OzAurum Resources Ltd. reported exceptional gold results from its recently completed nine-hole Reverse Circulation (RC) program drilled for 1,870 meters (m). In addition, OzAurum received significant results from diamond holes MNODH 004 + MNODH 005, which were also recently completed at the new virgin gold discovery Demag Zone at the Mulgabbie North Project. Mulgabbie North Demag Zone Drilling Update: The Company reported the results of the recently completed RC drilling program which included nine holes for 1,870m at the Mulgabbie North Demag Zone, as well as the results for diamond holes MNODH 004 + MNODH 005.

Significant high-grade gold results have been received from a number of RC holes in the current program which include: 18m @ 2.00 g/t gold (Au) ­ (from 90m) incl 5m @ 5.68 g/t Au and 1m @ 21.00 g/t Au MNORC 197; 23m @ 1.24 g/t Au ­ (from 232m) incl 7m @ 3.06 g/t Au and 1m @ 9.52 g/t Au MNORC 202; 19m @ 1.26 g/t Au ­ (from 56m) MNORC 200; and 5m @ 2.49 g/t Au ­ (from 55m) MNORC 197; 40m @ 0.73 g/t Au - (from 98m) incl 7 m @ 1.46 g/t Au, 5m @ 1.37 g/t Au MNORC 195; 7m @ 2.00 g/t Au ­ (from 41m) MNORC 194; and 15m @ 1.22 g/t Au ­ (from 146m) MNORC 198. Results were also received from diamond holes MNODH 004 and MNODH 005, including: 4m @ 1.81 g/t Au ­ (from 235m) MNODH 004; and 3m @ 3.09 g/t Au ­ (from 374m) incl 1m @ 6.35 g/t Au MNODH 005. Gold mineralisation at the Demag Zone is associated with significant wide downhole intervals of sericite-carbonate alteration with pyrite and arsenopyrite mineralisation which has been intersected in both RC and diamond drilling at the Demag Zone.

Further, recent RC and diamond drilling has confirmed the host conglomerate unit having a true thickness of approximately 120m. Of particular interest is MNORC 197 that has intercepted high grade gold mineralisation (18m @ 2.00 g/t Au from 90m, incl 5m @ 5.68 g/t Au and 1m @ 21.00 g/t Au) associated with a fault, the orientation of the fault is unknown at this stage. This area will be targeted with a diamond drill hole aimed at determining the fault geometry.

Petrology has been completed on samples from RC holes MNORC 197 102-103m (21.00 g/t Au) and MNORC 202 246-247m (9.52 g/t Au) to characterise the primary gold at the Demag Zone. The primary gold occurs as free gold grains in close proximity to sulphides (pyrite + arsenopyrite) or as fine gold grains along the pyrite grain margins and fractures and is therefore expected to be extracted via conventional CIP processing techniques. Although arsenopyrite is observed at Mulgabbie North Demag Zone there is not always a direct relationship between arsenopyrite and gold grades.

Gold grades are typically associated with pyrite mineralisation. Petrology confirmed the presence of albite veining/alteration associated with high gold mineralization in MNORC 202 246-247m (9.52 g/t Au). This is new target for diamond drilling with diamond hole MNODH 007 planned to test the down dip extension of gold mineralisation seen in MNORC 202 23m @ 1.24 g/t Au from 232m, including 7m @ 3.06 g/t Au and 1m @ 21.00 g/t Au.

Diamond drilling continues at the Demag Zone with the fifth diamond hole, MNODH 006, currently at a depth of 435m and planned to be drilled to a depth of 470m. Significant zones of faulting were intersected in diamond holes MNODH002, MNODH003, MNODH 004, MNODH 005 and MNODH 006. Mineralisation intersected in MNODH 004 + MNODH 005 is observed within a strong to intensely altered intermediate volcaniclastic conglomerate unit.

The intermediate to felsic volcaniclastic units, including the conglomerate, at Mulgabbie are equivalent to the Black Flag group within the Kalgoorlie stratigraphy that hosts significant gold deposits like the 6.5 Moz Kanowna Belle Gold Mine. The conglomerate unit that hosts the mineralisation at Mulgabbie contains fuchsite clasts and represents an unconformity within the intermediate and felsic volcaniclastic sequence. This is significant as it indicates reactivation of syn-volcanic faults at the time of 2660 Ma felsic to intermediate volcanism, associated with early mineralisation.

Additionally, a late basin epiclastic conglomerate unit, that represents an important stratigraphic unconformity, was intersected at EOH in MNODH 002, 003 and 004. The Company plans to drill the current diamond hole MNODH 006 to a depth of 470m to reach this unconformity. A fault was intersected in recently completed diamond hole MNODH 004 at 347m with associated sericite-carbonate-chlorite alteration, and a ± hematite dusting ± pyrite ± magnetite (+ speck visible gold at 324.29m) mineralisation halo extending approximately 30 metres either side of the fault.

Low tenor gold mineralisation was intercepted in this alteration halo that is potentially on the periphery of potentially higher-grade gold mineralisation. Diamond hole MNODH 005 was planned to target this area at depth but didn't reach this targeted depth and was abandoned at 411.3m due to faulting intercepted up hole. The current interpretation is that this faulting is clearly a fluid pathway for mineralising oxidised fluids sourced from a deeper enriched intrusive body.

The orientation and geometry of these newly intersected faults are currently unknown. At the Demag Zone, secondary magnetite as part of an early high temperature alteration assemblage has been altered to hematite which is part of the lower temperature alteration assemblage including sericite, carbonate, pyrite and arsenopyrite. The Demag Zone is most likely a result of fluid pathways along the interpreted fault zone.

Previous explorers in the area have interpreted a series of significant north­south faults, including those that intersect the Carosue Dam Mines. OzAurum has interpreted the same north ­ south fault intersecting the Demag Zone area, which is a key characteristic of significant gold deposits in the Kalgoorlie region.