Toro Energy Limited (ASX:TOE) Commences New Resource Assessment Drilling Program at Lake Mackay Uranium Project

Perth, Aug 4, 2011 AEST (ABN Newswire) - Toro Energy Limited (ASX:TOE) (PINK:TOEYF) is pleased to announce the commencement of an enhanced resource assessment drilling program for the Theseus prospect, at the Company's wholly owned Lake Mackay uranium project in Western Australia.

This greenfields discovery by Toro in 2009 of a new uranium province is presently defined by only four Toro drillholes, spaced at one kilometre centres, along a single drill traverse and reporting up to 4.62m @ 412 parts per million (ppm) eU3O8 from 108m. Other results included some sub-one metre intervals at > 1,000ppm eU3O8.

The first drill hole in this new program, LP00173, has been completed. It is located between drill holes from the 2009 program, and has returned two zones of uranium mineralisation, the best intersection being:

From 103.6 to 104.6 (1m) @ 312ppm eU3O8

The initial drilling by Toro two years ago was the first ever uranium drilling on the southern edge of Lake Mackay. At Theseus, uranium mineralisation is hosted in a sequence of Tertiary sands and clays ranging in depths from 100m to 120m below surface. The style of uranium mineralisation is analogous to the recently discovered Afghan Swan Prospect in the Ngalia Basin, NT.

This new drilling program will incorporate 6,000m of aircore drilling, followed by a proposed 6,000m of rotary mud drilling, and is designed to define the host channel system and outline the extent of continuous uranium mineralisation.

Theseus also shows similarities to the Beverley and 4 Mile uranium deposits in the Frome Embayment of South Australia.

Figure 2 (see link at the bottom of the release) shows the anomalous uranium results from the 2009, and the curtailed 2010 drilling programs (due to significant rainfall events), overlain on interpreted palaeochannels that are most likely to host uranium mineralisation. Drillholes in the Theseus area in 2009 were completed at a maximum depth of 120m due to limitations in drill rig capacity The new aircore program will be drilled to crystalline basement to fully test the mineralised horizons.

Significant uranium intersections from the 2009 drill traverse, spaced at 1 km centres from Theseus in 2009, and previously reported included:

LP0019 1.06m @ 315ppm eU3O8 from 101.99m

LP0020 2.82m @ 213ppm eU3O8 from 96.51m

LP0029 4.62m @ 412ppm eU3O8 from 108.3m

LP0030 4.02m @ 152ppm eU3O8 from 105.16m

The new drillholes will be sited at anominal 400m spacing across the interpreted palaeochannel system for a total of 6000m of aircore drilling. Mineralisation intersected in the 2009 campaign, covering 5km of only one east-west drill traverse, demonstrated the potential size of the uranium mineralised system. There is the potential for similar size extensions to the south and north of this area.

All drillholes will be gamma logged from surface. Confirmatory samples will also be collected and sent for assay from anomalous zones defined by the gamma logging. Results will be reported during the next 4 to 6 weeks.

Toro has also recently completed a shallow aircore program across the Pokali East and Mt Webb Calcrete targets also shown on Figure 1 (see link at the bottom of the release). This drilling was designed to geochemically test strong magnetic and gravity signatures in the southern area of the Lake Mackay tenements (reported in "TOE" ASX release dated 23 Dec 2010). Assay results from this program are expected to be received and reported over the next few weeks.

For the complete Toro Energy announcement including tables and figures, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-TOE-183990.pdf

Contact

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