G4G Resources Ltd.
TSX VENTURE : GXG

G4G Resources Ltd.

August 05, 2008 09:00 ET

G4G Resources Announces Update on Iron Ore Exploration Program in Sweden

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2008) - G4G Resources Ltd. (TSX VENTURE:GXG) ("G4G") today approved an additional US$350,000 for the 2008 drill program in Sweden. This brings the total expenditure to US$1.1 million to drill 3,000 metres and will upgrade the historical iron ore resource at the Junosuando occurrence at the Masugnsbyn project area to the measured resource category under NI 43-101. The historical resource at Junosuando reported by the Geological Survey of Sweden is 60 million tonnes grading between 25% and 30.7%.

There are eight properties under option from Teck Cominco Limited's wholly owned subsidiary TCL Sweden Ltd. ("TCL Sweden"), located in the Norrbotten District of northern Sweden. On three of the project areas under option (Masugnsbyn, Vittangi and Vathanvaara), the Geological Survey of Sweden estimates a combined resource of 134.2 million tonnes of iron ore grading between 25% and 39.7% Fe. (Note: The historical resource numbers for the properties have not been verified by a Qualified Person under NI 43-101). (Refer to news release of June 10, 2008). Norrbotten is a world-class mining district which hosts the Kiruna and Malmberget iron ore mines.

It is anticipated that the drill program will commence by early October, 2008 and will be completed by the end of January, 2009. The first set of drill results will be released in early January 2009. G4G has engaged the services of Suomen Malmi Oy to conduct the drilling on the Masugnsbyn and Fjallasen properties.

"Not only is Sweden an exciting and mining friendly country to be working in, but the fact that one can work in most parts of the country all year round is a real bonus," stated Basil Botha, President & CEO of G4G Resources Ltd. "Logistically, Sweden has excellent infrastructure, whereby all the properties can be accessed by existing roads. Coupled with an excellent work force in Sweden, this gives management a great deal of confidence in the 2008/2009 drill program. The objective is clear; management is looking to bring the historical resources under the option agreement with TCL Sweden into the NI 43-101 compliant category."

Preliminary assessment of the historic drill core and location of original drill collars is being undertaken by Dr. Damien Foster, Senior Project Geologist for G4G. Mr. Christopher K. Hutchings, P. Geo., is the qualified person for the program and will be in Sweden during August, 2008 to begin the assessment work in order to upgrade the resource into the measured category under NI 43-101.

The exploration program described in this news release is being conducted under the supervision of Mr. Christopher K. Hutchings, P. Geo., who is the qualified person as specified in National Instrument 43-101 for technical disclosure. Mr. Hutchings has reviewed and approved the technical information contained in this news release.

Cautionary Statement

Work performed on the properties has been insufficient to classify historical estimates as current resources. Historical resource tonnage and grades for Masugnbyn, Vittangi and Vathanvaara iron occurrences have not been verified by a Qualified Person under NI 43-101 requirements. The Company, therefore, is not treating historical resource estimates as current estimates and investors are cautioned not to rely upon historical estimations.

About G4G Resources

G4G Resources is a Canadian-based mineral exploration and development company focused on iron ore and iron production projects. On March 31, 2008, the Company announced the signing of an agreement with TCL Sweden Ltd., a wholly owned subsidiary of Teck Cominco Limited, for G4G to option eight mineral properties in the Norrbotten iron ore mining district of Sweden. On July 7, 2008, the Company announced a joint venture with Iron Mineral Beneficiation Services (Pty) Ltd (IMBS) to establish joint ventures to utilize Finesmelt™ technology, a process which converts iron ore fines into high quality iron units. On July 14, 2008, the company announced the formation of a strategic partnership Crusader do Brasil Mineracao Ltda., a wholly owned subsidiary of Crusader Holdings NL, under which the companies will work together to acquire iron ore fines in Brazil as feedstock for the production of saleable iron units. Additionally, G4G is evaluating a number of other strategic growth opportunities to create and enhance shareholder value.

Forward-Looking Statement

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to G4G Resources Ltd., please refer to the Company's 2007 Annual Report filed with SEDAR on April 23, 2008.

Should you wish to receive Company news via email, please email ir@g4gresources.com and specify "G4G News" in the subject line.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information