Kenyan Lolgorien Gold Licence Area Operational Update

Goldplat Plc, the AIM listed gold producer, is pleased to provide an update with regards to its next phase of the ongoing evaluation and development programme at its 50% owned joint venture Lolgorien gold project within the historically producing Migori Archaean Greenstone Belt in south western Kenya. The aim is to conduct an extensive bulk sampling operation, develop revenue in the short term through the refurbishment of the existing processing plant to process ore and tailings and to bring the historically producing area back into full commercial production. The Company's joint venture partner is Oslo and Swedish-NGM listed International Gold Exploration AB ("IGE"). The joint venture is registered in Kenya as Kilimapesa Gold (Pty) Ltd.

Highlights

  • Kilimapesa Hill - a six month underground development programme to enable bulk sampling of the ore body is scheduled to start January 2008
  • Alpha Ray and Red Ray areas - drill programme to start in February 2008 to test quartz veins as delineated by the Induced Polarisation ("IP") anomalies
  • Audit of the existing treatment plant on the licence area is underway and a refurbishment programme is being developed to allow for the treatment of the bulk samples from Kilimapesa Hill
  • Revenue from the bulk sampling ore treatment and high grade tailings is expected to fully fund next phase of development

Demetri Manolis, CEO of Goldplat said "Following on from the highly encouraging underground sampling results achieved in October, we are now progressing decisively to the next phase of our programme to develop the gold potential at Lolgorien. The cash flow from the treatment of the bulk samples and the high grade tailings will help to pay for this phase and on-reef development will help the Company reach a position of defining mineral resources which can be mined with very little development and within a short time scale, thus providing us with the potential to generate significant cash flow in the short term. The on-reef development gives us the best possible exposure for the evaluation of the veins as well as providing a sound infrastructure for future mining."

Lolgorien Development Programme

Goldplat has adopted a phased approach for the development of the highly prospective Lolgorien project. The initial phase involved an evaluation of the 10 selected targets within the licence area, including sampling within existing adits developed in the 1980s, undertaking IP programmes, and shallow auger drilling of historic tailings. The next phase, Phase II, involves the extension of the existing underground development of Kilimapesa to provide bulk sampling for ore evaluation. Gravity and leach test work conducted by SGS laboratories in Johannesburg on the run of mine material to date shows a recovery in excess of 90% - further test work will be carried out as more of the mineralisation is exposed. This development will also serve to provide infrastructure for future mining operations.

On-reef Development - Kilimapesa Hill

Following on from the high grade stope width intersected in Adit B, 42m averaging 10.13 g/t over 140 cm, it has been decided to embark on a development programme to enable bulk sampling in this Adit, which is scheduled to last for a period of six months, to provide Goldplat with an understanding of the extent of the strike length of quartz vein exposure, on which a mining decision can then be taken. Development will initially focus on the extension east and west of the existing on-reef drives, located on the South Vein, as well as the development of the northerly extension of the Adit, to intersect the parallel vein to the north, North Vein. On intersection of the North vein, drives will be developed east and west to prove its strike extent. Subsequent development will focus on continued extension of all four drives as well as raising to develop possible mineable blocks.

Drilling Programme - Alpha Ray and Red Ray

A programme of 12 Reverse Circulation ("RC") drill holes has been designed to explore the eastern and western strike extensions of the quartz veins intersected by adits and indicated by the IP anomalies in the Alpha Ray and Red Ray areas. Underground rock chip sampling of both areas has already confirmed good gold values within the quartz veining. It has been decided to utilise an RC rig to assess the strike and depth extensions of the veining. There are significant artisanal workings in this area focussed primarily on the higher grade areas and this exploration programme is designed to quickly evaluate these veins at depth and allow Kilimapesa Gold the opportunity to conduct a bulk sampling programme in this area.

Further details

The joint venture, in which the Company has a 50% interest, was signed in July 2007 with Oslo and Swedish-NGM listed International Gold Exploration AB ("IGE") and registered in Kenya as Kilimapesa Gold (Pty) Ltd. The total cost of the Bulk Sampling Programme is budgeted to be $225,000 of which a significant portion will be funded from the revenue generated from the bulk sampling as well as from the treatment of some high grade tailings.

The Migori Archaean Greenstone Belt, where the Lolgorien licence area is located, is a northern continuation of the Lake Victoria Goldfields, which hosts many major gold deposits including Barrick's multi-million ounce North Mara mine, which lies approximately 40 km to the southwest of the Lolgorien property. The licence area has been the site of considerable historical gold mining and is still the focus of artisanal mining.

This announcement has been reviewed by Mr Mark Austin. Mr Austin is the group geologist for Goldplat plc and has more than 25 years' relevant experience in the field of activity concerned. He is a fellow of the Geological Society of South Africa (GSSA) and has consented to the inclusion of the material in the form and context in which it appears.

Glossary of Terms

ADIT: a near-horizontal tunnel driven into a hillside

DRIVE: a tunnel on strike that is developed on ore

G/T: Grams per tonne

INDUCED POLARISATION (IP): a geophysical method utilising the electric properties of minerals

LEACHING: The extraction of metals from pulverised ore by dissolving them in a chemical solution, especially the extraction of gold using sodium cyanide

PPM: Parts per million by weight (i.e. grams per tonne)

RC: Reverse circulation. Percussion drilling using an air-cooled bit, cutting the rock into chips which are flushed to the surface through a double walled pipe by the air pressure

STRIKE: the horizontal direction of a planar body (90º to the dip direction)

TAILINGS: the residues from the processing of ore

For further information visit www.goldplat.com or contact:
Demetri Manolis, CEO Goldplat plc, Tel: +27 11 423 1203, Mob: +27 82 454 7392
James Joyce WH Ireland Limited, Tel: +44 (0)20 7220 1666
Isabel Crossley St Brides Media & Finance Ltd, Tel: +44 (0)20 7242 4477