Straits reports Mt Muro gold, silver production

The following is an excerpt from Straits Resources Limited taken from quarterly report ended 30 September 2011 released on Thursday.

Mt Muro maintained its production profile over the quarter producing 6,906 oz Au and 147,755 oz Ag (10,198 oz AuEq).

The operation continues to focus on the major development of the Serujan open pit which is progressing ion schedule. The ramp up in production continues with forecast production in FY2012 of approximately 70 Koz AuEq.

Mt Muro remains a resource with significant upside and exploration potential. The continued excellent drill results underpin the very positive future outlook for Mt Muro. Drilling continues with 5 drill rigs. Planning and pit development continues to support a medium term production rate well in excess of 100 k oz AuEq per annum.

Mt Mum (IMK): Straits - 100%
Exploration continued during the quarter at the Serujan and Bantian prospects with three diamond dnll rigs and two RC rigs in operation.

The focus of drilling at Serujan was through the ?Gap? area and across to the Serujan Central area later in the quarter. No recent drilling has been undertaken in Serujan Central and the mineralized system is open below the current pit designs

At Bantian drilling focussed on Blocks 2, 3 and 4 where several significant drill intersections below the current resource models have been made resulting in an acceleration of drilling in this area.

Drilling continues to intersect mineralisation outside the existing Serujan and Bantian resource models and pit designs. Resource estimation work is continuing.

Planning continued for an IP survey targeting between the Bantian and Permata-Hulubai structures.

Serujan Exploration
Exploration continued during the quarter with 48 diamond drill holes drilled for 10,188 metres. Drilling continued to target the Gap area through Serujan East, below the current pit design, where significant mineralisation continues to be intersected.

Late in the quarter drilling moved to Serujan Central. CEDH126 (see table below) was one of the first holes drilled in this area, intersecting significant mineralization in a splay off the main vein.

There has been no drilling at Serujan Central for several years and the system is open at depth in several areas.

Bantian Exploration
Exploration continued during the quarter with 66 drill holes completed for 9,163m. Drilling focused on Block 2, 3 and 4 where a number of broad significant assays were intersected within zones dominated by quartz breccia veins and over printing rhodochrosite and base metal veins. (end of excerpt)

	Units	Sept 11 Qtr	June 11 Qtr	FY 2012	FY 2011
Ore Milled	tonnes	173,014	124,885	173,014	325,035
Grade
- Gold	g/t Au	1.4	1.8	1.4	2.5
- Silver	g/t Au	46.7	46.6	46.7	28.9
Recovery	% Au	93.0%	94.7%	93.0%	92.6%
- Gold	% Au	69.3%	76.4%	69.3%	72.9%
- Silver
Production
(Gold)**	oz Au	6,906	7,272	6,906	25,022
(Silver)	oz Ag	147,755	157,299	147,755	228,502
Gold Sold	oz Au	7,137	6,365	7,137	25,911
**Production reported is gold poured	Ag oz	152,813	142,461	152,813	189,337