Troy Purchases Royalties at Sandstone

Troy Resources NL ("Troy") (ASX:TRY) has negotiated the 
purchase of production royalties held by Croesus Mining NL 
("Croesus") and Vulcan Resources Limited ("Vulcan") over Troy owned 
mineral tenements at Sandstone. The royalties cover tenements 
E57/422, E57/424, M57/529 and M57/530 which include the Lord Henry 
and Lord Nelson gold deposits ("Lords") where Troy commenced mining 
in late April this year.

   The royalty held by Croesus is for an amount of $10 per ounce of 
gold and is being purchased for an amount of A$1,100,000 plus the 
issue of 200,000 fully paid ordinary shares in Troy.

   The royalty held by Vulcan covers the same tenements and is for 
an amount of $5 per ounce of gold capped at a maximum payment of 
$250,000 and has been purchased for A$232,000 cash.

   These purchases have eliminated all the private royalty interests 
covering the Lords development and the surrounding tenements. This 
will allow Troy greater operational flexibility in its milling 
operation through the ability to blend ore from any future 
development of satellite orebodies owned by Troy in the Sandstone 
area with ore from the Lords mining operation.

   J L C Jones

   Executive Chairman



   Troy Resources NL (ASX.:TRY)