Drilling Identifies New Mineralised Structure

23 November 2004

Frasers Underground Drilling Identifies New Mineralised Structure

OceanaGold reported today that six drill-holes have intersected a second mineralised structure approximately 15m below the structure targeted for development as part of the Frasers Underground in the Macraes district in New Zealand. These drill holes intersected a 9-17m thick zone parallel to Panel 2 with the best drill hole intersecting 17m @ 3.04 g/t. The details of the drill-hole intersections are shown in the table and diagram below:

The new zone of mineralisation extends for approximately 200m along strike and down dip and is still open to the south. Additional drill-holes are planned in this area over the next few months as part of OceanaGold’s $2.5 million infill and extension drilling program of the Frasers Underground orebody. Chief Executive Officer, Steve Orr said he was pleased with the latest drill results from the Frasers Underground drilling program.

“These intercepts combined with the recent extension of Panel 2 to the east, indicate continuity of mineralisation and an increasing grade profile downdip at Frasers,” he said. The Company is conducting a $2.5 million infill and extension drilling program at the Frasers Underground to bring the Frasers resource into reserve status. The recent success could extend the program into 2005, but an initial reserve will be reported at the end of 2004.

A decline is currently being developed to access the Frasers Underground ore bodies down-dip from the Macraes surface mines. The Frasers Underground operation is scheduled to produce 85,000 ounces per annum starting in late 2006.

OceanaGold, is a major Australasian gold producer with a dominant position in two major historic goldfields and ownership of a modern day gold discovery in New Zealand. It is New Zealand’s largest gold producer with record production of 183,000 ounces expected from Macraes in 2004.

ENDS

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