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1 Orion Gold NL ASX Release Orion Gold NL is an Australian gold exploration company focused on delivering value to shareholders through the successful exploration of the Company s highly prospective tenement holdings located in the Walhalla goldfield of Victoria. The prospectivity of the Walhalla goldfield is supported by fact:- The Walhalla region is Victoria s sixth largest historical gold producing region with over 400 known reef and alluvial gold deposits; The historic Cohen s Reef was mined to a depth of over one kilometre and produced 1.5 million ounces of gold at a grade of 30 g/t Au; The many known gold bearing reefs located within the Walhalla goldfield highlight the enormous potential of the Company s large tenement holdings; and Orion Gold s Walhalla Project is located in one of the world s major orogenic gold provinces. Encouraging Drilling Results at New Dawn 3 January 2012 Orion Gold NL (ASX: ORN) is pleased to announce that a diamond drilling program to test highly ranked targets at New Dawn has produced encouraging results. Key Points: Encouraging results from the first hole at New Dawn with the zones of interest that have been intersected believed to represent the down-dip extension of reefs mined at higher levels in the New Dawn and Clarke s adits. This suggests that the reefs are likely to represent persistent, deep-seated structures with significant exploration potential at depth. The intersection of interpreted high angle, reverse faults is particularly encouraging as such structures have produced the bulk of historic production in the Walhalla area. Potential to expand existing resources and discover new mineralised shoots at Cohen s Reef is highlighted by a detailed structural re-interpretation. Planning to drill test priority targets in the Walhalla area is well advanced. Preliminary work completed at Longfellow s has significantly upgraded the prospect, based upon the construction of a 3D geology and mineralisation model, re-logging and resampling of core from a previous drilling program. Orion Gold NL ABN ASX Code: ORN W: Contact: Suite 302 Level 3, 488 Bourke Street Melbourne VIC 3000 T: F: E: info@oriongold.com.au Company enquiries: Denis Waddell Executive Chairman Martin Bouwmeester General Manager-Corporate

2 Toombon New Dawn (Orion 85%) Orion Gold commenced a diamond drilling program at Toombon New Dawn late in the September 2011 quarter, with the initial holes planned to test targets at depth under the old New Dawn workings. The group of workings in the immediate area (including New Dawn, Toombon and McLean s) are situated along the recently reinterpreted Cohen s Trend. The Cohen s trend hosts many of the major historical mines in the Walhalla-Woods Point goldfield, with the recorded gold production from mines located along the Cohen s trend totalling approximately four million ounces. Based upon the Company s regional structural model, Orion regards the Toombon New Dawn area as particularly prospective, as the historic workings are interpreted to be situated in the same stratigraphy and structural setting as the main Cohen s Reef at Walhalla, which produced 1.5 million ounces of gold. The Toombon New Dawn deposits are also interpreted to be similar in style to the mineralisation at Cohen s Reef. The area has been subject to very little modern exploration and almost no drilling. Orion Gold s 3D model of the New Dawn workings, based upon the available historic data, indicates that a series of moderately easterly-dipping reefs were mined. The dips outlined in the various reefs, the nature of the stoping and the disposition of the drives suggest that intersection lodes may have been exploited under Clarke s Adit. Based upon this interpretation, the drilling is designed to test across the prospective stratigraphy for a series of parallel reefs. The drilling is also designed to test for potentially southerly plunging intersection lodes ( shoots ). Diamond drill hole OND001 was completed to a total down hole depth of metres (see figure 3). The hole was designed to drill to the south of and down dip of the historic workings, essentially perpendicular to stratigraphy, testing for a series of bedding-parallel reefs mined at higher levels. The hole has been geologically logged and assays of interest are outlined in Table 1. Drilling intersected two separate zones of interest, in approximately the down dip positions predicted by the 3D modelling. The upper zone of interest is represented by a sandstone-hosted, laminated quartzcarbonate vein and hydrothermal breccia reef ( to metres) accompanied by chloritic alteration and disseminated pyrite (figure 1). The deeper zone comprises a wider (294.9 to metres) zone of quartz-carbonate veining and isolated larger laminated quartz veins accompanied by significant (2%) disseminated pyrite (figure 2). The upper zone of interest is tentatively correlated with what is known as Clarkes No. 2 Reef, the deeper zone with Clarke s No. 3 Reef. Figure 1: Diamond core from the upper zone, tentatively correlated with what is known as Clarkes No. 2 Reef, diamond hole OND001 ( metres). The red box outlines the section of core from which anomalous gold values were obtained (see Table 1).

3 Figure 2: Deeper zone of interest, diamond hole OND001. Logging and assaying indicate that free gold was not present in the reefs where intersected, but that the reef structures are accompanied by up to 2% sulfides (predominantly pyrite, with lesser acicular arsenopyite) that are clearly arsenic-rich and weakly auriferous in nature (Table 1). Orion Gold is encouraged by OND001, as the zones of interest that have been intersected are believed to represent the down-dip extension ( metres) of reefs mined at higher levels in the New Dawn and Clarke s adits. This suggests that the reefs are likely to represent persistent, deep-seated structures with significant exploration potential at depth. The intersection of laminated quartz-carbonate reefs, interpreted as high angle reverse faults, is particularly encouraging as such structures have produced the bulk of historic production in the Walhalla area (Cohen s Reef). Figure 3: 3D sectional view looking north with reefs, drill holes and historical workings.

4 Diamond drill hole OND002 has just been completed, targeting the interpreted intersection lodes directly beneath the north drive of the New Dawn workings. This hole reached a total depth of metres and intersected a number of zones of quartz veining. A 10 metre wide section of broken black shale and quartz-carbonate veined sandstone with minor sulfides is interpreted as a high strain shear zone, and is correlated with the description of the south drive in the New Dawn workings. Assays are due in late January 2012 and will assist interpretation. With OND002 now complete the Company has demobilised the drilling contractor and will conduct additional interpretation and geological assessment of the New Dawn data prior to finalising targets for a follow-up drill program. Cohen s Reef During the September 2011 quarter, the results of detailed structural modelling of the controls and disposition of mineralisation at Cohen s Reef (Walhalla) were received from Dr Steve King. This study involved a digital compilation of all available detailed underground plans from past mining and mapping and drilling results, to develop a new framework for mineralisation. A number of targets have been identified from this work, including an untested corridor spanning the old Long Tunnel Company s Inclined Shaft and the Long Tunnel Extended Company s Main shaft, between the No. 3 and No. 6 levels (see figure 4). The Cohen s Reef structural project provides a new focus for exploration on this historically important deposit, which produced 1.5 million ounces, at an average grade of approximately one ounce of gold per tonne. New targets exist relatively near to surface and have the potential to add to existing bulk tonnage gold resources (see figure 4). In addition, deeper targets have been identified which could represent incremental extensions to previously mined, high grade mineralisation (see figure 4). Work Plan approval application and a program to test this ground by drilling is well advanced. S N SPLAY FAULT Lomond Zone Steeply plunging shoot at conjunction of faults 1,000 m CROSSCUTTING TERMINATING STRUCTURE Figure 4: Cohen s Reef structural controls on mineralisation; north-south trending Main Cohen s Fault, obliquely intersecting north-plunging Splay Fault and cross-cutting terminating northern structure. The intersection of these faults explains the disposition of the historically mined ore shoots.

5 Longfellow s The Longfellow s prospect is situated on the West 2 Line of mineralisation, a parallel structure to the west of the main Cohen s Reef. A major cross-cutting structure is interpreted immediately to the south of Longfellow s. Such features are regarded as locally important controls on mineralisation and were highlighted by regional structural studies. Gold was discovered in the Longfellow s dyke around 1864 and was exploited by an extensive network of underground workings until the mid-1890 s. The area of interest comprises the main Longfellow s workings and shaft, and a series of smaller operations immediately south of this. Orion intends to target the reefs under the main Longfellow s workings, where a number of contact reefs exist on the margins of a significant dyke. The exploration potential of the Longfellow s area is supported by previous underground grab sampling on two levels, which confirmed encouraging grades over significant strike lengths 200 metres at 4.95 Au g/t and 75 metres at 4.1 Au g/t (see figure 5 and note 1). Recent work has significantly upgraded this prospect, based upon the construction of a 3D geology and mineralisation model together with re-logging and resampling of old core from a previous drilling program. Assay results are due in late January Any encouraging results in initial drilling under the Longfellow s workings will be followed up by drilling from an approved pad to the south. The aim of any additional drilling will be to test an area with significant tonnage potential, as the main mineralised dyke appears to trend east of the bulk of the workings. The Longfellow s site has been prepared for drilling and the Company plans to commence drilling during the quarter commencing January Underground Sampling (1) Target Zone 4.95 Au g/t Target Zone 4.12 Au g/t Figure 5: Longfellow s underground historical workings and level sampling. Note 1: Averaged gold assays from 10 kg grab samples collected at 5 metre intervals along strike in the Western and Lower Western tunnels Longfellow s Prospect, Walhalla by Intrepid (1998).

6 Top Camp / Iron Ridge Project - Queensland Mining Corporation Limited Queensland (Orion 15%) The Company s joint venture partner, Queensland Mining Corporation Limited ( QMC ) announced to the ASX on 31 October 2011, that it had completed 10 reverse circulation drill holes over 5 targets across the Just There prospect within the joint venture area. Following a review of QMC s earn-in claim, Orion confirms that QMC as manager of the joint venture has an 82.35% interest in the joint venture, which equates to a 70% interest in the Project. Orion owns 15% of the Project. Denis Waddell Executive Chairman Table 1: Analyses from Diamond Drill Hole OND001 zones of Interest, New Dawn Prospect From (m) To (m) Width 1 (m) Description of sample interval Au 2 (g/t) Laminated quartz-carbonate veins. Note pyrite in marginal sediments. Soft and puggy down hole side Laminated quartz-carbonate vein with trace sulfides. Acicular arsenopyrite in marginal black shale. As 3 (ppm) , , Veins. Interbedded carbonaceous sand/silt unit with pyrite increasing down hole , Veins. Interbedded carbonaceous sand/silt unit. Pyrite 2% , As above, includes 20cm wide laminated vein Veins in interbedded carbonaceous sand/silt unit, abundant disseminated pyrite increasing down hole , Veins in interbedded carbonaceous sand/silt unit. 2+% pyrite , Laminated sandstone with quartz veins (20%). Trace disseminated pyrite Notes: 1. All quoted depths measured down hole, and all sampling conducted on halved HQ core. 2. Analysis by 50 g Fire assay, AAS finish. 3. Analysis by ICP-OES.

7 Figure 6: Orion Gold tenements. Competent Person s Statement Exploration information in this report has been compiled and assessed under the supervision of Dr James Anderson, Orion Gold NL s General Manager Exploration, from historical records and field investigation. Dr Anderson is a member of the AusIMM (CP) and has extensive experience in the identification of gold mineralisation of this style. Dr Anderson consents to the public release of the information in the context contained within this release. Disclaimer This release may include forward-looking statements. These forward-looking statements are based on management s expectations and beliefs concerning future events. Forward-looking statements inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Orion Gold NL. Actual results and developments may vary materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Orion Gold NL makes no undertaking to subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances after the date of this release.