REGAL RESOURCES LIMITED 
By ASX Announcement
29 January 2013
Regal completes US$7 million funding to advance exploration on its gold projects in Democratic Republic of Congo
Highlights:
• Regal has received US$ 7 million for the sale of a 10% interest in Regal SK SPRL to its DRC partner, Afrimines
• The funding provides the capacity to advance the Company's ongoing exploration programmes over its highly prospective portfolio of 14 permits located in a significant emerging gold province in the eastern DRC
• Funds will also be used to support a regional exploration work programme testing multiple gold-in-soil anomalies delineated in the broader permit area
• The funding will enable a JORC compliant resource to be estimated subject to the successful outcome of the current 12,000m diamond drilling programme at the Company's flagship Ngoy Project
• Regal has the right to purchase an additional 30% interest in Regal SK, to go to 90% of the project
The Directors of Regal Resources Ltd (ASX:RER) ("Regal" or "the Company") are pleased to announce that the
Company have finalized with Afrimines the funding agreement announced on 24 September 2012.
Afrimines, the Company's joint venture partner in Regal SK, has transferred US$7 million to Regal and the share holding in Regal SK SPRL, a DRC registered company controlled by the Company, has been modified in accordance with the terms of the agreement.
Regal's interest has been reduced from 70% to 60% and Afrimines' interest increased by 10% to 40%. However, under the terms of the agreement Regal will retain its right to purchase an additional 30% interest in Regal SK, to go to 90% of the project, at a price to be determined by an Independent Valuation upon completion of the first feasibility study.
The Board of Regal is delighted to have completed the transaction which follows from an earlier investment of US$5 million by Afrimines in Regal SK. Proceeds from the funding will be used primarily to complete an aggressive diamond drilling programme of at least 12,000m and support a regional exploration programme testing multiple high value gold-in-soil anomalies previously defined by the Company.
Drilling is ongoing at the Kadutu Prospect where the exploration target is 5mt at a grade of between 2 g/t to
4g/t Au, and it is expected that a successful outcome of the programme will allow a JORC compliant resource to be estimated this year.
The funding is also very pleasing as it further underpins the strong support and continuing commitment by
Regal's DRC Joint Venture Partner to the project, as well as to the Company's exploration strategy.
About Regal Resources
In the DRC, Regal has formed a joint venture company, Regal SK SPRL with it Congolese partner Afrimines. Regal SK holds the title to a block of fourteen (14) permits covering an area of approximately 2000sq km. The permits are strategically located in a major emerging gold producing area, the Twangiza Namoya belt, where Banro Corporation has delineated in excess of 11M oz of gold.
To date, Regal has drill tested parts of a 5km gold-in-soil anomaly on the Ngoy Project area, one of many significant soil anomalies so far identified within the package of permits.
Drilling has confirmed the presence of high grade, primary mineralization. Better results include: 37.55m @
8.09g/t Au, 31.5m @ 5.63g/t Au and 13.85m @ 4.11g/t Au.
The Company has also achieved considerable exploration success at the Matala Project, where several extensive anomalies were delineated from soil sampling and trenching.
Regal has also executed a Farm-In Agreement with Ciris Energy (Victoria) Pty Ltd ("Ciris"), a wholly-owned subsidiary of Centennial, Colorado based Ciris Energy Inc. Ciris has developed a world leading in-situ bioconversion technology, known as ISBC Technology, which will be tested on Regal's significant Victorian brown coal tenements.
Competent Person Statement:
Scientific or technical information in this release has been prepared by Dr Simon Dorling and Mr David Young, the Company' Technical and Managing Directors. Dr Simon Dorling is a member of the Australasian Institute of Geoscientists (MAIG) and Mr David Young is a member of the Australian Institue of Mining and Metallurgy (AusIMM) and both have sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Dr Simon Dorling and Mr David Young consent to the inclusion in this report of the Information, in the form and context in which it appears.
Forward-Looking Statements:
This press release contains statements that are "forward-looking". Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward- looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.
For further information please contact Mr David Young or Mr Angus Edgar on (+61) 3 8610 8633.
David Young
Managing Director
Sudan
Cameroon
ws Angolia
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NORTH 500km Zambia WGS 1984Figure 2: Licenses held by Regal Resources and identified Projects
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