Sumatra Copper & Gold updates Indonesian projects

(25 November, 2010)-- Sumatra Copper & Gold plc are pleased to provide an update of activities at the Bengkulu and West Sumatra projects.

Sontang
The first drill hole PDD10001 at East Sontang has intersected 2.75 metres @3.59 g/t Au, 99.7 g/t Ag, 0.14% Cu, 0.35% Pb, and 9.39% Zn. This hole was drilled underneath a trench which returned 4.5 metres @0.8 g/t Au, 48 g/t Ag, 0.2% Pb and 7.6 % Zn. The zone is characterised by fine grained massive sulphide ?manto style? mineralisation within a prospective limestone host rock. The hole confirms a steep dip to the south west as well as the depth continuity of mineralisation. Assays for the remainder of the hole are still awaited to see if local breccia units also host mineralisation. Visible massive sulphide mineralisation has also been intersected in PDD10002 down dip and also 50 metres along strike to the east in PDD10003.

Sontang comprises the virgin discovery of a high-grade polymetallic manto made by the Company?s geologists in 2007/8 which is now being drilled for the first time. Hydrothermal alteration and mineralisation is dispersed over a wide area extending approximately 1.5km along strike. Four centres of mineralisation have been identified; East, Central and West Sontang and North Sontang, a newly discovered area where a large gold-copper anomaly has been identified.

Drilling is on-going in Sontang East and should be complete in early December before the rig moves to Central Sontang. Priority is being given to massive sulphide intercepts whose dispatch to the lntertek Laboratory in Jakarta is being expedited.

Sontang is situated in an exploration IUP 297.25 km2 in area in the regency of Pasaman in the province of West Sumatra, approximately 160 kilometres north of Padang, and immediately adjacent to the boundary with the province of North Sumatra. North Sumatra is host to the advanced gold projects of Martabe and Sihayo Gold.

Tembang
Drilling has been on-going at the Company?s Tembang project located in the Musi Rawas regency of South Sumatra province. Latest results have been mixed with one further good high grade result at Belinau whereas at Nun only weak and narrow mineralisation has been encountered in the latest holes

At Belinau RDD10097 returned a vein intersection of 3.9 metres @7.73 g/t Au, 269.6 g/t Ag from a depth of 181.9 metres downhole extending the strike of the southern high grade zone by 50 metres. This includes a higher grade zone of 2.0 metres @12.95 g/t Au, 506 g/t Ag. A further hole along strike, RDD10100, has been drilled but intersected only a narrow 20cm quartz vein at the expected depth which was barren. Although this is disappointing in terms of width these types of constrictions along the Belinau system are common and high grade shoots can lie at different elevations close by.

RDD10096, a 100 metre step-out at the north end of Belinau, intersected a narrow 0.2 metre quartz vein at the expected depth but did not return any significant results. This is consistent with previous results in this area and closes off the northern shoot.

Based on the results of recently conducted IP orientation lines, which show high resistivity and chargeability indicative of quartz veining and sulphide mineralisation, a series of exploratory holes are planned to follow the Belinau structure to the south. The intention is to locate the next zone of vein development along this productive structure.

At Jenih exploration holes will also be targeted to follow up significant mineralisation intercepted in hole RDD10090 3.65 metres @4.12 g/t Au, 7.6 g/t Ag as announced in the September quarterly report. Jenih has similarities to Belinau being on a major ENE trending structure with numerous veins and the presence of a dyke indicating the structure is deep seated.

The P7000 rig with drilling capacity to 1,000 metres has recently arrived on site and is currently drilling a deeper hole into the Belinau vein system. Upon completion of this hole two deep holes will be drilled as planned beneath the Berenai/Nuri high grade shoots.

Summary
Managing Director, Jocelyn Wailer, comments: The first drill result with elevated gold, silver and zinc values is an excellent start to the drilling at Sontang and confirms we have significant gold rich polymetailic mineralisation at depth. We look forward with considerable anticipation to the next round of results from the massive sulphide intercepts in our latest drill holes. It?s exciting to have a new discovery taking shape in a brand new area to add to the good results we have been getting to the south at Tembang.

At Tembang the deployment of a more powerful rig will enable us to test more fully the depth potential of that system where grades have been generally improving as we have gone deeper. (end of edited release)