Arc Minerals Regulatory News (ARCM)

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

28 May 2015

ORTAC RESOURCES LTD

Update on Andiamo Exploration Ltd's Operations in Eritrea

Ortac Resources Ltd ("Ortac" or the "Company"), the AIM listed exploration and mine development company, announces that its exploration partner in Eritrea, Andiamo Exploration Ltd ("Andiamo"), in which it holds a 25% equity interest, is about to commence a 1,000m diamond drill programme on targets within the 253km2 Haykota Exploration Licence area. Ortac would also like to take this opportunity to provide an update on other activity Andiamo has recently achieved at its operations in Eritrea.

Highlights:

· Positive results from Hoba prospect trenching and sampling on the Haykota licence area

· 1,000m diamond drill campaign to commence on the Hoba prospect

· Advanced metallurgical testwork undertaken on Yacob Dewar deposits

· Yacob Dewar is being advanced towards JORC compliant maiden resource

Following successful stream sediment sampling, ground mapping, surface sampling and a hand-dug trenching programme conducted in the Hoba area over the last year, Andiamo has decided to commence a 1,000m diamond drill campaign on the Hoba prospect, located in the Haykota Exploration Licence area. The diamond drilling programme is designed to test volcanogenic massive sulphide ("VMS") style mineralisation in the north of the concession area.

The Hoba area was originally considered prospective due to a number of anomalous electromagnetic responses identified during the 2010 airborne geophysical surveys coincident with anomalous responses from a ground gravity survey. The follow-up work conducted in preparation for the drilling programme has identified a number of outcrops of "silica-barite" hosted mineralisation which have been sampled through surface trenches, some results of which are given in the tables below:

The northern part of the Haykota Exploration Licence is being explored under an agreement with Environminerals East Africa Ltd ("EEA"). EEA may earn a 50% interest in discoveries in the northern part of the licence area by spending a total of US$2.0m by the end of 2015.

Work on the development of the Yacob Dewar deposit is also progressing well. Following the completion of the systematic trenching over the deposit in 2014, representative samples of both the copper and gold mineralisation have been collected and sent to Wardell Armstrong's laboratory in the UK for metallurgical testwork. The copper mineralisation is undergoing diagnostic leach testing followed by column testing, to ascertain its suitability for heap leaching using dilute sulphuric acid, followed by solvent extraction and electrowinning ("SX-EW") for the production of high purity cathode copper. The gold samples will also undergo diagnostic leach tests followed by agitated leaching to simulate Carbon-in-Leach ("CIL") processing for the production of a gold and silver doré product. The results of the metallurgical testing programme are expected in Q3.

In addition to the metallurgical testing, work is currently on-going to estimate a maiden JORC compliant mineral resource estimate for the Yacob Dewar deposit. It is anticipated that the mineral resource estimate will also be completed during Q3.

Commenting on today's news, Vassilios Carellas, Ortac's CEO, said:

"The gold and copper grades intersected from the trenching of the Hoba prospect provide a sound platform for this diamond drilling campaign. Meantime Andiamo are edging closer to securing a JORC code compliant resource on Yacob Dewar, this coupled with the promising Hoba prospect means Andiamo are getting a better understanding of the geology at these prospects which bodes well for making similar discoveries in the wider Haykota licence area."

The information in this press release is based on information provided by Andiamo Exploration Ltd in their Letter to Shareholders dated May 2015 and compiled on behalf of Ortac by Mr. Owen Mihalop. The Hoba trench results are as reported by Andiamo and have not been independently verified by Ortac Resources Ltd. However, all assays are reported to have been prepared at Intertek Genalysis' sample preparation facilities in Asmara, Eritrea and assayed at their laboratories in Perth, Australia. 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.