INDONESIA - Drilling resumes at Tambang Tinggi

Sihayo Gold has resumed diamond drilling at the Tambang Tinggi gold/copper prospect in the southern area of the company's Contract of Work in North Sumatra.

The 8 hole drilling program is following up on scout drilling undertaken in 2005, which intersected 125 metres @ 1.4 grams/tonne gold from surface, including 25 metres @ 4.58 gram/tonne from 31 metres in what is interpreted to be the phyllic alteration zone of a porphyry copper-gold system.

The current program is designed to potentially deliver the company's second JORC-compliant gold resource to compliment the flagship Sihayo Pungkut Gold Project of 10.7 million tonnes @ 2.9 grams/tonne gold for 1.01 million ounces.

Detailed surface work through the Tambang Tinggi region is defining significant zones of gold and copper mineralization. A soil sampling program has defined an area of about 2.5km by 0.6km containing anomalous gold and copper.

A detailed rock chip sampling program has returned a number of high grade gold, copper and silver results, with 20% of samples returning greater than 1 gram/tonne gold and a best sample of 62 grams/tonne. In addition, 7% of samples returned greater than 30 grams/tonne with a best sample of 490 grams/tonne and 6% of samples returned greater than 0.5% copper with a best sample of 5.03%.

Further exploration work being undertaken within the Tambang Tinggi region includes a detailed aeromagnetic/radiometrics survey and a detailed dipole-dipole induced polarization survey.

The Tambang Tinggi region is on a section of the Sumatran Fault system and is in the southern portion of the company's COW.

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