oroya - asx.com.au

Mining Limited

OROYA

ACN 009 146 794

Level 6, 256 Adelaide Terrace, Perth, WA, 6000 PO Box 3008 Adelaide Terrace, Perth WA, 6832

Telephone: (08) 9218 8111 Facsimile: (08) 9218 8662 Web: www.oroya.com.au

31 July 2008 Company Announcements Office Australian Stock Exchange Ltd

FOURTH QUARTER ACTIVITIES AND CASH FLOW REPORT FOR THE PERIOD ENDED 30 JUNE 2008

HIGHLIGHTS

• Vale Inco commenced diamond drilling at Roe Hills Nickel Project, WA • New mineralised zone discovered at Buldah North Prospect, Victoria

• Drilling to commence in August 2008 at Steiglitz, Victoria

• Encouraging gold responses from Mt Piper, Victoria and Moruya, NSW

Overview Oroya is an established Perth-based mineral explorer with extensive tenure in Western Australia and in the Lachlan Fold Belt of New South Wales and Victoria. In Western Australia, Oroya is exploring for nickel near Kalgoorlie in joint venture with Vale Inco, one of the world’s largest nickel producers, and holds other projects in the Fraser-Albany Orogen and the Yilgarn Block. In the Lachlan Fold Belt in eastern Australia, the company is exploring a number of project areas, primarily for large tonnage disseminated gold and base metal deposits. The extensive tenure requires an efficient high-speed approach to first pass identification of drill targets. The company’s highly sensitive multi-element stream sediment geochemical sampling enables cost-effective exploration of large areas of prospective terrain, covering a wide range of target concepts and commodities. Oroya is committed to active exploration and is advancing its project development efforts through self-funded and joint venture exploration, and from royalty arrangements.

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Roe Hills Nickel and Gold Project, Western Australia (Oroya 100%, Vale Inco earning 75%) Eight diamond drill holes planned for the current diamond drilling program at Roe Hills were pre-collared in December 2007 by Vale Inco using RC drilling. Vale Inco commenced diamond coring in July 2008, as foreshadowed in Oroya’s ASX announcement of 30 June 2008. The 1,300 metre diamond drilling program is targeting:

1. Strike extensions of a komatiitic nickel sulphide zone intersected in previous drilling at the Talc Lake Prospect; with a best previous intersection of 6.15% nickel and 0.38% copper over 0.5 metres from 155 metres in drill hole ROE114.

2. The RH1 Moving Loop Electromagnetic (MLEM) anomaly with a strike length of 600 metres.

Ground electromagnetic surveys were also commenced during June. These include a Fixed Loop EM survey over the RH2 anomaly to obtain better definition of conductors, and Moving Loop EM surveys over the ROE 1 area and north of Talc Lake over potentially nickeliferous ultramafic rocks. Steiglitz Gold Project, Victoria (Oroya earning 75%) Reverse circulation drilling at Steiglitz (EL4409) is now scheduled to commence in mid-August 2008, mobilization of the drilling rig being delayed due to rain. During the Quarter, detailed preparation for the drilling program included obtaining a number of approvals and a further variation to the Work Plan for the addition of a further three RC drill holes. Oroya’s target is bulk tonnage gold mineralisation hosted by the north-east trending Hanover Fault zone. The company’s mapping shows that the fault zone exceeds 100 metres width in places, may have a vertical displacement of thousands of metres, and contains multiple sub-parallel mineralised zones. Several 19th century gold mines lie within the Hanover Fault Zone, including the Hanover, New Mariners and Garlic Mines (Figure 1). Although mine records are sketchy, contemporary geologists commented on the unusual nature of the shear zone-hosted gold mineralisation in the Hanover Fault, which contrasts sharply with the ‘Bendigo-style’ quartz vein-hosted gold also mined at the New Mariners and elsewhere at Steiglitz. Gold in the Hanover Fault Zone is located within zones of intense shearing with boudinaged quartz veinlets and breccia. Early accounts describe the gold as fine grained, silver–rich and associated with fine grained sulphides, including pyrite, arsenopyrite, and galena.

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Historical gold production for the Steiglitz goldfield, mainly from underground mines, is recorded as 122,700 ounces at an average grade of 24.5 g/t gold, mainly from the Bendigo style quartz reefs. Oroya’s target model is supported by interpretative work during the Quarter on recently acquired 19th Century plans and sections for the Hanover Gold Mine which show that shear zone-hosted mineralised zones up to 5 metres wide were stoped within the Hanover Fault Zone.

Figure 1 – Steiglitz Project, Hanover Shear Zone Target & Generalized Geology

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Lachlan Fold Belt Regional Exploration Overview Oroya has undertaken regional exploration in the Lachlan Fold Belt of New South Wales and Victoria since late 2006 to create a pipeline of drilling targets for bulk tonnage gold and base metal mineralisation. The first phase of this work involves detailed review of previous exploration before undertaking specifically targeted regional geochemical drainage sampling in prospective areas where assessment shows them to be inadequately tested. This phase has been successfully completed for most of the projects, with a number of interesting target areas being defined in each. The company is now moving into a detailed follow-up second phase to identify drilling targets, at the same time reducing its holding costs by relinquishing non-prospective tenure. During the September Quarter, Oroya is continuing first-phase regional drainage sampling as well as detailed assessment of identified anomalies involving infill drainage, soil, rock or ridge-and-spur sampling and prospect-scale geological mapping. Oroya’s current projects are shown in Figure 2 below. Activity during the Quarter is summarised as follows:

Figure 2 – Oroya’s Lachlan Fold Belt Projects & Generalized Regional Geology

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Club Terrace Gold and Base Metal Project, Victoria & NSW (Oroya 100%) Stream Sediment Sampling Over 80 sites were sampled during May and June as part of a follow-up program of infill stream sediment sampling in areas of elevated first-pass stream sediment analytical results announced to ASX on 26 June 2007. Samples have been submitted to the laboratory and results are awaited. Detailed reconnaissance mapping and rock-chip sampling was undertaken in two distinctly anomalous areas, as follows: Buldah North Anomaly At Buldah North, about six kilometres north of the remote farming settlement of Buldah and about two kilometres from the NSW border, field follow-up of anomalous lead, copper and zinc in regional stream sediment samples discovered weathered sandstone float with dense fracturing and limonite after sulphides. Reconnaissance rock float sampling has delineated an area of mineralisation extending over an area of at least 1,000 metres by 1,000 metres, in forested terrain. Analyses of samples from this discovery report elevated lead, gold, silver and arsenic responses up to 4,180 ppm lead, 209 ppb gold, 14.15 g/t silver and 8,570 ppm arsenic. This mineralisation is spatially associated with the north-striking Buldah Shear Zone and Buldah Fault, near their intersection with the north-east striking regional scale Combienbar Fault Zone. Regional scale aeromagnetic data also suggests a possible association with the granitic Bega Batholith which is exposed several kilometres to the east. Detailed geological mapping, rock chip and soil sampling is required to properly assess this very interesting area. Further stream sampling has been undertaken in streams draining the area of elevated rock responses to determine the extent of anomalism, with assay results pending at the end of the Quarter. Staggs Gold Mine The historic Stagg’s Gold Mine was relocated by Oroya. The mine was the site of a 1931 gold discovery on Little Tiger Snake Creek and yielded some hundreds of ounces of gold from the oxide zone of a narrow east-west striking sulphidic vein. Oroya’s sampling of mullock and float from the Stagg’s Mine area confirms the existence of gold in the immediate area, while stream sediment sampling has detected anomalous gold in adjacent drainages. Further evaluation will be undertaken to determine the potential for bulk tonnage gold mineralisation in the greater area.

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Mt Piper Gold Project, Victoria (Oroya 100%) Analytical results were received from reconnaissance rock chip and float samples taken in the previous Quarter from the Cunninghams and Glenaroua prospects. At Cunninghams Prospect, two float samples, both of which contained visible stibnite (antimony sulphide), assayed 19.3 g/t gold, 1.6 g/t silver; and 21.5 g/t gold and 16.55 g/t silver. At the Glenaroua Prospect, several float and rock chip samples of quartz mineralisation were anomalous in gold and silver, with a best result of 2.05 g/t gold and 0.34 g/t silver. Further work will be undertaken to follow up these responses. Beaufort Gold Project, Victoria (Oroya 100%, Range River earning 75%) Joint Venture partner Range River Gold Limited undertook mapping and sampling of the main target zone at Beaufort, with assay results pending. Ballarat North Gold Project, Victoria (Oroya 100%, Range River earning 75%) Following the grant of EL4934 on 13th March 2008, Range River submitted a Work Plan to DPI for their proposed deep diamond program to test the northern extensions of the Ballarat West Goldfield. Cowarra South Gold Project, NSW (Oroya 100%) Results of stream sampling conducted in the previous Quarter were assessed. Anomalous gold responses detected in several drainages warrant follow-up evaluation which is currently being planned. Moruya Gold Project, NSW (Oroya 100%) Geological mapping and float and rock chip sampling was undertaken in the area of the historical Bimbimbie Gold Mine, where granite-hosted quartz veins were mined. Oroya’s mapping has defined a previously unrecognized en echelon pattern to the quartz veining while sampling confirms the widespread occurrence of gold in the quartz, to a maximum gold value of 31.3g/t gold. The zone will be further assessed to determine if vein intensity and disseminated wall rock gold mineralisation will support the concept of a bulk tonnage stockwork or disseminated style target.

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A stream sediment sampling program commenced in July 2008 to explore other areas within the Moruya tenements EL6746 and EL6747 for bulk tonnage gold targets. This work is expected to be completed by early August. Pambula Gold Project, NSW (Oroya 100%) Analysis of geochemical drainage samples collected from 136 sites in the previous quarter showed gold anomalism in several drainages. Most of these samples were collected in the southernmost tenement EL6717, targeting Devonian volcanic and granitic terrain. Sampling resumed in July, focussing on the northern tenements of this project area and it is expected that first pass stream sediment sampling will be completed in the September Quarter. Sofala Gold & Base Metal Project, NSW (Oroya 100%) Additional ground was applied for (ELA3491 on 22 May 2008). S H Shedden Managing Director DECLARATION OF COMPETENCY The information in this report that relates to Exploration Results is based on information compiled by Mr Douglas Bright, a member of the Australasian Institute of Mining and Metallurgy and a full time employee of Oroya Mining Limited. Mr Bright has sufficient 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.’ Mr Bright consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Appendix 5B Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Oroya Mining Limited ABN Quarter ended (“current quarter”)

16 009 146 794 30.6.2008

Consolidated statement of cash flows Cash flows related to operating activities

Current quarter

$A’000

Year to date (12 months)

$A’000 1.1 Receipts from product sales and related debtors

- -

1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration

(321) - -

(96)

(1,115) - -

(514) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 9 38 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other - -

Net Operating Cash Flows (408) (1,591)

Cash flows related to investing activities

1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets

- -

(4) -

- -

(14) -

1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets

100 271

-

100 506

2 1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other - Deposit paid (2) (4)

Net investing cash flows 365 590

1.13 Total operating and investing cash flows (carried forward) (43) (1,001)

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1.13 Total operating and investing cash flows

(brought forward) (43) (1,001)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 1 659 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other–expenses related to issue of shares

-funds deposited for performance bonds -funds received for performance bonds deposit -payments for rental bond monies

- -

- -

(36) -

- -

Net financing cash flows 1 623

Net increase (decrease) in cash held

(42) (378)

1.20 Cash at beginning of quarter/year to date 342 678 1.21 Exchange rate adjustments to item 1.20 - -

1.22 Cash at end of quarter * 300 300

* Excludes $120,000 held on deposit with a bank as security against Performance Bonds lodged with the Minister of Mineral Resources in New South Wales. Excludes $684,000 raised for working capital, before costs, by the placement of 38,000,000 shares as announced to ASX on 17 July 2008.

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter $A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 113

1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25

Explanation necessary for an understanding of the transactions

Item 1.23 being salaries paid to working directors.

Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated

assets and liabilities but did not involve cash flows

Nil

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the

reporting entity has an interest

Nil

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Financing facilities available Add notes as necessary for an understanding of the position.

Amount available

$A’000 Amount used

$A’000

3.1 Loan facilities - -

3.2 Credit standby arrangements - -

Estimated cash outflows for next quarter

$A’000

4.1 Exploration and evaluation 200

4.2 Development -

Total 200

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 290 323

5.2 Deposits at call 10 19

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) * 300 342

* Excludes $120,000 held on deposit with a bank as security against Performance Bonds lodged with the Minister of Mineral Resources in New South Wales. Excludes $684,000 raised for working capital, before costs, by the placement of 38,000,000 shares as announced to ASX on 17 July 2008.

Changes in interests in mining tenements

Tenement reference Nature of interest (note (2))

Interest at beginning of

quarter

Interest at end of quarter

6.1 Interests in mining tenements relinquished, reduced or lapsed

Nil

6.2 Interests in mining tenements acquired or increased

Nil

EA = Exploration Licence Application

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Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per

security (see note 3) (cents)

Amount paid up per security (see note 3) (cents)

7.1 Preference +securities (description)

7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

7.3 +Ordinary securities

280,129,464 280,129,464

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs

7,500

Nil

7,500

Nil

4.5 cents

4.5 cents

7.5 +Convertible debt securities (description)

Nil

Nil

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

Nil

Nil

7.7 Options (description and conversion factor)

48,693,809 10,000,0001

48,693,809 Nil

Exercise price

$0.045 $0.050

Expiry date

31.07.09 30-11-09

7.8 Issued during quarter

Nil

Nil

7.9 Exercised during quarter 7,500 7,500 $0.045 31.07.09

7.10 Expired during quarter

7.11 Debentures (totals only)

7.12 Unsecured notes (totals only)

1 Unlisted employee share options.

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Compliance statement 1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does /does not* (delete one) give a true and fair view of the matters

disclosed.

Sign here: ............................................................ Date: 31 July 2008

(Director/Company secretary) Print name: K M K Lim Notes 1 The quarterly report provides a basis for informing the market how the entity’s

activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in

mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in

items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive

Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International

Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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