Gold Anomaly Limited (ASX:GOA) Update On Crater Mountain Gold Project In Papua New Guinea

Sydney, May 12, 2011 AEST (ABN Newswire) - Gold Anomaly Limited (ASX:GOA) is pleased to provide an update on the company's flagship Crater Mountain gold project in Papua New Guinea (PNG).

Completion of first phase of drilling

The company's maiden drilling program focused at the northern end of the most advanced of its Crater Mountain prospects, the Nevera Prospect, has now been completed. In all, 6 holes were drilled for a total of 2,628 metres.

The first four holes in this initial phase of drilling, NEV 018 to NEV 021 ranging from 532.0 m to 604.5 m deep, were focused on the mixing zone gold mineralization interpreted from previous drill results and the company's bench assays, lying north of the historically inferred Nevera Fault.

The program concluded with two shallower holes at the base of the artisanal mining zone drilled along (Nev 022 of 282.0 metres) and across (NEV 023 of 91.6 metres ) the zone, targeting epithermal quartz-pyrite-gold.

Samples from the first two holes have been assayed and the results reported. Samples for the first half of the third hole (NEV 20) are in transit to the laboratory and assays for the complete hole are expected by the last week of May, with assays from the remaining holes expected in the subsequent 4 weeks.

Preparation for next phase drilling (Phase 2)

Following the success of drilling to date, a $3.6 million placement was announced on 9 May 2011. Funds will be directed towards a follow-up 10,000 metres drilling program, with preparations already underway. A second rig capable of 1,000m depth is being decommissioned at another location and is expected to be mobilized to Crater Mountain in late June.

The initial holes in the follow-up drilling program (Phase 2) have been planned, with the location of deeper 1,000m holes seeking to locate the interpreted mineralized feeder zone likely to be refined by final assay results and petrography on the drill core being undertaken at present.

The two camps at Nevera are being expanded to handle the increased workload anticipated for the remainder of 2011.

Following completion of maintenance and upgrade work on the Gwasa airstrip, the bulldozer and excavator have resumed cutting new benches in the prospect. Bench channel sampling is set to re-commence shortly.

The company is in the process of hiring additional geologists, experienced field assistants and camp managers as a more aggressive exploration program is implemented, including extending regional exploration.

Regional exploration

Regional exploration has commenced incorporating the nearby prospects of Awaunita, Mase Creek and Nimi as well as much of the prospective intervening country.

Assays received to date

The first two holes of the company's maiden drilling program at Nevera - NEV018 and NEV019 - have been assayed. The remaining holes are in various stages of being logged, sampled and prepared for transport to the laboratory for assaying.

Assay results from the first two holes highlighted the excellent prospectivity of Nevera:

- NEV018: 286 metres @ 0.82 g/t gold including: 82m @ 1.62 g/t Au

- NEV019: 215 metres @ 1.46 g/t Au including: 26m @ 4.6g/t Au and 46m @2.42 g/t Au

These holes compare well with promising results from previous drilling by BHP, Macmin and TPJ, in which 3 holes intersected zones of 139 to 187 metres of 1.3 to 1.6 g/t Au and 1 other hole intersected 205 metres at 0.86 g/t Au. The sheer length of mineralisation consistently encountered underlines the potential for a large bulk tonnage low grade gold deposit existing at Nevera.

Of note, NEV019 was drilled 100 metres to the east of NEV018, and encountered similar mineralized zones to those within NEV018, albeit with overall significantly higher grades. The persistently higher grades are a very promising sign that NEV019 may be in closer proximity to an interpreted deep-seated intrusion-related feeder zone.

Contact

Ken Chapple Executive Director Mob: +61-418-758-301 Greg Starr Executive Chairman Mob: +61-2-9241-4224 info@goldanomaly.com.au http://www.goldanomaly.com.au