Gulfside Minerals Ltd.
TSX VENTURE : GMG

Gulfside Minerals Ltd.

August 14, 2009 19:55 ET

Gulfside Minerals Ltd.: Onjuul Project NI 43-101 Filed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2009) - Robert L. Card, President of Gulfside Minerals Ltd. (TSX VENTURE:GMG) ("Gulfside" or the "Company"), is pleased to report that the Company has filed the preliminary National Instrument (NI) 43-101 technical report (the "NI 43-101 report") received from Norwest Corp. of Salt Lake City, Utah ("Norwest"), relating to the Onjuul Coal Project in Mongolia. This report will be posted on the Company's new website (www.gulfsideminerals.com) and will also be available on the SEDAR network. The Company has conditional approval from the TSX Venture Exchange for the acquisition, subject to closing of the announced financing.

Robert Card, President and CEO states:

"I am very pleased about the results reported in this first NI 43-101 report and excited about the opportunity that the Onjuul Property outlines for the Company. The Company will continue to confirm resources in its summer drill program, to be able to report on the full amount of coal available on the property step by step, resulting in a complete NI 43-101 report, which will describe the quality of this property. The full report is estimated to be completed by the end of the year. Until then, we will keep our shareholders updated about the drilling program and received results in further news releases."

The NI 43-101 report outlines the history and findings of the previous work done on the property and its historical significance. The Company would like to provide a summary of this report:

Norwest visited the Onjuul Property on July 23, 2009. During this site visit the author observed evidence of past exploration activities such as steel surface casing for drill holes and trenches in the north of the properties of interest. Observations were also made of coal outcrops, although coal thicknesses were not discernable. The majority of the area however is overlain by alluvial material obscuring outcrops. Norwest has prepared this NI 43-101 technical report at the request of Gulfside. As requested, this Technical Report has been prepared in accordance with the current requirements of NI 43-101, including topics specified in Form 43-101F1. The purpose of the report is to describe the current, historically reported coal geology and coal quality of the Onjuul Property and present other aspects pertinent to the project's assessment.

In previous drilling by the Russian/Mongolian team in 1973, 15 holes totaling 917.5 meters were drilled. Limited exploration drilling took place on the exploration license during the 1970's as part of the government exploration programs headed by P.B. Lamatkhanov and D. Dashtseren. A private company, Chingis Khar Alt LLC drilled two holes in 2005. Total drilling to date includes 17 boreholes for a total of plus 918 m, as summarized in the table below. Hard copies of drillers or geologist logs, descriptions of coal outcrop openings or excavated trenches were not available for verification, therefore drilling depths and coal intercepts were from the reports obtained from Mongolian public domain information.



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ONJUUL COAL EXPLORATION DRILLING ACTIVITY
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Core Drilling
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No. Meters
Operator Year Holes Drilled
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Russian-Mongolian Geologists 1970's 15 917.5
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Chingis Khar Alt LLC 2005 2 (i)
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Totals 17 917.5
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(i) Total depth of holes not available
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The historical coal intercepts were presented on maps and cross sections in the reviewed reports. It is not known if the holes were geophysically logged. All coal sampling and analysis was conducted by personnel performing the historical geological studies of the Onjuul area. Analytical work reportedly was performed by Central Chemical Laboratory of the Ministry of Fuel Energy and Geology, Mongolian People's Republic. The Company's licenses cover an area of 2156 hectares. All the previous work was done on about 25% of the Company's present License area.

Norwest conducted the following tasks in order to describe the geology and provide a range of potential coal quantity and quality estimates presented in this report:

Mongolian public domain information was collected and compiled to provide a geologic overview and to identify potential resource development opportunities. Geologic maps were merged to form a single, cohesive map of each particular license area. All coordinates were converted to Latitude/Longitude decimal degrees and plotted on referenced GIS maps. Literature and data from both Mongolian and Norwest sources were reviewed and compiled. Specific conclusions and recommendations were drawn from this work and are included in the following sections of this report.

The Onjuul Property is defined by Mineral Exploration Licenses (MEL) 6107X, 9304X and 12835X. The property is located as shown on Figures 4.1 and 4.2, of the Report and covers an area of 2,156 ha. Exploration efforts over the past 70 years have shown that the MEL is underlain by a potentially thick lignite deposit.

This NI 43-101 utilizes historical data collected at Onjuul by Russian and Mongolian Geological parties obtained from Mongolian public domain information. That information consisted of drill hole and outcrop trenching data collected intermittently over the past 70 years. Historical geological data was presented on maps and cross sections.

Early exploration of the deposit occurred during the 1940's and 1950's under Russian-Mongolian mapping teams. Excavations and exploratory boreholes conducted in the 1970's indicated the potential for thick lignite in the area of the MELs. In the late 1980's or early 1990's Dr. D.Baterdene et al estimated in place tonnages for the Onjuul region. Geologists for Chingis Khar Alt LLC drilled two holes in 2005 on the 9304X license.

A summary table of coal inventory titled 'Mongolian Coal Basins and Deposits' list the Onjuul Coal Field as containing the following Mongolian resources:

P1 resources of 232 M tonnes,

P2 resources of 1,017.9 M tonnes

P3 resources of 271.4 M tonnes

for a total of 1,521.3 M tonnes.

These are potential tonnes for the Onjuul property and include licensed and non-licensed areas in the vicinity of the subject MEL. Norwest and Gulfside representatives independently have met with Dr. D.Baterdene, Advisor to the Chairman of the Mineral Authority of Mongolia, who verbally confirmed that the table 'Mongolian Coal Basins and Deposits' is from his work of the late 1980's to early 1990's. Dr. D.Baterdene indicated that a corresponding summary report was prepared. However to date, the full summary report has not been located, only the corresponding coal inventory summary table.

Future exploration

Future exploration efforts should focus on the drilling of several "twin" holes adjacent to older holes, down dip and in-fill drilling as well as exploring license 12835X. This additional exploration will validate historic seam thickness data and further define seam correlations, continuity and geometry. All new exploration holes should be geophysically logged to confirm lithologies and thicknesses. Analysis of representative samples of the coal seams for thermal and processing properties is recommended. Acquisition of preliminary hydrologic and geotechnical data should also be conducted during the exploration activities. The accuracy of resource and reserve estimates is, in part, a function of the quality and quantity of available data and of engineering and geological interpretation and judgment. Given the data available at the time this report was prepared was from unverifiable historical documents, the estimates presented herein are not considered to be NI 43-101 compliant.

Therefore additional data and analysis available subsequent to the date of this report will necessitate revision of the presented potential tonnages. These revisions may be material. There is no guarantee that all or any part of the estimated potential tonnages will be recoverable.

Interpretation and conclusions

A NI 43-101 technical report has been prepared on the properties by Norwest, which reports utilizing unverifiable data from maps and cross sections presented in historical documents has estimated the ranges of preliminary potential in place tonnages to be 159 - 178 million tonnes within the license areas.

The Onjuul Property is located within the Onjuul Basin in Mongolia. The Onjuul Property consists of three mineral exploration licenses that upon closing will be fully owned by the Company. The area of the present drilling covered 25 % of the Onjuul Property. Though not clearly defined, it is estimated that the license areas summarized as the Onjuul Project/Property may cover approximately 10% of the entire Onjuul Basin. All historical coal occurrences are currently located on the Company's licenses.

The coal occurrence on the Onjuul Property can be divided into four distinct seams. Coal thickness ranges from 0.2m to 31.9m throughout the area. Numerous rock partings are observed within the seams. Structural modification of the deposit reportedly has been minimal. The coal is classified as Lignite A in rank based on the available data. The Geology Type for the area has been determined to be "Moderate" based on criteria set forth in the GSC Paper 88-21 and the interpretation of the Qualified Person. The historical documents did not contain stripping ratios (waste volume/tonne). However given that the coal seams considered in this report crop/subcrop, range in thickness from 0.5 to 31.9 meters and in general occurs at depths less than 100 meters the deposit is considered to be a "Surface" deposit type. Exploration focused on data validation and infill drilling is recommended to better understand seam correlations, continuity and geometry in order to potentially define a resource within the subject MEL. Further analysis of coal seam samples for thermal and processing properties is recommended. Hydrologic and geotechnical data should also be collected during the next phase of data validation and exploration.

Norwest, after having reviewed all the technical data available on the project, has concluded that the prospect should be explored further and has recommended a program of diamond drilling estimated to cost US$962,000. Norwest recommends a drilling program that would consist of approximately 4000 meters in 20 geotechnical/coal quality core holes and three hydrologic pump test locations.

The drill program will take approximately three months to complete and may be accelerated if equipment is available.

John Jenks, BSc., PEng, a Director of the Company and a Qualified Person under NI 43-101 has reviewed the contents of this news release.

Disclaimer : The Company wishes to clarify that the potential tonnage estimates for Onjuul are based on historical data. A qualified person has not done sufficient work to classify the potential tonnage estimates as current mineral resources, the Company is not treating the potential tonnage estimates as current mineral resources and the potential tonnage estimates should not be relied upon. There has been insufficient exploration to define a resource, it is uncertain if further exploration will result in the discovery of a mineral resource and there is no guarantee that all or any of the estimated potential tonnages will be recoverable. The potential quantity and grade of the coal at the Onjuul is conceptual in nature.

On behalf of the Board of Directors

Gulfside Minerals Ltd.

Robert L. Card, President

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning GMG's planned exploration program in Mongolia and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although GMG believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian securities regulators.

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.

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