples have been collected, of which 1,620 have been sent for assaying. A further update will be provided once the results are received.

In September drilling has commenced with 12 holes in Zone 2; an area 12km north of the Amesmessa crusher site. During the soil sampling phase this the area (identified initially by the previously reported Earthscan satellite imagery work) returned numerous results in excess 100 ppb gold in soil averaging 100 metres in width over a strike length of 800 metres (five traverses spaced at 200 metres) and the anomaly remains open at both ends. A 2,600 metre drill program is planned for this area as the first stage of the greenfields exploration step out from the Amesmessa Mine.

Interim CEO, Ken Crichton, said

"The team at the mine site overcame some tough obstacles to get the CIL up and running; on behalf of all our shareholders I wish to express our thanks to them for their dedication.

Equally encouraging is seeing the exploration program taking shape and I hope to be able to report some drill results by late October.

Finally during this period of transition I need to highlight the strong support we have received from our joint venture partner Sonatrach and also from the management of ENOR. This strong support has made the task a lot easier."

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