Troy Resources Limited

Results for the Year Ended 30 June 2014

PERTH, WESTERN AUSTRALIA--(Marketwired - Aug. 27, 2014) -

NOT FOR RELEASE TO UNITED STATES NEWSWIRE SERVICES

• Record gold equivalent production of 132,939 ounces (2013: 127,060 ounces)
• Revenue $178.0 million impacted by lower metal prices (2013: $202.7 million)
• EBITDA¹ of $29.7 million (2013: $64.0 million)
• Underlying profit after tax² of $2.2 million and net loss after tax of $59.1 million (2013: Profit $18.6 million) due primarily to a non-cash asset impairment of the Karouni gold project in Guyana of $61.2 million
• Underlying profit after tax in the second half of the year of $9.0 million compared with a loss of $6.8 million in the first half
• Completed the largest Resource drill-out in the Company's history resulting in an 89% conversion of Resources to Reserves for the Karouni Open Cut Project
• Commenced construction at Karouni following completion of the off-market takeover of Azimuth Resources Limited

Troy Resources Limited (ASX:TRY)(TSX:TRY) today announced an underlying profit after tax of $2.2 million for the financial year ended 30 June 2014 achieved on a 4.6% increase in annual gold equivalent production of 132,939 ounces. After a $61.2 million non-cash asset impairment charge for Karouni, Troy recorded a net loss after tax of $59.1 million for the year.

The underlying profit of $2.2 million for the financial year represents a profit for the six months to 30 June 2014 of $9.0 million as against a loss for the half-year to 31 December 2013 of $6.8 million. The stronger production and sales volumes for the second half together with lower costs resulted in an improvement in Gross Profit of $21.9 million. The result, however, was adversely impacted by lower gold and silver prices and foreign exchange losses resulting from the devaluation of the Argentine peso against the Australian and US currencies.

Karouni was acquired through a non-cash, scrip for scrip takeover offer for Azimuth Resources Limited which was completed in August 2013. Troy has completed the first part of the Karouni Pre-Feasibility Study focussed on the open pit only which has shown it to be an economically robust project with a payback period of just over a year and an after tax IRR in excess of 50%. First production from Karouni remains on track for before the end of FY2015.