CLUFF MADAGASCAR : THE VATOVORONA GOLD PROJECTCluff Resources...

CLUFF MADAGASCAR : THE VATOVORONA GOLD PROJECT

Cluff Resources Pacific NL (Cluff) announces today that Ammtec laboratories in Perth has independently confirmed by way of a screen fire assay that the 565kg sample of gold bearing material recently brought back from Madagascar has a gold grade of 12.3 grams per tonne. This result confirms the previous sub-sample test undertaken by ALS laboratories and the subject of our release on 7 March 2011.

Cluff is proceeding to commence a trial mining operation on Licence 39110 in early May 2011. The project will now be known as the Vatovorona Gold Project (meaning stone birds (see photo) and pronounced �vart voron�).

Varun Cluff International (VCI), Cluff's joint venture company in Madagascar, has concluded negotiations with a contract miner Ambol SARL. This company will undertake the initial work program and construct an open pit of 140 metres
in length to a depth of 12 to 15 metres along the strike line. Cluff plans to test at 5 metre intervals along the pit with particular emphasis on the pit floor, and test and analyse the stockpiled material from the excavated pit. The planned stockpile to be created in the first 3 months of the operation will be approximately 15,000 tonnes of gold bearing material.

The contract with Ambol is a turnkey or �whole of project� style contract, and includes the supply of all equipment and labour, construction of an all-weather access track to the worksite, the provision of a camp with accommodation, and the site works for the proposed initial processing plant.

The detailed report by Ammtec, which will include a cyanide leach test result, will be available later this week. The joint venture provides for a production share of all gold produced on the permit of 35% to Cluff and 65% to Varun. The permit is held by Varun Madagascar on behalf of VCI of which 35% is held by Cluff.