Goldsource Mines Inc.
TSX VENTURE : GXS

Goldsource Mines Inc.

August 05, 2008 09:36 ET

Goldsource Intercepts 36.8 Metres of Continuous Coal: Border Property, Saskatchewan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2008) - Goldsource Mines Inc. (the "Company") (TSX VENTURE:GXS) announces that it has completed hole BD08-05, offset hole BD08-03A and hole BD08-07 at the Border Property near Hudson Bay, Saskatchewan (see attached drill plan, available at: http://media3.marketwire.com/docs/gxs0805plan1.pdf).



- BD08-05 36.8 metre coal seam with 36.8 metres of continuous coal
with minor partings.

- BD08-03A 25.2 metre coal seam with 22.1 metres of continuous coal
with minor partings.

- BD08-07 3.0 metres mudstone/sandstone with coal.


Hole BD08-05 was drilled approximately 3.0 kilometres to the northeast of BD08-02, and approximately 4.5 kilometres to the northwest of initial discovery hole BD08-03. The hole was drilled to a depth of 133.5 metres and intercepted a 36.8 metre coal seam from 78.2 - 115.0 metres. The coal is continuous over this interval with only minor visible partings. The coal in BD08-05 is black, hard and dull to bright and appears comparable in most respects to that of the intercept of discovery hole BD08-03 which was ranked as sub-bituminous to bituminous.

Hole BD08-03A was drilled approximately 50 metres east of discovery hole BD08-03. The hole was drilled to a depth of 141.5 metres and encountered a coal intercept of 25.2 metres between 80.3 metres and 105.5 metres. A continuous coal interval of 22.1 metres was encountered from 80.3 - 102.4 metres with minor partings and the remaining 3.2 metres being mixed coal and sandy siltstones. The hole was drilled as an offset to discovery hole BD08-03, which intercepted 27.1 metres of coal including 22.6 metres of continuous coal. The purpose of the hole was to obtain additional samples for analyses and a down-hole geophysical log of the entire stratigraphic section. The coal in BD08-03A is black, hard and dull to bright with few visible partings and appears comparable in most respects to that of the intercept of discovery hole BD08-03 which was ranked as sub-bituminous to bituminous.

Hole BD08-07 was drilled approximately 4.5 kilometres southwest of discovery hole BD08-03 and 3.5 kilometres southwest of hole BD08-02 (see attached drill plan, available at: http://media3.marketwire.com/docs/gxs0805plan1.pdf). The hole was drilled to a depth of 101.0 metres and encountered 3.0 metres of mudstone and sand stone with coal from 52.5 - 55.5 metres. The hole was drilled to test a geophysical anomaly that had a slightly different set of parameters than previous holes that encountered broad intercepts of coal and to determine the nature of the basin at this point. It appears that the hole was drilled on the margins of a basin and the seam has thinned to the southwest in the 3.5 kilometres from the 23.2 metre coal intercept in hole BD08-02.

The Company cautions against placing undue reliance on the visual observations of the coal until the results of the analytical work have been announced.

J. Scott Drever, President stated; "We believe that these holes have important implications in determining the potential extent of the Durango coal seam. The coal intercept in BD08-05 is the thickest, continuous, apparently undisturbed coal interval encountered to date. By any standard, this is a huge coal intercept and is 12.0 metres thicker than the thickest interval of continuous coal we have yet encountered. To put this in context, the continuous coal interval in BD08-05 is approximately the height of a 12 story building, with virtually no interruption in the depositional process. The information from each hole helps to establish our geological interpretations, improve our reliance on the available geophysical data and enable us to begin to determine the dimensions of what is developing as a unique and significant coal discovery."

Hole BD08-06A is currently being drilled approximately 100 metres west of discovery hole BD08-06 (see attached drill plan). This hole is being drilled as an offset to discovery hole BD08-06, which intercepted 34.2 metres of coal including 24.0 metres of continuous coal. The purpose of this hole is to obtain additional samples for analyses and a down-hole geophysical log of the entire stratigraphic section.

N. Eric Fier, CPG, P.Eng. and Qualified Person for this news release has reviewed and approved its contents.

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of coal permits and mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in commodity product prices; currency fluctuations; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

On Behalf of the Board of Directors of Goldsource Mines Inc.

J. Scott Drever, President

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

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