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Updated Drilling Results from Supreme Prospect

9 May 2006

Updated Drilling Results from Supreme Prospect, Reefton

OceanaGold today reported positive results from exploration drilling at the Supreme Prospect, approximately 2.5 kilometres south of the Globe Progress mine development in Reefton.

In April 2006, the Company reported that a helicopter-assisted diamond drilling programme had commenced at Supreme in order to test a known mineralised structure with associated historical workings. Several significant drilling intersections (see Figure 2) had previously been returned from the Supreme structure and the area was considered prospective for a potential additional ore source to be processed at the Globe Progress plant.

A total of seven (7) holes for 833 metres drilling have been completed to-date on this programme. Several of these holes have successfully intersected a strongly sheared, brecciated and altered structure containing mineralised lithologies geologically similar to the Globe Progress orebody.

The shear zone appears to have a width of approximately 10 metres and a strike length of at least 250 metres. The zone apparently dips at a shallow angle to the southeast. Initial assay results from the drilling (see Table 1) are indicating locally high-grade gold within a broader mineralised envelope, associated with the abundant sulphide mineralisation. Visible gold has been observed during logging of the drill core.

At the completion of drilling, the Supreme resource model will be updated and the Company is optimistic that the resource for this area will increase. Infill drilling is currently being planned to test the continuity and extent of the mineralisation. This drilling is expected to be completed by June 2006.

OceanaGold’s CEO, Stephen Orr commented that “the drilling at Supreme is supporting our geologic model which indicates that significant amounts of additional surface mineralisation remain along the entire Reefton mineralised trend. The exploration in Reefton is targeting near-surface refractory mineralisation which historically could not be economically recovered with conventional gold recovery processes. Our strategy is to find additional ore bodies that will supplement ore from Globe Progress and extend production life at Reefton.”

OceanaGold is currently developing the Globe Progress mine and a 1 million tonne per annum concentrate processing plant in the Reefton Goldfield. The project is expected to commission at the end of 2006 and produce at a rate of 60,000 to 70,000 ounces per annum. The concentrate from Reefton will be rail shipped back to the Macraes plant for final processing through the Company’s autoclave.

OceanaGold also owns and operates the Macraes Gold Mine and gold processing plant located in the Macraes Goldfield near Dunedin on the South Island of New Zealand. The Company currently produces about 180,000 ounces of gold per annum from this operation.

- ENDS -

Information in this report which relates to Mineral Resources and Ore Reserves is based on information compiled by Lachlan Reynolds (a full-time employee of OceanaGold) who is a member of the Australasian Institute of Mining and Metallurgy. Mr Reynolds 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 of Reporting of Identified Mineral Resources and Ore Reserves. Mr Reynolds consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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