Cortona Resources Limited : Agreement to Process Dargues Reef Gold Concentrate

17th August 2011: ASX/Media Release

Agreement to Process Dargues Reef GoldConcentrate

Cortona to retain full control to maximise efficiency and recovery benefits

HIGHLIGHTS

• Cortona has secured a processing plant for the Dargues Reef gold concentrate

• License Agreement covers current mine reserve with option to extend

• Facility located near Parkes, NSW, with a shorter transport distance than budgeted by Cortona in its Feasibility Study

• Processing circuit being optimized for high recoveries

Cortona Resources Limited (“Cortona”, ASX:CRC) is delighted to announce that it has entered into a License Agreement with Westlime Pty Ltd (“Westlime”) for Cortona to operate the London Victoria gold processing plant near Parkes in NSW. The arrangement is an elegant solution to process the Dargues Reef gold-silver-pyrite concentrate.

Cortona’s Managing Director, Peter van der Borgh commented; “we have assessed numerous options and this is an excellent result for Cortona. It provides us with security over a facility which we will manage and operate to deliver efficiency and recovery benefits to the bottom line.”

Westlime is the current owner of the London Victoria gold mine, which was originally owned and operated by BHP Billiton. Westlime utilises the crushing and grinding portion of the plant to produce limestone products, while the gold leaching and recovery part of the plant is currently unused. The original operating permit for the processing plant remains valid and Cortona is now finalising the requisite approvals to re-start the facility.

COMPANY DETAILSPrincipal and Registered Office

Cortona Resources Limited Level 5, 72 Kings Park Road West Perth, WA 6005

Postal Address

PO Box 86, West Perth WA 6872

Website

www.cortonaresources.com.au

Email

[e-mail]

Phone

[phone]

Facsimile

[phone]

ABN: 98 117 848 790ASX CODE: CRC, CRCOCorporate Information

(30 June 2011)

Shareholders ~2,000

Shares on Issue 196M Options (CRCO) 34M Options (Unlisted) 16M

PROJECTSMajors Creek (NSW) Eugowra (NSW) Christmas Gift (NSW) Booths Reward (NSW)

Reopening of the facility will return jobs to the district, and the Company has in principal support of the consenting authority Parkes Shire Council, subject to the satisfactory completion of the normal regulatory process.

Bench test work has repeatedly shown gold recoveries to be in excess of 95%, with approximately half to be recovered by gravity at the Dargues Reef site and the other half to be recovered by further refining the concentrate to dore at the London Victoria facility. A significant silver credit will also be generated. The agreement covers the current reserve life for the Dargues Reef Gold Project, and includes an option to extend as the Dargues Reef Project grows.

Peter van der Borgh added “This agreement resolves one of our last outstanding issues prior to moving to construction, and has the potential to generate cost savings to the business.”

Yours faithfully

Peter van der Borgh

Managing Director

ABOUT CORTONA

Cortona is an emerging Australian gold company which is focussed on the development of its 100%-owned

Majors Creek Project, located 60km east of Canberra in New South Wales.

Majors Creek was the largest historic goldfield in NSW, producing more than 1.25 million ounces. The Dargues Reef deposit is expected to be the Company’s first operating mine following the positive Feasibility Study results which show strong cash flows from average annual production of 50,000 ounces over an initial mine life of 6 years.

Cortona’s multi-pronged plan is to progress Dargues Reef to production in conjunction with aggressive near- mine and regional exploration programs to underpin a long-term gold production business.