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AERIS RESOURCES LIMITED Capital/Financing Update 2011

Jul 11, 2011

64347_rns_2011-07-11_6ab080c9-e0f2-4069-a156-dcf6d48c9732.pdf

Capital/Financing Update

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ASX RELEASE

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Straits

12 July 2011

STRAITS RESOURCES LIMITED

(ASX: SRQ)

Exploration and resource update of the Mt Muro epithermal gold and silver project

Straits Resources Limited (SRQ) is pleased to present the following exploration update on the 100% owned Mt Muro mine operated by Indo Muro Kencana (IMK) in central Kalimantan, Indonesia see Figure 1.

Key Points

  • A JORC compliant resource upgrade of 157 Koz AuEq on the Serujan and Bantian projects since the March 2011 ASX release.

  • The total resource base has increased to 2 Moz AuEq in all categories, including 1.4 Moz AuEq in the Indicated category (Table 1).

  • The total resource for the Serujan and Bantian projects now stands at 928 Koz AuEq with drilling continuing with 5 drill rigs.

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Figure 1. Mt Muro location map with project areas.

STRAITS RESOURCES LIMITED ABN 30 147 131 977 Level 1  35 Ventnor Avenue  West Perth WA 6005  Australia | PO Box 1641  West Perth WA 6872 T: +61 8 9480 0500  F: +61 8 9480 0520  E: [email protected]  www.straits.com.au

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Straits

Table 1. Resource statement:

The resource statement is based on drilling up to 30[th] May 2011.

Indicated - as at 30 Indicated - as at 30 Indicated - as at 30 June 2011 June 2011
Deposit/Project Cut Off
Gold Eq

Mining
Method
Tonnes (t) Gold
(g/t)
Silver
(g/t)
Gold
Eq
(g/t)
Gold (Oz) Silver (oz) Gold Eq
(Oz)
SERUJAN 0.5 OP 4,170,000
2.6
70.9 4.1 343,000 9,506,000
548,000
BANTIAN 0.5 OP 3,660,000
1.4
34.6 2.1 165,000 4,070,000
252,000
HULUBAI 0.5 OP 370,000
3.0
113.6 5.5 36,000 1,370,000
66,000
PERMATA 0.5 OP 290,000
2.2
91.1 4.1 20,000 850,000
38,000
KERIKIL 0.5 OP 620,000
2.2
37.7 3.0 43,000 750,000
59,000
LANGANTIHAN 0.5 OP 1,190,000
1.2
15.2 1.5 45,000 580,000
58,000
ANAK DUA 0.5 OP 290,000
2.9
28.7 3.6 27,000 260,000
33,000
SOAN 1.0 UG 770,000
4.2
56.9 5.4 103,000 1,400,000
134,000
Sub Total Resource Variable
All
11,360,000
2.1
51.4 3.3 782,000 18,786,000
1,188,000
Tailings Dam - Stockpile Variable
Stockpile

7,700,000

0.2
30.0 0.8 49,000 7,420,000
209,000
Sub Total Indicated Variable
All
19,060,000
1.4
42.8 2.3 831,000 26,206,000
1,397,000
Inferred - as at 30 June 2011
Deposit/Project Cut Off
Gold Eq

Mining
Method
Tonnes (t) Gold
(g/t)
Silver
(g/t)
Gold
Eq
(g/t)
Gold (Oz) Silver (oz) Gold Eq
(Oz)
SERUJAN 0.5 OP 630,000
2.5
45.8 3.5 51,000 929,000
71,000
BANTIAN 0.5 OP 770,000
1.6
31.9 2.3 40,000 790,000
57,000
HULUBAI 0.5 OP 270,000
2.9
129.3 5.7 25,000 1,130,000
49,000
PERMATA 0.5 OP 310,000
3.0
94.8 5.0 30,000 970,000
51,000
KERIKIL 0.5 OP 690,000
1.6
27.5 2.1 34,000 610,000
48,000
LANGANTIHAN 0.5 OP 1,930,000
1.3
14.7 1.6 79,000 900,000
99,000
DUA LUGI 0.5 OP 40,000
9.5
138.1 12.5 14,000 210,000
19,000
SOAN 1.0 UG 30,000
1.1
29.7 1.7 1,000 30,000
1,000
SINBAR 1.0 UG 1,280,000
2.1
22.6 2.6 85,000 930,000
105,000
SINTER 1.0 UG 590,000
2.9
44.9 3.9 55,000 850,000
74,000
Sub Total Resource Variable
All
6,540,000
2.0
35.0 2.7 414,000 7,349,000
574,000
Tailings Dam - Stockpile Variable
Stockpile

2,000,000

0.1
17.0 0.5 6,000 1,090,000
29,000
Sub Total Inferred Variable
All
8,540,000
1.5
30.7 2.2 420,000 8,439,000
603,000
Mt Muro Total Resource(Indicated + Inferred) - as at 30 June 2011
Sub Total Resource Variable
All
17,900,000
2.1
45.4 3.1 1,196,000 26,135,000
1,762,000
Tailings Dam - Stockpile Variable
Stockpile

9,700,000

0.2
27.3 0.8 55,000 8,510,000
238,000
Grand Total Variable
All
27,600,000
1.4
39.0 2.3 1,251,000 34,645,000
2,000,000
Mt Muro Total Resource(Indicated + Inferred) - as at 31 December 2010
Sub Total Resource Variable
All
16,550,000
2.1
46.5 3.0 1,101,000 24,730,000
1,605,000
Tailings Dam - Stockpile Variable
Stockpile

9,700,000

0.2
27.3 0.8 55,000 8,510,000
238,000
Grand Total Variable
All
26,250,000
1.4
39.4 2.2 1,156,000 33,240,000
1,843,000

Note:

1) Gold Eq values calculated using a $US1300 and $US28 price ratios (Gold Eq = Gold + Silver/(1300/28)).

2) Gold Equivalent calculations and reported ounces do not have gold and silver recoveries applied.

3) Current and Historical Metallurgical recoveries for Gold range from 90 to 93% and Silver from 65 to 80%.

4) All tonnage, grade and ounce values have been rounded to relevant significant figures. Slight errors may occur due to rounding of these values.

STRAITS RESOURCES LIMITED ABN 30 147 131 977

Level 1  35 Ventnor Avenue  West Perth WA 6005  Australia | PO Box 1641  West Perth WA 6872 T: +61 8 9480 0500  F: +61 8 9480 0520  E: [email protected]  www.straits.com.au

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Straits

Serujan Project

Drilling continued during the period, with the addition of a 3rd diamond drill rig, targeting the upper levels as well as below the March 2011 resource estimate. The deposit remains open at depth and along strike (figure 2 and 3). Significant Intersections contained within the updated resource include;

HOLE From
(m)
To
(m)
Interval*
(m)
_Au_Eq
(g/t)
_Au

(g/t)
Ag
(g/t)**
CEDH019 128.4
151.3
22.9
5.33
3.21
97.50
CEDH033 106.6
109.6
3.00
13.37
8.93
204.30
CEDH035 125.6
132.9
7.30
12.75
7.21
254.90
CEDH040 122.6
126.0
3.40
38.57
29.56
414.4
CEDH044 139.45
147.6
8.15
7.59
6.34
57.30
CEDH046 187.5
196.4
8.90
5.45
5.40
38.30
CEDH049 117.45
120.8
3.35
12.74
8.15
211.20
CEDH052 122.2
126.8
4.60
14.74
12.13
120.30
CEDH054 153.55
163.7
10.15
4.56
2.90
76.30
CEDH063 133.1
141.45
8.35
6.15
4.14
92.2

Bantian Project

Drilling continued during the period, focusing on Block 4 and 5, targeting along strike and below existing resource shells. The mineralised structure remains open at depth and along strike (figures 4 and 5). Significant Intersections contained within the updated resource include;

HOLEID From To
(m)
Interval*
(m)
_Au_Eq
(g/t)
_Au

(g/t)
Ag
(g/t)**
(m)
BRC080 60 63
3
7.49
7.22
12.30
BRC096 26 39
13
7.00
4.79
101.40
BRC100 49 53
4
5.40
4.77
28.80
BRC103 43 46
3
9.40
5.20
193.3
BRC113 0 3
3
3.01
2.98
1.70
BRC128 8 18
10
2.94
2.60
15.30
BRC138 76 82
6
3.19
2.62
26.50
BRC155 91 93
2
14.84
14.04
37.00
BRC183 79 84
5
8.62
5.63
137.80
BRC188 3 12
9
5.66
2.52
144.40

*Intersections are down hole. True width is between 60% and 80% of the interval

**Gold Eq values calculated using a $US1300 and $US28 price ratios (Gold Eq = Gold + Silver/(1300/28)). Gold Equivalent calculations and reported ounces do not have gold and silver recoveries applied. Current and Historical Metallurgical recoveries for Gold range from 90 to 93% and Silver from 65 to 80%.

STRAITS RESOURCES LIMITED ABN 30 147 131 977

Level 1  35 Ventnor Avenue  West Perth WA 6005  Australia | PO Box 1641  West Perth WA 6872 T: +61 8 9480 0500  F: +61 8 9480 0520  E: [email protected]  www.straits.com.au

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Straits

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Figure 2. Serujan long section with significant intersections and interpretation of the plunging mineralised zones

STRAITS RESOURCES LIMITED ABN 30 147 131 977

Level 1  35 Ventnor Avenue  West Perth WA 6005  Australia | PO Box 1641  West Perth WA 6872 T: +61 8 9480 0500  F: +61 8 9480 0520  E: [email protected]  www.straits.com.au

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Straits

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Figure 3. Cross section through Serujan project. The location of the section is shown on the long section

STRAITS RESOURCES LIMITED ABN 30 147 131 977

Level 1  35 Ventnor Avenue  West Perth WA 6005  Australia | PO Box 1641  West Perth WA 6872 T: +61 8 9480 0500  F: +61 8 9480 0520  E: [email protected]  www.straits.com.au

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Straits

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Figure 4. Bantian long section with significant intersections

STRAITS RESOURCES LIMITED ABN 30 147 131 977 Level 1  35 Ventnor Avenue  West Perth WA 6005  Australia | PO Box 1641  West Perth WA 6872 T: +61 8 9480 0500  F: +61 8 9480 0520  E: [email protected]  www.straits.com.au

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Straits

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Figure 5. Cross section through Bantian project. The location of the section is shown on the long section

Mineral Resource Notes for the Serujan and Bantian Resources: for Table 1. July 2011.

1. The information in this report that relates to Mineral Resources and Ore Reserves is based on information compiled by Mr Byron Dumpleton. Mr Dumpleton is a member of the Australasian Institute of Geoscientists. Mr Dumpleton is a full-time employee of Straits Resources Limited with over 23 years’ experience in exploration, mining, economic evaluations and has sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Dumpleton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

2. Mr Ian Stockton is the Geology Manager for Mt Muro (PT. INDO MURO KENCANNA), he is the qualified person responsible for the QA/QC, geological interpretation protocol. Mr Stockton is a member of the Australian Institute of Mining and Metallurgy. Mr Stockton has over 22 years’ of experience in exploration, mining and evaluation of mineral commodities. Mr Stockton Consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

3. Mineral Resources are Inclusive of Ore Reserves.

4. Gold Equivalent (AuEq) numbers reported are based US$1300 for Gold and US$28 for Silver. No recovery factors have been applied to the "Insitu" Gold Equivalent (AuEq) value. Gold Equivalent equation = Au value + Ag value/(1300/28). Note these figures have been updated by Straits Resources Ltd to reflect current Straits corporate accounting policy.

5. All tonnage, grade and ounce values have been rounded to relevant significant figures. Slight errors may occur due to rounding of these values.

6. Historical and current metallurgical recoveries for Mt Muro range 90 to 93% for Gold and 65 to 80% for Silver.

7. Bulk density estimates were assigned on a weathering basis. Density values are calculated using the water immersion (Archimedes principle) on diamond core samples and/or in pit samples.

STRAITS RESOURCES LIMITED ABN 30 147 131 977

Level 1  35 Ventnor Avenue  West Perth WA 6005  Australia | PO Box 1641  West Perth WA 6872

T: +61 8 9480 0500  F: +61 8 9480 0520  E: [email protected]  www.straits.com.au

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Straits

For further information, please contact either:

 Mr Dave Greenwood – Corporate Affairs on +61 8 9480-0500, or visit our website at www.straits.com.au .

About Straits Resources

Straits Resources Ltd (ASX Code: SRQ) is a mining and exploration company focused on copper and gold in Australia and Asia. Straits owns and operates the Tritton copper mine in NSW and the Mt Muro gold mine in Indonesia and has an exciting exploration portfolio focusing on projects in NSW (through Goldminco) and South Australia.

STRAITS RESOURCES LIMITED ABN 30 147 131 977 Level 1  35 Ventnor Avenue  West Perth WA 6005  Australia | PO Box 1641  West Perth WA 6872 T: +61 8 9480 0500  F: +61 8 9480 0520  E: [email protected]  www.straits.com.au

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