Mr. Paul Benson reports

TROY SECURES A$100-MILLION FACILITY FROM INVESTEC TO COMPLETE FUNDING REQUIREMENTS FOR THE KAROUNI GOLD PROJECT IN GUYANA

Troy Resources Ltd. has signed a mandate letter and term sheet with Investec Bank for the provision of a revolving corporate facility of up to $100-million (Australian) to progress the development of the Karouni project (formerly known as West Omai) in Guyana, refinance existing facilities and provide working capital.

Of the $100-million (Australian), $70-million (Australian) has been credit approved, subject to finalization of documentation. The remaining $30-million (Australian) will become available to the company with satisfactory progress with development of the Karouni project and Investec credit approval. The available facility will refinance the existing $40-million (Australian) borrowings of the company.

The facility will have a three-year term with semi-annual repayments commencing in June, 2015. The company may, under certain circumstances, be required to put in place a hedging program prior to drawdown on the facility. With recent movements in the gold price, the company has proceeded to hedge a total of 1.68 million ounces of silver at $19.40 (U.S.) per ounce and will consider additional hedging prior to drawdown depending on market conditions.

As part consideration for provision of the facility, the company has agreed to the granting of 3,333,333 call options over Troy ordinary shares to Investec to the value of $5-million (Australian) with an exercise price of $1.50 (Australian) and a three-year term. The issue of options will be subject to receipt of the approval from the Australian Securities Exchange and the Toronto Stock Exchange. Part of the issue will also be subject to shareholder approval.

Based on current forecasts and assumptions, the Troy board believes the available $70-million (Australian) facility, existing cash reserves of $54.1-million (Australian) (as of March 31, 2014, unaudited) and operating cash flow will be sufficient to bring the Karouni mine into production.

Commenting on the news, managing director Paul Benson said: "We are very pleased to have agreed this facility with Investec, who have been great supporters of Troy over the years. Of the newly credit approved $70-million (Australian) facility, $40-million (Australian) will replace the existing drawn facility, so essentially $30-million (Australian) is new debt capacity. Importantly, we expect to be able to fund construction of Karouni with this new capacity, existing cash reserves and operating cash flow. The remaining $30-million (Australian) of the facility, which will be available subject to satisfactory progress with development of the Karouni project and Investec Credit approval, we see as backup at this stage and gives us flexibility to consider other opportunities.

"Equally importantly from my perspective, the facility also enables us to utilize operating cash flows to recommence brownfields exploration at both Karouni and Casposo, where we believe we have excellent potential to add to the resource inventory."