Sihayo Gold Limited (ASX:SIH) Drilling Recommences At Tambang Tinggi Gold Prospect, North Sumatra, Indonesia

Perth, Feb 15, 2011 AEST (ABN Newswire) - Sihayo Gold Limited (ASX:SIH) is pleased to announce that diamond drilling has recommenced at the Tambang Tinggi gold/copper prospect located in the southern area of the Company's Contract of Work ("COW") in North Sumatra, Indonesia.

The current drilling program is following up on scout drilling undertaken in 2005. Scout drilling intersected 125 m @ 1.4 g/t Au from surface, including 25m @ 4.58 g/t Au from 31m in what is interpreted to be the phyllic alteration zone of a Porphyry Cu-Au system. The current program is designed to potentially deliver the Company's second JORC compliant gold resource to compliment the flagship Sihayo Pungkut Gold Project (10.7 Mt @ 2.9 g/t Au for 1.01 million oz).

Detailed surface work through the Tambang Tinggi Region is defining significant zones of gold and copper mineralisation. A soil sampling program has defined an area of approximately 2.5km by 0.6km containing anomalous gold and copper. A detailed rock chip sampling program has returned a number of high grade gold, copper and silver results, with 20% of samples returning >1 g/t Au and a best sample of 62 g/t Au. In addition, 7% of samples returned >30 g/t Ag with a best sample of 490 g/t Ag and 6% of samples returned >0.5% Cu with a best sample of 5.03% Cu.

Further exploration work currently being undertaken within the Tambang Tinggi Region includes a detailed aeromagnetic / radiometrics survey and a detailed dipole-dipole induced polarisation survey.

BACKGROUND

The Tambang Tinggi Region is situated on a section of the Sumatran Fault system and is located in the southern portion of the Company's COW. The region is underlain by intercalated andesitic volcanics and limestones. Younger dacitic volcanics and sandy conglomerates overlie the andesite / limestone sequence. A hornblende diorite, weakly to moderately magnetic, has intruded the andesite / limestone sequence.

Preliminary field work and scout drilling were undertaken over the Tambang Tinggi Region in 2005 and 2006. Best results from scout drilling were from the Tambang Tinggi Prospect:

TTDD001: 87m @ 0.7 g/t Au from surface

TTDD002: 125m @ 1.4 g/t Au from surface

TTDD003: 90m @ 0.4 g/t Au from surface

TTDD004:

- 4m @ 0.6 g/t Au from 47m and

- 18m @ 0.5 g/t Au from 55m and

- 4m @ 1.0 g/t Au from 78m and

- 3m @ 1.9 g/t Au from 86m

Gold mineralisation intersected in TTDD001 to TTDD004 is associated with silica-sericite-pyrite-bornite-chalcopyrite-pyrite-tourmaline alteration and limonite veins / fractures. The better gold grades correlate with limonite veins / fractures. Alteration mineralogy is consistent with phyllic alteration that is commonly identified adjacent to porphyry copper-gold deposits. Alteration is subtly overprinted by vuggy acid leached textures that are often found on the periphery of high sulphidation epithermal deposits. Mineralisation / alteration dips near vertical striking North Westerly. Anomalous copper (chalcopyrite-bornite) in the deeper hypogene parts of the system is a potential vector to porphyry copper mineralisation at depth.

The current drill program at Tambang Tinggi Prospect consists of 8 diamond drill holes to test the strike and depth potential of significant mineralisation intercepted in TTDD001 to TTDD004.

The wider Tambang Tinggi Region is endowed with gold and copper mineralisation. Figures 2, 3 and 4 (see link at the bottom of the release) illustrate recent surface work, significant geochemistry and prospect locations. Table 1 (see link at the bottom of the release) classifies each prospect in the Tambang Tinggi Region. Table 2 (see link at the bottom of the release) summarises the top 20 significant rock chips for gold, copper and silver from the total 497 samples.

The proximity (about 2km radius), abundance and style (skarn, epithermal, phyllic alteration) of prospects in the Tambang Tinggi Region suggests that the currently identified mineralisation is related to a porphyry copper-gold system at depth. Accordingly, exploration drilling will be conducted in 2 phases:

1) Targeting near surface Au targets;

2) Targeting possible deeper Au-Cu mineralisation, where detailed airborne magnetics and dipole-dipole induce polarisation surveys will assist in better defining the drilling programme.

"This is an exciting time for the Company, with the possibility of delineating our second JORC Compliant resource and continuing to explore additional highly prospective prospects across our COW area", said Mr. Peter Bilbe, Chairman.

For the complete Sihayo Gold Limited announcement including figures and tables, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/65229-ASX-SIH-529007.pdf

Contact

Paul Willis Chief Executive Officer Email: sihayogold@sihayogold.com Tel: +61-8-9368-4544 http://www.sihayogold.com