Gold Summit Corporation
TSX VENTURE : GSM

Gold Summit Corporation

January 14, 2010 09:00 ET

Gold Summit Options High Grade Greenstone Gold Prospect in NW Ontario

RENO, NEVADA--(Marketwire - Jan. 14, 2010) - Gold Summit Corporation (TSX VENTURE:GSM) ("GSM" or the "Company") announces that it has signed an agreement to option the Tabour Lake greenstone gold prospect located in Melgund Township, Kenora Division, Ontario, and consists of 23 units.

The property surrounds the old Sakoose mine where past production of 8,000 tons at a grade of 16 g/t gold is recorded from three shallow shafts in the early 1900's. Subsequent intermittent underground and surface exploration has traced gold mineralization approximately 200 metres down a west-south-west plunging shoot. A total of 20 drill intercepts have intersected widths (not true) ranging between 6.8 and 0.27 metres with grades ranging between 0.6 to 146 g/t gold, according to a compilation of previous drill results by the Ontario Geological Survey. The mineralized shoot is open down plunge to the south west and drilling for extensions is planned.

The terms of the lease to acquire a 100% undivided interest, subject to a 2% NSR, require total payments of $100,000 cash and 300,000 GSM common shares over a four year period with an initial payment of $10,000 and 75,000 common shares. GSM has the option to purchase 1% of the NSR for $1 million. The issue of shares is subject to TSX Venture approval.

The Tabour Lake property also contains the Maw gold occurrence that lies 200 m southeast of the Sakoose Mine, on opposite sides of a synclinal fold at the contact between mafic metavolcanic and metasedimentary rocks. Gold mineralization occurs in quartz veins associated with felsic intrusive rocks in the contact zone, a classic Archean greenstone gold setting.

Commenting on the acquisition, Gold Summit CEO, Dr. Anthony P Taylor, said: "although this is a departure from our Nevada exploration of epithermal systems the Tabour Lake property, along with our existing Surprise Lake prospect east of Red Lake, is a good fit in terms of high grade underground gold targets. Ontario is a mine friendly jurisdiction that encourages exploration and development with financial incentives and this provides Gold Summit with a measure of geographical and geological diversity. We also have, among our group of very experienced explorers, considerable worldwide experience in greenstone geology"

GSM currently explores primarily in Nevada for high grade gold and gold/silver deposits that would support underground, low cash cost operations. GSM has recently announced resources at the Monte Cristo and Tip Top properties and holds part of four more Tertiary epithermal vein districts, all with drill ready targets defined by surface work. All GSM properties have potentially economic gold and or silver grades in outcrops or discovery drill holes.

On December 14, GSM announced preliminary results from a NI 43 101 compliant study on the McLean Lode at Monte Cristo to be filed in January 2010. The new inferred global resource there amounts to 278,923 ounces of gold contained in 1,923,391 tonnes at a grade of 4.5 g/t gold at a 1.0 g/t gold cut-off. At a 5.0 g/t gold cut-off, the inferred global resource amounts to 173,939 ounces gold contained in 364,767 tonnes at a grade of 14.83 g/t gold. Additional variography and statistical studies are in progress to produce resource estimates at 2.0, 3.0 and 4.0 g/t gold cut off grades.

The Sugarloaf Peak Prospect in Esmeralda County, Nevada, includes the old Tip Top Mine, the subject of a NI 43-101 compliant report, filed November 10, 2009. The Tip Top Mine has indicated and inferred resources of 646,234 tonnes grading 2.9 g/t gold at a 1 g/t gold cut off. Results from column leach metallurgical tests of 6 samples, approximately 40 kg each, collected in and around the old Tip Top adit will soon be available. The resource outcrops and exploitation by open pit-heap leach operation is under evaluation with potential partners.

Gold Summit also retains an option on the Surprise Lake greenstone gold property east of Red Lake in south west Ontario. The property has numerous surface gold showings and strong iron carbonate alteration in typical greenstone volcanic host rocks that warrants surface mapping and geochemical work.

The Company has agreed to convert $8,000 owed to the optionor of the Surprise Lake property as an annual payment under an option agreement dated October 29, 2008 into 40,000 common shares at a deemed price of $0.20 per share. Pursuant to the agreement, GSM will has an option to acquire a 100% undivided interest, subject to a 2% net smelter royalty, in the group of 32 claim units in Corless Township. The common shares to be issued will be subject to a four-month hold period from the date of issuance. The issuance of the common shares will not result in a change of control. The transaction is subject to approval by the TSX Venture Exchange.

Larry Kornze, a GSM director and a registered Professional Geologist, designated as the Qualified Person under National Instrument 43-101 has reviewed and approved the contents of this news release.

The 43-101 report on Monte Cristo is authored by Nicole Preuss, M.Sc., LG, M. Aus IMM, a Qualified Person, defined in National Instrument 43-101 Standards of Disclosure of Mineral Projects, licensed in the State of Washington.

First Canadian Capital Corp. – Investor Relations -Contact Jason Monaco: jmonaco@firstcanadiancapital.com; tel 416-742-5600 or 866-580-8891

This news release contains forward-looking statements. These statements are based on information currently available to GSM and GSM provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe GSM's future plans, objectives or goals, including words to the effect that GSM or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of GSM's mineral properties, and GSM's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of GSM's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on GSM's forward-looking statements. GSM does not undertake to update any forward-looking statement that may be made from time to time by GSM or on its behalf, except in accordance with applicable securities laws.

This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources and reserves, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information