Traka Resources : 15 Jan 2016 - Drill Results and Progress - Yallalong Antimony and Mt Short

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15 January 2016

ASX Shareholders Report

Enquiries regarding this announcement and company business may be directed to:

Patrick Verbeek

Managing Director

Ground Floor

43 Ventnor Avenue

West Perth 6005 Western Australia

Tel: [phone]

Fax: [phone]

Web: www.trakaresources.com.au

Investor Enquiries: [e-mail]

ASX Code: "TKL"

Company Announcements Office ASX Limited

Level 4, 20 Bridge Street

Sydney NSW 2000

Drill results and progress at the Yallalong Antimony and Mt Short Base Metals Projects

The Company is pleased to announce encouraging results for drilling undertaken on the Yallalong Antimony Project. Seven narrow high grade intersections of antimony mineralisation within broader zones of lower grade mineralisation have been intersected (Table 1). The geological setting and mineralisation intersected typifies the mesothermal style antimony resources that provide the bulk of the world's antimony supply.

The high grade intersections vary in width from 1 to 3 metres with average grades from 1% to 7.30% Sb (Antimony). The peak result is 1 metre at 9.77 % Sb. These results are indicating reasonable bedrock potential and it is clear that there is good correlation of the drill intersections with the overlying geochemical data (Figure 1). Mineralisation as observed in the drill and geochemical data is open in several directions.

The drilling completed to date (14 reverse circulation drill holes for 1,098 metres) is wide spaced and has not closed off the target in depth or strike length. The encouraging results have led to immediate plans for further drilling which is planned to recommence at Yallalong next month.

The Company also wishes to report good progress with drilling on the Mt Short Base Metals Project. The Christmas and New Year's holidays temporarily halted drilling but the pre-collar RC (Reverse Circulation) drilling on the MS1, MS2 and MS5 targets have been completed (Figure 2). A diamond drill rig that will test the actual target zones on these holes is scheduled to start later this month.

Patrick Verbeek Managing Director

Table 1. Significant drillhole intersections from the Yallalong Antimony Project.

Figure 1. Yallalong Antimony Project showing drill hole locations over an antimony soil geochemical anomaly (shown as red colour).

Figure 2. Greyscale aeromagnetic image showing the position of the MS1 to MS5 electromagnetic targets.