Troy Resources Limited (ASX: TRY) (Troy or the Company) wishes to announce that due to a number of factors currently impacting production at the Karouni mine site, the Board has decided to withdraw its current production guidance of 35,000 to 40,000 ounces Au at US$1,500 - $1,550/ ounce.

The site in October had 23 positive cases of COVID-19 infections and, although this has been dealt with effectively and impacts minimised, mining productivity was negatively impacted due to the isolation of a number of employees. This followed a period where it was not possible for expats to return to Guyana and hence to site. Guyana continues to experience high levels of COVID-19 infection rates and the nature of the country will continue to make it challenging to operate the mine at capacity.

As referred to in the announcement on the 15 September 2020 'Karouni Stores Fire', we are now starting to experience shortages of critical reagents and mill spare parts. The mill is still operational, however on a reduced basis due to the shortages. The insurance companies involved have accepted our claim and we are currently waiting for this to be finalized

The Hicks deposit has generally reconciled very well. Since the commencement of mining in Hicks 4 Phase 3 in July / August, it has become apparent that this phase of the pit produced around 50% less ounces than expected from the grade control model. Hicks 4 Phase 3 has now been completed and we have re-entered Hicks 4 Phases 1 & 2 which will provide the majority of the gold production over the next nine months. Hicks 4 Phases 1 & 2 have historically produced more ounces than the grade control model.

Contact:

Ken Nilsson

Tel: +61 8 9481 1277

Email: troy@troyres.com.au

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