Ortac Resources is currently under maintenance and will be back online shortly.

Anthony Balme
Chairmans Statement
Highlights 2012

Findings from the Scoping Study conducted on the company's Šturec deposit were published in 2012 and serve to re-affirm the value and economic viability of this previously producing asset at Kremnica in Slovakia.

Ortac has exclusive rights to mine from the KMLA until at least June 2014

The potential for Šturec to become a positive economic generator for the region is one of the implications that is currently being discussed with the local community, following the Scoping Study findings. Potential exists to add to the mineral development area with ancillary tourist and leisure developments to include a geothermal power project aligned with a health spa, wellness and sporting facilities as well as a visitor centre.

From an economic perspective, the Šturec Deposit has a current JORC compliant gold resource of 1.32 million ounces ('Moz'), with over 1Moz in the Measured and Indicated categories located in a historically producing and proven gold-bearing mineral district. The Scoping Study on the Šturec Deposit, which was finalised in January 2012, demonstrated highly attractive economic fundamentals including a post tax Net Present Value (8% discount rate) of US$153 million, a cash cost of

Considerable progress has been made on our technical Pre-Feasibility Study ('PFS'), which remains on track for completion in Q1 2013. In preparation for the detailed assessment of the mine, SRK Consultants (UK) Ltd ('SRK') has re-logged the Šturec drill core geo-technically, completed scanline surveys underground, and assisted in the re-interpretation of waste rock. Macintosh probe testing has also been completed in preparation of the design details required for the tailings and waste rock management components, an aspect we are assessing closely in response to particular enquiries from local citizens.

GBM Mineral Engineering Consultants Ltd ('GBM') has also made significant progress with a review of metallurgical testwork, development of the project design criteria, draft flow sheet and site layout. Detailed design and costing work is now underway for inclusion in the PFS. Wardall Armstrong International Ltd ('WAI'), responsible for the metallurgical test work for Šturec, has completed ore characterisation, crusher and abrasion tests. The environmental and variability testing will be completed as a part of the Bankable or Definitive Feasibility Study. A number of independent local Slovak environmental experts are collecting environmental baseline data to incorporate into the PFS.

As previously stated, a key focus during the period has been on our corporate social responsibility programme which is currently being co-designed with the local community by our team on the ground in Slovakia, led by astoneco management, as we explore sustainable development compliant solutions for investments built on the Šturec deposit. Our focus is to ensure that maximum opportunities and benefits arising from Šturec are incorporated into local development and conservation plans and that all risks linked to extracting the gold and silver are credibly managed. With this in mind, we are in open dialogue with the community to visualise the end product of our investments whilst addressing their concerns linked to a precious metals centre, a geothermal energy resource development and integrated tourism.

Over recent months Ortac has been made aware of comments made in the local Slovak press relating to the status of the legal rights of exploitation to the Kremnica Mining Licence Area ('KMLA'), in which Ortac's Šturec deposit is located. The Board has recently obtained guidance from Slovak legal counsel as well as from the appropriate local authorities. This has confirmed the fact that Ortac has exclusive rights to mine from the KMLA until at least June 2014. This licence expiry date can be extended to take into account time taken up by environmental and social considerations. The KMLA is defined as a combined surface and underground licence area where mining activities have been undertaken for many years. Ortac will be updating stakeholders and shareholders alike on the state of the responsible project development process throughout 2013.

Ortac currently has a bulk sample mining application currently being considered for further environmental and social considerations.

The principal exploration licence associated with the Šturec licence, the contiguous Lutila licence, has recently been renewed and is valid until September 2016, subject to certain expenditure requirements. The Lutila area, we believe, has particularly good prospects for the discovery of a new underground resource, approximately 6 kilometres to the south of Šturec. Next year we plan to advance exploration here either on our own account or in joint venture.

Anthony Balme
Chairman
18 December 2012