Toro Energy Limited (ASX:TOE) Increases Regional Wiluna Uranium Resource by 25% with Acquisition of 70% of Nowthanna Deposit in Western Australia

Perth, July 18, 2011 AEST (ABN Newswire) - Toro Energy Limited (ASX:TOE) (PINK:TOEYF) are pleased to announce the execution of a non-binding term sheet with a group of vendors led by Impact Minerals Ltd and including CITIC Nickel Pty Ltd, Talbot Group Investments Pty Ltd, Spar Resources Pty Ltd, John Rowntree and Teddy Tech Pty ltd (collectively, "the Vendors"), for the purchase of two exploration tenements, E51/1072 and E51/1075, ("the Nowthanna Tenements") 50km south of Meekatharra and about 150km west of Toro's Wiluna Uranium Project in Western Australia.

Toro proposes to purchase 100% of the two Nowthanna Tenements (and associated technical database) from the vendors for a consideration comprising:

- A$1.3 million cash payable at settlement; and

- 10 million Toro ordinary shares issued at a deemed issue price of A$0.15 per share.

Half of the newly issued shares will be subject to a 6 month escrow provision with the remainder having a 12 month escrow period.

The term sheet provides for a binding exclusivity period in favour of Toro which runs until the earlier of 15 September 2011 or execution of definitive legal documentation.

Completion of the transaction will be subject to legal and financial due diligence, the execution of definitive legal documentation and any required regulatory or third-party consents and approvals. The parties will endeavour to complete the transaction before 15 September 2011.

Geology and Resources

Uranium mineralisation at Nowthanna occurs as carnotite over intervals of 0.5 to 6m in width within silicified calcrete layers and carbonate rich sandy clays at or near the water table generally within 10m of surface. The deposit has a low strip ratio (given overlying waste of between 1m and 4m) and the poorly consolidated sediments will be amenable to simple mining methods. In these respects, Nowthanna is similar to other surficial style deposits in the north Yilgarn craton such as Toro's Lake Way and Centipede deposits.

In total this results in an Inferred Resource net to Toro under the acquisition of approximately 7.39 Mt at 453ppm U3O8for 3,350t (7.4Mlb) U3O8 at a 200ppm cut-off or 4.20 Mt at 596ppm U3O8 for 2,500t (5.5Mlb) U3O8 at a 300ppm cut-off.

Regional Development Context

Toro has been very active in reviewing uranium project opportunities within a 200km radius of the Wiluna Uranium Project. Given Toro's advanced understanding of the calcrete style of mineralisation and its strong regional position in the district, the Company has been looking to consolidate smaller deposits that may or may not be economic in their own right. Recent examples of this include the Dawson-Hinkler Well Project acquisition from U3O8 Ltd, the Millipede Project acquisition from MPI Nickel Pty Ltd (in process) and the transaction with Minerals and Metals Group consolidating Toro's broader Wiluna position.

Nowthanna is a relatively early stage project with significant potential given its higher grade tenor that allows the deposit to withstand increases in cut-off grade in the event of higher cost development scenarios. The deposit will require significant resource, environmental, community and technical evaluation work to be done in order to advance the project. If deemed an economic proposition in the future, the project would be subject to appropriate WA and Federal Government approvals at that time. Nowthanna is not part of the current government assessment of the Wiluna Uranium Project.

The proposed transaction is the sixth uranium deposit acquisition by Toro in WA in addition to its flagship Lake Way and Centipede deposits within the Wiluna uranium project. The others include Lake Mackay, Birrindudu, Dawson-Hinkler, Millipede and Firestrike.

Please view the following link for the updated resource tables: http://www.abnnewswire.net/media/en/docs/183739.pdf

Contact

Greg Hall Toro Energy Limited Tel: +61-8-8132-5600 Email: info@toroenergy.com.au http://www.toroenergy.com.au