Sihayo Gold Limited (ASX:SIH) Ongoing Drilling Defines Further Zones Of Significant Gold Mineralisation

Perth, Sep 7, 2010 AEST (ABN Newswire) - Sihayo Gold Limited (ASX:SIH) is pleased to announce that resource definition drilling at the Sihayo Pungkut Gold project has intersected further zones of significant gold mineralisation at the main Sihayo resource area that are not included in the JORC compliant resource of 9.6 Mt @ 3.0 g/t Au for 910,000 oz (released on 14th July 2010).

"The continuation of very good drilling results gives us confidence to expect that the overall Sihayo Pungkut gold resource will grow significantly from the current 10.7 Mt @ 2.9 g/t Au for 1.01 million oz, as we continue to drill both to the northwest and southeast of the main Sihayo resource", said Paul Willis, Chief Executive Officer, Sihayo Gold Limited.

Significant intercepts outside the limits of the currently calculated resource are:

SHDD121 (Re-entry)    10m @ 3.02 g/t Au from 82m and                       5m @ 4.03 g/t Au from 96mSHDD378                4m @ 4.81 g/t Au from 24mSHDD381               16m @ 5.14 g/t Au from 257mSHDD384                9m @ 2.99 g/t Au from 14m and                       7m @ 1.68 g/t Au from 27mSHDD394                7m @ 2.80 g/t Au from 35mSHDD395               13m @ 3.87 g/t Au from 45mSHDD396               14m @ 3.26 g/t Au from 28mSHDD398               13m @ 5.46 g/t Au from 4mSHDD399                7m @ 2.97 g/t Au from 35mSHDD402                8m @ 4.30 g/t Au from 28m

Significant intercepts that increase confidence within the current resource are:

SHDD383                8m @ 2.89 g/t Au from 0mSHDD388                8m @ 3.17 g/t Au from 8mSHDD389               29m @ 6.98 g/t Au from 0mSHDD391                6m @ 4.07 g/t Au from 9m

EXPLORATION PLAN ADJACENT TO SIHAYO RESOURCE

The resource extension programme is continuing with three diamond drill rigs drilling out the northern lode.

On completion of northern lode drilling, dependent upon final assay results for all holes, it is expected this zone of mineralisation will form the basis for the first incremental increase of the Sihayo JORC compliant resource estimate.

A fourth diamond rig will be commencing in mid-September. Ongoing drilling is planned to be a combination of resource definition and testing the continuity of gold mineralisation to the northwest and southeast of the Sihayo resource, which represents a combined strike length of approximately 4.5km.

Detailed geological modelling of the Sihayo deposit has identified that lithological contacts have acted as dominant conduits of hydrothermal fluids. These fluids have precipitated economic jasper lodes through replacement of calcareous stratigraphy in three hard rock primary settings;

1. Tertiary-Permian unconformity,

2. Contacts between volcanic lavas and enclosing calcareous sediments, and

3. Contacts between marble and silty limestone.

A fourth setting of economic mineralisation (post surface weathering of primary lodes) is oxidised zones of surface regolith gold mineralisation occurring in modern karst environments.

The Sihayo and Sambung Resources are separated by about 1.25 km of potentially mineralised strike. Stratigraphy 0.75km to 1 km northwest of the Sihayo resource also yields gold mineralisation as defined by historic exploration. The combined strike length of this favourable stratigraphy is approximately 4.5 km. Key work to date that confirms the potential of extending the Sihayo and Sambung Resources is:

- Drilling results with >10 gram metres gold intersections,

- Mapping and sampling of jasper outcrops,

- A >0.1ppm semi continuous soil anomaly, and

- A chargeability anomaly at the 850-950m RL

Diamond drilling is currently focussed on the Sihayo deposit's northern jasper lode. On completion of the northern lode drilling, diamond drilling will continue as a combination of resource definition and exploration drilling along strike from the Sihayo resource. The drill program will be a combination of extending existing drill holes to seek preferential lithological boundaries that potentially host gold bearing jasper and new holes to test extensions of known mineralisation.

Thus the forward exploration drilling programme is designed to target favourable known horizons along strike from the Sihayo resource in an attempt to delineate a single large-scale global resource.

For the complete Sihayo Gold announcement including tables and figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63667-ASX-SIH-504377.pdf

Contact

Paul Willis Chief Executive Officer Email: sihayogold@sihayogold.com Tel: +61-8-9368-4544 http://www.sihayogold.com