Mungana Goldmines Ltd : Tunkillia Gold Project - Aquisition Completed

TUNKILLIA GOLD PROJECT

Highlights

? Mungana Completes Tunkillia Acquisition,

? Mungana Resources Now Over 3 Million Ounces,

? Mungana Production Target Lifted to 150,000 Ounces Per Annum

Mungana Goldmines Ltd (Mungana) is pleased to announce it has completed its acquisition of the 55% controlling interest in the Tunkillia Gold Project via the acquisition of Minotaur Exploration Ltd.'s wholly owned subsidiary Minotaur Ventures Pty Ltd. The 45% diluting interest is held by Helix Resources Limited.
The Tunkillia Gold Project contains a large JORC compliant resource of 15.6Mt @ 1.6g/t of Gold for 803,000 ounces of gold (see table 3) to a depth of 300m. The prospect which was discovered in 1996 is located approximately 600km North West of Adelaide and 200km north east of Ceduna in South Australia (see figure 1).
Mungana Managing Director Pat Scott said the Tunkillia Gold Project remained one of the largest undeveloped gold deposits in South Australia within the highly prospective Gawler Craton region.
"Mungana is a development focussed company and in acquiring a controlling interest in the project the company can see the potential to quickly develop a medium sized gold mine," he said.
Mr Scott said Mungana's initial review has indicated that mining of the resource via a conventional open pit and processing utilising a standard CIP gold plant targeting throughput up to 2Mtpa and production around
80,000 ounces per year is possible. He said prefeasibility and feasibility studies will be progressed, in parallel with work associated with environmental approvals and granting of mining leases, to have the project in a position to progress with construction and development by early 2014.
Mr Scott said the acquisition marks the next milestone in Mungana's strategy to position the Company as a mid- tier gold producer over the next 3 years with targeted production now over 150,000 ounce per annum between the two projects. It also increases Mungana's attributable gold resources to over 3 million ounces.
In acquiring the project Mungana has paid A$4m in cash and issued 3,076,923 Mungana shares to Minotaur, with the cash component funded from the company's current cash reserves. Mr Scott said Mungana has the project management capabilities to progress both the Mungana Gold Project and the Tunkillia Gold Project towards development in 2014.
"The Company retains a strong cash position to fund its studies and aggressive exploration across all projects,"
he said.
For further information please contact; Pat Scott
Managing Director
[phone]

Figure 1 - Mungana Goldmines Project Map Table 1 - Mungana Goldmines Ltd Resource Table - 100% Mungana Gold Project and 55% Tunkillia Gold Project

Category	M Tonnes	Gold g/t	Silver g/t	Copper %	Gold kozs	Silver kozs	Copper kT
Measured	42.3	0.82	11.34	0.29	1,115	15,410	121
Indicated	46.8	0.70	7.01	0.17	1,048	10,542	74
Inferred	43.2	0.65	5.95	0.15	908	8,260	60
Total	132.3	0.72	8.04	0.21	3,071	34,212	255

Table 2 - Mungana Gold Project Resource Table (100%)

Category	M Tonnes	Gold g/t	Silver g/t	Copper %	Gold Kozs	Silver kozs	Copper kT
Measured	41.0	0.79	11.6	0.29	1,041	15,300	121
Indicated	43.2	0.61	7.3	0.17	851	10,100	74
Inferred	39.5	0.58	6.3	0.15	737	7,900	60
Total	123.7	0.66	8.4	0.21	2,629	33,300	255

Table 3 - Tunkillia Gold Project Resource (100%)

Category	M Tonnes	Gold g/t	Silver g/t	Gold Kozs	Silver kozs
Measured	2.3	1.8	7.4	134	200
Indicated	6.5	1.7	5.5	359	803
Inferred	6.7	1.4	5.2	310	655
TOTAL	15.6	1.6	5.5	803	1,658

About Mungana Goldmines

Mungana Goldmines is an ASX listed gold company focussed on becoming a mid-tier gold producer. Mungana has an attributable resource of over 3 million ounces of gold, 255,000 tonnes of copper and 34 million ounces of silver. Mungana has a production target of over 150,000 ounce per annum in the medium term. This resource and production target is split between its two main projects; the Mungana Gold Project and the Tunkillia Gold Project
The Mungana Gold Project contains the Mungana and Red Dome gold deposits, located in the Chillagoe region of North Queensland, which have combined Measured, Indicated and Inferred Resources totalling 2.6 million ounces of gold, 255,000 tonnes of copper and 33 million ounces of silver.
Mungana is currently undertaking a BFS and targeting production of 100,000 ounces of gold 10,000 tonnes of copper and 1.5 million ounces of silver annually.
The Tunkillia Gold Project located approximately 600km North West of Adelaide in South Australia contains a large JORC compliant resource of 15.6Mt @ 1.6g/t of Gold for 803,000 ounce of gold.
Mungana's initial review has indicated that mining of the resource via a conventional open pit and processing via a conventional CIP Gold plant targeting throughput up to 2Mtpa and production around 80,000 ounces per year is possible.

Competent Person's Statement

Information in this report that relates to Mineral Resources for the Tunkillia Gold Project is based on information compiled by Dr A. P. Belperio, who is a full-time employee of Minotaur Exploration Ltd and a Fellow of the Australasian Institute of Mining and Metallurgy. Dr A. P. Belperio has a minimum of five years' experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the

2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Dr A. P. Belperio consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The data in this report that relates to Mineral Resources for the Mungana Gold Project is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code"). Mr Tear is a full-time employee of Hellman & Schofield Pty Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear.

Appendix 1 - Corporate Information Board Members

Joe Treacy Chairman

Pat Scott Managing Director and CEO Mark McConnell Executive Director

Ross Hutton Non-Executive Director John Fitzgerald Non-Executive Director Bruce Rathie Non-Executive Director

Jeremy Robinson Company Secretary

Registered & Principal Office Mungana Goldmines Ltd Level 12, 500 Queen St Brisbane, QLD, 4000

Australia

Telephone: [phone]

Facsimile: [phone]

Email: [e-mail]

Website www.munganagoldmines.com.au

Stock Exchange Listings

Australian Stock Exchange MUX

Shareholder Enquiries Link Market Services Level 15, 324 Queen St Brisbane, QLD, 4000

Australia

Telephone: [phone]

Substantial Shareholders

Mungana Pty Ltd 97.5m Guangdong Guangxin Holdings Group Ltd 25.1m Prosperity Steel 13.0m