G-Resources continues to discover additional gold and silver mineralization in and around the existing ore bodies and close to the Martabe plant site as a result of its ongoing, aggressive exploration program. Results have exceeded expectations with all four prospects drilled in July and August returning significant intersections of gold and silver. 1

Drilling activity during the first half of 2011 focused on adding to the Martabe mineral resource estimate with five diamond drill rigs completing resource drill outs at Tor Uluala and Horas.

After completing drilling for the 2011 resource estimate program, five diamond drill rigs were placed on exploration drill targets. Drilling started at four prospects - Purnama Dalam, Horas Barat, Tor Uluala Barat, and northern extensions to Tor Uluala. These prospects are all within 3km of the Martabe process plant that is under construction.

There were excellent drilling results from all targets with significant intersections of gold and silver returned.

At Purnama Dalam, diamond drilling intersected a wide zone of high intensity siliceous alteration. This is interpreted to represent the down plunge extensions of higher grade gold-silver shoots within the Purnama Deposit. Best results include 8.6 metres @ 4.53 grams/tonne gold and 58 grams/tonne silver, and 13.0 metres @ 2.73 grams/tonne gold and 29 grams/tonne silver.

At Horas Barat, surface mapping and drilling located high grade gold-silver zones which may be an extension of the Horas deposit or a distinct, new deposit 300 metres to the west. Best results include 9.5 metres @ 7.10 grams/tonne gold and 42 grams/tonne silver; and 11.0 metres @ 26.2 grams/tonne gold and 23 g/t silver.

At Tor Uluala Barat, drilling confirmed extension to depth of a drill hole intersection from a previous campaign. Continuity of mineralization along strike is indicated by surface mapping and sampling. Best results include 9.3 metres @ 3.36 grams/tonne gold and 14 grams/tonne silver.

Drilling immediately to the north of the Tor Uluala deposit is discovering extensions to the mineralised zones that form the recently released Tor Uluala resource estimate. Best results include 11.2 metres @ 0.83 grams/tonne gold and 66 grams/tonne silver.

Resource estimation work for the Horas deposit is under way and an updated Martabe resource estimate is imminent.

Drilling at regional targets on the Martabe Contract of Work has commenced with the Baning sediment-hosted gold target now being drilled.

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