Drake Resources Limited : New data raises Guinea prospectivity

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ASX Announcement
23 January 2014

New data raises Guinea prospectivity

New data on Drake's Seimana Project demonstrates the association of gold mineralisation with major Birrimian structures across Drake's permit areas

Evidence structures hosting Avocet's neighbouring +3M.oz gold deposit extend into Drake's permits

Field work to commence mid February

As part of preparatory work prior to commencement of field work on its recently granted Seimana Project, Drake has completed a detailed review and re-interpretation of data relevant to the area. This included the use of data recently made available through industry sponsored research1 which contributed significantly to an enhanced understanding of mineralisation controls in the region. Key observations drawn from Drake's interpretation and compilation include:
• The existence of a previously poorly mapped major Birrimian structure running through the centre of the Drake permits. This structure is associated with artisanal gold occurrences in several areas, including one of Drake's highly ranked targets, and the structure is clearly mineralised.
• Analysis of the abundant old and current artisanal workings on Drake's permits indicates these are associated with a series of northwest trending structures. This is highly significant because the 2.3 million ounce Koulekoun resource2, located 6 kilometres south of Drake's permit, is also associated with northwest structures in the same geological sequence.
• Many of the artisanal mining clusters in Drake's ground are very extensive in area, with perimeters comparable in size to the multi-million ounce resource outlines on Avocet's Tri-K project2 adjoining to the south.
• Drake's analysis has demonstrated greater rock type diversity than previously known in this area of poor outcrop, including the existence of Birrimian intrusives that appear to predate mineralisation. This is positive for gold mineralisation in having provided pressure shadows and other strain differentials which are favourable settings for gold deposits in the region.
Drake's CEO, Jason Stirbinskis added "The recently acquired data has added further weight to the prospectivity of the area. The distribution and extent of mapped artisanal workings on Drake's ground suggest gold mineralisation covers a very large area and analogies can be drawn, in mineralisation style and setting, with Avocet's neighbouring multimillion ounce Tri-K deposit and with the 10 million ounce Siguiri mineralisation3 located 75k m to the northwest.

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As announced previously, Drake will commence a surface evaluation programme involving mapping, sampling and evaluation of artisanal gold workings to prioritise targets for sub-surface testing.

Seimana is one of three high priority projects for Drake, the others being the Granmuren near- surface nickel/copper sulphide project in Sweden and the Joma copper/zinc project in Norway.

Figure 1: Location

Figure 2: Geological setting - Seimana Project

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Figure 3: Drake Seimana project - gold mineralisation and structure

1: AMIRA International Project P934A: West African Exploration Initiative.

2. Avocet 2012 Annual Report, p20 - 23

3 Published resource (Anglogold Ashanti Annual Report 2012) plus recorded historical production.

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Competent Persons Statement

The information in this report that relates to exploration results is based on, and fairly represents, information and supporting documentation compiled by Dr Bob Beeson. Dr Beeson is a member of the Australasian Institute of Geoscientists, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Dr Beeson consents to the inclusion in this report of the matters based on his information in the form and context in which they appear.

Caution Regarding Forward Looking Information.

This document contains forward looking statements concerning Drake. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Drake's beliefs, opinions and estimates of Drake as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments

For further information, please contact:

Mr Jason Stirbinskis

CEO, Drake Resources

[phone] [e-mail]

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