Troy Resources Limited

Results for the Year Ended 30 June 2014 - Seite 2

Drilling is continuing on the Smarts underground target which is the focus of the second stage of the Karouni Pre-Feasibility Study. During FY2014, the focus has been on Resource infill drilling within the Resource Model. In August, Brownfields drilling commenced, focussed on testing targets along strike of the Smarts and Hicks deposits. More than 30 targets have been identified within 20km of the new plant site which will be prioritised and progressively drill tested in the coming years. The Board is confident that further Resource ounces will continue to be added at Karouni.

At the time Azimuth was acquired, the Karouni Project was accounted for as an exploration asset and its carrying value assessed under AASB 6 Exploration for and Evaluation of Mineral Resources. However, with development of Karouni having progressed and the open cut phase of the Pre-Feasibility Study released, the Company is now required to account for it in accordance with ASSB136 Impairment of Assets. AASB 136 does not permit the attribution of any value for potential near mine exploration success until evidenced by successful drilling and resources being identified. As a result, the Company has been required to write down the carrying value of Karouni. This accounts for the majority of the non-cash impairment loss. The impairment loss has no impact on Troy's debt facilities or its operations.

Commenting on the results, Troy Chairman, David Dix said: "Troy has delivered higher gold equivalent production and has established a strong foundation from which to continue to grow our production in the coming years. The Company has a target rich, highly prospective, Brownfields exploration portfolio in Guyana, which we have just begun to explore, and the Board is confident that Resource ounces will continue to be added to the Karouni Project over time."

"Whilst our current funding requirement for development of Karouni precludes payment of a dividend, shareholders should be aware that the Board is very conscious of the Company's extensive record of dividend payments and will look to resume payments as soon as prudently possible."

A copy of the ASX Appendix 4E Preliminary Final Results for the year ended 30 June 2014 can be accessed via the Troy website under "Latest News". The report can also be found under the Company's profile on the SEDAR website.

¹ EBITDA is 'Earnings before interest, income taxes, depreciation and amortisation and non-cash impairment charges'.

² Underlying profit after tax is 'profit after tax before non-cash impairment charges.'