Pursuant to a letter agreement entered into with European Minerals Corporation (“EMC”), Oriel has agreed to sell its subsidiary, Althames Holdings Limited (“Althames”), to the EMC for $7.25m. Althames holds a 14% interest in JSC Varvarinskoye, the holder of the licences covering the Varvarinskoye gold copper deposit. Oriel will receive US$5 million upon completion of the acquisition and will receive an additional US$2.25 million on the earlier of the 15th business day following the date of the first gold pour at the Varvarinskoye mine or 31 December, 2006. The transaction is subject to completion and execution of a definitive agreement, and is expected to close before May 31, 2005.

Executive Chairman, Dr Sergey Kurzin said:

“Our 14% interest in Varvarinskoye was acquired on 3 March 2004 for £300,000 which was satisfied by the issue of Oriel shares. The sale price represents a profit of approximately £3.6m. This is a significant deal for Oriel and I believe that we have extracted maximum value from this investment.”

Ends
For further information please contact:

Dr Sergey V Kurzin, Executive Chairman, Oriel Resources plc
Tel: +44 (0) 20 7514 0590
http://www.orielresources.com

Dr Nick Clarke, Director of Mining, Oriel Resources plc
Tel: +44 (0) 20 7514 0590

Jonathon Brill/Billy Clegg, Financial Dynamics
Direct: + 44 (0) 20 7831 3113

Paul Lathigee, Vanguard Shareholder Solutions
Direct: + (1) 604 608 0824