Monday, February 28, 2011

Industrial Minerals Selects Allen & Caron Inc for Investor Relations, Corporate Communications

Industrial Minerals Corp. , a minerals processing company focused on developing the Southern Oregon Mineral Sands project, announced today that is has selected Allen & Caron Inc as its agency for investor relations and corporate communications. With offices in New York City, Irvine, CA and London, Allen & Caron will help Industrial Minerals develop an effective outreach program to increase visibility in the investment community and the business/financial media.

Industrial Minerals Chief Executive Officer Philip Garratt said: "This is an important time for us, as we begin developing our unique minerals project in southern coastal Oregon, an area containing the only domestic source of a high-quality, foundry-grade chromite. We selected Allen & Caron because of their experience and well-established reputation for helping companies develop and implement meaningful communications with investment community professionals and the business media. Allen & Caron will lead our efforts to communicate our progress effectively to all our constituencies, which will be key to increasing the trading and valuation."

L & L Energy Announces On-Site Visits to China Operations and Coal Mines

L & L Energy, Inc, a U.S.-based company since 1995 with coal mining and distribution businesses in China, announced today that it has scheduled two on-site visits to its mining operations in China for institutional investors, analysts, retail brokers, and media personnel.

The first site visit is scheduled for March 9, 2011 and includes a trip to Kunming, the Company's operational headquarters, and its PingYi mine located in Guizhou Province. The PingYi mine produces approximately 300,000 metric tons of coal per year, representing roughly 40% of L&L's current production in China.

The Company has also planned a second on-site visit for April 13, 2011 for interested parties who are unable to attend the March 9 visit. Interested investors should register as soon as possible by contacting Gary Eelman at or by phone at (800) 733-2447, Ext.130.

Dickson Lee, the Company's Chief Executive Officer, commented: "This is an excellent opportunity for all current and future investors to see first-hand L&L's operations in China, meet its management team and learn more about its business model."

Bellhaven Drills 1.62 g/t Au and 0.44% Cu (2.4 g/t AuEq) Over 98.2 Meters at La Cantera, La Mina, Colombia

Bellhaven Copper & Gold Inc. is pleased to announce that DDH-16, the most recent drill hole targeting the La Cantera prospect, delivered the most significant intercept to date at La Mina: 1.62 g/t Au and 0.44% Cu (2.4 g/t AuEq) over 98.2 m. This high-grade intercept occurs within a wider gold-copper zone occurring only 10 m (vertical) below the surface and averaging 0.91 g/t Au and 0.31% Cu (1.5 g/t AuEq) over 205.3 m. Further down the hole, Bellhaven cut a second intercept containing 0.60 g/t Au and 0.34% Cu (1.2 g/t AuEq) over 68.0 m.

La Cantera is the principal porphyry gold-copper prospect at La Mina, Colombia. Five other prospects occur within one km of La Cantera and include the Middle Zone, El Limon, El Cafetal, La Virgen, Filo de Oro, and El Tanque. Most of the concession still remains unexplored. Bellhaven holds an option to earn 100% of the La Mina project (see press release dated May 17th, 2010).

Please see Tables 1 and 2 below for more data related to DDH-16 and the prior drill holes collared at La Cantera. For maps showing the location of DDH-16, as well as a geologic cross section highlighting the gold-copper intercepts, please use the following link:

Paul Zweng, Bellhaven's Interim CEO and Director, commented as follows:

"We are excited to have discovered what we believe is the high-grade core to the La Cantera porphyry deposit. The elevated grades in DDH-16 correlate with the presence of bornite, a copper mineral known from other porphyry districts throughout the world to be associated with gold. The high-grade core, averaging 1.6 g/t gold and 0.44% copper over nearly 100 meters, is contained within a broader zone that averages just below 1 g/t gold over a considerable distance of 200 meters. After reviewing the drill-hole intercept data, it is clear that the consistently high grades produced from La Cantera-whether from the core or the fringe-substantiate La Cantera as one of the richest porphyry gold-copper deposits in the Middle Cauca belt of Colombia."

Discussion of the Drill-Hole Results

Bellhaven initiated its maiden drilling program at its La Mina project last summer (see press release dated July 27th, 2010). The first five holes collared at the La Cantera prospect by Bellhaven were reported in the September 9th, December 13th, 2010, and January 24th, 2011, press releases. The first four holes drilled at the second prospect, the Middle Zone, were highlighted in the October 12th, November 2nd and 17th, 2010, press releases. This press release discusses the tenth drill hole of the program, DDH-16, collared at La Cantera.

Drill-hole DDH-16 was designed to delimit the southwestern margin of the La Cantera prospect. Starting at a down-hole depth of 12 m (approximately 10-m vertical depth), the hole cut 205 m of mineralized porphyry and breccia averaging 0.91 g/t Au and 0.31% Cu (1.45 g/t AuEq) based on a 0.40 AuEq cut-off grade. Within this intercept occurs the 98-m long high-grade zone containing 1.62 g/t Au and 0.44% Cu (2.38 g/t AuEq) reported above. The high-grade interval is characterized by bornite, together with chalcopyrite and magnetite, associated with K-silciate (potassic) alteration. The mineralized interval was truncated by a late (post-mineral) porphyry stock. Further down hole, DDH-16 cut more gold- and copper-bearing breccia bodies. These rocks host the 68-m intercept containing 0.60 g/t Au and 0.34% Cu (1.19 g/t AuEq) based on a 0.40 g/t AuEq cut-off grade. The true width of the intercepts is approximately 53% of the reported intercept length. Both zones remain open to depth.

Currently Bellhaven is drilling DDH-19 to test the upward extensions of the gold-copper zones cut by DDH-16. Two reconnaissance holes, DDH-17 and -18, drilled to test unnamed prospects located to the north of La Cantera, failed to deliver any significant results.

ALS Colombia Ltda. prepared the drill-core samples, producing the sample pulps in Bogota. The South American Central Lab of ALS Chemex in Lima, Peru, performed all assays pertaining to the drill-core samples highlighted in the text and table above. Gold was analyzed by fire assay on a 50-gram sample with an atomic-absorption finish. Copper was analyzed using four-acid digestion, ICP-AES. The Company maintains a QA-QC program regarding the preparation, shipping, and checking of all samples, including the use of certified standard reference materials, blanks, as well as field- and pulp duplicates.

This news release has been prepared under the supervision of Mr. Thomas J. Drown, P.Geo., who serves as the qualified person as defined by National Instrument 43-101 responsible for ensuring that the geological information in this release is accurate.

Lake Shore Gold Discovers Significant New Gold Zone at 144 Property, Becomes Companys Fourth Major Project Along Western Extension of Timmins Gold Camp

Lake Shore Gold Corp.

-- Drill results confirm presence of large mineralized system with strong
similarities to Thunder Creek Rusk and Porphyry zones with multiple
occurrences of visible gold

-- Significant gold values intersected within 200 metres of surface,
compare favourably to Thunder Creek mineralization at similar shallow

-- Grades and widths of mineralization increasing with depth, potential for
new zones to north and along strike considered excellent

-- Among significant intersections are 2.41 grams per tonne ("gpt")
over 19.00 metres ("m"), including 6.61 gpt over 2.20m, 4.96 gpt
over 5.40m, including 15.18 gpt over 1.45m, 4.03 gpt over 5.10m,
including 7.02 gpt over 2.40m, and 1.16 gpt over 32.20m, including
3.20 gpt over 6.20m

-- Drilling up to 800 metres along strike to southwest intersects
additional alteration, deformation and gold values in possible faulted
offset of new discovery zone, represents large area for potential
extensions and additional new discoveries

Lake Shore Gold Corp. (TSX:LSG - News) ("Lake Shore Gold" or the "Company") today announced very encouraging results from the first 12 holes (6,323 metres) of drilling at the Company's 144 property. The 144 property is located immediately to the south of the Thunder Creek project and covers the projected southwest extension of alteration and deformation from Thunder Creek. The new holes being announced cover a broad strike length of approximately 1.2 kilometres and represent a first, high-level phase of testing designed to cover the area on a wide-spaced pattern in order to develop an improved geologic model. The results demonstrate that the overall gold bearing potential of the 144 property is excellent.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "We are extremely pleased with the results from our first drill holes at the 144 property, which establish the property as a new major project for the Company. The new discovery at 144 supports our theory that with projects like Timmins Mine, Thunder Creek, Gold River Trend and now 144, our Timmins West Complex represents the western extension of the Timmins Gold Camp and is, in actuality, one very large mineralized system with the potential to support large-scale mining for a very long time to come. The initial drill results from 144 show strong similarities in geological setting and are in close proximity to Thunder Creek. Given the shallow depth of intersections and dimensions of the geological structures observed to date the new discovery compares very favourably to the Thunder Creek mineralization at similar depths and we look forward to continuing exploration drilling in this area with three drills currently operating and at least one additional drill to be added."

Seven of the new holes being announced (Hwy-10-02, 03, 05, 07, 09, 11 and 12) were drilled to test a 200 metre strike length along the projected southwest extension of the Thunder Creek Alteration and Deformation Zone ("TDAZ"), approximately 1.2 kms from Thunder Creek. The program was successful in confirming the presence of a significant mineralized system extending over the entire area with strong similarities to the Thunder Creek mineralization. Significant results from the new drilling are 2.41 gpt over 19.00m, including 6.61 gpt over 2.20m, 4.96 gpt over 5.40m, including 15.18 gpt over 1.45m, and 14.42 gpt over 0.95m in Hwy-11-12; 5.58 gpt over 1.00m, 11.75 gpt over 0.30m, 9.08 gpt over 0.30m and 3.58 gpt over 1.40m in Hwy-10-03; 4.03 gpt over 5.10m, including 7.02 gpt over 2.40m and 4.87 gpt over 1.50m, in Hwy-11-11; and 1.16 gpt over 32.20m, including 3.20 gpt over 6.20m, 11.05 gpt over 0.50m and 16.75 gpt over 0.30m in Hwy-10-02.

The new intersections were obtained near the south margin of a large Syenite stock which intrudes a sequence of mafic volcanics and pyroxenitic rocks near a distinct northwest trending flexure of the TDAZ. Gold mineralization occurs in multiple zones which trend northeast-southwest and dip moderately to the northwest, with the strongest mineralization being closely associated with increased levels of alteration, quartz veining, coarse pyrite as well as local galena and visible gold. The bulk of the mineralization identified to date is located at depths of less than 200 metres and follows a similar pattern to Thunder Creek where grades and widths are increasing with depth. Due to strong folding near the north side of the flexure it appears that the north-east extension of the mineralization from the flexure lies south of the closest holes drilled and remains open towards Thunder Creek.

In addition to the above, five holes were drilled to test the area southwest of the new discovery zone for possible expansion potential. Holes Hwy-10-01 and Hwy-10-04 were drilled approximately 175 metres southwest of Hwy-10-09 and Hwy-10-02 and intersected a diabase dike near the projected extension of the zones, along with several small lenses of porphyry and low gold values. Based on the above, it is possible that portions of the zone may have been faulted off along the edge of the dike.

Hwy-10-06 and Hwy-10-10 tested 500 and 800 metres, respectively, to the southwest of Hwy-10-01 and identified alteration and mineralization in a northeast trending zone which appears to be the extension of the zone to the north, but offset along a major north south fault marked by diabase. Key intersections include 8.48 gpt over 1.20m in Hwy-10-06 and 3.49 gpt over 1.75m and 4.68 gpt over 0.60m within a broad envelope grading 0.67 gpt over 29.35m in Hwy-10-10. Observations from both holes indicate similar carbonate alteration, lenses of syenite and coarse pyrite and local visible gold as in holes to the north. Given the lack of testing between the two holes or along strike to the north and to depth the potential for new mineralization is considered excellent.

Drilling is continuing at the 144 property with 3 drills but plans are in progress to increase this number to at least 4 drills within the coming months. The overall objective is to drill approximately 50,000 metres at the 144 property in 2011 with the main focus being to identify and evaluate new resource potential southwest of Thunder Creek.

Quality Control

The Company's Qualified Person ("QP") for the ongoing surface drill program at the 144 property is Jacques Samson, P.Geo. As QP, Mr. Samson has prepared or supervised the preparation of the scientific or technical information for the property and has verified the data disclosed in this press release. Mr. Samson is an employee of Lake Shore Gold.

Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. NQ size drill core is saw cut, and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. Drill core samples are transported in security-sealed bags to ALS Chemex's Timmins Sample Preparation Facility. Sample preparation is completed in Timmins and the prepared sample pulps are then transported to ALS Chemex's analytical laboratory in Val d'Or, Quebec and less commonly to the Vancouver, BC Lab. Gold grades are obtained on all samples via Fire Assay with Atomic Absorption finish, using 30g aliquots. For samples that return a gold content greater than 3.0 gpt, the sample is re-analyzed via Fire Assay with Gravimetric finish. ALS Chemex is an ISO 9001-200 and ISO 17025 certified laboratory.

Custom Tank Fabrication and Corrosion-Control Linings by Moon Fabricating, a Feature of Industry Today on

Industrial Info Resources will host special guest Moon Fabricating Corporation (Kokomo, Indiana) as part of this week's "Industry Today" webcast. Moon Fabricating is a premier supplier of custom tank fabrication, with nearly 90 years of experience in the industry. Materials and fabricating processes are critical to reliability, durability and function. Moon uses only the most advanced and dependable materials for every application. Moon fabricates from stainless and carbon steels, and a variety of specialty alloys.

A fabricated part by Moon Fabricating includes tanks, emissions ducts, silos, hoppers, stacks and many other engineered parts. Applications and industries served by Moon Fabricating include engineering and construction firms, and industrial sectors including steel, power generation, biofuels, chemicals, corn processing, water filtration, wastewater and mining.

Moon's facilities include 70,000 square feet at two plant sites equipped with state-of-the-art equipment that improves quality and efficiency. Cranes with 50,000-pound lifting capability, a 300-ton break press, automated submerged arc welding and CNC plasma burning capability all converge to make some of the finest tank fabrication in the nation.

Moon Fabricating also provides applications of corrosion-resistant linings, including rubber linings, fiberglass-reinforced lining systems and specialty coatings. For linings, state-of-the-art vulcanization for bonding, abrasion resistant rubber and Koroseal are a few of the time-tested products and processes that Moon Fabricating offers.

Join Greg Veach, the president and CEO of Moon Fabricating, along with the host of "Industry Today," to learn about the company's manufacturing abilities, lifting abilities, automated processes, industry experience and more. Click here to hear this or any of the more than 500 previous "Industry Today" webcasts, covering topics important to industry spending, including trends, outlooks and focus segments on specific industries.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.

Sunday, February 27, 2011

Tecumseh Products Company Announces Fourth-Quarter and Full-Year 2010 Earnings Call

Tecumseh Products Company announced today that it will release its 2010 fourth quarter and full year financial results after the market close on Monday, March 14, 2011. The Company will broadcast its financial results conference call live over the Internet on Tuesday, March 15, 2011 at 11:00 a.m. ET.

Those who wish to listen to this conference call should visit the Investor Relations section of the Company's web site at at least ten minutes prior to the event. Please follow the instructions provided to assure that the necessary audio applications are downloaded and installed. These programs can be obtained at no charge to the user.

Midway Gold Adds 1.8 km of Potential Strike Length at Spring Valley Project, Nevada

Midway Gold Corp. reports that exploration drilling conducted in the fourth quarter of 2010 has resulted in an extension of the mineralized strike length by about 1.8 km to the south-southwest of the previously known gold resource at Spring Valley. The step out in reverse circulation drill hole SV10-499 intersected 12.2 m of 1.2 gram per tonne (g/t) Au including 1.5 m of 7.8 g/t Au mineralization, showing strong, relatively shallow Spring Valley-type mineralization in similar structures and host rocks to the existing gold resource. The drill hole is south of the property acquired late last year and described in the press release dated December 8, 2010 (see illustration below). The gold resource remains open to the northwest, to the south, and to depth.

Highlights of fourth quarter drill results reported to the Company by Barrick Gold Exploration Inc. (“Barrick”) includes several high grade intercepts (further described in the table below):

* Hole SV-511C with 62.5 m of 2.2 g/t Au including 1.5 m of 22.4 g/t Au, 1.5 m of 305.0 g/t Au, and 1.5 m of 21.1 g/t Au; and 42.7 m of 0.9 g/t Au including 1.5 m of 12.5 g/t Au.
* Hole SV-502C with 3.3 m of 3.0 g/t Au including 0.8 m of 17.8 g/t Au, and 10.5 m of 1.6 g/t Au including 1.0 m of 28.0 g/t Au.
* Hole SV-510 with 25.9 m of 0.8 g/t Au including 1.5 m of 4.6 g/t Au, and 12.2 m of 3.6 g/t Au including 1.5 m of 96.0 g/t Au.

These holes intersected mineralization below the rim of the north edge of the conceptual pit and to depth and could therefore expand the length and width of the resource as well as at depth.

“Midway believes that these results are strong evidence that the new, untested parcels acquired last year could potentially contain significant resources at relatively shallow depths,” said Ken Brunk, President and COO. “It will be exciting to watch the development of this potentially world-class gold system.”

Barrick has informed Midway that it intends to conduct and fund the minimum required program of US$7 million in 2011 for a cumulative amount of US$16 million by December 31, 2011. Drilling in 2011 is expected to focus on expanding the resource and evaluating satellite targets, particularly within the recently acquired land south of the existing resource. Under the terms of the March 9th, 2009 agreement between Midway and Barrick, Barrick will earn a 60% interest in the project by completing work expenditures of US$30 million before December 31, 2013.

Midway has commissioned an independently prepared NI 43-101 compliant resource update to estimate how much the resource may have expanded due to Barrick’s drill programs since 2009. As of March, 2009, the Inferred Resource was 1.8 million ounces of gold contained within 80 million tonnes grading 0.72 g/t gold. See the Midway press release dated March 2, 2009 and the subsequent NI 43-101 technical report filed on SEDAR March 30, 2009 for more details. The open pit outline shown below is based upon a $715 gold price pit from the 1.8 million ounce Inferred Resource.

Cliffs Natural Resources Inc. Announces Consolidated Thompson Iron Mines Limiteds Shareholders Overwhelmingly Approve Plan of Arrangement

Cliffs Natural Resources Inc. today announced Consolidated Thompson Iron Mines Limited's shareholders overwhelmingly approved the plan of arrangement for Cliffs to acquire all of Consolidated Thompson's outstanding shares. At Consolidated Thompson's special shareholder meeting held today, approximately 76% of Consolidated Thompson's shareholders were represented in person or by proxy, and approximately 97% of these shares were voted in favor of approving the plan of arrangement. Under the plan of arrangement, Consolidated Thompson's shareholders will receive $17.25 Canadian dollars in cash for each common share outstanding.

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As previously announced, Cliffs has committed financing and available liquidity sufficient to fund the purchase price. Cliffs expects to arrange for permanent financing by accessing the capital markets. The acquisition is expected to close in early second quarter 2011. Closing is subject to the satisfaction or waiver of certain customary closing conditions, including obtaining the following regulatory approvals: Competition Act (Canada), Investment Canada Act, Canada Transportation Act, and China – Ministry of Commerce.

GTA Resources and Mining Inc. Announces Exclusion of Time Order from Ministry

GTA Resources and Mining Inc. is pleased to announce that it has received an Exclusion of Time from the Ministry of Northern Development, Mines and Forestry with respect to eighteen of its mining claims in connection with its Auden Property in northern Ontario.

The due date by which assessment work must be filed for the eighteen mining claims has been extended from February 28, 2011 to February 28, 2012.

Information for Investors

This press release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. GTA cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what GTA currently foresees. Discussion of the various factors that may affect future results is contained in GTA's recent filings, available on SEDAR.

"Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative."

Anglo Swiss Resources Approves Intention to Terminate SEC Reporting

Anglo Swiss Resources Inc. today announces that the Board of Directors has unanimously approved the voluntary filing of the Form 15F with the United States Securities and Exchange Commission (“SEC”) to terminate its SEC reporting obligations and the registration of its common shares under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Under SEC rules, a foreign private issuer such as the Company may deregister a class of its securities under the Exchange Act, and terminate the associated reporting obligations, if, among other conditions, the average daily trading volume of the class of securities in the United States for a recent 12 month period has been no greater than 5% of the average daily trading volume of that class of securities on a worldwide basis.

The Company believes that the costs associated with continuing the registration of its common shares under the Exchange Act, including the costs associated with complying with the requirements of the Sarbanes-Oxley Act of 2002, far outweigh the benefits received by the Company from maintaining its registration.

The Company expects that termination of the registration of its common shares will become effective 90 days after the date of filing of the Form 15F with the SEC. However, as a result of the filing of a Form 15F, the Company’s obligation to file certain reports with the SEC will be immediately suspended. The Company is in the process of submitting an application for its common shares to be quoted on the OTCQX to provide continuity to its US shareholders.

The Company will continue to meet its Canadian continuous disclosure obligations through filings with the applicable Canadian securities regulators. All of the Company’s filings can be found at the System for Electronic Document Analysis and Retrieval (SEDAR) at The Company is currently up-to-date with all of its filings in both Canada and the United States and is currently in full compliance with the internal control and related provisions of Canadian securities laws.

Western Copper Comments on Carmacks Water License Appeal Ruling

Western Copper Corporation received notification of the Yukon Supreme Court's ruling regarding the Company's appeal of the Yukon Water Board's decision not to grant the Carmacks Copper Project a Water Use License on February 24, 2011. Western Copper had appealed the Yukon Water Board's decision in order to clarify the rules it would have to follow for re-application of a Water Use License.

The ruling does not require the Yukon Water Board to accept the findings of the Yukon Environmental and Socio-economic Assessment Board (YESAB) which concluded that the project can be built and operated without significant environmental effect. However, the Court decision does provide clarification of the environmental and regulatory process in Yukon. Western Copper will consider the decision and engage in discussions with regulators prior to resubmitting its Water Use License application.

"This decision affirms significant areas of overlap in the Yukon regulatory system. We'll review our options and move forward appropriately. Carmacks only represents a small portion of Western Copper's assets," said Dale Corman, Chairman and Chief Executive Officer.

Trelawney Announces Acquisition of Chester Mining Claims and Geological Data

Trelawney Mining and Exploration Inc. announces that it has entered into an agreement to purchase three patented mining claims located in Chester Township, Ontario in consideration of the issuance of 50,000 common shares of Trelawney and a cash payment of $344,256.

In addition, Trelawney has entered into an asset purchase agreement to purchase confidential geological data, consisting mainly of historical drill logs, with respect to the Chester Project in consideration of the issuance of an aggregate of 500,000 common shares of Trelawney.

Both transactions are subject to receipt of regulatory and corporate approvals, including approval of the TSX Venture Exchange. The securities to be issued in connection with the transactions will be subject to a four month hold period from the date of issuance.

Trelawney is a Canadian junior mining and exploration company with a focus on Archean gold deposits. The Company's current focus is directed towards the development and continued exploration of the Chester Project, located in Chester Township 20 kilometres southwest of Gogama, Ontario.

Ur-Energy Releases Amended Preliminary Assessment on Lost Creek

Ur-Energy Inc. announces that it has released an amended Preliminary Assessment in accordance with National Instrument 43-101 for the Company's Lost Creek project located in Sweetwater County, Wyoming as required by the Ontario Securities Commission.

The Preliminary Assessment of the Lost Creek project, initially prepared in 2008 by Lyntek Incorporated ("Lyntek"), is being re-released in amended form following a review of the Preliminary Assessment by the Ontario Securities Commission, which required the correction of certain deficiencies under the National Instrument. When prepared in 2008, the Preliminary Assessment relied upon an earlier resource estimate, prepared by C. Stewart Wallis (Technical Report on the Lost Creek Project, Wyoming, June 15, 2006)(the "2006 Report"). Mr. Wallis is also the author of an earlier Technical Report on the Lost Creek project that reviewed historical data: Technical Report on the Great Divide Basin Uranium Properties, Wyoming (June 15, 2005, as revised October 20, 2005).

Mr. Wallis is now co-author of the "Amended NI 43-101 Preliminary Assessment for the Lost Creek Project, Sweetwater County, Wyoming (dated April 2, 2008, as amended February 25, 2011)"(the "Amended Report"), with Lyntek, and he has analyzed certain drill data from the project generated by the Company between June 2006 - March 2008, which was not previously included in the report. Mr. Wallis's analysis of that drill data is now contained within the Amended Report.

Terminology in the report (e.g., use of "ore," "reserve") was amended to more correctly reflect the nature of the mineral resource (e.g., "mineralization" and "resource") at Lost Creek. Several items in the report which previously had relied upon and made reference to the 2006 Report have been amended to include independent analysis. See Items 11-15 Amended Report. There is also clarification provided as to reliance on other experts in the Amended Report. See Item 17 Amended Report; see also Item 23 Amended Report. Mr. Kyle, Vice President of Lyntek, and co-author, has conducted an additional site visit in connection with the preparation of the Amended Preliminary Assessment to verify the drilling program. See Item 2 Amended Report. Additional detail has been added to Item 20 of the Amended Report to provide specific budget recommendations.

The purpose of the technical report remains as an independent analysis of the potential economic viability of the mineral resources of Lost Creek. Lyntek has evaluated the change in the economics due to the resource reduction and confirms the economic viability of the mineral resource at Lost Creek at prices above US$40/lb U3O8 and affirms this in the Amended Report. The amended analysis performed by Lyntek results in an approximate 6% decrease in anticipated production from six mine units (6.5 million to 6.1 million pounds). See Item 1 Amended Report

The full report titled "Amended NI-43-101 Preliminary Assessment for the Lost Creek Project, Sweetwater County, Wyoming (dated April 2, 2008, as amended February 25, 2011)" is available on the Company's profile on SEDAR (

W. William Boberg, President and CEO of the Company, a Professional Geologist, and Qualified Person as defined by National Instrument 43-101, supervised the preparation of and reviewed the technical information contained in this release. Messrs. John I. Kyle, PE, and C. Stewart Wallis, P.Geo., also have reviewed this release.

Adroit Accepts First Tranche of Financing to Fast Track Projects

Adroit Resources Inc. Adroit Accepts First Tranche of Financing to Fast Track Projects. Management is pleased to announce that the Company has received agreements for $1,327,237.00 for its up to $3,500,000 non brokered private placement announced in its February 1, 2011 news release and has accepted these agreements as a first tranche in order to fast track its projects. The outstanding balance of the private placement currently remains open.

The funds will be used for the exploration of the Company's Red Vein Copper/Zinc VMS property in Ontario, its Italian Antimony project and general working capital. Finder's fees may be paid to arms length parties in accordance with TSX Venture Exchange policy with respect to the private placement.

The Company specifically intends to fast track the results from its soon to be completed reconnaissance diamond drill programme on its cluster of VMS deposits on the Grassy Lake portion of Red Vein and to increase pre-drilling field work for the resource calculation drilling in Italy as announced in the Company's January 10, 2011 news release.

Subject to TSX Venture approval, the closing of the First Tranche will result in the issue of 6,985,458 common shares and 6,985,458 share purchase three year warrants, each warrant entitles the holder to purchase one common share at a price of $0.25 in the first year, $0.35 in the second year and $0.45 in the last year. Finder's fees will be paid to arms length parties in accordance with TSX Venture policy

Royal Coal Repays $8.1 Million of Indebtedness

Royal Coal Corp. announces that it has repaid the following indebtedness, and the completion of certain administrative matters set out below.

The Company has repaid US$4,200,000 to Cheyenne Resources Inc. ("Cheyenne Resources"), being the remaining principal amount outstanding under the debenture issued to Cheyenne Resources as part of the purchase price for the coal and surface leases known as the Big Branch Mine. No principal remains outstanding under the Cheyenne Resources debenture.

The Company has also repaid US$3,950,000 owing to Juno Special Situations Corporation ("Juno") under notes issued pursuant to the note purchase agreement dated September 30, 2009. As a result, the principal amount of the notes is reduced to zero. The aggregate remaining amount payable to Juno under the royalty agreement dated September 30, 2009, which provides for a US$2.00 per ton royalty, has been reduced to US$6,359,504 as at the date hereof.

"Having eliminated over $8 million in debt, Royal Coal is now financially stronger and in an enviable position of being able to expand coal production in a rising price environment," commented Tom Griffis, Chairman of Royal Coal. "In addition to the retirement of debt announced today, with the recent $34.5 million equity offering closed, we now look to complete property acquisitions as well as the acquisition of two coal loading facilities while maintaining a much improved working capital position necessary to grow our annualized coal production output."

The Company also reports the completion of the following:

-- The Company has issued 2,166,666 common shares at a deemed issue price
of $0.15 per share upon the conversion by GC Global Capital Corp. of the
entire $325,000 outstanding principal amount of the convertible
debenture dated June 26, 2008, all in accordance with the terms of the
debenture. No principal remains outstanding under the debenture.

-- The Company entered into a 25 month consulting contract with Peter Moran
who concurrently resigned as Chief Operating Officer of the Company. The
previously reported Memorandum of Understanding and Executive Employment
Agreement between Mr. Moran and the Company, including all incentive
payments to Mr. Moran thereunder, are no longer in effect and 3,000,000
common shares of the Company were issued to Mr. Moran.

-- 400,000 common shares of the Company were issued to 9157-2222 Quebec
Inc., which as previously reported is a regular scheduled option payment
due in order to maintain the Mining Option Agreement dated July 16, 2007
under which the Company has been exploring certain base metal
exploration properties in the Province of Quebec, Canada.

-- As previously reported December 21, 2010, the Company has issued
2,201,844 common shares to certain arm's length parties in exchange for
the cancellation of $396,332 in outstanding trade payables.

-- As previously reported December 23, 2010, the Company has amended the
terms and conditions of 80,000 common share purchase warrants (the
"Broker Warrants") and issued an additional 120,000 common share
purchase warrants (the "Additional Warrants") as follows. The Company
has: (i) amended the exercise price of the Broker Warrants to $0.20 per
share; (ii) amended the expiry date of the Broker Warrants to August 12,
2015; and (iii) issued the Additional Warrants, each being exercisable
at a price of $0.20 per share until August 12, 2015. The Company has
also issued 315,000 common share purchase warrants (the "Compensation
Warrants") to an arm's length party in consideration for advisory
services. Each Compensation Warrant entitles the holder to purchase one
common share at a price of $0.20 per share until December 23, 2015.

Saturday, February 26, 2011

NovaGold Responds to Copper Canyon Press Release

NovaGold Resources Inc. is issuing this press release in response to the press release of Copper Canyon Resources Ltd. ("Copper Canyon") issued on February 24, 2011. As previously announced, NovaGold has extended to March 8, 2011 its offer for all of the outstanding shares of Copper Canyon. NovaGold's offer, which is on the basis of 0.0425 of a NovaGold common share for each Copper Canyon common share, represents a premium of approximately 41.8%, based on the closing prices of NovaGold's and Copper Canyon's shares on the TSX and TSX-V on December 17, 2010, the last trading day prior to NovaGold's announcement of its intention to make an offer for Copper Canyon, and a premium of approximately 33.4% based on the 20-day volume-weighted average prices of both companies on the TSX and TSX-V ending December 17, 2010. In addition to this premium, the offer provides certain other benefits to Copper Canyon shareholders as outlined in NovaGold's offer and take-over bid circular dated January 18, 2011.

Right of First Refusal

In its press release, Copper Canyon suggests that its right of first refusal with respect to the Copper Canyon property may have been triggered as a result of arrangements between NovaGold and the Galore Creek Partnership. NovaGold denies that this right has been triggered or that it is in breach of any obligations to Copper Canyon with respect to the Copper Canyon property. NovaGold will vigorously defend any action commenced by Copper Canyon with respect to this matter. NovaGold notes that, although not legally required to do so, it has now provided to Copper Canyon's solicitors the Galore Creek Partnership document requested by them.

Shareholder Rights Plan

NovaGold intends to pursue its application to cease trade Copper Canyon's shareholder rights plan (the "Plan"). The British Columbia Securities Commission is scheduled to hear this application on March 4, 2011. It is a condition of the offer that the Plan be waived, invalidated or cease traded prior to the expiry of the offer. NovaGold believes that Copper Canyon shareholders should be given the opportunity to decide for themselves whether they wish to accept NovaGold's offer.


This press release does not constitute an offer to buy or an invitation to sell, or the solicitation of an offer to buy or invitation to sell, any of the securities of NovaGold or Copper Canyon. Such an offer may only be made pursuant to an offer and take-over bid circular filed with the securities regulatory authorities in Canada.

NovaGold has also filed with the U.S. Securities and Exchange Commission ("SEC") a Registration Statement, which includes the offer and take-over bid circular relating to its offer to Copper Canyon shareholders. NOVAGOLD URGES INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT, THE OFFER AND TAKE-OVER BID CIRCULAR AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC AND CANADIAN SECURITIES REGULATORY AUTHORITIES, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors may obtain a free copy of the offer and take-over bid circular and other documents filed by NovaGold with the Canadian securities regulators at and with the SEC at the SEC's website at The offer and take-over bid circular and other documents may also be obtained for free, from NovaGold's website at or by directing a request to NovaGold's Director, Communications and Investor Relations, Suite 2300, 200 Granville Street, Vancouver, British Columbia V6C 1S4, telephone 604-669-6227, or by contacting the Information Agent, Laurel Hill Advisory Group, toll free at 1-877-304-0211.

NovaGold's financial advisor is TD Securities Inc. Its legal advisors are Blake, Cassels & Graydon LLP in Canada and Dorsey & Whitney LLP in the United States.

How to Tender

Copper Canyon shareholders wishing to accept the NovaGold offer are encouraged to act as soon as possible and tender their shares by completing the letter of transmittal accompanying the documents mailed to them and returning it, together with certificates representing their Copper Canyon shares and all other documents, to the offices of Computershare Investor Services Inc., the depositary for the offer, in Toronto, Ontario in accordance with the instructions in the letter of transmittal. If Copper Canyon shares are held by a broker or other financial intermediary, Copper Canyon shareholders should contact such intermediary and instruct it to tender their Copper Canyon shares. If you require assistance tendering your shares, please contact NovaGold's Information Agent, Laurel Hill Advisory Group toll free at 1-877-304-0211 (416-304-0211 collect) or by email at

The offer is open for acceptance until 5:00 pm (Eastern time) on March 8, 2011.

Zone Resources Inc. Announces Private Placement

Zone Resources Inc. would like to announce that it has arranged a non-brokered private placement of up to 4,000,000 units at a price of $0.085 per unit for total proceeds of up to $340,000 subject to the approval of the TSX Venture Exchange.

Up to 4,000,000 units will be issued as non flow-through units consisting of one common share and one full warrant. One full warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.12 per share for the first year and at a price of $0.15 through to completion of the second year.

The proceeds of the private placement will be used for general working capital, oil and gas exploration and other potential resource sector opportunities.

Stan Emms to Head Up Stillwaters Marathon PGM Project

STILLWATER MINING COMPANY announced today that Mr. Stan Emms has joined Stillwater Canada Inc., a wholly owned subsidiary of Stillwater Mining Company, as General Manager of the Company's Marathon PGM Project.

Prior to joining Stillwater Canada Inc., Mr. Emms (55) served as Project Manager for Goldcorp Canada at their Musselwhite Mine in Ontario, Canada. Mr. Emms' extensive experience in project management includes twenty-eight years of promoting safety, efficiency and cost control within a wide variety of mine development and production activities, both in underground and open pit operations, and in the construction of mining infrastructure. Mr. Emms is a graduate of the Haileybury School of Mines in Haileybury, Ontario.

Commenting on the appointment of Mr. Emms, Frank McAllister, Stillwater Mining Company's Chairman and Chief Executive Officer, said, "We are very pleased that Stan has joined our Stillwater team. The Marathon development project, which he will direct, is designed to access and mine a large PGM-copper resource situated near the town of Marathon on the north shore of Lake Superior in Ontario. Although the project is still in the permitting stage today, once in operation the Marathon facilities are forecasted to produce concentrates containing 200,000 ounces of palladium and platinum and 37 million pounds of copper per year. Stan brings with him a proven track record of successful project management that should serve us all well as we advance the Marathon development. We welcome him on board and look forward to working with him and his team in bringing this important project to fruition."

Confederation Minerals Ltd. Sets Stock Options

Confederation Minerals Ltd. reports that it has granted incentive stock options, exercisable to purchase up to an aggregate of 250,000 shares of the Company, to a director of the Company. The options are all exercisable at the price of $0.69 per share until February 25, 2016, subject to any earlier termination in accordance with their terms.

Rockgate Provides Additional Information to 2011 Technical Report

Rockgate Capital Corp. wishes to announce that as part of the review of the Company's Preliminary Short Form Prospectus by the British Columbia Securities Commission (the "BCSC"), the Company is issuing the following news release to clarify its previous disclosure.

The news release issued January 18, 2011 included both uncapped and capped values for the silver resource at the Falea project. The January 2011 Technical Report and Resource Estimate Update entitled "Falea Property Prefecture Of Kenieba District Of Kayes Republic Of Mali" dated February 4, 2011 (the "Technical Report") as filed on SEDAR on February 11, 2011 also provided both figures. The authors of the Technical Report concluded that the silver mineralization in the Falea deposit is "highly nuggety" and thus a capping strategy was applied to the silver values in the deposit in order to minimize the spreading of the high grade silver samples. Therefore, the Company advises that the figure for the uncapped silver resource should not be relied upon.

The technical report received in 2009 included a table providing various cut-off grades to show the variability of the deposit. The news release issued by the Company on January 18, 2011 reported resources using a 0.03% U3O8 cut-off while the technical report used a base case of 0.04%.

In order to provide consistency with the base case cut-off as selected by authors of the technical report, and using the capped values therefrom, the Company is pleased to highlight that the 2011 resource estimate provides an almost 7-fold increase in Indicated pounds of U3O8 and silver over the 2009 estimate as well as increases of almost double to the grade of both the U3O8 and silver in the Indicated category.

In order to reconcile disclosure made in the Company's 2009 Annual Information Form, both technical reports and the Company news releases, Table 2 below is taken directly from the technical report dated February 4, 2011 and reports the resource calculation using a variety of cut-off grades, with a 0.04% cut-off grade highlighted.

Mr. Lorne Warner, P. Geo, Director and VP Exploration, is the Qualified Person for the Company under NI 43-101. All core samples are cut in half on site and sent to ALS-Chemex in Bamako for direct shipment to ALS-Chemex in Johannesburg, South Africa, for ICP-MS and XRF analysis. The company inserts a standard, blank and requests a duplicate sample be run in every batch of 20 samples. In addition, the lab inserts in-house blanks, standards, and duplicates with each shipment.

Cassius Ventures Enters Into Option Agreement to Acquire Head Bay Property

Cassius Ventures Ltd. is pleased to announce that it has entered into an Option Agreement (the "Option Agreement") to earn a 100% interest in certain mineral claims (the "Property") held by Johan Thom Shearer. The Property, which consists of claims covering 4,212.71 hectares, is situated in the Alberni Mining Division of British Columbia.

In order to earn a 100% interest in the Property, the Company will pay CAD$3,500 in reimbursement of a reclamation bond, issue 100,000 common shares of the Company and pay a total of CAD$122,000 in cash over a 4 year period.

The Option Agreement is subject to approval of the TSX Venture Exchange.

Actus Minerals Property Acquisition-Amendment to Proposed Financings

Actus Minerals Corp. is pleased to announce that it has received Exchange acceptance to its previously announced (December 24, 2010) option agreement with Beaufield Resources Inc. Under the finalized terms of the agreement, for the Company to acquire a 50% interest, it must issue an aggregate of 1,250,000 shares and expend $650,000 over a three year period. The Company has issued 300,000 shares to Beaufield pursuant to the terms of the agreement. These shares have a hold period trading restriction expiring April 18, 2011.

The property, known as Casa Berardi, is located in the township of the same name, in the province of Quebec. An exploration program is being planned to include geological mapping, geochemistry and trenching, directed towards drill target definition.

Also, in the December 24, 2011 news release the Company announced two private placements, one consisting of flow-through units and the other common shares of the Company. The Company was unable at the time to complete the placements in a timely fashion. The Company therefore wishes to announce that it has renegotiated the common share placement. The placement will consist of the issuance of up to 3,500,000 Units at a price of $0.06 per Unit. Each Unit will consist of one common share and one share purchase warrant entitling the holder to purchase an additional common share of the Company at a price of $0.12 for a period of two years. Gross proceeds raised of $210,000 will be used for additional working capital for the Company.

The Company has also renegotiated the previously announced flow-through unit which will now consist of the issuance of up to 1,250,000 flow-through units at $0.12 per unit. Each "Unit" will consist of one flow- through common share and one non-transferable share purchase warrant exercisable to purchase an additional common share for a period of two years at a price of $0.20 per share. The gross proceeds of up to $150,000.00 will be spent on general exploration expenditures, which will constitute qualified Canadian exploration expenditures, as defined in the INCOME TAX ACT (Canada) and flow-through mining expenditures on the Company's prospects in Quebec.

All securities issued pursuant to both private placements will be subject to a four month hold period trading restriction.

The Company will pay a cash finders' fee of 7% of the gross proceeds, on the foregoing transactions.

MGold Completes Private Placement Offering

MGold Resources Inc. is pleased to announce the completion of a non-brokered private placement previously announced of 4,500,909 units (the "Units") at a purchase price of $0.11 per Unit for total gross proceeds of $495,100 (the "Offering").

Each Unit consists of one (1) common share and one (1) common share purchase warrant (the "Warrants"). Each Warrant entitles its holder thereof to purchase one additional common share in the capital of MGold for a period expiring on December 21, 2012, at an exercise price of $0.17 per common share.

All securities issued in the course of the Offering will be subject to a four month and one day hold period. Two directors and officers of MGold have participated in the Offering, subscribing for a total of 410,000 Units.

Net proceeds of the Units will be used for general working capital purposes.

MGold is engaged in mineral exploration for precious and base metals. The Company holds the Burchell Lake property in the Shebandowan area of Northwestern Ontario.

Lake Shore Gold Announces Details of Fourth Quarter and Year End 2010 Conference Call and Webcast

Lake Shore Gold Corp. today announced that it expects to issue its fourth quarter 2010 results following the market close on Wednesday, March 9, 2011. The Company will then host a conference call on Thursday, March 10, 2011 at 11:00 am EST to discuss its operating and financial performance during the fourth quarter and full year 2010. Those wishing to access the call can do so using the telephone numbers listed below. The call will also be webcast with the webcast being available on the homepage of the Company's website at

Participant call-in: 416-340-2218 or 866-226-1793
Replay number: 905-694-9451 or 800-408-3053
Re-dial ID: 3772882
Available until: 11:59 pm, March 24, 2011

New Pacific Metals Corp. Announces Results for the Second Quarter Ended December 31, 2010

New Pacific Metals Corp. announces its unaudited consolidated financial results for the second quarter ended December 31, 2010. All references to dollars or monies are expressed in Canadian Dollars.


The Company:

-- successfully acquired 100% of issued and outstanding shares of Tagish
Lake Gold Corp. ("TLG"), a Canadian publicly traded company involved in
the exploration and development of gold-silver mineral deposits in Yukon
Territory, Canada. TLG's main assets consist of three identified gold
and gold-silver mineral deposits: Skukum Creek, Goddell Gully, and Mount
Skukum; and

-- completed a 18 million share private placement for gross proceeds of
$24.3 million, which will be used to finance continuing exploration and
development activities of the Company.

During the quarter, loss from continuing operations increased by $593,967 to $945,479, compared to the three months ended December 31, 2009 ("Q2 2010") of $351,512, mainly due to the following:

-- interest and finance charge increased by $88,339 to $88,679 (Q2 2010 -
$340) due to the interest and termination fees paid on a $2.1 million
loan from Silvercorp Metals Inc. ("SVM");

-- legal and professional fees increased by $158,960 to $164,536 (Q2 2010 -
$5,576). The increase was primarily attributed to professional fees
incurred in connection with TLG's CCAA proceeding;

-- salaries and benefits expenses increased by $126,400 to $207,953 (Q2
2010 - $81,553). In connection with the acquisition of TLG, the Company
assembled a core team of professionals to carry out the exploration and
development of the TLG property; and

-- stock-based compensation increased by $204,353 to $332,784 (Q2 2010 -
$128,431). With the expansion of the Company's operations, the Company
granted more stock options to newly appointed directors and officers.
The increase was also caused by the immediate recognition of stock-based
compensation expense of $141,715 related to the previously unvested
portion of cancelled options and $195,528 related to previously unvested
portion of amended options.

Loss from discontinued operations, Yunnan Jin Chang Jiang Mining Co. Ltd and Sichuan Huaxi Mining Co. Ltd, were $210,242 (Q2 2010 - $87,939).

As of December 31, 2010, the Company had a working capital position of $20,716,257 (June 30, 2010 - $8,964,681). Cash and cash equivalents plus short term investments amounted to $24,451,086 (June 30, 2010 - $9,237,514) and are unencumbered.


Beginning early in 2011, the Company plans to initiate an aggressive program to move the newly acquired TLG Property towards timely gold and silver production. A highly experienced team with expertise in the areas of gold exploration, mining, and metallurgy, as well as community development and the environment, is being assembled to assist in bringing the Company's existing gold and silver resources to development and discovering new ones. High priority will be given to compiling, reviewing, and synthesizing the vast amount of drill core and surface exploration results amassed from three decades of exploration and underground development. This work will underpin a major surface and underground drilling campaign to explore the priority targets generated during the data review. The Company also intends to file for additional permits to support on-going exploration and development on the TLG Property, and will initiate a major program directed to permitting a mine and mill, including First Nations consultations, community, government and stakeholder engagement, and a wide variety of hydrological, wildlife socio-economic and other studies necessary to support a mining application.

Friday, February 25, 2011

Copper Canyon Board of Directors Responds to NovaGolds Extension of its Hostile Takeover Bid

Copper Canyon Resources Ltd. has received the notice of extension dated February 23, 2011 ("Notice of Extension") from NovaGold Resources Inc. ("NovaGold") extending its hostile takeover bid for all of the outstanding Copper Canyon shares (the "NovaGold Offer") until 5:00 p.m. Eastern Time on March 8, 2011. The Board of Directors of the Company (the "Board") has reviewed the Notice of Extension and is disappointed that NovaGold has not increased the offer price for Copper Canyon shares. The Board believes that the NovaGold Offer substantially undervalues the Copper Canyon shares for the reasons the Board indicated in the Board's directors' circular (the "Directors' Circular") filed and mailed to Copper Canyon shareholders on February 2, 2011.

NovaGold's Failure to Honour the Right of First Refusal

The Notice of Extension refers to correspondence between legal counsel for Copper Canyon and NovaGold pertaining to the Company's right of first refusal relating to the Copper Canyon property. NovaGold has disclosed in the NovaGold Offer and in its previous public disclosure documents that it holds its interest in the Copper Canyon property in trust for the Galore Creek Partnership, a 50/50 partnership between NovaGold and Teck Resources Limited.

Copper Canyon has, through its legal counsel, twice requested that NovaGold provide documentation relating to the transfer of NovaGold's beneficial interest in the Copper Canyon property to the Galore Creek Partnership and is still awaiting receipt of those documents. The Board is of the view that this transfer may have triggered the Company's right of first refusal relating to the Copper Canyon property, giving the Company the right to acquire NovaGold's 60% interest in the Copper Canyon property at a price equal to the amount that the Galore Creek Partnership agreed to pay for such interest. Copper Canyon intends to vigorously enforce its rights.

Shareholders Rights Plan

On February 23, 2011, NovaGold made an application to the British Columbia Securities Commission ("BCSC") requesting that the BCSC promptly hold a hearing to consider cease trading of Copper Canyon's shareholders rights plan (the "Plan"). The BCSC is scheduled to hear this application on March 4, 2011. Copper Canyon intends to contest this application, as the Board is of the opinion that the Plan is necessary to provide time while Copper Canyon enforces its rights under the right of first refusal, clarifies the full extent of its ownership of the Copper Canyon property and seeks alternative offers.

The Board Reaffirms its Recommendation that Shareholders REJECT the NovaGold Offer

The Board continues to reaffirm its unanimous recommendation that Copper Canyon shareholders REJECT the NovaGold Offer, and NOT TENDER their shares to the NovaGold Offer. Further details on the Board's recommendation are contained in the Directors' Circular, which has been filed on the SEDAR website at

How to WITHDRAW Copper Canyon Shares from the NovaGold Offer

Copper Canyon shareholders who have deposited Copper Canyon shares under the NovaGold Offer are urged to withdraw those Copper Canyon shares. Please see the Directors' Circular for instructions with respect to withdrawing your Copper Canyon shares or, for additional information or assistance, please contact Mike Labach at 1 866 HUNT-ORE (486-8673).

The Board intends to communicate further with Copper Canyon shareholders prior to the expiry of the NovaGold Offer as and when material matters should arise.

Hecla Announces Increased Silver Reserves & Resources and Provides Exploration Update

Hecla Mining Company today reported silver reserves and resources as at December 31, 2010 of 142 million ounces and 248 million ounces respectively, the highest in the company’s history. Hecla is also pleased to provide an exploration update on its four large silver districts.


* Silver reserves increased slightly to 142 million ounces
* Silver resources increased by 17% to 248 million ounces
* Greens Creek’s 200 South continued to define high-grade resources contributing 85% of the 24 million ounces of new silver resources
* Drilling at the Lucky Friday continued to define strong veining to the east and at depth resulting in an addition of over 17 million ounces of silver resources and conversion of an additional 4 million ounces of silver reserves at the mine
* A new resource was defined at the Noonday project in the Silver Valley
* Discovered multiple zones of gold/silver-bearing veins and breccias with ore grades at the intersection of the Amethyst and Equity veins at the San Juan Silver JV in Colorado
* In Mexico, new intersections of precious-metal veining on the Andrea vein that are in close proximity to previous mining and potentially represent a new ore shoot at the San Sebastian property.

“We exceeded our goal of replacing ounces mined in 2010 and defining additional reserves and resources,” said Phillips S. Baker, Jr., Hecla’s President and Chief Executive Officer. “We have also made tremendous progress in our exploration efforts at our four properties. We have extended the mine life at Lucky Friday, added a significant number of resources from the 200 South and East zones at Greens Creek, added a new resource at the Noonday project in the Silver Valley and defined new mineralization at both the San Juan and San Sebastian properties. As a result of last year’s drilling success, we are planning a third more exploration funds in 2011.”

Reserves & Resources

Hecla continued to have success with drilling at its operations by replacing 2010 production and adding to reserves with substantial gains in resources. Total silver reserve and resource ounces for Hecla increased to 142.1 million ounces and 248.3 million ounces, respectively, as shown in Table A at the end of the release. Both are the largest in Hecla’s history.

This increase in reserve tons and silver ounces in 2010 is due primarily to drilling to the east on the 30 vein at the Lucky Friday resulting in the conversion of resources. Lucky Friday replaced production and added 252,000 tons containing 3.8 million ounces of silver to reserves. Reserves at the Lucky Friday mine are the highest in its 69-year history. Greens Creek slightly reduced the reserves due to mining at the North West West (“NWW”), West Ore, and South West (“SW”) zones; however, drilling and re-modeling during the same period added reserves to the 5250 North, 200 South, and East Ore. Greens Creek mined 800,000 tons producing 9.8 million ounces of silver in 2010 and added 728,800 tons containing 8.6 million ounces of silver to reserves. The increased silver reserves at Lucky Friday more than offset the slight decrease in silver reserves at Greens Creek.

Drilling successes in 2010 added a significant amount of new resources. Total resources at December 31, 2010 are 248.3 million ounces of silver, 450,000 ounces of gold, 1.2 million tons of lead and 831,000 tons of zinc. This is the largest resource in the history of the company and is the fifth consecutive year resources have increased. The most significant addition to resources was at Greens Creek, where total silver resources increased by 2 million tons containing 24 million ounces with significant gains in the 200 South and East zones. The Lucky Friday added silver resources of 4 million tons containing 17 million ounces and the Noonday project in the Silver Valley added a new resource of 517,900 tons containing 1 million ounces of silver and 51,000 tons of zinc and 18,600 tons lead.

The ore reserves and resources provided in Table A are based on $16.00 per ounce of silver, $950 per ounce of gold, and $0.80 per pound of lead and zinc.


Exploration expenditures were $20 million in 2010 with $6 million for Greens Creek, $5 million for San Juan Silver Joint Venture (“JV”), $5 million for Lucky Friday/Silver Valley, and $3 million for San Sebastian.

Greens Creek

At the Greens Creek mine in Alaska, underground drilling continues to define high-grade reserves and resources with good widths in the NWW zone along two newly-defined limbs below the current workings and along strike for at least 500 feet. Drilling in the 200 South zone has defined two separate mineralized zones that are typically barite-rich and contain higher values of precious metals relative to other zones in the mine. Recent significant assays from the NWW and 200 South zones are shown in Table B at the end of the release.

Surface and underground drilling continues to define the North East (“NE”) contact which represents a continuation of the Greens Creek mine contact. The contact has been folded underneath the existing mine workings; it extends near surface at Cub Creek less than a mile northeast of the mine infrastructure, and dips below and is sub–parallel to the mine infrastructure. Recent wide-spaced drilling has defined discontinuous mineralized intervals along the contact which has a folded strike length of over 5,000 feet and down dip extension of 3,000 feet. The NE contact’s dimensions compares to the current Greens Creek deposit.

Exploration expenditures at Greens Creek in 2011 should exceed $8 million. Two drills are expected to work underground all year and the surface exploration program has three drills and a number of surface mapping and sampling crews in the spring and summer.

The underground exploration program is designed to continue to explore extensions to the 200 South, 5250, NWW, and Gallagher zones. Exploration along the NE contact will use underground and surface drills.

Lucky Friday – Silver Valley

Exploration at the Lucky Friday mine in Idaho primarily drilled three areas outside the 2009 resource boundary: testing for extension up to 400 feet to the east at various levels; at depth to the 8100 level; and from the 4050 level. To the east, the 30 vein narrows but maintains high-grade silver and base metal values. However, this same drilling has also defined good grade from 6,500 feet down to approximately 7,800 feet over mining widths in the 50, 70, 90, 110, and 120 veins. Drilling of the 30 vein below the 2009 resource boundary to 8100 level continues to intersect wide, high-grade veins in combination with good intersections of the 50, 70 and 90 veins. Drilling in the upper levels of the mine on the 4050 level intersected significant intercepts of the 5, 50, 90, and 100 veins and require follow-up drilling. Selected drilling intersections from the 4th Quarter are shown in Table C at the end of the release.

In 2010, Hecla’s drilling of the Noonday veins, located two miles northwest of Lucky Friday and near the past-producing Star mine, has defined a new resource. The Noonday project is targeting the continuation of mineralization on the Noonday North Split and Noonday veins, above stopes that were last mined in the late 1980’s. Drilling has intersected two veins with high-grade intersections of zinc, silver and lead that are open along strike. Eight of the ten drill holes intersected multiple veins of high-grade zinc, lead, and silver mineralization with the best intercepts shown in Table C at the end of the release.

The 2010 surface drilling was successful in defining a 5,000-foot structural zone, potentially corresponding to the You Like/30 vein trend between the Star Mine and the Lucky Friday Expansion Area. Alteration and vein mineralization is better developed near the western end where there is transition into more favorable host rocks. The wide-spaced drilling on this trend has confirmed the presence of a significant mineralized structure with localized high-grade intervals. Selected intersections along this trend are shown in Table C.

The exploration budget for Lucky Friday/Silver Valley in 2011 is approximately $5 million and includes efforts to expand resources from the 4050 level and initial deeper drilling to the west past the Silver Fault; expanding the Noonday resources along strike; evaluating a number of other vein structures near the past-producing Star Mine; and drilling the Butte/Coeur d’Alene target to the east of the Lucky Friday.

San Juan Silver JV

The San Juan Silver JV (Hecla has a 70% interest), with partners Emerald Mining and Leasing, LLC and Golden 8 Mining LLC, located in Creede, Colorado received approval of its Environmental Assessment and 5-Year Plan of Operation in mid-2010, enabling expansion of exploration on three vein systems: Bulldog, Amethyst and Equity. Drilling continued to successfully define mineralization along the Bulldog and Amethyst trends. Further to the north, drilling uncovered multiple zones of gold/silver-bearing veins and breccias where the Amethyst and Equity vein structures intersect. Drilling identified a 300-foot wide zone of intense hydrothermal alteration containing veins and breccias that have significant precious and base metal-bearing intervals along the north-trending Amethyst vein where it intersects the east-west trending Equity structure.

The Amethyst drilling targeted the structure 2,500 feet north of the historic underground workings and encountered both west and east vein strands. The West Strand of the Amethyst is the best developed and contains up to 0.2 ounces per ton gold, 3.8 ounces per ton silver and 4.3% lead over 9.5 feet. The most significant high-grade intercepts occur at the intersection of the Amethyst and Equity trends and are tabulated with the Bulldog vein in Table D at the end of the release.

The 2011 exploration budget for the San Juan Silver JV is approximately $5 million and includes drilling of at least three structures, with particular emphasis on the newly-defined mineralization at the intersection of the Amethyst and Equity.

San Sebastian, Mexico

The Pedernalillo area in the southwest portion of the San Sebastian property is host to the past-producing Don Sergio and Andrea veins in addition to the nearby, newly discovered gold and silver-bearing Pedernalillo vein. This vein may be an offset portion of the Andrea vein. More significant, recent drilling of the Andrea vein includes a potential ore shoot parallel to the Don Sergio vein which was mined by Hecla in 2003 and 2004. Initial 3-D and economic modeling indicate that remnant Don Sergio mineralization and newly-intersected Andrea veins, along with the newly-discovered Pedernalillo veins, represent a new target due to their close proximity. Selected drill intersections of the Andrea vein are shown in Table E. Hecla has designated a budget of $3 million for the 2011 exploration program with drilling in the Andrea-Pedernalillo and Cerro Santiago areas.


Hecla’s exploration strategy in 2011 is largely focused on drill-testing targets on its district-sized land positions surrounding existing operations or re-emerging historic mining districts. With up to 12 drills operating and 250 thousand feet of underground and surface drilling, we are continuing systematic exploration. As evidence of such, we’re increasing our exploration budget to approximately $27 million in 2011, including exploration at our Lucky Friday and Greens Creek operations.


Established in 1891, Hecla Mining Company is the largest and lowest cash cost silver producer in the U.S. The company has two operating mines and exploration properties in four world-class silver mining districts in the U.S. and Mexico.

Cautionary Statements

Statements made which are not historical facts, such as anticipated payments, litigation outcome, production, sales of assets, exploration results and plans, costs, and prices or sales performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, environmental and litigation risks, operating risks, project development risks, political risks, labor issues, ability to raise financing and exploration risks and results. Refer to the company's Form 10-K and 10-Q reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law.

Cautionary Statements to Investors on Reserves and Resources

The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this release, such as “resource,” “other resources,” and “mineralized materials” that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K and Form 10Q. You can review and obtain copies of these filings from the SEC’s website at

Hecla Reports 2010 Record Operating Cash Flow of $198 Million and Updates Basin Litigation

Hecla Mining Company today announced record operating cash flow of $197.8 million, net income applicable to common shareholders of $35.4 million, or $0.14 per basic share, and adjusted net income applicable to common shareholders of $82.6 million1 or $0.33 per basic share for the year. Full year silver production was 10.6 million ounces at a total cash cost of negative $1.46 per ounce, net of by-products.2


* Highest annual revenue and operating cash flow in Hecla’s 120-year history
* Revenue of $418.8 million, a $106.3 million increase over 2009
* Net income applicable to common shareholders of $35.4 million, or $0.14 per basic share
* Adjusted net income applicable to common shareholders of $82.6 million, or $0.33 per basic share
* Operating cash flow of $197.8 million, a 66% increase over 2009
* Silver production of 10.6 million ounces at a total cash cost of negative $1.46 per ounce, net of by-products
* Silver reserves and resources increased to 142 million ounces and 248 million ounces, respectively
* Significant advancement with the Lucky Friday #4 Shaft Project
* Cash and cash equivalents of $283.6 million at December 31, 2010 and no debt


* Revenue of $134.5 million, a $46.4 million increase over the same period in 2009
* Net loss applicable to common shareholders of $13.1 million, or $0.05 per basic share, after giving effect to certain significant items:
o $193.2 million accrual on the Coeur d'Alene Basin litigation
o $133.6 million in tax benefit
* Adjusted net income applicable to common shareholders of $30.6 million, or $0.12 per basic share
* Operating cash flow of $85.8 million, a 34% increase over the same period in 2009
* Silver production of 2.7 million ounces at a total cash cost of negative $0.14 per ounce, net of by-products

“The fourth quarter and year-end results were record setting in a number of areas, reflecting increased throughput and low costs at our Greens Creek and Lucky Friday operations, and strong metals prices,” said Hecla’s President and Chief Executive Officer, Phillips S. Baker, Jr. “After considering all investing and financing activities, we generated $178.9 million in net cash flow last year. Our strong balance sheet and growing cash flow should be sufficient to meet our financial obligations of a potential Basin litigation settlement, as well as continuing to fund capital projects to expand our operations and explore our large land packages in the U.S. and Mexico.”

1) The adjusted income applicable to common shareholders represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of net income applicable to common shareholders (GAAP) to adjusted income can be found at the end of the release.

2) Total cash cost per ounce of silver represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of total cash cost to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found at the end of the release.


Hecla reported 2010 and fourth quarter record revenues and cash flow from operating activities, surpassing the previous 120-year record set in 2009, as a result of increased tonnage at Lucky Friday and Greens Creek, and higher metals prices. Net income applicable to common shareholders for the full year and net loss applicable to common shareholders for the fourth quarter were impacted by the following three items:

* An accrual of $193.2 million in the fourth quarter 2010 due to an increase in Hecla Limited’s estimated liability for environmental obligations in Idaho’s Coeur d’Alene Basin caused by historic mining activity. The increased accrual is based on a potential settlement that includes all Basin claims in the litigation. Hecla Limited’s accrual now stands at $262 million (see Coeur d’Alene Basin Litigation below).
* A change in net income tax benefits, as a result of higher metals prices, increased profitability, and the recognition of the tax effect of the environmental liability accrual described above.
* A $20.8 million loss, primarily non-cash in 2010 related to long-term base metal hedging, which includes a loss of $9.6 million in the fourth quarter 2010 due to rising base-metals prices, and mark-to-market changes in the value of base metal derivative contracts. A summary of the quantities of base metals committed at December 31, 2010 is included at the end of this release.

Hecla’s cash position at December 31, 2010 was $284 million, compared to $105 million of cash on hand at December 31, 2009.

Capital expenditures at our operations totaled $72.7 million for the full year 2010 and $23.2 million for the fourth quarter. Full year expenditures incurred at Lucky Friday were $54.4 million, which included $15.8 million in the fourth quarter. The majority of the expenditures at Lucky Friday were on the #4 Shaft Project. Full year expenditures incurred at Greens Creek were $18.3 million, which included $7.4 million for the fourth quarter.

Exploration expenditures for the fourth quarter and full year 2010 were $5.4 million and $21.6 million, respectively. As detailed in the exploration news release issued on February 24th, 2011, Hecla achieved the highest level of silver reserves and resources in its history with 142 million ounces and 248 million ounces, respectively. Updated reserves and resources at December 31, 2010 also include gold reserves and resources of 757,000 ounces and 450,700 ounces, respectively; lead reserves and resources of 556,200 tons and 1.2 million tons, respectively; and zinc reserves and resources of 859,000 tons and 831,900 tons, respectively.

Coeur d’Alene Basin Litigation

The negotiators representing Hecla, the United States, the Coeur d’Alene Indian Tribe, and the State of Idaho with respect to the Coeur d’Alene Basin environmental litigation and related claims have reached an understanding on proposed financial terms to be incorporated into a comprehensive settlement that would contain additional terms yet to be negotiated.

“Determining the financial terms of any settlement of this longstanding litigation is an important step forward in finally resolving this dispute,” said Mr. Baker. “While the cost is significant, we believe the terms are consistent with both our current plans and adding opportunities that will allow Hecla to grow further. We hope a final settlement can be achieved by the end of the second quarter.”

On February 18, 2011, the Idaho Federal District Court issued an Order giving the parties to the litigation until April 15, 2011 to inform the Court of the status of settlement negotiations. During this time period, the negotiators will work towards finalizing and agreeing to the settlement terms, followed by a recommendation for approval to their respective parties. If the parties are able to complete terms of settlement, it is expected that a Consent Decree would be lodged, followed by a public comment period of 30 days and a period for responses to those public comments. The Consent Decree would also require approval by the Idaho Federal District Court. If the Consent Decree is entered, Hecla would make the following payments:

* $102 million of cash and $55.5 million of cash or stock 30 days after entry of the Consent Decree
* $25 million of cash 30 days after the first anniversary of entry of the Consent Decree
* $15 million of cash 30 days after the second anniversary of entry of the Consent Decree
* $65.9 million by August 2014, as quarterly payments of the proceeds from the exercise of any outstanding Series 1 and Series 3 warrants (which have an exercise price of between $2.45 and $2.50 per share) during the quarter, with the balance of the $65.9 million due in August 2014 (regardless of the amount of warrants that have been exercised)

While the negotiators have reached an understanding on proposed financial terms, no party has agreed to any of these terms as final, nor has any party represented that any of these terms are final or agreed to. There can be no assurance that a final settlement will be reached.

Metals Prices

Realized metals prices increased significantly in 2010 compared to 2009. In the fourth quarter and full year, realized metals prices exceeded market prices primarily because of provisional price gains of $9.6 million in the fourth quarter and $16.6 million for the year due largely to increased precious metals prices in the time period between the shipment of concentrate and final settlement.


In spite of higher mine and mill throughput at both Greens Creek and Lucky Friday, silver production decreased slightly in 2010 due to lower silver ore grades at both operations, which was anticipated. However, production of lead and zinc, which are important by-products, increased to record levels in 2010 due to higher grades and ore volumes. Fourth quarter silver production was higher compared to a year ago mainly due to higher milled tonnage.

The key drivers for the reduction in total cash cost per ounce of silver year-over-year are higher metals prices and increased production of gold, lead and zinc. The increase in the fourth quarter total cash cost per ounce of silver, in comparison to the same period in 2009, is due to lower zinc and lead grades resulting in lower by-product credits.

Greens Creek

Full year silver production at Greens Creek was 7.2 million ounces, which included 1.9 million ounces in the fourth quarter, in comparison to 7.5 million ounces and 1.5 million ounces, respectively, in the same periods in 2009. The decrease in silver production year-over-year is due to lower silver ore grade. The lower silver grade, along with the higher zinc and lead ore grades, were expected and are due to differences in the sequencing of production according to the mine plan. The increase in silver production in the fourth quarter over the same period in 2009 is attributable to higher silver, gold, lead and zinc grades and recoveries, and increased mill throughput. The Company is working to optimize mill capacity at Greens Creek and has successfully increased throughput by approximately 10% since 2008 to 2200 tons per day, and will work towards increasing throughput to 2250 tons per day in 2011.

Total cash cost at Greens Creek for the full year was negative $3.90 per ounce, net of by-products and was negative $1.93 per ounce for the fourth quarter, net of by-product credits, compared to $0.35 and negative $4.85 per ounce, respectively, for the same periods in 2009. The increase in total cash cost in the fourth quarter over the same period in 2009 is due in part to lower by-product credits. The total decrease in cash cost per ounce of silver produced year-over-year was primarily due to increased by-product production credits, partially offset by higher treatment and freight costs, production costs, and production taxes. The higher treatment and freight costs in 2010 are due to increased price participation charges by smelters.

Lucky Friday

Full year silver production at Lucky Friday was 3.4 million ounces and 819,317 ounces in the fourth quarter, compared to 3.5 million ounces and 865,595 ounces, in the respective periods in 2009. The overall decrease in production year-over-year and quarter-over-quarter is primarily due to lower silver ore grade, which was expected. The operation achieved record lead and zinc production in 2010 with 21,619 tons and 9,286 tons, respectively, which included 5,356 tons and 2,214 tons, respectively, in the fourth quarter.

Total cash cost at Lucky Friday for the full year was $3.76 per ounce, net of by-product credits and $4.06 per ounce in the fourth quarter, net of by-product credits, in comparison to $5.21 and $3.10 per ounce, respectively, for the same periods in 2009. The decrease in total cash cost per ounce year-over-year is due to higher by-product credits resulting from higher lead and zinc prices, partially offset by higher employee profit sharing, production costs, expensed site infrastructure, and treatment and freight costs. The increase in total cash cost per ounce over the fourth quarter in 2009 is attributable to lower silver grades.

Michael Dexter, until recently the Lucky Friday General Manager, retired after 25 years with Hecla. “We are grateful for Mike’s valuable contribution and leadership over more than two decades,” said Mr. Baker. “Not only has Lucky Friday been operating for 69 years, but with the current proposed development of the #4 Shaft, the mine is expected to produce beyond 2030. This would not have been possible without the hard work and dedication of Mike and his team. We wish him all the best in his retirement and look forward to working with him as our community relations representative in the Silver Valley. We would also like to congratulate John Jordan, who will be taking the helm as General Manager, and guiding Lucky Friday to continued success. John was previously the Mine Superintendent at Lucky Friday and has 30 years experience in the mining industry.”

#4 Shaft Project

The #4 Shaft Project at Lucky Friday is progressing well and Hecla believes that the project could increase Lucky Friday’s annual silver production by approximately 60% from current levels and extend the mine life beyond 2030. Total estimated capital expenditures are expected to be approximately $200 million, for an internal shaft descending from the 4900 level to the 8800 level, with expected completion in 2014. As of December 31, 2010, approximately $50 million in total capital expenditures has been spent since inception of the proposed project, which includes $37.7 million spent in 2010. Capital expenditures for the #4 Shaft Project in 2011 are expected to be approximately $45 million. Final approval of the total project by Hecla’s board of directors could come as early as mid-2011.

In the fourth quarter, basic engineering work for a centralized refrigeration system was completed. The scope of work for the project was revised to include additional shaft depth from the 7800 level to the 8800 level. As of December 31, 2010, off-shaft development and shaft development have advanced a total of 5,359 feet and 78 feet, respectively. Construction of the hoist is proceeding with all major mechanical components installed and operational.


Hecla expects silver production in 2011 to range between 9 and 10 million ounces. Silver production is expected to be slightly lower in 2011 compared to 2010, due to lower silver grades, along with higher zinc and lead ore grades, which are all linked to mine sequencing at Greens Creek and Lucky Friday. Silver production is expected to increase in 2012 as grades increase at both properties. Total cash cost is forecast to be approximately zero dollars per ounce of silver produced, net of by-product credits, at current metals prices ($1,350 per ounce of gold, and $1.05 per pound of lead and zinc).

Capital expenditures in 2011 are expected to be approximately $100 million. Hecla expects to spend approximately $27 million in exploration in 2011.

Mr. Baker said, “One of our key areas of focus in 2011 will be to work towards enhancing our production pipeline through our aggressive exploration program in the four districts we dominate, and to bring new assets into the company via mergers and acquisitions. In addition to the development of the #4 Shaft Project at our Lucky Friday operation, which is expected to provide production growth beyond 2015, we are working towards increasing near-term and future production.”


Hecla's board of directors has elected to declare the regular quarterly dividend of $0.875 per share on the outstanding Series B Cumulative Convertible Preferred Stock, on a total of 157,816 shares outstanding. This represents a total amount to be paid of approximately $138,000. The cash dividend is payable April 1, 2011, to shareholders of record on March 15, 2011.

Thursday, February 24, 2011

Otis Releases Complete Mine Ridge 2010 Drill Results; 31 of 35 Holes Encounter Significant Gold Mineralization

Otis Gold Corp. is pleased to announce the receipt of significant drill results from the fifth and final grouping of its 2010, 35-core hole, 6,657-metre, Mine Ridge drill program located at its Kilgore Gold Project in Clark County, Idaho (see Table 1). Highlights of the 2010 Mine Ridge drill program include:

-- 31 of 35 holes contain significant ore-grade intercepts;
-- The deposit remains wide open to the north, northwest, south, and east,
resulting in significant potential for resource expansion;
-- The length of the deposit has increased by nearly 30 percent to 460
metres in a north-south direction; and
-- Mineralized thicknesses and average grades are generally greater than
those achieved in historic drilling.

"Otis' 2010 Mine Ridge drill results are exceptional," says Otis President & CEO Craig Lindsay. "Twelve of the thirty-five holes drilled lie along and help define the current known boundaries of the Mine Ridge deposit, indicating that it is open in a number of directions with excellent potential to expand the resource. Otis' 2011 work concerning Mine Ridge will concentrate on drill evaluation of these open-ended areas and the production of an updated NI 43-101 resource estimate that should enhance the qualified resource base for the deposit."

The fifth and final grouping of seven holes includes intercepts of 41.1 metres (m) of 1.00 grams per tonne gold (g/t Au) that includes 12.2 m @ 1.86 g/t Au in hole 10 OKC-231, 21.3 m at 0.72 g/t Au in 10 OKC-233, 13.7 m at 1.86 g/t Au in 10 OKC-234, and 27.4 m at 0.86 g/t Au in 10 OKC-236.

Of the 35 holes drilled in 2010, 31 contain significant gold mineralization (see Table 1). Collectively, results of Otis' 2010 drilling show the deposit has increased by nearly 30 percent in length to over 460 metres in a northerly/northwesterly direction throughout the core of the Mine Ridge target area and remains wide open to the north, northwest, south, and east. Examples of open intercepts to the north/northwest, where consistent thicknesses and grades exist, include 30.5 m @ 2.81 g/t Au in 10 OKC-220, 30.4 m @ 2.53 g/t Au in 10 OKC-210, 30.5 m @ 1.28 g/t Au in 10 OKC-218, and 27.4 m @ 0.86 g/t Au in 10 OKC-236. Examples of open intercepts to the south include 41.1 m @ 1.00 g/t Au in 10 OKC-231, 51.8 m @ 1.30 g/t Au in 10 OKC-238, and 42.7 m @ 1.37 g/t Au in 10 OKC-235. Open intervals also exist around the northern perimeter of the rhyolite dome immediately east of and proximal to the deposit and include 67.0 m @ 0.77 g/t Au including 13.7 m @ 2.88 g/t Au in 10 OKC-221 and 15.2 m @ 1.08 g/t Au in 10 OKC-224.

Locations of the fifth grouping of seven holes, which total 1,144 metres of drilling, and their corresponding assay intercepts, along with those for all of the Company's other 2010 Mine Ridge holes and its sixteen 2008 and 2009 holes, are shown in a drill-hole location map available on the Company's website,

Although approximately 25 percent of the 2010 project's 35 holes were drilled as condemnation holes (i.e., holes drilled with the intention of closing off and defining the outer limits of the deposit), only four holes, 10 OKC-216, 10 OKC-223, 10 OKC-225, and 10 OKC-230, are devoid of mineralization and fall into this category. All other holes drilled for condemnation purposes contain significant gold grades and thicknesses.

Based on results to date, Otis expects that there is a strong possibility to increase the overall size and economic viability of the Kilgore Mine Ridge deposit. The Company will be completing an updated NI 43-101 resource estimate on the deposit in 2011 that will reflect historical drilling by past operators as well as the drilling completed by Otis from 2008 through 2010. Additionally, three-dimensional computer modeling of the deposit is being initiated and is expected to be completed in 2011 after all the 2010 drill results have been incorporated into the database.

Currently, assays from 5 core holes drilled at Dog Bone Ridge are pending and will be available shortly.

Analysis and Otis QA/QC Program

All assay work was performed by ALS Chemex Labs, Vancouver, B.C., which has ISO 9001:2008 quality management system certification and ISO 17025:2005 Vancouver Lab technical capability accreditation. A 50-gram pulp of all samples was assayed for gold by Fire Assay/AA finish methods. Certified reference materials, duplicates, and blanks were inserted into the sample stream for quality control.

True bulk-tonnage widths are estimated to be between 90% and 100% of the drilled interval, based on their estimated dip, association with diking, and continuity of mineralization between drill holes. The HQ3-size core drilling was performed by Timberline Drilling, Inc., Coeur d'Alene, Idaho, employing two Sandvik DE-140 core drills outfitted with a triple-tube core recovery system and face-discharge bits.

Great Basin Gold Provides Update on Financing Activities and Unaudited Results for Q4 2010 and the Financial Year Ended December 31, 2010

Great Basin Gold Ltd. announces updates on the recently announced financing transactions as well as unaudited financial results for the quarter and the financial year ended December 31, 2010. The Company will file its audited financial statements for the year ended December 31, 2010 on or before March 31, 2011.

Finance transactions

The previously announced $75 million bought deal public offering, as well as the 15% over-allotment option, was closed on February 23, 2011 with the proceeds from this transaction mainly being utilized for working capital requirements during the production build-up at the Burnstone Mine.

The Company also executed the Credit Agreement relating to the previously announced US$60 million Term Loan Financing with Credit Suisse AG. The loan has a term of 4 years and is repayable in quarterly installments commencing September 2011, and will bear interest at a premium of 3.75% over the 3-month US LIBOR rate. The Company will execute a zero cost collar hedging program, consisting of a total of approximately 105,000 gold equivalent ounces (Au eqv oz) spread over a 4-year term, prior to draw down. Draw down on this facility is set for March 15, 2011 with approximately US$52 million to be applied towards full and final settlement of the Senior Secured Notes issued in December 2008.

Operating results

Fourth quarter (Q4) 2010 gold production of 31,911 Au eqv oz2 from trial mining activities at the Company's Hollister project was in line with expectations and an increase of 190% over third quarter (Q3) 2010 results. Revenue for the quarter totaled $43 million and $100 million for the fiscal year, an increase of $66 million year on year. Cash costs for the quarter (inclusive of royalties) decreased by 19% to $690 (US$670) per Au eqv oz and 11% to $563 (US$546) per ton from Q3 2010 and were in-line with estimates for the quarter. The Company's Esmeralda mill processed 27,553 tons during Q4 2010 and recovered 21,901 Au eqv oz. Recoveries for the quarter of 80% Au and 61% Ag are still below our targeted rate of 92% Au and 85% Ag due to the high metal content fouling the carbon in the process. This is being addressed by the installation of a carbon regeneration system and automation of certain components within the mill.

The Company achieved its first positive earnings per share of $0.02 during Q4 2010 (Q3 2010: $0.07 loss per share). The adjusted loss per share for the year ended December 31, 2010 decreased to $0.05, an improvement of 69% over the $0.16 adjusted loss per share reported in fiscal 2009.

Burnstone project update

Commissioning of all major capital projects at Burnstone was completed during January 2011 and the Company will be reporting revenue and production costs during Q1 2011. The Burnstone metallurgical plant is now available for commercial levels of production with the completion of the commissioning of the Carbon-in-Leach (CIL) circuit. Over 90,000 tons of lower grade development ore were milled in January 2011. The Burnstone Mine was ceremonially opened with a gold pour celebration by the South African Minister of Mineral Resources, Ms Susan Shabangu, on February 22, 2011.

Exploration update

At Hollister, the evaluation of the very high grade Blanket Zone material (November 9, 2010 news release) progressed during the quarter. Bulk sampling involved the successful extraction of some 500 tons grading on average 12 oz/ton Au eqv. An initial phase of underground drilling was initiated to determine the grade profile and strike continuity of the Blanket Zone style of mineralization exposed at 3000N 1E. As at February 21, five boreholes (each approximately 600 feet long) had been completed. A further 11 holes are planned for completion by the end of March 2011 to enable preliminary mineral resource modelling. The high grade (averaging >10 oz/ton Au) zones are directly related to vertical extensions into the Tertiary volcanic strata of narrow mineralised structures from the underlying Ordovician metasediments.

The first long flat underground borehole testing the Velvet area to the north of current infrastructure (HDB 432; EOH 2,800 feet) was completed on February 14, 2010. The borehole intersected a number of silicified and weak to moderately mineralized silicified zones and fault structures that are indicative of fluid circulation and alteration. As at February 22, a second hole had reached 1,520 feet depth with approximately 1,480 feet remaining to be drilled.

Underground drilling during Q4 2010 continued to gain positive results for the recently discovered SE Gwenivere vein system. Preliminary modelling of the vein system has been initiated.

At Burnstone, drilling within the 24-month mine plan area continued from underground and surface, providing detailed coverage of structural breaks and mining block infill valuation data. Other exploration was focused on maintaining mineral rights outside of the Burnstone Mine Mining Right.

Ferdi Dippenaar, Great Basin Gold CEO, commented: "We are very pleased with the operating results achieved during Q4 2010. This was the first quarter that we were able to demonstrate the operating potential of our Nevada operations with our Esmeralda mill able to process all material from trial mining at Hollister. Burnstone achieved a significant milestone by completing the commissioning of all major capital projects and thereby concluding its project construction phase in January 2011. With underground development rates increasing, we are gaining momentum to deliver on our production targets in a safe and efficient manner. The closing of the public offering as well as the execution of the Credit Agreement for the US$60 million Term Loan Financing provides us with the required working capital to finance the planned production build-up at Burnstone. The higher revenue from increased production in 2010 resulted in our adjusted loss per share reducing by more than 69% in 2010; we expect further operational and financial improvements for fiscal 2011 with Burnstone starting to contribute to our bottom line."

Johan Oelofse, Pr.Eng., FSAIMM, Chief Operating Officer and Phil Bentley, Pr. Sci. Nat , Vice President: Geology and Exploration of Great Basin, both Qualified Persons, as defined by regulatory policy, have reviewed and assumed responsibility for the technical information contained in this release.

No regulatory authority has approved or disapproved the information contained in this news release.

Cautionary and Forward-Looking Statement Information

This document contains "forward-looking statements" that were based on Great Basin's expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should" and similar expressions.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These include but are not limited to:

* uncertainties and costs related to the Company's exploration and development activities, such as those associated with determining whether mineral resources or reserves exist on a property;
* uncertainties related to Technical Reports that provide estimates of expected or anticipated costs, expenditures and economic returns from a mining project; uncertainties related to expected production rates, timing of production and the cash and total costs of production and milling;
* uncertainties related to the ability to obtain necessary licenses, permits, electricity, surface rights and title for development projects;
* operating and technical difficulties in connection with mining development activities;
* uncertainties related to the accuracy of our mineral reserve and mineral resource estimates and our estimates of future production and future cash and total costs of production, and the geotechnical or hydrogeological nature of ore deposits, and diminishing quantities or grades of mineral reserves;
* uncertainties related to unexpected judicial or regulatory proceedings;
* changes in, and the effects of, the laws, regulations and government policies affecting our mining operations, particularly laws, regulations and policies relating to
o mine expansions, environmental protection and associated compliance costs arising from exploration, mine development, mine operations and mine closures;
o expected effective future tax rates in jurisdictions in which our operations are located;
o the protection of the health and safety of mine workers; and
o mineral rights ownership in countries where our mineral deposits are located, including the effect of the Mineral and Petroleum Resources Development Act (South Africa);
* changes in general economic conditions, the financial markets and in the demand and market price for gold, silver and other minerals and commodities, such as diesel fuel, coal, petroleum coke, steel, concrete, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar, Canadian dollar and South African rand;
* unusual or unexpected formation, cave-ins, flooding, pressures, and precious metals losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks);
* changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates;
* environmental issues and liabilities associated with mining including processing and stock piling ore;
* geopolitical uncertainty and political and economic instability in countries which we operate; and
* labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mines, or environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt the production of minerals in our mines.