Company Information for Troy Resources NL

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Company Statement

Troy Resources NL, dual-listed on the Australian and Toronto Stock Exchanges (code: TRY), is a junior gold producer with operations at Sandstone in Western Australia and the Andorinhas Gold project in Para State, Brazil.

The Company has forged a proven record of fast-track mine development, low cost operations, strategic acquisitions and exploration discoveries.

At a glance:

• proven track record of delivery – developed five mines in 10 years, sixth recently commissioned with first gold pour March 2008. 
• operations in Australia and Brazil producing over 100,000 ounces of gold per annum in 3 of the last 5 years
• healthy financial position - over A$60 million in cash and liquid investments as at 30 September 2008. 
• ongoing unhedged cash flow
• aggressive growth strategy - significant land positions in Australia, Brazil and Mongolia with an active exploration budget of A$10 million combined with strategic investments which provide alternative growth options

Mission
“To position Troy as a highly profitable mid-tier gold producer with a portfolio of quality long-life assets within prospective regions providing further exploration growth.”

In order to achieve this mission we will:

• Grow production in Brazil and Australia in the short term through:
  - selective acquisitions,
  - internal investment in infrastructure,
  - exploration around the mine sites.
• Build a portfolio of quality long-life assets in the medium term by:
  - acquiring late stage exploration, development and production assets
  +1Moz reserve
  +100,000ozpa
  +10 year life of mine
  - building a best practice culture for sustainable low cost operations.
• Create a project pipeline to sustain and grow production in the long term by:
  - aggressively advancing our exploration portfolio
  - focusing on area selection.

Current Operations

Andorinhas Project, Brazil (Troy 100% through Reinarda Mineração Ltda)
The Andorinhas Project is located in the Para State of north central Brazil, close to the town of Rio Maria and covers an area of 116,268ha.

The project has a JORC defined resource, calculated by Snowden Mining Industry Consultants (“Snowden”) of 4 million tonnes @ 3.4g/t for 435,000 ounces. This equates to an acquisition cost of just over US$20 per resource ounce – a very competitive price in today’s market. 

The main resource is the Mamão Deposit which comprises three main lodes, the Melechete, Arame and the M2; The Melechete Lode was worked down to 150m below surface by Garimpeiros (artisinal miners) in the 1980’s.  The M2 Lode is narrower than the Melechete Lode and has been drilled to 200m below surface and remains open at depth.  Significant mineralisation exists both along strike and down dip from these lodes.

Mamão Underground Mining:
During the March 2009 quarter, poor availability of the underground loaders “LHD” units negatively impacted underground development and production. Although by the end of the quarter the LHD availabilities had improved significantly a back up unit is being sourced. 
Underground manning is being increased in line with budget and an Operations Manager has been appointed to oversee the Andorinhas operation. Total workforce is now in the order of 160.

Iron Ore
A sample of the ore has been sent to China for analysis by a Chinese buyer.  Discussions are being held with 2 companies interested in purchasing the project, both are Brazilian companies. In the meantime we are progressing design work for a small iron ore plant

Sandstone, Australia (Troy 100%)
Mining Operations
With the substantial increase in the gold price in Australian dollar terms, it was decided to re-examine the resource model of various potential ore sources in the Sandstone project area.  The Lord Nelson deposit was shown to be profitable at the current gold price.  A total of 1,572,000 bcms of material will be mined from the Nelson pit giving 370,000 tonnes of ore at a grade of 2.6g/t gold yielding approximately 30,000 ounces of gold.  The mining contract has been awarded to Hampton Transport Services, our previous mining contractor. 
Clearing for the mining of the Lord Nelson cutback commenced on 13 March 2009 after permission was granted from the environmental division of the DME and overburden mining has commenced.

Background:
Mining in the Sandstone area has been carried out intermittently over the past century. The present mining and milling operations commenced in 1990 under the previous owner Herald Resources Limited. Management and substantial ownership of the project passed to Troy Resources NL (Troy) in 1999.

Since then, Troy has completed mining Bulchina Pit which produced over 223,000 ounces of gold.

SERTÃO MINERAÇÃO LTDA (SML) OPERATIONS, BRAZIL (Troy 70%)
History
In 2002, Troy Resources NL (Troy) purchased a 70% interest in the Goiás Velho Project in Brazil, which was brought into production in March 2003.  The Goiás Velho Project was owned jointly by Troy and Amazonia Mineração Ltda (Amazonia) and operated by Sertão Mineração Ltda (SML).  Under the shareholder's agreement between Troy and Amazonia, Troy managed the development and mining of the Goiás Velho Project while Amazonia provided logical logistical support, other specialized services and conducted exploration activities throughout the project area.

The Sertão deposit is located on cleared grazing land in the State of Goiás about 380km west of the Brazilian capital city of Brazilia. At the time of acquisition, the project comprised a small undeveloped high grade open cut reserve of 228,900t at 18.78g/t gold for 138,200 ounces of contained gold.

As project manager and operator, Troy undertook the mine development and an aggressive exploration effort throughout the Goiás-Fiana Greenstone Belt. The mine was shutdown in September 2007 after 542,365 ounces of gold was produced. The Sertão plant was then dismantled and moved 1,200km to the Andorinhas Project in SE Para State.

In July 2007, mining at the Goiás Velho Project was completed and in August 2007 processing of ore therefrom was completed.

Current Status:
SML is currently relinquishing most of the exploration tenements that comprised the Goiás Velho SML project after completing rehabilitation of all exploration work sites. SML will retain and monitor several key tenements that host the pits and mining infrastructure to ensure rehabilitation is complete.

Mongolia, Exploration Project
Mongolia Strategy Review:
The Company has completed a strategic review of the Mongolian project portfolio and has decided to divest the Tsagaan Chuluut (TC), Nongom Uul (NU) and Dornogovi Projects. Troy’s continued involvement in Mongolia beyond fiscal (2008 – 2009) year-end will be determined by the results of a collaborative project generation effort with the University of Western Australia’s Centre For Exploration Targeting (UWA – CET) and continued encouragement at the Gutain Davaa Project.

Gutain Davaa Gold JV Project (Troy earning 80%)
The Gutain Davaa project is a joint venture between Troy Mongolia and Mongolian based U & B Mining under which Troy has earned an 80% interest in the project by spending US$1 million over a three year period and making a series of cash payments to U & B Mining totaling US$100,000. Troy completed an initial property wide exploration program of geological mapping, soil sampling and grid based ground magnetics in 2005 which was followed in February 2006 by a limited RC drill program. This initial drill test targeted a ridge crest where earlier surface mapping and rock sampling had identified quartz veins with visible gold that returned anomalous gold assays ranging from 11g/t to 390g/t.  Drill holes RCGD 3, 4, 5 and 7 cut a series of NW trending shear hosted, gold bearing quartz veins. The best gold assays reported from the drilling included: 15m @ 15.09g/t and 23m @ 11.42g/t.  The mineralised quartz veins are hosted within a strongly tectonized, pervasively quartz-sericite-pyrite +/- arsenopyrite altered medium grained, Mesozoic granite-diorite and black schist. Visible gold and bonanza gold grades are associated with the strongly sheared margins of the quartz veins

During the September 2008 quarter, at Gutain Davaa, a limited summer exploration program was completed and consisted of prospecting, geological mapping, trenching, rock sampling and soil sampling. In addition, detailed ground magnetics coverage was expanded and a two stage Induced Polarization geophysical survey was completed. 

At the Toordogiin Shil “TS” Prospect a total of 1,309 soil samples were collected on a 25m x 25m grid. A limited surface trenching program, detailed (1:1,000 scale) structural and lithological mapping was completed and  10  rockchip grab samples were collected resulting in the following significant gold assays; 17.37g/t  to 89.57g/t. A total of 7.7km of Gradient Array Induced Polarization (IP) geophysical  survey  was completed followed by 5.5km of Dipole-Dipole IP profile lines. The geological interpretation and modelling of the IP data supports the existing geological model for the TS Central Zone consisting of a series of overlapping northwest plunging shoots that was detailed by the IP data as overlapping high and low resistivity values.

During the summer program, prospecting of the next ridge west of the TS Zone led to the discovery of  Toordogiin Hyar (TH) Prospect where  250  soil samples were collected;of which  36 samples returned gold grades over 20ppb with a peak value of 171ppb.

Toordogiin Shil North Prospect (TSN): 86 soil samples were collected; 4 samples returned gold grades over 140ppb including a peak value of 6.46g/t. The soil anomaly extends about 200m from east-southeast to west-northwest and is open to the northeast. A total of 1.8km of Dipole-Dipole IP survey was completed over the TSN Prospect. Drilling at Gutain Davaa is scheduled for mid 2009.

Casposo Project, Argentina
On  March 26, 2009; Troy announces it has reached agreement with Intrepid to acquire its 100% interest in the Casposo deposit in San Juan Province in Argentina. Troy will fund the acquisition out of cash reserves.  This transaction was completed on May 6, 2009.
Commenting on the closing of the transaction, Troy CEO Paul Benson said: “We are very pleased we have closed the transaction to acquire Casposo. Our focus now will be to develop a new fast track and low capital cost plan for the development of the deposit. We expect to be able to update the market on the new development plan in the September quarter. This is an important milestone for Troy. We are entering a new phase of growth which will lift Troy’s annual gold production above 100,000 ounces of gold per annum.”

Casposo is a typical Low Sulphidation epithermal style gold–silver deposit where mineralisation is hosted within rhyolite - andesite flows and breccias. Veins are typically banded quartz–chalcedony colloform - crustiform banded with quartz - carbonate infill. Mineralisation is associated with an assemblage consisting of quartz, chalcedony, adularia, calcite, illite, sericite and trace sulphides. Gold and silver occur as electrum, native silver, sulfosalts and silver sulphides.
With Casposo Troy will look to similarly fast track development to bring it into production as quickly as possible and expect to utilise some or all of the gold plant we have in storage in Cobar, New South Wales to lower the capital cost and time of the mine development.  

Geographical Spread

Brazil, Argentina, Australia, Mongolia

Board of Directors and Key Management

Directors
John Dow	Chairman
Paul Benson	Chief Executive Officer
Ken Nilsson	Executive Director Operations
Alan Naylor	Non-Executive Director
John Jones	Non-Executive Director
Dr Denis E Clarke	Non-Executive Director and Geologist
Gordon Chambers	Non-Exeuctive Director
Management
Paul Benson	Chief Executive Officer
Ken Nilsson	Brazil Operations
Peter Doyle	Vice President Exploration & Business Development
David Sadgrove	Chief Financial Officer and Company Secretary

Company Address 44 Ord Street, West Perth, Australia Perth, Australia 6005 Telephone: 618 9481 1277 Facsimile: 618 9321 8237 Email: paul.benson[at]troyres.com.au Website: http://www.troyres.com.au

Additional Address/Key Contact Brazil Office Reinarda Mineração Ltda Rua Nove, 442 - Centro Rio Maria, PA Brazil CEP 68530-000 Ken Nilsson Director of Operations Augusto Mol Director - Exploration South America Telephone/Facsimile: (55 94) 3428 1621 Mongolia Exploration Office Troy Mongolia Alt Resources 7 Jamian Gunin Street SBD-1, Ulaanbaatar 210648 Mongolia Tserenjav Tsevegdorjiin Exploration Manager – Mongolia Telephone: (976 11) 31 7247 Facsimile: (976 11) 31 7247

Capital As At 31 March 2009 69,837,533 fully paid ordinary shares held by 2,744 shareholders

Annual General Meeting November

Year End 30 June

Major Shareholders

HSBC Custody Nominees (Australia) Limited	8,796,176	12.60%
National Nominees Limited	5,621,193	8.05%
CDS & Co	5,089,414	7.29
Warrigal Pty Ltd	4,773,600	6.84
ANZ Nominees Limited	3,528,403	5.05
CDS & Co	3,225,000	4.62
Gold Fields Orogen Holdings (BVI) Limited	3,130,400	4.48
Warrigal Pty Ltd	1,383,200	1.98
JP Morgan Nominees Australia Limited	1,217,286	1.74
Mr Damon Wells	1,041,764	1.49

Related News

26/05/09 - Troy Resources Is Adding A Bit Of Extra Value To The Development Of The Casposo Gold Deposit In Argentina
28/10/08 - Cashed-Up Gold Producer Troy Resources Has Been Kissing A Lot Of Frogs Lately
19/06/08 - Troy Discovers That There’s An Awful Lot Of Iron Ore In Brazil

Most Recent Statement

07/05/09 - Closing of Casposo Troy Resources NL
07/05/09 - IAU: Sale of Casposo completed
29/04/09 - Quarterly Activities Report
03/04/09 - Notice of ceasing to be a substantial holder for IRd
03/04/09 - Form 605 Adelaide Resources Ltd
26/03/09 - Troy to Acquire Casposo Project