Kenyan Lolgorien Licence Area Update

Goldplat Plc, the AIM listed gold producer, is pleased to provide an update with regards to its ongoing evaluation programme at its 50% owned joint venture Lolgorien project within the historically producing Migori Archaean Greenstone Belt in south western Kenya. Its joint venture partner is Oslo and Swedish-NGM listed International Gold Exploration AB ("IGE").

Highlights

  • Kilimapesa Hill - Rock chip sampling at a 3m spacing in a strike drive has identified a stretch of 42m at 10.13 g/t gold ("Au")
  • Kilimapesa Hill - two parallel auriferous veins, situated approximately 60m apart can be traced over a strike length of 600m
  • Kilimapesa Hill - auriferous quartz veins can be traced along surface for up to 1.2km as marked by artisanal workings
  • Alpha Ray and Red Ray - Induced Polarisation ("IP") surveying has defined a geophysical anomaly 2 km in length striking east-west
  • Alpha Ray and Red Ray - Drill programme planned to test the quartz veins currently being worked by artisanal miners at surface level
  • Tailings derived from colonial operations have been auger drill sampled and a JORC compliant mineral resource of 51,648t at 2.52g/t Au defined.
  • Planning a refurbishment programme on existing gold processing plant on site providing short term production potential

Demetri Manolis, CEO of Goldplat said, "These results represent yet another step towards achieving our strategy of becoming a leading mid-tier gold mining house. Historical workings and artisanal mining attracted us to this prospect and the results from the first phase of our evaluation programme are highly encouraging. Importantly, this initial evaluation programme aimed at defining a mineral resource from the surface tailings was completed ahead of schedule and within budget. As a result, we are delighted to be in a position where we can plan a refurbishment programme on an existing plant, with the aim of processing the ore produced from primary and tailings targets in the near future."

Results

The joint venture initially identified 10 prospective targets in its Lolgorien project. Its current areas of focus are Kilimapesa Hill, Alpha Ray and Red Ray, and Maghor:

Kilimapesa Hill - Adits

Five adits have now been groove sampled and four strike drives, which were previously developed on quartz veins, were channel sampled. The mapping of two adits in Kilimapesa Hill shows that two parallel veins, situated approximately 60m apart, can be traced over a strike length of 600m. Rock chip sampling at a 3m spacing from the western-most adit, Adit B, has returned a 42m stretch averaging 10.13 g/t over a stoping width of 1.4m. Samples taken from the eastern and western extremities of the drives confirm that the gold mineralisation continues to the east and west as well as at depth. In addition, rock chip samples taken up to 4.5m on either side of the quartz vein show gold values up to 3.7 g/t Au, demonstrating that, in this area, gold is not merely restricted to the quartz veins.

The quartz veins lie within intercalated shales, banded iron formations and greywacke metasediments. Correlation of the stratigraphy and quartz veins has been proved by geological mapping in the adits and of the surface artisanal workings. The surface expression of the veins, as marked by artisanal workings, demonstrates a potential strike length of 1.2 km.

Maghor, and Alpha Ray and Red Ray - Geophysics

Two IP programmes were completed at the Maghor target area, and the Alpha Ray and Red Ray target area. IP at the Maghor area has identified chargeability and resistivity highs over fault intersections, which are coincident with the site of artisanal activity. The IP at the Alpha Ray and Red Ray target areas has identified a high chargeability and resistivity anomaly 2km in length striking east-west, which is considered to be the IP response to quartz veins currently being mined by artisanal miners.

Tailings

Tailings derived from colonial operations in the mid-1900s have been auger drill sampled and a JORC compliant mineral resource defined by external consultants. Combined measured, indicated and inferred mineral resources are 51,648t at 2.52g/t Au. The majority of these tonnes lie within 200 metres of the existing plant infrastructure. Initial gravity and carbon-in-leach metallurgical testwork on the colonial tailings show that recoveries are in excess of 65%, and on the ore derived from the quartz vein ore bodies in excess of 85%.

Current Resource Estimates - Lolgorien Licence

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Next Steps

At Kilimapesa Hill the next phase is to increase exposure of the quartz veins. The existing reef drives at Kilimapesa Hill will be extended to the east and west with a total of five ends being developed. The joint venture is also planning to develop an adit some 40-50m vertically below the existing adits to access the down dip extension of the quartz veins.

At Red Ray and Alpha Ray the adits will be developed to intersect the quartz veins currently being worked by artisanal miners at surface level. It is anticipated that up to four development ends will be created. Further drilling along strike will help to evaluate the quartz veins as indicated by the IP response. All material emanating from development along quartz veins will be stockpiled for future processing.

Some of the other IP targets are considered drill-ready and will be drilled when the large capacity RC drill rig, currently in transit from Sweden and scheduled for arrival in November 2007, is operational.

Goldplat and IGE are sufficiently satisfied as to the future potential of the targets selected to now start planning a refurbishment programme on the existing plant. A metallurgical team is currently assessing the work required to get the plant into working condition. The plant is in a good condition.

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., 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. This phase was completed on budget ('$109,000') and three weeks ahead of schedule. Notably, the current work is expected to be financed from existing cash resources.

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. Official reports, starting from the early 1900s, show that between 1920 and 1950 the area produced nearly 1 million ounces of gold.

Notes

The underground chip sampling was done using a pneumatic Atlas Copco rock hammer. The samples were assayed by Set Point Laboratories Ltd in Johannesburg . Samples were milled in an LM2 mill to a nominal 85% passing 75µm. A 50g sub-sample of the assay pulp is fused in a lead collection fire assay with silver as a co-collector. The resulting prill is dissolved in aqua regia and presented for ICP-OES finish to quantify the gold content in the sample. Detection limits were set at 0.01 ppm. The joint venture uses blanks and certified standards to ensure QA-QC. The values received from Set Point displayed high correlation with the inserted controls.

References in this announcement to exploration results and potential have been approved for release by Mr Mark Austin. Mr Austin is a geologist 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.

The results of the surface deposits evaluation were the subject of an Independent report by Shango Solutions of Johannesburg. The geostatistics in the report were performed by Dr Carina Lemmer, PhD (Stanford).

Glossary of Terms

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

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

TAILINGS: the residues from the processing of ore

ADIT: a near-horizontal tunnel driven into a hillside

AUGER DRILLING: a drilling method to evaluate unconsolidated sediments

SHALE: fine grained laminated sediment

BANDED IRON FORMATION: an iron-rich sediment with layers of chert and iron minerals

GREYWACKE: an immature sandstone

METASEDIMENTS: sediments that have been subjected to metamorphism and still retaining some of their original textures

CARBON-IN-LEACH: a metallurgical process by which granular carbon adsorbs gold in solution

DRIVE: a tunnel on strike that is developed on ore

DIP: the inclination of a planar surface (90º to strike)

PRILL: a button of gold derived from the assaying process

AQUA REGIA: a mixture of hydrochloric and nitric acid used to dissolve prills in the assay process

MEASURED RESOURCE: that portion of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through workings and drill holes. The locations are spaced closely enough to confirm geological and/or grade continuity.

INDICATED RESOURCE: that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered though appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

INFERRED RESOURCE: that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/ or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability

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