Troy Resources NL: Colluvial Iron Ore Study Update, Andorhinas Project, Brazil

PERTH, WESTERN AUSTRALIA--(Marketwire - July 24, 2008) - Troy Resources NL ("Troy or the "Company") (TSX: TRY.TO)(ASX: TRY.AX) -

Highlights

- Results received for colluvial iron ore pit sampling program at the Andorinhas Iron Ore Project.

- Hematite rich colluvium up to 5.2 metre thick identified.

- Lump size fraction (greater than 6.3mm or greater than 1/4 inch) comprises an average of approximately 70% of the total volume of the colluvium.

- Lump fraction assays up to 68.46% Fe have been returned with 75% of 233 pits in the colluvium returning assays greater than 55% Fe.

- Geological mapping has identified outcropping "in-situ" hematite mineralisation.

- Seven short Diamond Core holes were drilled at Abacaxi to test outcropping massive hematite-magnetite mineralisation. All have intercepted massive hematite with true thickness ranging from 0.4 metres to 8.0 metres.

- Resource estimation and Pre Feasibility Study on track for completion in the September Quarter.

- Discussions with potential customers for iron ore product commenced.

- Expectation that the Troy Board would consider the investment proposal before the end of calendar 2008 which would allow first production in the first half of calendar 2009.

Troy Resources NL ("Troy or the "Company") (TSX: TRY.TO)(ASX: TRY.AX), through its wholly owned Brazilian subsidiary Reinarda Mineracao Ltda has received all results from its recent sampling program at its Andorinhas Iron Ore Project in Para State, Brazil (refer to previous release on April 29th 2008).

A comprehensive program of excavator pitting and Rotary Air Blast (RAB) drilling was conducted at the Abacaxi and Estrela Colluvial Iron Ore Targets. Trenches or pits were dug on a spacing of 100 metre x 100 metre through the colluvium to the basement bedrock. The western section of Abacaxi was trenched on 50 metre by 100 metre spacing.

All pits were mapped, photographed and sampled. Where colluvium was present, channel samples weighing up to 60 kilograms were taken down one side of each trench (see Photograph 1). Samples were then dried and dispatched for multi-element analysis.

The colluvium consists of hematite rich scree (Photograph 2) eroded from mafic dominated greenstone sequence containing hematite rich Banded Iron Formations (BIFs). Outcropping hematite mineralisation has been mapped and recent diamond drilling has intersected up to 8 metres (true width) of hematite mineralisation. Assays results for this drilling are pending. The scree overlies bedrock consisting of meta-sediments (phyllites) and metabasalts. This metabasalt sequence also hosts the Babacu gold mineralisation (see Figure 1). Each of the trenches was also sampled for gold at the bottom of the trench in the metabasalt basement. These gold results are being collated and are anticipated to generate additional gold exploration targets. RAB drilling was completed between the pits on a 100 metre by 100 metre grid to confirm the extent of the soil profile (see Figures 2 & 3).

There is very good exploration potential to expand the iron rich colluvium in the area between Estrela and Abacaxi as well as further along strike to the east and west and this will be the focus of future exploration. The outcropping massive hematite mineralisation will also be a target for future exploration.

Resource estimation has commenced and is anticipated to be complete during the September quarter of 2008. The Pre Feasibility Study is running in parallel with the resource estimation and will also be completed during the September 2008 quarter. At Abacaxi West geological mapping identified a significant number of large, massive boulders of hematite lump ore throughout the area. These boulders have not been included in the resource calculation but will add to the tonnage potential.

The iron ore deposits are located in close proximity to the existing Troy gold operations at Andorinhas. Much infrastructure is already in place and Troy expects that upon completion of the Pre Feasibility Study the iron operation start-up could be fast-tracked with production able to commence in the first half of calendar 2009.

On the adjacent lease to the northeast a private Brazilian company is operating at the Big Mac Deposit, mining the same hematite colluvium.

Troy believes that the Andorinhas Iron Ore Project has the potential to develop into a profitable operating mine with limited capital expenditure required. Troy is already operating an open pit at Lagoa Seca (10km) and underground mine and processing plant at Mamao (2km) from the iron ore target areas. Thus it has personnel and facilities in place to commence mining quickly if a positive outcome is received from the Pre Feasibility Study and when appropriate statutory approvals are received. Capital costs for the construction of an on-site screening plant are currently being assessed. Approaches to domestic iron ore smelters have been made and discussions for an off-take agreement have commenced.

Troy CEO Paul Benson said, "We are pleased with these sampling results which highlight the high grade nature of the iron ore and are increasingly confident that Troy will soon be developing a second mining operation at Andorinhas that has the potential to significantly enhance the profitability of the site and the value of the Company."

"We need to wait until we complete the Resource Statement, Pre Feasibility Study, receive the appropriate permits and sign off-take agreements, but so far everything is on track to enable the Troy Board to consider the investment decision this calendar year."

"The Pre Feasibility Study is still looking at an initial production rate in the range of 500,000 to 1 million tonnes per year. Because this is a very simple operation, free digging and screening, and because of the synergies with the gold operation, the capital costs should be very low by current market standards. We still see capital in the order of US$5 million. The final number will be dependent on what we do in-house and what we contract out."

"This is an exciting project for the loyal Troy shareholders who have stood by the Company."

A full copy of this announcement with location plans can be found on the Company's website at www.try.com.au.

Information of a scientific or technical nature in this report was prepared under the supervision of Peter J. Doyle, Vice President Exploration and Business Development of Troy, a "qualified person" under National Instrument 43-101 - "Standards of Disclosure for Mineral Projects", a member of the Australasian Institute of Mining and Metallurgy. Mr. Doyle has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration, and to the activity he is undertaking, to qualify as a "competent person" as defined in the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Doyle has reviewed and approved the information contained in this report.

This report contains forward-looking statements. These forward-looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in the forward looking statements. Such factors include, among others, future prices of gold and iron ore, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in ore grade or recovery rates, plant and/or equipment failure, delays in obtaining governmental approvals or in the commencement of operations.

There can be no assurance that Mineral Resources or Mineral Reserves will be established at the Andorinhas Iron Ore Project, or that an iron ore mine will be successfully or profitably established at Andorinhas.

Contacts

Mr. Paul Benson
Troy Resources NL
Chief Executive Officer
(618) 9481 1277
(618) 9321 8237 (FAX)
Email: troy@troyres.com.au
Website: www.try.com.au