Cache Exploration Inc.
TSX VENTURE : CAY

Cache Exploration Inc.

June 18, 2010 10:08 ET

Cache Expands Louil Hills Rare Earth Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 18, 2010) - Cache Exploration Inc. (TSX VENTURE:CAY) is pleased to announce that the Company has commenced a 2010 work program on the Louil Hills REE Property in Newfoundland. The program is being conducted under the guidance of Dr. David Lentz, P.Geo., a director of Cache. Dr. Lentz has completed a detailed review of historical data on the property and recommended that the claim block be expanded at the Louil Hills REE Property. An application was filed on May 10, 2010 for 57 claims additional to the existing 37 claims under option in the Louil Hills Property (March 5 and 8 news releases). These additional claims were granted on June 9, 2010.

Detailed geological mapping, sampling, geochemical, and geophysical surveys and drilling were completed by Cornerstone Resources Inc. (Hutchings, 1998) in their search for copper mineralization in the area. Cornerstone Resources' exploration revealed Zr-Nb-Y mineralization, as well as Cu and Pb mineralization.

The results found in this review of historical data and the current ongoing exploration results by Kat Exploration on their adjacent property has been very successful in identifying anomalies in the Louil Hills area that suggest the potential for a body of iron oxide with base metals, precious minerals and rare earth mineralization similar in style and setting to the giant Olympic Dam deposit in Australia.

Olympic Dam style deposits all occur within continental rift sequence rocks adjacent to major structures. The Louil Hills REE Property is located within a continental extensional environment within peralkaline rocks emplaced adjacent to a regional fault system. The presence of a large magnetic body that appear to be intrusive into the overlying rock sequence that appear regionally altered, are variably pyritic and contain vein type fluorite mineralization and appears to suggest a magmatic origin for the mineralization.

KAT Exploration recently completed an exploration program on ground adjacent to the Louil Hills REE property and stated "Anomalous levels of the Light Rare Earth Elements (LREE) cerium and lanthanum, all present in Olympic Dam (and others) were not only detected in soils but also in rock samples as well. In addition, the soil geochemistry also produced anomalies in silver, gold, copper."

A report titled Rare Earth Targets in Insular Newfoundland, published by the R.R. Miller of the Mineral Deposits Section of the Geological Survey of Newfoundland (1989) states on page 176, that the Louil Hills area:

"Have the best Yttrium-Niobium potential of any volcanic rocks sampled in insular Newfoundland. Evaluation of the rare metal potential of the Louil Hills peralkaline granite could be accomplished with a relatively minor lithogeochemical and prospecting program"

Cache Exploration will mobilize a ground crew to conduct a Phase 1 exploration program that will consist of scintillometer prospecting, geological reconnaissance, and collection of surface samples. The surface samples will be submitted for pulping and sieving for INAA and ICP analysis. The purpose of Phase 1 is to identify potential drill targets for a Phase 2 follow up program in the fall.

Dr. David Lentz states that "based on what I have seen to date, I believe that the Louil Hills area holds potential for an IOCG target (Iron oxide copper-gold) containing iron oxide with base metals, precious minerals, and rare earth type mineralization, similar in style and setting to the giant Olympic Dam deposit in Australia."

Additional Information

Cache Exploration is a well funded company with a focus on exploring for REE deposits. In addition to the expanded Louil Hills REE Property in Newfoundland, the Company has the Cross Hills REE Property in Newfoundland which is adjacent to the Rockbridge Resources Inc. REE Property. Cache also has the two Welsford REE Properties in New Brunswick. All four Cache REE properties have proximity to available infrastructure and are considered to have excellent potential for rare earth mineralization.

Additional information concerning Cache Exploration is available at www.sedar.com and on the Cache website at www.cacheexploration.com. For additional information please contact info@cacheexploration.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contact Information