Release: Straits reports Q4 gold production from Mt Muro mine

(January 30, 2007) - Australian miner Straits Resources Limited announced on Tuesday that production Mt Muro produced 10,384 ounces of gold and 106,209 ounces of silver during the December quarter. Whilst production was an improvement on the previous quarter it was still well below targeted levels.

Production was adversely impacted by a shortage of diesel or, site which resulted in the processing plant not operating for much of October and November. The shortage of fuel was caused by low river levels and as a consequence difficulties in transporting fuel to site. Rainfall in November meant that in December processing operations were back to operating at an annual rate in excess of 100,000 gold equivalent ounces.

Mined and milled grades improved substantially from the previous quarter. When operating, the process plant performed well, treating 59,521 tonnes during the quarter at a grade of 6.74 g/t Au.

Cash costs were US$890 per ounce gold produced, due to the aforementioned production difficulties. Cash costs should substantially improve in the current quarter with higher production levels.

Straits has 100 percent stake at Mount Muro. (end of release)

	Units	Dec-Quarter 2006	Sept-Quarter 2006
Ore Milled	tons	59,521	81,377
Gold grade	g/t	6.74	3.65
Silver grade	g/t	104	44
Gold recovery	%	95.4	95.5
Silver recovery	%	69.5	55.4
Production Gold*	oz	10,384	9,382
Production Silver	oz	106,209	68,216
Gold Sold	oz	9,001	9,002
* Production reported is gold poured