The Pico Machay project is a large high sulphidation gold system, hosted within Miocene volcanics and located in the Department of Huancavelica in central Peru. Peru's largest producing gold mines Yanacocha (Newmont) and Pierina (Barrick) are both low grade, high sulphidation gold systems hosted within Miocene volcanics.

The Quantec modeling of the Pole - Dipole survey confirms the presence of a 1.4 km long by 400m down-dip by 150m thick resistive body. The resistive body expresses itself at surface as a vughy silica unit striking east west and forming a dip slope on the southern side of the central mineralised ridge.

Historic sampling of the main vughy silica zone, which outcrops on the central ridge, returned values averaging 1g/t Au over an area of 250m by 150m. Absolut Resources own resampling of the main vughy silica zone returned 20m at 2.3g/t gold (consisting of 10 contiguous 2m by 2m panel samples: varying from 1.02g/t to 4.35g/t).

Another large high resistivity, low chargeability anomaly with dimensions of 1km by 400m was detected 800m to the northwest of the main zone. The anomaly lies beneath shallow soil cover and mapping and sampling in the area will be a priority in the upcoming field campaign which will focus on detailed mapping outside the main zone of mineralisation to better define the size potential of what is already a very large mineralised system. This fieldwork is expected to start in mid March.

Absolut has executed an agreement of mutual understanding with the Santa Ana Community that defines the guidelines for how the exploration program at Pico Machay will be carried out. The agreement will allow Absolut to accomplish its proposed exploration program with the full consent and support of the local community. An environmental baseline study has also been completed and approved by the appropriate government agency.

Reconditioning of the existing access road, and construction of drill pads will commence at the end of the wet season, which is usually mid March. An initial 1000m drill program to test the main vughy silica zone is planned for May.

The Company's wholly owned subsidiary, Minera Calipuy SAC ("Calipuy") has an Agreement with Monterrico Metals PLC to earn up to a 75% interest in the Pico Machay gold project in Central Peru subject to completing the following work and expenditure commitments:

• Calipuy may earn an initial 60% interest in the Pico Machay project by spending a minimum of US$2,000,000 on exploration over four years; and

• Calipuy has the option to acquire a further 15% interest, for a cumulative 75% interest, by either spending an additional US$2,000,000 on exploration or by completing a mine development plan in the following year. Calipuy's mandate is to identify drill targets and test higher-grade zones of mineralization with the aim of developing a gold mining operation.

Under the guidelines of the 43-101 National Instrument the required qualified person for the Pico Machay Gold Project is Mr. Dan Noone who is a member of the Australian Institute of Geoscientists.

This press release contains forward looking statements.

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