GOLDARC RESOURCES LIMITED — Capital/Financing Update 2011

Oct 17, 2011

ASX AND MEDIA RELEASE

WORK CONTINUES AT VATOVORONA GOLD PROJECT

Tuesday, 18 October 2011

Highlights

• Stage 2 of the Work Program has commenced

• Drilling contract for 6000 metres about to be signed

• Drilling to take place throughout the wet season

Torian Resources announces today that its joint venture in Madagascar has commenced Stage 2 over the past month with the planning of the location of the first holes of an initial proposed drilling program of up to 6000 metres, of which 4500 metres will be diamond core to commence in late November 2011.

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Over the past 6 weeks the pit has been further extended and further sampling has taken place. The joint venture has experienced long delays with obtaining its assay results from South Africa and planning is underway to undertake on site pre‐ sampling preparation in order to shorten this time. These new arrangements will also be important when drilling commences and samples and core is being produced for testing and analysing.

The joint venture has determined upon the recommendation of Torian to concentrate the initial drilling in the vicinity of the pit and the area to the immediate south, including a number of diamond holes through and below the pit. The pit works have revealed that there is a soil cover of up to 5 to 6 metres and therefore Torian has proposed that approximately 25% of the proposed initial drilling program will be short percussion holes of up to 15 metres in length to specifically identify the location of the target mineralisation area immediately below the soil layer.

Final discussions are taking place with Lanoe Forages SARL an experienced Madagascan drilling company to undertake the proposed initial program. The principal of Lanoe drilling is Mr. Jean Lanoe, who has been involved in the drilling industry in Madagascar for more than 30 years. Torian anticipates the contract will be executed by all parties this week.

Lanoe has recently agreed to work through the wet season which in Madagascar extends from mid December to the end of March or later. It is anticipated that the end of February 2012 will see the completion of the initial program of approximately 5900 metres of drilling. Lanoe intends placing three rigs on the site, two of which will be the primary operators and each of these rigs is self propelled using tracks which are critical for operations over the wet season.

Torian is arranging to place on the site wet season accommodation and facilities to support the program.

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Operating through the wet season poses some operational problems in moving staff and samples to and from the site, but the area of the project usually receives little rain over extended periods although Torian employees were on site last January when a storm made crossing creeks on the track into the project impassable for several hours. We have directed our staff who will be on site over the wet season not to attempt crossing creeks that are in flood or if storms are in the area. The camp will have sufficient supplies to allow operations on a continuous basis over the wet season. Torian has encouraged these arrangements as the Stage 2 program could not have been completed by December 2012 if the initial drilling program was not completed until well after the coming wet season. This program provides sufficient time for the analysis of the initial program to take place before the commencement of the second proposed 6000 metres of drilling. The joint venture’s civil contractor will provide an excavator for the wet season drilling program but further extensions to the pit will not re‐ commence until Q2 next year.

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Over the past month Torian supervised a number of samples being taken from the pit within the target area of mineralisation and those samples were crushed on site and then panned by local employees.

Small quantities of gold were produced which have been sent for further weighing and analysis. Torian confirms that as the results become available they will all be published and released.

The budget for the period to the end of Stage 2 is US$3 million of which Torian’s contribution is US$2.55 million. The joint venture in Madagascar is conducted by Varun Torian International SARL in which Torian is earning its 35% interest by spending US$2.55 million on Stage 2 of the project. The recently announced funding from La Jolla provides the company with sufficient funds to complete the company’s capital contribution to the joint venture and further allow the company funding of its own additional requirements. Torian has received US$650,000 to date from La Jolla.

For further information contact: Peter Ashcroft on Phone (02) 9247 2277 Email: info@torianresources.com

Yours faithfully,

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Peter Ashcroft Executive Chairman