TSTR.L Regulatory News (TSTR)

20 June 2012

Tri-Star Resources plc

("Tri-Star" or the "Company")

Operational update

Tri-Star Resources (AIM: TSTR), the antimony exploration and development company, is pleased to provide an update regarding its operations and activities.

Highlights

Göynük Project, Turkey

·; Tri-Star has received an independent geological assessment of the Göynük antimony deposit in Turkey (the "Geological Assessment"), detailing a new geological model of volcanic massive sulphide Kuroko style.

·; Deposit mineralistion categorised as an "Exploration Target" with a potential of approximately 350,000 tonnes averaging between 1% Sb and 3% Sb.

·; Successful grant of environmental permission for a small scale processing facility at Göynük, with a processing capacity of 14,400 tonnes per annum.

UAE antimony roaster

·; Indicative non-binding letter of intent received from existing JV partner in the UAE to provide up to US$30 million of working capital for the roaster project, once operational, and once terms agreed.

·; Construction permit received for roaster general site preparation work.

·; Direct leaching of antimony sulphide concentrates achieved 99.4% Sb recovery.

Antimony industry

·; Antimony metal prices remain robust and are currently trading at approximately US$14,000 per tonne.

·; Industry forecasters predicting widening shortage of metal to 2016.

Emin Eyi, Managing Director of Tri-Star, commented: "The Company achieved important milestones this year; progression of important relationships in the antimony industry, progress at our upstream assets in Turkey and Canada and further steps and welcome support for the development of the roaster project in the UAE."

Göynük Project, Turkey

Independent geological assessment

Following the systematic drilling of the lower east zone and the discovery of the upper west zone at the end of 2011, the Company undertook a review of the technical work and geological assessments prior to resumption of drilling, although certain elements of the review were delayed pending receipt of assay data and the clearing of snow from the project site, which only occurred in April 2012.

As previously announced on 14 February 2012, Tri-Star appointed Behre Dolbear International Limited ("BD"), in December 2012, to provide an independent assessment of the Göynük resource and prepare a report for the Company assessing the complex geology and geometry of the deposit (the "BD Report").

The findings of the BD Report support a completely new model of a hybrid volcanogenic core, with volcanic massive sulphide ("VMS") and epithermal mineralising systems, resulting in a large halo of antimony, epithermal high grade mineralisation and new rock classifications. Below is an extract from the BD Report, which is available in full from the Company's website at www.tri-starresources.com, detailing the exploration potential of the Göynük deposit:

"Tri-Star drilled 67 cored holes totalling 5,479m. The mineralised sections were sampled and the drill-hole assay data was used to prepare a geo-statistical model of the mineralisation. At present, the known mineralisation is restricted to an area about 200m x 50m aligned NW-SE along the main outcrop and this has been sub-divided into 3 zones: (i) the upper Area A, (ii) the central Mine Area C, and (iii) the lower Area B. Areas A and B were defined by drilling, whilst Area C was defined by mapping and sampling of the old workings but has not yet been tested by drilling. There is evidence to suggest that the mineralisation extends at depth for some distance (100m to 150m) westwards down-dip of the silica-breccia / conglomerate contact in the Mine Area C.

The old mine dumps represent an opportunity for reworking at current antimony prices.

Despite a history of more than a hundred years of intermittent artisanal production, it is concluded that the Göynük deposit is only partially explored and has potential for further discoveries that may be suitable for mining by either underground or open-pit methods. It is recommended that the Göynük Mine area be explored and evaluated in more detail for the potential for hosting economic concentrations of epithermal antimony-gold mineralisation.

At present, the known mineralisation is restricted to an area about 200m x 50m aligned NW-SE along the main outcrop. There is evidence to suggest that the mineralisation extends at depth for some distance (100m to 150m) westwards down-dip of the silica-breccia / conglomerate contact. This western area together with Mine Area C warrants systematic diamond drilling to test and evaluate its mineral potential.

There is insufficient geological and lateral grade continuity of mineralisation apparent in the drill hole assay data and insufficient confidence in the representativeness of the sampling of the old mine workings at Göynük to categorise the mineralisation as a JORC compliant mineral resource. Therefore the mineralistion is categorised as an "Exploration Target".

The Exploration Target consists of four (4) identifiable components listed in order of confidence:

·; the drilled mineralisation in Areas A and B amounting to about 181,000 tonnes;

·; the old mine waste dumps amounting to about 75,000 tonnes;

·; the Mine Area C consisting of unmined remnant ore; and

·; exploration potential of the western down-dip extention of the mineralisation.

A very preliminary estimate of the combined potential Exploration Target identified in these four areas, based on existing drill hole assay data and limited mapping and sampling of the old workings, is about 350,000 tonnes, averaging between 1% Sb and 3% Sb.

It is expected that this objective could be achieved by a two-stage exploration programme. The first stage of the programme would consist of close-spaced infill drilling along the western side to:

·; fully define the extent and grade of the mineralisation;

·; upgrade the current Exploration Target to an Inferred / Indicated mineral resource category; and

·; obtain geotechnical data and metallurgical samples to support a pre-feasibility study to upgrade the Mineral Resource to Probable Reserve status.

The first-stage programme is expected to cost approximately US$750,000 and will require approximately 25 diamond drill holes at about 20m centres, totalling approximately 2,000m.

If this is successful in delineating a significant mineral resource, the second stage should consist of detailed in-fill drilling and metallurgical test-work as part of a mine scoping study.

It is recommended that TriStar should carry out a comparative assessment of the relative merits of a high-grade / low-tonnage operation based on selective underground mining, versus a low-grade / high-tonnage operation based on bulk open-pit mining."

Environmental permission for small scale processing facility

In addition to the completion of the Geological Assessment, the Company's wholly owned subsidiary in Turkey, Uç Yildiz, has successfully received its environmental permit for a processing facility to be constructed at Göynük, which will have an annual capacity of 14,400 tonnes. The facility is expected to treat existing stockpiled material and construction will commence subject to an internal assessment of the project and the availability of sufficient financing.

UAE Antimony Roaster

Tri-Star Union FZ LLC ("Tri-Star Union"), the Company's joint venture company in the UAE, has received a non-binding indicative letter of intent ("LOI") from its joint venture partner, RAK Holdings, a wholly owned subsidiary of the Union Group, outlining the proposed terms of a working capital facility of up to US$30 million which the Union Group will source to help finance the roaster operations. The terms of the LOI, which are to be negotiated and on an arm's length basis, are conditional on, inter alia, construction and completion of the roaster, and production commencing.

In addition, Tri-Star Union has now received a construction permit approving site preparation work at the 20 hectare leased area in the Al Ghail Industrial Park in the Emirate of Ras Al Khaimah in the UAE. The work approvals are for general site levelling, fencing and boundary wall construction. This site preparation work is part of the overall site investigation, which must take place prior to commencing construction.

As part of the Company's on-going technology verification investigations, Wardell Armstrong conducted direct leaching of antimony sulphide concentrates and achieved a 99.4% recovery. The use of hydrometallurgical processes may, in the future, provide a technical solution for the production of high purity products or can be used for certain antimony sulphide ores that are not purely stibnite but carry considerable amounts of deleterious elements.

Canada

Following the discovery of an antimony anomalous granodiorite in the 2011 exploration programme, the large area of claims was rationalised down from 765 claims to 252 claims, or from 170.5km2 to 56.2km2, over the area of interest. A work programme has been formulated to cover the area, with a geochemical sampling grid and geophysical survey to seek mineralisation associated with and emanating from the granodiorite.

Future strategy 

Turkey

In Turkey, the geological assessment prepared by independent consultants has highlighted areas of mineralisation and provided a far reaching new deposition model for the project. The drilling indicates the deposit remains open to the NW-SE flanks, has depth potential and the new model suggests a disseminated bulk tonnage ore body. Whilst the report has shown encouraging mineralisation, the focus was only on 200m in length on a feature that has a strike length of 5km yet to be drill tested.

The mineralised area at Göynük surrounds a Kuroko style dome of siliceous breccia, overprinted by VMS and epithermal mineralising events. The obviously mineralised areas on the flanks of such dome were included in the various envelopes considered by BD but the dome's significance as a host to potential disseminated mineralisation was not taken into account when Tri-Star was considering areas of potential high grade mineralisation, and not considered until the new model was available for interpretation. The silicified breccia dome has been modelled as having a volume of 225,000m3, (approximately 600,000 tonnes). In light of these results, the Company intends to continue its development of the Göynük project, subject to the availability of working capital.

The environmental permission to build a small scale processing plant at the Company's mine site is an important milestone for the project. There is significant and readily available material from the dumps and at surface, often high grade visible stibnite that can be upgraded as suitable feed for the processing plant's gravity circuit. A gravity concentrate marketing review is required before a final investment and construction decision can be made.

UAE

In the UAE, the roaster project obtained its construction permit for general site preparation work. Our joint venture partners, RAK Holdings, a wholly owned subsidiary of Union Group, has also offered substantial working capital to our joint venture once the plant is commissioned so as to provide an often overlooked capital requirement to finance feedstock, supplies and convert them into finished saleable goods. This is very welcome support for the project from our JV partner and the Company will continue to develop it's strategy in the UAE and provide further updates in due course.

The Company is pleased with the results from Wardell Armstrong of the antimony sulphide direct leaching tests. Unlike our antimony ore from Göynük, which are predominately stibnite (antimony sulphide), many other antimony deposits around the world show features of zoning and have different antimony minerals that contain deleterious base metals. This technology will enable the company to produce high purity product, while widening the global feedstock sources available to it. Tri-Star is regularly engaged in certain antimony industry initiatives with respect to raw material sources, technology orientated consumers, and continues to develop its stated strategy.

Enquiries:

Brian Spratley, the Company's Technical Director, has relevant experience within the sector and meets the criteria of a qualified person under the AIM note for mining, oil and gas companies and has reviewed and approved the technical information contained in this announcement.