CNW Telbec (Communiqués de presse), Canada
Oct 20 2004

Sterlite Gold announces an initial resource estimate for its wholly
owned Zod property in Armenia
Trading Symbol: SGD : TSX

TORONTO, Oct. 19 /CNW/ – Mr. Anil Agarwal, Chairman of Sterlite
Gold, is pleased to announce the results of an extensive exploration
program at its wholly owned Zod property located in Armenia. More than
39,000 metres of drilling (300 holes) has been completed at Zod as
follows:

———————————————————————
Drilling
—————————————– —————————-
Category Drilled (metres)
———————————————————————
Surface Reverse/Circulation) 10,708
——————————————- ————————–
Surface (Diamond Drilling – NQ) 8,937
——————————————————————–
Underground (Diamond Drilling – NQ3)) 19,571
——————————————- ————————–
Total 39,216

———————————————————————

Over 1,400 metres of underground development has also been carried
out on four separate vein systems to add further confidence to the
present exploration program.

The exploration program and resource estimate has been carried out
under the direction of Mr. Trevor Jones, a “qualified person” as
defined under National Instrument 43-101. The resource estimate has
been audited and approved by Micon International Co. Limited, an
independent third party.

This estimate calculates that the Zod property contains the
following JORC resources:

———————————————————————
Resources (JORC Code)(1)
—————————————– —————————-
Category Tonnes Grade Gold Gold
(gm/t) (tonnes) (ounces)
———————————————————————
Measured 1.6 Mt 4.7 7.5 0.24 M
———————————————————— ———
Indicated 15.4 Mt 3.8 58 1.86 M
———————————————————————
Total (0.6g/t cut-off) 17.0 Mt 3.7 65.5 2.10 M
———————————————————— ———

————————————— ——————————
Inferred 1.8 Mt 2.6 4.5 0.15 M
———————————————————————

Note: (1) Resource classifications conform to the Australasian
Code for Reporting of Mineral Resources and Ore Reserves prepared by
the Joint Ore Reserves Committee of the Australasian Institute of
Mining and Metallurgy, Australian Institute of Geoscientists and
Mineral Council of Australia (JORC Code). The Company intends to
prepare and file a technical report in accordance with National
Instrument 43-101 and as part of that technical report, intends to
prepare a reconciliation to CIM Standards on Mineral Resources and
Reserves as referred to in National Instrument 43-101. Mineral
resources that are not reserves do not have demonstrative economic
viability. Measured and indicated mineral resources are that part of a
mineral resource for which quantity and grade can be estimated with a
level of confidence sufficient to allow the application of technical
and economic parameters to support mine planning and evaluation of the
economic viability of the deposit. An inferred mineral resource is
that part of a mineral resource for which quantity and grade can be
estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified.

All assays have been conducted by the Company using fire assay and
gravimetric finishes. Blanks and known standards are part of the
normal assaying procedures and duplicates on ten percent of these
assays have been sent to Als Chemex, in Vancouver. Half of the core
has been retained for future reference.

The Company has initiated studies to complete detailed open pit
design, plant engineering, metallurgical test work, and permitting
with regard to expanding the present mining operations at Zod and
moving the existing processing plant (which is 269 kilometres away at
Ararat) to the Zod site.

These initiatives are expected to be completed in the first
quarter of 2005. Micon is managing the Zod mining expansion study in
association with Ararat Gold Recovery Company, the wholly owned
subsidiary of the Company, through which it conducts its Armenian
operations.

Forward-looking statements: Statements contained in this release
that are forward-looking statements are subject to various risks and
uncertainties going forward. When used in this press release, words
such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”,
“potential”, “should” and similar expressions are forward-looking
statements. Those risk factors that could cause actual results to
differ from these forward-looking statements include, but are not
restricted to fluctuations in the price of gold, delays in permitting,
or studies involved in the pre-feasibility, delays in construction and
or production, operational factors, environmental risks, financial
risks, political risks, currency risks and other statements that are
not historical facts as otherwise disclosed under the heading “Risk
Factors” and elsewhere in the Company’s periodic filings with Canadian
securities regulatory authorities.

For further information: please contact: Mr. Sanjay Dalmia, President,
Sterlite Gold, e-mail: sdalmia@agrc.am, Tel no: 374-1-542270/544287