Woodbois Regulatory News (WBI)

30 July 2010

OBTALA RESOURCES PLC ("Obtala" or the "Company")

Potential sulphide zones identified, gold exploration, Tanzania

Obtala Resources plc (AIM:OBT), the resources investment, development and production company, today provides an update on exploration activities on the Shinyanga gold licence within the Lake Victoria Goldfields of Northern Tanzania.

Results Highlights from Induced Polarization (IP) survey

·; Seven drill targets identified

·; Gold-in-soil anomalies previously identified correlate with identification of possible sulphide mineralization zones

·; Many of these zones correlate well with gold-in-soil anomalies

·; Dipole-Dipole modeling provides position, dip and depth data of the structures

An IP survey was successfully concluded in July 2010 by Spectral Geophysics (T) Ltd over two areas of previously identified positive gold-in-soil anomalism. Initially, two one kilometre-square grids, Grid A and Grid B, were completed with the Gradient Array method on lines 100m and stations 25m apart respectively. The objective of the survey was to identify and delineate possible zones where gold bearing areas of sulphide mineralization (represented by chargeability highs) might exist. A geo-electrical map (Apparent Resistivity Data) was also created of the two areas where positive gold-in-soil anomalism was identified in earlier sampling programmes. Six Dipole-Dipole (DPDP) lines were conducted over selected Gradient Array anomalies.

The combined Gradient Array and Dipole-Dipole Surveys were successful in delineating seven chargeable zones of interest where sulphide mineralization may prove to be present. The Gradient Array results over Grid A delineated four main chargeable target zones and a further three chargeable target zones of interest were identified over Grid B. Many of these zones correlate well with gold-in-soil anomalies.

Frank Scolaro, Chairman of Obtala, commented that "Shinyanga is positioned in a world-class gold producing region being actively developed by well known international mining companies. The successful results from the Shinyanga survey indicate that bodies of sulphide mineralization may exist in a series of areas including those where Obtala has already identified the presence of gold. We look forward to drilling these zones in the near future and I am confident that further exploration work will deliver additional encouraging results. Our strategy remains the same; to efficiently prove up resource projects and consistently deliver value to shareholders form a portfolio of operations."

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Further exploration information

Induced Polarization (IP) survey

An Induced Polarization survey identifies the potential presence of various bodies located in the ground by measuring resistance levels returned from a current passed through the earth.

The Apparent Resistivity data from the Obtala survey delineates resistive structures including quartz veins, dykes, other silicified structures, as well as conductive structures, including shear zones. The initial results from the survey were positive and consequently Grid B was extended with three short Gradient Array lines in the North to confirm the continuation of a chargeable/resistive anomaly.

Dipole-Dipole (DPDP)

Six Dipole-Dipole (DPDP) lines were conducted over selected Gradient Array anomalies. Two lines were selected on Grid A and four on Grid B. The Dipole-Dipole IP data is suitable for quantitative interpretation including indications of the depth and dip of the structures. The inversion program, Res2Dinv, from Geotomo, was utilized to derive pseudo depth sections from the Dipole-Dipole data.

Project overview

The Shinyanga licence covers an area of 68.56km2 and is located 125km south of Mwanza, Tanzania's 3rd largest city situated on the shores of Lake Victoria, in close proximity to the Mwadui Diamond Mine. The town of Shinyanga lies 14km south of the licence area and is the administrative centre for the Shinyanga District, serviced by road, rail and air.