Greenock Resources Inc.
TSX VENTURE : GKR

Greenock Resources Inc.

October 29, 2009 14:41 ET

Greenock to Acquire Gold Properties in Nevada

TORONTO, ONTARIO--(Marketwire - Oct. 29, 2009) - Greenock Resources Inc. (TSX VENTURE:GKR) ("Greenock") is pleased to announce it has completed a letter of intent ("LOI") with District Gold Inc. ("District") a private company to acquire 100% of the Needles Project situated in the State of Nevada.

The Needles Project is located in the historic Reveille Range, Nye County, on the Southern Extension of the Battle Mountain – Eureka gold trend. The property consists of 109 contiguous unpatented lode claims in the Arrowhead Mining District and is approximately 40 miles southeast of the Barrick – Kinross Round Mountain gold mine in Nevada. The property has zones of epithermal gold and silver mineralization that were mined between 1919 and 1939. Subsequent limited exploration has identified other mineralized zones that require further exploration.

Greenock will acquire 100% of the Needles Project from District for: i) 1,000,000 shares of Greenock; ii) a three year promissory note for $1,000,000 in favour of District bearing an annual 2% interest rate, and secured by Greenock's interest in the Needles Project; and iii) a 2% Net Smelter Royalty ("NSR") on the Needles property with the Greenock retaining the right to re-acquire a 1% NSR. This acquisition is subject to completing a definitive agreement and receiving all necessary regulatory and exchange approvals.

Greenock believes that this property offers a high potential exploration opportunity for precious metal mineralization. The geology, structure and history of the property suggest an epithermal mineral deposition model similar to Round Mountain. The historical mining was limited to and concentrated on what appears to be high grade zones. Greenock will be completing a NI 43-101 report on the property that will recommend an exploration program to be undertaken.

Nevada produced 6 million ounces of gold in 2008 making it the largest gold producing state in the United States accounting for approximately 8.7% of the world. Nevada has an active mineral development sector with appropriate infrastructure and has some of the largest gold mines in the world. The Round Mountain mine has produced in excess of 10 million ounces of cumulative gold production.

Greenock is continuing discussions with a number of international prospective investors who are considering potential direct investment into the Company's Kakanda copper project located in the Democratic Republic of the Congo ("DRC"). The investors are conducting their due diligence including site visits to assess the project.

Greenock has completed a reorganization of its Australian projects to allow a focus on the Needles Project. The Lambina property in South Australia has been sold to a private company Raisama for 3,000,000 shares with 1,000,000 shares being sold to third party investors to pay expenses. Raisama is a new uranium exploration company that has a number of high potential exploration properties in South and Western Australia. The company is in the process of completing a listing on the Australian stock exchange. The Merlot property is 100% owned by Greenock and has minimal future work commitments and cash carrying costs. Greenock is in ongoing discussion with a number of parties about joint venturing or selling Merlot. The Mt. Sarah and Mt. Narlee joint ventures have been terminated and the properties returned to the owners.

About Greenock:

Greenock Resources Inc. (formerly Simberi Mining Corporation) is a Canadian based international mineral development company that focuses on developing a portfolio of natural resource properties. Greenock has 17.1 million shares outstanding.

Greenock's main development project is the Kakanda Copper/Cobalt project in the Democratic Republic of the Congo that is a joint venture with Gecamines, the Congolese state mining company (Greenock 70% Gecamines 30%). This copper/cobalt deposit in the Central African Copper Belt is adjacent to the Tenke Fungurume project presently being developed by Freeport McMoRan Gold & Copper Company and Tenke Mining Corp.

The Kakanda tailings project has NI 43-101 measured and indicated resources of 18.5 million tonnes with an average grade of 1.25% copper and 0.15% cobalt. Adjacent hard rock deposits have a historical resource of 18.6 million tonnes with an average grade of 3.19% copper and 0.19% cobalt.

Greenock's holdings in Australia are the nickel and platinium group metal exploration property Merlot and a shareholding in the uranium exploration company Raisama. Raisama has acquired a number of high potential exploration projects including Lambina from Greenock and the Sunday Creek uranium property in Western Australia that is adjacent to the Kintyre uranium property currently being developed by Cameco.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". Michael Newbury, P.Eng., is the qualified person who has reviewed this material on behalf of the Company. All dollar amounts are noted in Canadian dollars unless otherwise stated in this release.

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

Contact Information