Mining Limited

OROYA

ACN 009 146 794

Level 6, 256 Adelaide Terrace, Perth, WA, 6000 PO Box 3008 Adelaide Terrace, Perth WA, 6832

Telephone: (08) 9218 8111 Facsimile: (08) 9218 8662 Web: www.oroya.com.au

31 October 2008 Company Announcements Office Australian Stock Exchange Ltd

FIRST QUARTER ACTIVITIES AND CASH FLOW REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

HIGHLIGHTS

• Large gold-arsenic-antimony mineralised structure intersected at Steiglitz

• Vale Inco completes five diamond drill holes at Roe Hills Nickel Project, with assays pending

• New ultramafic unit penetrated at Talc Lake Prospect, Roe Hills

• Additional EM planned by Vale Inco at Roe Hills, with further drilling expected

• Large poly-metallic exploration target confirmed at Buldah North

• Sofala tenure trimmed as detailed exploration phase commences

• Geochemical drainage sampling undertaken at Pambula and Moruya, results pending

• Ballarat North and Beaufort drilling plans progressed by Range River Gold Overview Oroya is an established Perth-based mineral explorer, with extensive exploration holdings in Western Australia and the Lachlan Fold Belt of New South Wales and Victoria. In Western Australia, Oroya’s main focus is on nickel exploration near Kalgoorlie, in joint venture with Vale Inco, one of the world’s largest nickel producers. Drilling at this project continued during the quarter. In the Lachlan Fold Belt, where the company is exploring primarily for large tonnage disseminated gold and base metal deposits in several prospective areas, a first two year phase of regional geochemical exploration is substantially complete, and the second, detailed follow-up phase has commenced. Oroya’s key tool in the cost-effective exploration of large areas of prospective terrain in south-eastern Australia is stream sediment geochemical sampling. Drilling at Steiglitz, Victoria during the quarter intersected a large gold-antimony-arsenic mineralised structure and drilling is planned at the Ballarat West and Beaufort goldfields. Oroya is committed to the discovery of mineral deposits through both self-funded and joint venture exploration.

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Roe Hills Nickel Project, Western Australia (Oroya 100%, Vale Inco earning 75%) Diamond drilling and electromagnetic surveying was advanced during the quarter by Vale Inco, a wholly owned subsidiary of Vale, Oroya Mining Limited’s farm-in and joint venture partner in the Roe Hills Nickel Project. An exploration update was provided to ASX on 26 August 2008. Three diamond drill tails were completed at the Talc Lake Prospect for a total of 477.72 metres of NQ2 core. All holes will be cut, sampled and submitted to the lab by late October 2008. It is noted that these holes penetrated the target ultramafic unit, intersecting minor sulphides. All three of the holes passed through an underlying basalt unit and were stopped in a lower ultramafic unit, the geological nature of which is being assessed. Two drill holes at the Roe 1 Prospect, which were pre-collared in August 2008, were completed for a total of 347.7 metres of NQ2 diamond coring. The targets of these holes were Moving Loop Transient Electromagnetic anomalies. No explanation for these anomalies was obtained and down hole electromagnetic surveying is to be undertaken on these holes. Total drilling undertaken to date during this program by Vale Inco is 1408 metres of reverse circulation drilling and 1271.12 metres of diamond coring in 10 drill holes. Vale Inco will undertake additional MLTEM surveys at the RH2 anomaly and Roe 1 Prospect. The objective of this work is to complete the planned surveys which were stopped due to weather conditions and to also follow the strike of the prospective ultramafic unit. Depending on the results of the MLTEM and DHEM further drilling is expected to be undertaken (i) along strike from Talc Lake prospect where anomalous nickel, copper and PGE geochemistry has been identified from air core drilling (ii) at the RH2 anomaly and (iii) to explore for the source of the EM conductor at Roe 1. Roe Hills Nickel Joint Venture Background In October 2006 Vale Inco Australia Limited Partnership, a wholly owned subsidiary of Vale Inco, entered into an option to acquire a 75% interest in the Roe Hills Nickel Project by achieving a Favourable Feasibility Study (Decision to Mine) with six years. Oroya is free carried to a Decision to Mine. Previous exploration by Oroya and others intersected komatiitic nickel sulphides in several drill holes with results including 0.5 metres of 6.15% nickel and 0.38% copper from 155 metres depth in drill hole ROE 114. These targets occurred within a 36 kilometre belt of prospective ultramafic rocks. By mid 2007 Vale Inco had completed 15,136 metres of air-core drilling in 477 holes along the belt and a ground electromagnetic survey in the Talc Lake Prospect area which located strong anomalies potentially sourced from nickel sulphides. The present diamond drilling program commenced in July 2008.

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Figure 1 - Roe Hills Project on TMI magnetics Steiglitz Gold Project, Victoria (Oroya earning 75%) Oroya’s first reconnaissance reverse circulation (RC) at Steiglitz targeted the Hanover Shear zone with three holes and successfully intersected a broad, intensely-sheared gold-arsenic-antimony mineralised zone to a vertical depth of 74 metres, as announced to ASX on 16 October 2008. Gold occurs consistently within the shear zone in the range 0.100 to 1.05ppm (g/t) gold, over true widths of between 8 and 19 metres. Elevated arsenic and antimony occur in direct relationship with the gold in the zone of most intense shearing, while elevated antimony also occurs in a broad envelope in the host wall-rocks. Mineralisation is associated with very fine-grained sulphides in highly sheared and foliated Ordovician slates, sandstones and black shales. Gold is associated with very fine grained disseminated sulphides, dominantly pyrite and arsenopyrite, and brecciated and boudinaged quartz veinlets. The precise mode of occurrence of the gold is yet to be defined by mineralogical studies. Oroya is considering drilling two diamond core holes to follow-up this initial program to provide a better understanding of the mode of gold occurrence and structural controls.

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Oroya’s RC drilling was undertaken on a single traverse across the prospective Hanover Shear zone, which has been traced over 6 kilometres within the tenement. Oroya has defined anomalous gold, arsenic and antimony soil geochemistry over a distance of least 4 kilometres along strike and several historical gold mines have reported gold production from the zone. Factors which may favour the development of ore grade mineralisation within the fault zone include:

• flexures in the host fault zone • cross-cutting geological structures • intersection of the fault with certain rocks types which may favour gold deposition, such as

black shales • geological structures internal to the fault zone, including folding and shearing

This drilling program was an historic first at Steiglitz where, despite over 127,000 ounces of recorded gold production since the 1850s, mainly from underground mining, no previous exploration drilling has been conducted. Lachlan Fold Belt Regional Exploration Overview Oroya has substantially completed the company’s campaign of regional geochemical exploration in New South Wales and Victoria, commenced in late 2006, and which has successfully produced a ‘pipeline’ of targets prospective for bulk tonnage gold and base metal deposits. The next phase of Oroya’s exploration strategy involves detailed follow-up of selected geochemical targets to define drilling targets. This work will include infill geochemical stream sediment sampling, geological mapping and soil and rock chip geochemical sampling. Superfluous ground will be relinquished as high-priority targets are progressively refined. Oroya’s focus on large mineralised systems has attracted attention and enquiries regarding possible joint venture from major companies and these will be pursued. Oroya’s activities during the Quarter are summarised below: Club Terrace Gold and Base Metal Project, Victoria & NSW (Oroya 100%) Oroya is exploring for sediment-hosted disseminated gold and base metal deposits along 80 strike kilometres of the Combienbar-Buldah fault system. Interpretation of analytical results received during the quarter from additional stream sediment samples has further enhanced a number of targets for follow-up exploration:

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Figure 2 – Club Terrace – Orbost Project Geology Buldah North Prospect Oroya discovered Buldah North during regional stream sediment geochemical sampling of drainages associated with the Combienbar-Buldah fault zones. The prospect is evolving as an important zone of multi-element anomalism which covers several adjacent drainage basins over an area measuring approximately 6 by 8 kilometres, although at this stage it remains open to the north-eastern and south-western flanks. Stream sediment sample responses peak at 1950ppm zinc, 33.2ppn gold and 95.5 arsenic (Figures 3 to 5 respectively), along with 1390ppb silver, 2380ppm copper, 209 ppm lead, 9010 ppb antimony, 2080 ppb molybdenum and 2660 ppb bismuth. Although it is still early in the exploration phase, the elemental associations suggest the possible existence of a large poly-metallic system related to felsic intrusives and which may constitute a single mineralizing system within this anomalous area. This view is supported by previously announced analytical results from weathered float samples which attained peak values of 4180ppm lead, 14.15 g/t silver and 8570ppm arsenic, as well as the presence of an underlying aeromagnetic anomaly (Figures 3 to 5) which might indicate the existence of intrusive rocks. Buldah North is centred in Victoria immediately south of the NSW border. The area is in relatively remote logged forest terrain but is readily accessible from the Monaro Highway and the Canberra-Bairnsdale gas pipeline passes its eastern boundary.

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No previous modern mineral exploration is recorded. A large highly sulphidic shear zone trending toward the anomalous area was prospected as early as the 1890s and alluvial gold is reported in an adjacent creek. Stream sediment sampling in the 1980s obtained elevated arsenic levels on the southern-most limits of the anomalous zone, but apparently was not followed up. Planned follow-up exploration includes geological mapping, infill stream sediment sampling, soil and rock chip sampling, and geophysical surveying.

Figure 3 - TMI aeromagnetic image with zinc stream sediment geochemistry

Figure 4 - TMI aeromagnetic image with gold stream sediment geochemistry

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Figure 5 - TMI aeromagnetic image with arsenic stream sediment geochemistry Stagg-Rozynski’s’ Trend The Stagg-Rozynski’s Trend is a 20 kilometre long north-south trend of widely spaced stream sediment geochemical anomalies, with responses up to 100ppb gold and in the range 9 to 36ppm arsenic, contrasting with generally subdued background values. The trend incorporates known historical gold workings, including the Stagg’s-Rozynski’s area which was the subject of a minor gold rush in the 1930s. Further sampling and geological mapping is planned to isolate targets within this trend. Boulder Mine-Cobon Creek Trend Widely spaced anomalous stream sediment geochemical sampling results occur over a distance of several kilometres from the old Boulder gold mine to Cobon Creek to the north east, where alluvial gold is reported in some creeks. At the Boulder Mine, several thousand ounces of gold were mined from narrow quartz veins in metamorphosed Ordovician metasediments (the Kuark Metamorphics). Further sampling is planned to explore this trend. Club Terrace Goldfield Narrow vein sulphidic gold deposits were mined on the Club Terrace goldfield between the 1890s and 1950s. Oroya mapped and sampled the historic gold workings of the Club Terrace goldfield in 2006, confirming the extent of mining. Subsequent stream sediment sampling yielded highly anomalous gold to 500ppb Au, confirming that more sampling is warranted to test the area for large, bulk tonnage gold deposits. Pambula Gold Project, NSW (Oroya 100%) Disseminated, stockwork and associated high-grade vein epithermal gold mineralization has been historically mined in the Eden-Pambula region. Steam sediment sampling was undertaken in July and August 2008, with 56 stream sediment sites sampled and 1 rock sample taken. Analytical results have been received. Interpretation of stream sediment sampling results from the southernmost tenement EL6717 shows that prospective Devonian volcanics have been adequately tested and have not produced targets, and the tenement has therefore been relinquished.

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Interpretation of stream sediment geochemistry and geological map compilation of the northern two tenements, EL6716 and EL6731, is underway. These tenements encompass the historic Eden-Pambula gold district. Moruya Gold Project (Oroya 100%) Oroya’s main exploration target in the Moruya Gold Project area is bulk tonnage gold-silver mineralization hosted by intrusive rocks. Past production in the Moruya area, including small tenements excised from Oroya’s ground, was at least 1.5 tonnes of gold from hard-rock production. Regional-scale geochemical stream sediment sampling was completed during the quarter with approximately 250 sites sampled. Interpretation of the analytical results is underway but not yet completed. Ballarat North Gold Project (Oroya 100%, Range River Gold earning 75%) Joint venture partner Range River Gold Limited has advanced preparations for a diamond drilling program to test the northern extensions of the Ballarat West Goldfield which has a production history of nearly 700,000 ounces of gold from underground mining, including the deepest mines on the Ballarat goldfields. The traverse of three 400 metre deep diamond holes will test the stratigraphy and projected mineralised structures at a position immediately north of the Western Freeway, where about 70,000 ounces of gold was mined in the 1860s from the Deadhorse Deep Lead, which overlies and crosses the prospective trend. A contemporary newspaper report referred to ‘some very extensive quartz veins; gold could be nearly always seen when looked for in this drive’ in a ‘reef drive’ which was driven in the bedrock under the deep lead channel to access the buried alluvial ores. In September 2008 Lihir Mining Limited, which is developing the adjacent Ballarat East gold mine, announced plans to drill deep targets on the Ballarat West Goldfield 5000 metres south of the proposed Oroya-Range River traverse, a move which may further lift interest in the Ballarat West Goldfield. Beaufort Gold Project (Oroya 100%, Range River Gold earning 75%) Joint venture partner Range River Gold Limited commenced structural geology mapping to generate drilling targets along the prospective six kilometre long Camp Hill Range north of Beaufort, 45 kilometres west of Ballarat. Alluvial and deep lead gold mined from drainages shedding from the range is estimated to have exceeded 1 million ounces from drainages within the Beaufort goldfield. Sofala Gold & Base Metal Project, NSW (Oroya 100%) Oroya’s Sofala Gold Project is located within the north-eastern Hill End Trough and encompasses a major ground holding over a regional strike distance of 100 kilometres from Gulgong in the north to Sofala in the south. The area covers Ordovician to Devonian metasediments, volcanics and granitoids of the north-eastern Hill End Trough, within the productive Central West region of NSW. The existence of several antimony sulphide deposits in the area supports Oroya’s main exploration objective at Sofala which is the discovery of large tonnage disseminated gold-antimony deposits. However, a more complex pattern of

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target mineralisation is indicated by the results of Oroya’s sampling at 600 drainage sites, with several regional scale geochemically anomalous zones outlined:

• Four Mile Creek (to 380 ppb gold) • Upper Back Creek (to 741 ppb gold) • Crudine (to 3076 ppb gold and 272 zinc) • Warrangunia Creek (to 230 ppb gold) • Aarons Pass South (extension of Warrangunia Creek, with multi-element anomalism) • Aarons Pass West, including the historical Glasscock Prospect (to 90ppb gold) • Windamere West (a base metal zone, to 3390 ppm zinc)

A number of other single point anomalies require further infill sampling, and other areas remain to be sampled. During the quarter Oroya commenced its second phase of detailed follow-up exploration at Sofala, with the 50% reduction of five of the eleven project tenements (Figure 6) and geological traversing.

Figure 6. S H Shedden Managing Director DECLARATION OF COMPETENCY The information in this report that relates to Exploration Results is based on information compiled by Mr Steve Shedden, a member of the Australasian Institute of Mining and Metallurgy and a full time employee of Oroya Mining Limited. Mr Shedden has sufficient experience which is relevant to the style of mineralization 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 for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Shedden consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Appendix 5B Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Oroya Mining Limited ABN Quarter ended (“current quarter”)

16 009 146 794 30.9.2008

Consolidated statement of cash flows Cash flows related to operating activities

Current quarter

$A’000

Year to date (3 months)

$A’000 1.1 Receipts from product sales and related debtors

- -

1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration

(420) - -

(225)

(420) - -

(225) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 13 13 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other - -

Net Operating Cash Flows (632) (632)

Cash flows related to investing activities

1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets

- - - -

- - - -

1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets

5 - -

5 - -

1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other - Deposit paid (2) (2)

Net investing cash flows 3 3

1.13 Total operating and investing cash flows (carried forward) (629) (629)

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Appendix 5B Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

1.13 Total operating and investing cash flows (brought forward) (629) (629)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 684 684 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other–expenses related to issue of shares

-funds deposited for performance bonds -funds received for performance bonds deposit -payments for rental bond monies

(34) -

- -

(34) -

- -

Net financing cash flows 650 650

Net increase (decrease) in cash held

21 21

1.20 Cash at beginning of quarter/year to date 300 300 1.21 Exchange rate adjustments to item 1.20 - -

1.22 Cash at end of quarter ** 321 321

** Excludes $120,000 held on deposit with a bank as security against Performance Bonds lodged with the Minister of Mineral Resources in New South Wales.

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter $A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 113

1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25

Explanation necessary for an understanding of the transactions

Item 1.23 being salaries paid to working directors.

Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated

assets and liabilities but did not involve cash flows

Nil

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the

reporting entity has an interest

Nil

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Appendix 5B Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

Financing facilities available Add notes as necessary for an understanding of the position.

Amount available

$A’000 Amount used

$A’000

3.1 Loan facilities - -

3.2 Credit standby arrangements - -

Estimated cash outflows for next quarter

$A’000

4.1 Exploration and evaluation 100

4.2 Development -

Total 100

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 309 290

5.2 Deposits at call 12 10

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) ** 321 300

** Excludes $120,000 held on deposit with a bank as security against Performance Bonds lodged with the Minister of Mineral Resources in New South Wales.

Changes in interests in mining tenements

Tenement reference Nature of interest (note (2))

Interest at beginning of

quarter

Interest at end of quarter

6.1 Interests in mining tenements relinquished, reduced or lapsed

Nil

6.2 Interests in mining tenements acquired or increased

Nil

EA = Exploration Licence Application

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Appendix 5B Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per

security (see note 3) (cents)

Amount paid up per security (see note 3) (cents)

7.1 Preference +securities (description)

7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

7.3 +Ordinary securities

318,129,464 318,129,464

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs

38,000,000

Nil

38,000,000

Nil

1.8 cents

1.8 cents

7.5 +Convertible debt securities (description)

Nil

Nil

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

Nil

Nil

7.7 Options (description and conversion factor)

48,693,809 10,000,0001

48,693,809 Nil

Exercise price

$0.045 $0.050

Expiry date

31.07.09 30-11-09

7.8 Issued during quarter

Nil

Nil

7.9 Exercised during quarter Nil Nil

7.10 Expired during quarter

7.11 Debentures (totals only)

7.12 Unsecured notes (totals only)

1 Unlisted employee share options.

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Appendix 5B Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

Compliance statement 1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does /does not* (delete one) give a true and fair view of the matters

disclosed.

Sign here: ............................................................ Date: 31 October 2008

(Director/Company secretary) Print name: K M K Lim Notes 1 The quarterly report provides a basis for informing the market how the entity’s

activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in

mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in

items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive

Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International

Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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