OCEANAGOLD ANNOUNCES EXPLORATION RESULTS FROM REEFTON GOLDFIELD

/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES./

MELBOURNE, Australia, Dec. 7 /CNW/ - OceanaGold Corporation (ASX: OGC, TSX: OGC, NZX: OGC) ("the Company") is pleased to announce exploration results from the Reefton Goldfield in the West Coast region of the South Island of New Zealand.

HIGHLIGHTS

• The "Globe Deeps" drilling program has successfully tested the Globe Progress shear beneath the current pit limits with significant mineralisation intersected up to 250m down plunge from the base of the current pit design (including RCD0008 17.8 metres @ 4.59g/t Au and RCD0110: 17.0 metres @ 3.17g/t Au).
• At the Souvenir deposit, an infill and extension drill program was completed with significant mineralised intercepts (including RRC0088: 17.3 metres @ 11.98g/t Au and RRC0117: 13.2 metres @ 5.50g/t Au). This confirmed further down-dip continuation of mineralisation. An expanded pit shell and reserve is anticipated by year end.
• Drilling of several prospective near mine coincident geologic and geochemical targets (program still in progress) has returned encouraging intersections. This includes an intercept (hole RDD0081) of 22m @ 1.67g/t Au (estimated true thickness of 4.5m) at the newly discovered Fraternal prospect approximately 1.5km to the NW of the Globe pit (Fig. 1). Further drilling of the Fraternal prospect is scheduled to commence in January 2011.
• Extensions of high-grade mineralisation beneath the General Gordon West, General Gordon East and Empress 1 deposits were drill tested. Results from these programs (including RRC0098: 3.2m @ 4.91g/t Au and RRC0101: 7.1m @ 4.12g/t Au) are encouraging and reflect the potential of the area. A 2,900m follow-up drill program has been completed and results are pending.

Jim Askew, Executive Chairman commented, "The results from the exploration program at Reefton are very pleasing. The team was focused early in the year on identifying priority targets and these drill results are a strong follow-on to this work. Both the Globe Deeps and Fraternal results point to new areas of mineralisation in close proximity to the processing plant and these are being followed up with additional drilling and studies."

Figure 1: Overview Reefton Gold Project

Globe Deeps Drilling

A major drilling programme (~5,000m) targeting down-dip continuity of the Globe Progress mineralisation is near completion. The program has been designed to evaluate both open-pit and underground potential beyond the limit of the existing pit design. Completion is expected by year end, with all assay results returned in early 2011. To date, 11 holes (RCD0001 to 11) have been completed for a total of 4,750 metres comprising 3,087 metres of reverse circulation (RC) and strataPac pre-collars and 1,663 metres of diamond drill hole (DDH) tails. Assay results have been received for four of these drill holes so far (Table A and Figures 2).

Drilling has successfully tested the Globe Progress shear beneath the current pit limits with significant mineralised intercepts (including RCD0008: 17.8 metres @ 4.59g/t Au and RCD0110: 17.0 metres @ 3.17g/t Au). Hole RCD0110 was the deepest hole of the program and intersected mineralisation 250m down plunge from the base of the current pit design. These drill intercepts demonstrate continuity of mineralisation to considerable depth and a preliminary expanded pit or underground mining design will be evaluated based on an inferred resource in 2011. This may trigger the requirement for additional drilling to better define the grade and extent of this deeper mineralisation.

Table A. Selection of Globe Progress Deep drilling intercepts

Hole ID		From(m)	To(m)	Intercept (m)	True width (m)	Au (g/t)
RCD0001A						NSA
RCD0006		247	264	17	13.4	2.21
	including	247	257	10	7.9	2.97
RCD0006		274	283	9	7.0	2.79
RCD0008		270	290	20	17.8	4.59
	including	289	290	1	0.9	31.6
RCD0010		313	340	27	17	3.17
	including	314	324	10	6.3	4.81
	including	333	340	7	4.4	4.09

(NSA = No significant assay results)

Figure 2: Cross section looking North West through recent Globe Deeps Drilling

Souvenir Deposit

Two campaigns of reverse circulation (RC) drilling have been completed at the Souvenir deposit (Table B and Figure 3). Together these infill and extension drill programs comprised 19 holes (RRC0077 to 89 and RRC0115 to 120) for 2,275 metres. Table B below provides a summary of selected intercepts.

The objective of the infill drill program was to test the down-dip continuity of the ore body. Results were encouraging and a redesign of the open pit is underway which is expected to increase the reserve at this deposit.

Table B. Selection of Souvenir drill intercepts

Hole ID		From(m)	To(m)	Intercept(m)	True width (m)	Au (g/t)
RRC0077		66	71	5	3	1.26
RRC0078		94	102	8	4.8	4.72
	Including	94	99	5	3	6.26
RRC0080		89	90	1	0.9	1.08
RRC0082		77	87	10	3.4	2.11
	Including	79	80	1	0.3	10.6
RRC0082		90	91	1	0.3	1.36
RRC0082		93	96	3	1	0.84
RRC0082		100	104	4	1.4	3.75
	Including	102	103	1	0.3	9.65
RRC0083		108	109	1	0.4	0.57
RRC0084		67	68	1	0.9	0.76
RRC0085		77	84	7	3.5	3
RRC0085		93	107	14	7	2.96
	Including	93	100	7	3.5	5.29
RRC0086		96	102	6	3.6	4.03
RRC0088		80	99	19	17.3	11.98
	Including	81	94	13	11.8	16.85
RRC0115		95	99	4.0	2.6	2.65
RRC0116		-	-	-	-	NSA
RRC0117		72	94	22.0	13.2	5.50
	including	79	82	3.0	1.8	18.00
RRC0118		70	79	9.0	7.5	6.53
	including	72	78	6.0	5.0	8.63
	including	75	77	2.0	1.7	15.60
RRC0119		69	78	9.0	5.5	7.48
	including	70	76	6.0	3.7	9.08
RRC0120		Results Pending

(NSA = No significant assay results)

Figure 4: Plan of Souvenir Deposit

Near-Mine Diamond Drilling Program on Higher Priority Exploration Targets

Detailed structural and geologic mapping of the Reefton goldfield during Q4 2009 and Q1 2010 resulted in the identification of six high priority targets. Drill testing of these targets commenced in the June quarter. The initial drill program comprised eleven diamond drill holes (RDD0078 to RDD0087; RDD0081A) for a total of 1100 metres (Table C & Figure 4). Three holes were drilled at South Souvenir (Target 30), four holes at Fraternal (Target 3) and two holes at Target 8. Mineralisation was intersected at all three targets with particularly encouraging results reported from the Fraternal Prospect (Target 3). A second phase of diamond drilling at Fraternal (Target 3) will test the mineralisation along strike and down dip, and is expected to commence in January 2011.

Table C. Selection of near-mine drill intercepts

Hole ID		Prospect	From(m)	To(m)	Intercept(m)	True width (m)	Au (g/t)
RDD0078		Souvenir South	54	56	2	N/A	0.66
RDD0079		Souvenir South	26	27	1	N/A	2.34
RDD0079		Souvenir South	28	30	2	N/A	0.49
RDD0081		Fraternal	45	67	22	4.5	1.67
	including	Fraternal	55	67	12	2.9	2.11
RDD0081A		Auld Creek	57	68	11	2.6	1.63
	including	Auld Creek	57	63	6	1.4	2.19
RDD0084		Auld Creek	77	78	1	N/A	2.54
RDD0085		Auld Creek	30	66	36	13.2	1.56
	including	Auld Creek	30	38	8	3.0	2.73
	including	Auld Creek	41	51	10	3.7	2.19
	including	Auld Creek	59	66	7	2.6	1.34
RDD0086		Auld Creek	90	96	6	0.8	4.14
RDD0087		Auld Creek	63	98	35	6.0	4.11
	including	Auld Creek	63	81	18	3.1	5.74

Figure 4: Plan of Near Mine Diamond Drilling

General Gordon and Empress 1 Deposits

Six reverse circulation (RC) holes (RRC0097 to 102) for a total of 1,259 metres were drilled in the June quarter to test down plunge potential and grade continuity of mineralisation beneath General Gordon West, General Gordon East and Empress 1 deposits (Table D & Figure 5). The holes were designed to test 60 to 130 metres down plunge from previous drilling.

The program was successful in identifying mineralisation down plunge and assay results included a high grade intercept in RRC0101 of 4 metres (1.7 metres true thickness) @ 11.89 g/t Au. A 12 hole (RRC0103 to 114) follow-up program for 2,937 metres was completed in November. Once all the assay results are received and validated, a geological interpretation will be completed in early 2011 to assess the economic potential of this mineralisation.

Table D. Selection of General Gordon West, General Gordon East and Empress 1 drill intercepts

Hole ID		From(m)	To(m)	Intercept(m)	True width (m)	Au (g/t)
RRC0097		111	118	7	3.5	1.32
RRC0098		112	116	4	3.2	4.91
	including	115	116	1	0.8	10.5
RRC0098		134	138	4	3.2	1.50
	including	134	135	1	0.8	4.26
RRC0099		201	216	15	13.0	1.34
	including	204	206	2	1.7	3.02
RRC0100		107	111	4	2.0	1.78
	including	108	110	2	1.0	2.15
RRC0100		117	122	5	2.5	1.07
RRC0100		128	159	31	15.5	1.02
RRC0101		193	210	17	7.1	4.12
	including	204	208	4	1.7	11.89
	including	206	207	1	0.4	36.00
RRC0101		212	218	6	2.4	1.13
RRC0101		222	224	2	0.8	0.49
RRC0102		205	212	7	6.1	1.11
RRC0102		217	224	7	6.1	1.78
	including	222	224	2	1.7	3.85

Figure 6: Plan of General Gordon and Empress Deposits

Surface Geochemical Sampling Program

A program of surface geochemical sampling of 14 highly ranked coincident geological - geochemical targets located within 4km of the processing plant commenced in Q2 2010 and was completed in October. High-quality rock chip samples are being collected on a 25 x 100 metre spacing with a modified jack hammer (wacker drill), allowing bedrock specimens to be collected from beneath younger cover down to a maximum depth of ~10m. More than 1,000 samples have been collected to date from 12 Targets (Figure 7). Assays received to date (n=877) have returned highly anomalous gold values of up to 1.36 g/t Au.  Significant results of the program are being further defined by infill sampling and surface mapping, expected to be completed by end of first Quarter of 2011. Targets will be drill tested in the first half of 2011. A second phase of surface geochemical sampling has commenced targeting other high-priority regional prospects including Big River, Big River South, the Crushington Group and Krantz Creek.

Figure 7: Plan of Planned Surface Geochemical Sampling

Qualified Persons

Dr Michael Roache, VP Exploration, and Jonathan Moore, Principal Resource Geologist, both of Oceana Gold New Zealand Limited are the "qualified persons" pursuant to National Instrument 43-101 of the Canadian Securities Administrators. Both are members of the AusIMM.

The Qualified Persons, Dr Roache and Mr Moore have prepared the technical information and approved the contents of this news release.

Quality Control

Mr Jonathan Moore, B.Sc (Hons) Geology and Dip.Grad. Physics, is the Principal Resource Geologist with Oceana Gold (NZ) Ltd and is the Qualified Person under National Instrument 43-101 - Standards of Disclosure of Mineral Projects ("NI 43-101") for the technical disclosure in this release and has verified the data disclosed, including sampling, analytical and test data underlying the information contained in this release. Samples, collected at 1m intervals from both reverse circulation chips and sawn diamond core, were prepared and assayed by fire assay methods at the OceanaGold facilities at Reefton, New Zealand, the SGS facilities in Westport and Waihi, New Zealand and the ALS facilities in Brisbane, Australia. Standard reference materials were inserted to monitor the quality control of the assay data.

For further scientific and technical information (including disclosure regarding mineral resources and mineral reserves) relating to the Reefton Project, please refer to the NI 43-101 compliant technical report entitled "Independent Technical Report for the Reefton Project, located in the province of Westland, New Zealand" dated 9 May 2007, which is available at sedar.com under the Company's name.

Full Company Release

To view the full company release, including images please refer the following link to the company's website http://www.oceanagold.com/images/documents/files/101207_reefton_exploration_update.pdf

About OceanaGold

OceanaGold Corporation is a significant Pacific Rim gold producer with projects located on the South Island of New Zealand and in the Philippines. The Company's assets encompass New Zealand's largest gold mining operation at the Macraes goldfield in Otago which is made up of the Macraes open pit and the Frasers Underground mines. Additionally on the west coast of the South Island, the Company operates the Reefton open-pit mine. OceanaGold produces between 270,000 - 290,000 ounces of gold per annum from the New Zealand operations. The Company also owns the Didipio Project in northern Luzon, Philippines where construction is scheduled to re-commence in H1 2011.

OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol OGC.

Cautionary Statement

Statements in this release may be forward-looking statements or forward-looking information within the meaning of applicable securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Such forward-looking statements include, without limitation, statements with respect to any future reserves attributable to the Reefton projects and estimated production from the Company's existing properties. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements including, among others, the accuracy of mineral reserve and resource estimates and related assumptions, inherent operating risks and those risk factors identified in the Company's Annual Information Form prepared and filed with securities regulators in respect of its most recently completed financial year. There are no assurances the Company can fulfil such forward-looking statements and, subject to applicable securities laws, the Company undertakes no obligation to update such statements. Such forward-looking statements are only predictions based on current information available to management as of the date that such predictions are made; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.  Accordingly, readers should not place undue reliance on forward-looking statements. It is also noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.

For further information:

Mr Darren Klinck

Vice President, Corporate and Investor Relations

Tel: [phone]