Strategic Partnership in Montenegro

Centurion Resources Plc / Index: AIM / Epic: CEN / Sector: Natural Resources

14 February 2013

Centurion Resources Plc ('Centurion' or 'the Company')

Strategic Partnership in Montenegro

Centurion Resources Plc is pleased to announce that it has established a strategic partnership with ASX-listed resource company Balamara Resources Limited (ASX: BMB) ('Balamara') to support the continued development of its Balkans interests, including its flagship polymetallic Zinc-Lead-Copper-Silver project in Montenegro ('Monty' or the 'Project').

Highlights:

·; Acquisition of a 10% equity position in North Mining d.o.o., a wholly owned subsidiary of Balamara, which operates the previously producing Monty project

·; Acquisition comprises a £375,000 staged-payment investment, with proceeds to be spent on the exploration activities at Monty. This transaction is in line with the Company's strategy of building a portfolio of resource projects in Europe

·; Monty encompasses the main Brskovo deposit and several adjacent satellite deposits, Zuta Prla and Visnjica:

o Brskovo target has a JORC compliant Indicated and Inferred resource of 2.5Mt at 3.84% zinc, 3.17% lead, 0.31% copper including an initial JORC Inferred silver resource of 880,000oz at 16.5 g/t.

o A further high-grade footwall silver zone identified at Brskovo outside of this containing 1.05Moz of silver at 89.2 g/t.

o Overall combined project (Brskovo, Zuta Prla and Visnjica) JORC compliant Indicated and Inferred resource of 9.15Mt at 3.78% zinc, 1.24% lead, 0.29% copper and over 1.9Moz of silver.

o Drilling is ongoing at Monty with five holes currently submitted for analysis, additional drilling planned across all targets and further JORC Resource updates due in 2013

o Outstanding near-mine and regional exploration potential, first ever airborne geophysics in Montenegro being evaluated for data capture in 2013

Alastair Clayton, CEO of Centurion said, "Through this partnership with Balamara we have gained exposure to an exciting polymetallic project that already has established and growing JORC Resource. Furthermore, the Balkan region is hugely prospective for base and precious metals.

"Centurion views this transaction as delivering several benefits: a published JORC Resource including nearly two million ounces of high-grade silver; huge exploration upside potential; and importantly a foothold in a truly underexplored mining destination in a stable EU candidate nation.

"Centurion looks forward to updating shareholders with progress and plans on the back of further drilling throughout 2013."

Further Information

Comprising an open-pit called Brskovo and several satellite deposits (Zuta Prla and Visnjica), Monty is a poly-metallic deposit containing zinc ('Zn'), lead, ('Pb'), copper ('Cu') and silver ('Ag'). It was mined up until 1987 when Montenegro was part of the former Yugoslavia.

Balamara was awarded the Monty Project via international tender in 2011 and has been drilling below the Brskovo open-pit since early 2012.

The most recent JORC Resource was published on 29 January 2013 by Balamara and was compiled by Golder Associates. It upgraded the previous Inferred resources below the Brskovo open-pit to:

January 2013 Brskovo JORC Resource:

* Within the 2.5 Mt of the main zinc-lead mineralised zone, there is a subset of Inferred silver mineralization containing 1.63Mt at 16.51g/t Ag. This subset is global within the 2% Pb or 2% Zn cut-off grade.

In addition, this programme identified a high-grade footwall silver zone outside of the above containing 1.05Moz of silver at 89.2 g/t.

Footwall high-grade silver JORC Resource outside the main zone:

Golder Associates has also identified further silver mineralisation as indicated outside the main zinc-lead mineralised zone. Examples of better drill intercepts received in 2012 for the Brskovo drill programme include;

• Hole DH-7: 18m grading 3.41% Pb, 4.97% Zn including: 7m grading 5.75% Pb, 8.32% Zn

• Hole DH2-11: 18m grading 3.67% Pb, 4.05% Zn

• Hole DH1-11: 5.5m 507gpt Ag 2.83% Pb, 4.01% Zn

Since the January Resource update above, a further five holes have been completed at the Brskovo open-pit.

Drilling is planned to continue at the Project through 2013 to complete the programmes at all three deposits using diamond drill rigs with the intention of expanding the known resources and exploring for new mineralisation.

The two satellite deposits located just to the north of the Brskovo open-pit contain the following JORC compliant resources as published by Balamara and compiled by Golder Associates in May 2011:

In the current drill programme both Zuta Prla and Visnjica will be drilled in an effort to upgrade and expand these resources.

Furthermore, it is the intention of Centurion and Balamara to utilise modern exploration techniques including the first application of airborne geophysical techniques in the region to explore for additional local and regional mineral deposits. From historical records and anecdotal evidence it appears to the companies that all the deposits known so far were discovered because they outcropped the surface in some way.

Terms of Agreement

Under the terms of the agreement, Centurion will be issued with new shares giving it a 10% holding in North Mining d.o.o. for a total consideration of £375,000 ($575,000), to be spent on on-going exploration activities. Balamara will retain the remainder of the shares in North Mining and control over the Monty Project, and will continue to develop the asset. Centurion has been granted an option in accordance with the agreement that allows it to require Balamara to repurchase the shares in North Mining for 110% of the monies received to the point of exercise, any time up to 31 December 2013. Centurion has granted an option to Balamara whereby, if exercised prior to 31 July 2013, Balamara may repurchase the shares in North Mining for 200% of the monies paid by Centurion to the point of exercise, or, if after 31 July 2013 and before 31 December 2013, for 110% of the monies paid by Centurion to the point of exercise. The agreement also makes provisions for each party to fund further exploration pro-rata to their shareholding.

Financial Information

The gross assets of North Mining as at 30 November 2012 were €349,000. The net loss for the period to 30 November 2012 was €646,000.

Other Information

Although the transaction is not a Related Party Transaction within the AIM Rules, it is noted that Alastair Clayton is a Non-executive Director of Balamara.

Notes

1. The Resources reported in this announcement are 100% of the Resources attributable to the licences.

2. The Resource information included in this announcement has been sourced from reports published by Balamara in May 2011 and January 2013 and announced in accordance with ASX rules.

Competent Persons Statement:

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Kevin Alexander. Mr. Alexander is a full time employee of Balamara Resources Limited. Mr. Alexander is a member of The Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists.

He has sufficient experience that is relevant to the style of mineralization under consideration and to the activity which he is undertaking to be qualified as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting on Exploration Results, Mineral resources and Ore Reserves". Mr. Alexander consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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For further information see http://www.centurionresources.com/ or contact the following:

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