RNS Number:5412O
Aztec Resources Limited
22 December 2006

                             Aztec Resources Limited

22 December 2006

        Exploration Drilling Confirms Potential at Mangrove and 
                Barramundi West Deposits

A full version of this announcement, with figures, is available on
www.aztecresources.com.au

Aztec Resources Limited ("Aztec" ASX & AIM: AZR) is pleased to announce that a
total of 9,387 metres of reverse circulation (RC) drilling in 100 holes has been
completed on Koolan Island during the 2006 exploration and infill drilling
programme. The programme achieved:

   * Evaluation of the potential of the Mangrove deposit.
   * Extensions to defined mineralisation at Eastern-Barramundi, Main and
     Mullet-Acacia deposits.
   * Evaluation of outcropping and undercover extensions to the previously
     mined Barramundi deposit.
   * Definition drilling within the Eastern-Barramundi deposit to enhance
     selective mining.

Locations of these deposits and the 2006 drill hole collars are shown on Figure
1 and the metres drilled by areas are summarised in Table 1 below.

Table 1: Koolan Island 2006 Exploration and Deposit Infill Drilling Summary

Deposit                                           Holes                   Metres
===============                               =========              ===========
Mangrove                                           35                    4,610
Barramundi West                                     9                      418
Barramundi South                                   13                      688
Eastern-Barramundi                                 14                    1,329
Mullet-Acacia                                      20                    1,722
Main West                                           9                      620

                           TOTAL                  100                    9,387

Surtron down hole density and survey measurements have been completed where
drill holes remained open and accessible. Geological modelling and mineral
resource estimates are underway for the Mangrove and Barramundi West deposits
and estimates for other areas will follow. Pit design, optimisation and ore
reserve estimation will be subsequently undertaken where appropriate.

Mangrove Deposit

The Mangrove deposit is located 1 kilometre southeast of the Main deposit in
close proximity to the process plant. Drilling to date has been conducted over
850 metre strike length in the north-western portion of the 2 kilometre long,
sub-vertical, partially outcropping hematite bearing Mangrove structure.

Assays received from the latest infill drilling at the Mangrove deposit have
confirmed continuous hematite mineralisation over a strike length of greater
than 600 metres.

This drilling targeted both near surface and down-dip mineralisation at
approximately 100 metre centres to enable a mineral resource estimation to
proceed. Due to access difficulties, the drill holes pierced the hematite
horizon at angles ranging from perpendicular to acute. Generally, the hematite
varies in thickness from 5 metres to 20 metres. Drilling to date indicates the
mineralisation at Mangrove has a depth potential of more than 150 metres and
remains open.

Highlights of the recent infill results are shown in Table 2. Figures 2 and 3
display the drill hole locations and typical cross-section of the north-easterly
dipping, sub-vertical nature of the mineralisation.

Table 2: Better Drill Intercepts from the recent Infill Drilling at Mangrove
Intercepts are calculated at >4m of >55% Fe cut off.

Hole ID      Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m)     Fe%   SiO2%   Al2O3%      P%
=======   ======   ======     ========     =======   ======  =====    ======  ======  ======  =======   =====
 RC378     -70      220      8215557      580568       69     84        15    61.9     9.3      0.3    0.01
                                                       87     91         4    62.0     8.7      0.1    0.01
                                                      105    165        60    61.0    11.6      0.2    0.02
 RC379     -70      180      8215556      580574      159    173        14    61.6    10.0      0.4    0.01
                                                      166    173         7    65.0     6.2      0.2    0.01
 RC381     -50      220      8215588      580530       62     77        15    62.1     9.5      0.4    0.03
 RC382     -70      220      8215588      580531       80     89         9    61.5     7.0      2.0    0.08
                                                      113    121         8    61.9    10.0      0.5    0.02
 RC383     -50      210      8215684      580451      114    134        20    63.8     7.8      0.5    0.03
 RC384     -60      210      8215685      580452      136    147        11    63.1     8.7      0.4    0.04
 RC386     -50      230      8215499      580657       82    111        29    64.2     7.2      0.3    0.03
 RC388     -60      205      8215496      580659       82     94        12    64.7     6.3      0.6    0.01

Barramundi West Deposit

The Barramundi West Deposit is the north-western extension to the hematite ore
historically mined at the Barramundi pit. This outcropping hematite horizon
typically dips at 20degrees toward the southwest beneath Yampi Formation cover.

Encouraging intercepts returned from the recent drilling at Barramundi West have
confirmed the continuity of the hematite mineralisation over 350 metre strike
length and greater than 120 metre down dip. This drilling has resulted in a
nominal hole spacing of 40 metres by 40 metres suitable for mineral resource
estimation.

The better recent drill intercepts at the Barramundi West Deposit are listed in
Table 3 and hole locations with a typical cross-section are shown in Figure 4.

Table 3: Better Drill Intercepts from the recent drilling at Barramundi West
Intercepts are calculated at >4m of >55% Fe cut off.

Hole ID     Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m)     Fe%   SiO2%   Al2O3%      P%
=======   =====   ======     ========     =======   ======  =====    ======  ======  ======  =======   =====
 RC341    -90        0      8216005      581046       36     44         8    64.5     3.6      1.6    0.06
 RC342    -90        0      8216074      580965       47     54         7    65.5     4.0      0.9    0.04
 RC344    -70       30      8216111      580993       24     33         9    65.7     2.9      1.4    0.05
 RC345    -60       30      8216145      581012        4     10         6    60.4     6.4      4.7    0.02
 RC347    -90        0      8216052      581064        3     10         7    64.7     4.5      1.7    0.02
 RC348    -90        0      8216013      581120        9     15         6    67.0     1.9      1.2    0.01
 RC399    -90        0      8216144      580952       22     26         4    64.5     4.1      2.4    0.04
                                                      27     28         1    60.8     5.4      4.5    0.05
Barramundi South Deposit

The Barramundi South Deposit is the south-western down-dip extension to the
hematite ore mined in the Barramundi pit. Recent drilling has further delineated
the area of previously reported encouraging intercepts within the moderate
south-westerly dipping hematite horizon which extends beneath Yampi Formation
cover. This recent drilling was aimed at quantifying the remaining economically
accessible hematite mineralisation in this area.

The mineralised horizon is approximately 550 metres in strike length and extends
down dip for greater than 50 metres. The better intercepts at the Barramundi
South Deposit are listed in Table 4. These holes are relatively perpendicular to
the hematite horizon.

Table 4: Better Drill Intercepts from the 2006 drilling at Barramundi South
Intercepts are calculated at >4m of >55% Fe cut off.

Hole ID     Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m)     Fe%   SiO2%   Al2O3%      P%
=======   =====   ======     ========     =======   ======  =====    ======  ======  ======  =======   =====
 RC325    -60       30      8215853      581260       28     33         5    62.6     9.1      0.8    0.02
 RC326    -60       30      8215829      581297       27     34         7    61.9     7.0      2.3    0.03
 RC327    -60       33      8215734      581402       35     39         4    65.7     4.6      0.9    0.02
 RC393    -60       30      8215712      581454       35     42         7    64.2     4.6      2.4    0.01
 RC394    -60       30      8215635      581582       43     51         8    65.9     3.1      2.0    0.02

Main West Deposit

Hematite horizons of the Main Deposit continue to the northwest beyond the limit
of previous mining activity. High-grade mineralisation in this area, known as
the Main West Deposit, becomes more sporadic.

The 2006 drilling tested approximately 300 metres of strike length of the
outcropping, south-westerly dipping orebody. It was aimed at both expanding and
infilling the previous drilling at the deposit to increase and upgrade its
current Inferred Resource category. Pockets of high-grade hematite were
intersected adjacent to lower grade hematitic conglomerate. The better drill
intercepts at the Main West Deposit are listed in Table 5.

To test the deposit at depth, most of the angled drill holes were collared
through unconsolidated waste dumps situated adjacent to the outcropping
mineralisation.

In addition, shallow close-spaced blast hole drilling is being conducted from
the top of the outcropping hematite body to determine the continuity of the
high-grade mineralisation near surface. Assays for this drilling are awaited.

Table 5: Better Drill Intercepts from the recent drilling at Main West
Intercepts are calculated at >4m of >55% Fe cut off.

Hole ID      Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m)     Fe%   SiO2%   Al2O3%      P%
=======   ======   ======     ========     =======   ======  =====    ======  ======  ======  =======   =====
 RC369     -60       33      8216940      577971       44     56        12    61.5    12.0      0.2    0.00
                                                       47     54         7    64.1     8.2      0.2    0.00
 RC370     -60       33      8217072      577845        8     12         4    67.2     3.1      0.5    0.00
 RC371     -60       33      8216908      577985       64     71         7    63.3     9.2      0.2    0.00
 RC372     -60       33      8216969      577917       39     57        18    66.3     4.2      0.7    0.00
 RC373     -60       36      8216993      577882       47     53         6    63.3     9.1      0.2    0.00
 RC376     -60       33      8217010      577915       23     30         7    64.7     6.7      0.2    0.00

Eastern-Barramundi Deposit

The Eastern-Barramundi ore reserve occurs within the south-easterly plunging
Eastern-Barramundi anticline. Hematite ore was mined previously by BHP from the
Eastern Pit, on the north-eastern limb of the anticline and from the Barramundi
Pit on the south-western limb. The current ore reserve is situated adjacent to
the existing open pits both at depth and along strike to the southeast.

Both exploration and infill drilling was conducted in this area. Results from
the infill drilling confirmed previous geological interpretations, outlined
hematite mineralisation extensions at depth and will allow more precise mine
planning. This is apparent in hole RC329 where extensive intercepts were
encountered, however, the hole was terminated in hematite mineralisation due to
drill rig capability limitations. Exploration drilling intersected encouraging
hematite horizons such as RC334, located adjacent to the planned pit and RC340,
northwest of the historic Eastern pit. Selected highlights of the drill results
are included in Table 6.

Table 6: Better Drill Intercepts from the recent drilling at Eastern-Barramundi
Deposit

Intercepts are calculated at >4m of >55% Fe cut off.
 Hole ID     Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m)     Fe%   SiO2%   Al2O3%      P%
========   =====   ======     ========     =======   ======  =====    ======  ======  ======  =======   =====
  RC329    -60       53      8215367      582167      138    153        15    62.7     8.2      1.2    0.05
                                                      160    171        11    62.8     9.6      0.3    0.02
                                                      173    227        54    63.7     6.2      1.7    0.03
  RC334    -60       53      8215017      582218       13     19         6    63.3     4.3      3.5    0.02
  RC337    -60       53      8215715      582051        2     10         8    64.4     4.1      2.3    0.03
                                                       11     21        10    68.4     1.1      0.4    0.03
  RC340    -60       53      8216154      581757        4     22        18    62.3     6.4      2.5    0.04

Mullet-Acacia Deposit

The Mullet-Acacia drilling programme had two primary targets. Possible
extensions to the northwest plunging nose of the Mullet-Acacia anticline and
extensions of the south-westerly dipping Acacia limb of the anticline. This
anticline forms the current Mullet-Acacia Deposit.

Encouraging results were encountered at both drill targets. Due to access
difficulties the drill holes pierced the hematite horizon at angles ranging from
perpendicular to acute. Generally, the hematite rich beds in the limbs of the
fold are 5 metres to 20 metres thick.

Exploration drilling intersected encouraging hematite intercepts such as in hole
RC350, located at the plunging nose of the anticline adjacent to the western
boundary of the planned pit. Mineral resource estimations will be undertaken to
incorporate the recent drill results. Selected highlights of the drill results
are included in Table 7. The 2006 drilling collars are highlighted on Figure 1.

Table 7: Better Drill Intercepts from the recent drilling at Mullet-Acacia Deposit
Intercepts are calculated at >4m of >55% Fe cut off.

Hole ID     Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m)     Fe%   SiO2%   Al2O3%      P%
=======   =====   ======     ========     =======   ======  =====    ======  ======  ======  =======   =====
 RC350    -90        0      8217860      577935       27     38        11    65.4     6.2      0.2    0.00
                                                      39     43         4    59.7    13.5      0.4    0.02
 RC351    -60      183      8217846      578036       30     36         6    60.8    12.5      0.4    0.00
                                                      39     49        10    64.5     7.3      0.2    0.00
                                                      65     69         4    60.0    12.7      0.9    0.00
                                                      71     86        15    63.0     9.0      0.5    0.01
                                                      87     95         8    59.3    14.3      0.4    0.01
                                                     100    110        10    61.4    11.5      0.4    0.00
 RC352    -60      183      8217824      578093       25     38        13    62.2    10.6      0.4    0.01
                                                     108    118        10    63.1     9.5      0.1    0.00
 RC353    -60      183      8217806      578133       37     48        11    62.0    11.0      0.1    0.00
                                                      99    123        24    62.4    10.0      0.4    0.01
 RC354    -60      183      8217787      578184       37     45         8    61.8    11.3      0.2    0.02
 RC358    -60      183      8217684      578354       46     48         2    62.9     9.9      0.1    0.00
                                                      49     59        10    62.2    10.4      0.3    0.00
 RC359    -90        0      8217648      578400       26     34         7    63.0     9.3      0.2    0.00
 RC367    -90        0      8217569      578551       41     46         5    64.1     7.8      0.2    0.01

Future exploration programmes on Koolan Island planned to commence in 2007 will
target both proximal under-explored and unexplored areas elsewhere.

Attribution

The information in this report that relates to exploration results is based on
information compiled by Alexander Moyle who is a full time employee of the
Company. Alexander Moyle is a Member of the Australian Institute of
Geoscientists and a Member of the Australasian Institute of Mining and
Metallurgy and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the "Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Alexander Moyle consents to the inclusion in the
report of the matters based on his information in the form and context in which
it appears.

For further information please contact:

Australia
Peter Bilbe, Managing Director: +61 8 9423 0800
Ian Gregory, Company Secretary: +61 8 9423 0800

Aztec Shareholder Information Line
1800 602 244 (Australian callers)
+61 8 6218 4220 (International callers)

UK
Fiona Owen, Grant Thornton: +44 (0) 870 991 2318

Media Enquiries:
Warrick Hazeldine - Purple Communications
Tel: +61 8 9485 1254 or Mob: +61 (0) 417 944 616



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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