Gold Anomaly Limited (ASX:GOA) Commenced Gold Production At Sao Chico Mine In Brazil

Sydney, April 18, 2011 AEST (ABN Newswire) - Gold Anomaly (ASX:GOA) is pleased to announce that its wholly owned subsidiary, Gold Aura Do Brasil Mineracao Ltda (GOAB), has now commenced gold production at the Sao Chico mine in northern Brazil.

Processing plant commissioning was undertaken using low grade weathered vein material excavated and stockpiled over the last several weeks. Following successful commissioning, mining of higher grade run of mine vein material has now commenced and forms the basis for on going gold production. Mining will provide a better understanding of the mineralisation and form part of a feasibility study for substantially expanding the operation.

Executive Chairman, Mr Greg Starr commented, "This is a watershed event, as Gold Anomaly has now transitioned from explorer to gold producer status".

"Although initial production will be modest and quite volatile given the nuggetty nature and uneven distribution of the gold, we believe that Sao Chico will ultimately develop into a significant mine that could process ores from nearby deposits and tenements. Given the buoyant gold price, the project will provide early cash flows that will refund existing investment and fund the feasibility study required for the successful application for a Mining Licence."

While GOAB had initially planned to commence production at a rate of some 50 tonnes per day and progressively build up to a steady rate of 100 tonnes per day after approximately two months, 100 tonnes per day was shown to be readily achievable immediately during the commissioning. GOAB considers that there is sufficient tonnage of oxide vein material available to sustain operations at a rate of 100 tonnes per day for the remainder of 2011.

In addition, underground mining is being considered, with promising high grade gold results obtained from earlier sampling of a drive developed along the main shear hosted vein (at 18m depth) being confirmed by recent sampling.

Sao Chico is located within the Tapajos region in Brazil, the site of one of the biggest gold rushes in recent history. In the late 1970's and 1980s, approximately 500,000 garimpeiros rushed to the region to exploit extensive areas of newly discovered alluvial gold, producing approximately 20-30 million ounces of gold before the easily won alluvial gold deposits were largely depleted. Despite the gold rush, little modern exploration has been conducted over the region to date. As such, Gold Anomaly believes that there is excellent potential to expand gold operations at Sao Chico.

Gold Anomaly has entered into a farm-in arrangement with TSX-listed Kenai Resources for the project. GOAB and Kenai have vast experience and expertise of operating within the region, which will provide a focussed and systematic effort to gold production and exploration at Sao Chico. As previously advised, Kenai has an option to acquire an initial 51% of the project through loans and expenditure of up to A$3 million. However, Gold Anomaly via its shareholding in GOAB will receive all cash flow generated by the project until Kenai exercises its option.

Contact

Ken Chapple Executive Director Mob: +61-418-758-301 Greg Starr Executive Chairman Mob: +61-2-9241-4224 info@goldanomaly.com.au http://www.goldanomaly.com.au