Hudson Resources Inc.

Hudson Resources Inc.

January 17, 2007 15:58 ET

Hudson's Initial Bulk Sample Results Significantly Diamondiferous

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2007) - HUDSON RESOURCES INC. ("Hudson") (TSX VENTURE:HUD) is pleased to announce diamond results from the 350 kg representative sub-sample of the 50 tonne bulk sample extracted from the Garnet Lake kimberlite dike in Greenland. The sample, which was processed using caustic fusion, yielded a total of 350 diamonds including seven commercial sized stones. The results confirm that the site of the bulk sample is significantly diamondiferous and remarkably consistent with previous diamond results from the dike. They also highlight the abundance of macrodiamonds within the kimberlite dike and demonstrate that they occur quite consistently across a large portion of the dike tested to date. Hudson management is very encouraged by these initial results and the potential for a significant number of diamonds to be recovered in the entire 50 tonne bulk sample.

"These results are significant because they represent a cross section of the larger 50 tonne sample which is being processed by dense media separation," stated James Tuer, President of Hudson. "The 350kg sample for processing by caustic fusion was collected during the extraction of the 50 tonne bulk sample in September 2006. Freshly exposed kimberlite samples were randomly selected each day during the extraction of the bulk sample to ensure it was representative of the bulk sample. The samples for caustic fusion analysis were placed in a double sealed bulk bag and shipped to SGS Mineral Services with the bulk sample."


Kimberlite Weight Diamonds in Square Mesh Sieve Sizes Total
Sample (kg) (microns) Diamond
+106 +150 +212 +300 +425 +600 +850 +1180 +1700
GBF-CF-01(1) 349.7 125 105 60 34 14 5 5 2 350
2004-2006(2) 377.1 114 88 69 39 24 7 5 2 2 350
----- --- -- -- -- -- - - - - ---
Garnet Lake(3) 726.8 239 193 129 73 38 12 10 4 2 700

Notes: (1) Representative sub-sample of the 50 tonne Garnet Lake dike
bulk sample.
(2) Total of 17 previous sample locations on the Garnet Lake dike
collected between 2004 and 2006.
(3) Total diamond distributions from 18 Garnet Lake dike samples.

The three largest stones from the caustic results measured 2.59 x 2.19 x 0.72mm; 1.94 x 1.82 x 1.45mm; and 1.37 x 1.11 x 0.80mm. They were described as an off-white, transparent macle, twinned with 85% preservation; an off-white translucent fragment with crystal faces, graphite inclusions, and minor cleavages with 75% preservation; and a white, translucent, dodecahedral, twinned surface fragment, graphite inclusions with 75% preservation, respectively. Of the 12 larger stones which were described by SGS Mineral Services, 9 are white and 3 are off-white. The average preservation is estimated at 83%.

Processing of the bulk sample is now on track for completion in February. The bulk sample is undergoing two stages of crushing and concentration to ensure maximum liberation of diamonds. The first stage, which involves crushing the material to -6mm followed by DMS processing and final concentration by X-ray and grease table is expected to be completed by the end of this week. Following this, the sample will be re-crushed using a high pressure grinding roll crusher to a -3mm size fraction. This material will then be processed through the DMS circuit and the heavy concentrate generated will be further concentrated by X-ray sorting and grease table followed by diamond picking.

The 350kg sample was processed by SGS Mineral Services in Lakefield Ontario, an independent laboratory, accredited to the ISO/IEC Guide 25 standard by the Standards Council of Canada as a testing laboratory for specific tests. Previous samples were processed by the GeoAnalytical Laboratories at the Saskatchewan Research Council ("SRC"), Saskatoon, Saskatchewan, an independent laboratory. SRC GeoAnalytical Laboratories is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for specific tests. Dr. Mark Hutchison, Trigon GeoServices Ltd., and Mr. Jim Cambon were in charge of the collection of the bulk sample in Greenland. Mr. Cambon managed the chain of custody from the field to SGS Mineral Services. Dr. John Ferguson reviewed this press release and is a qualified person under National Instrument 43-101.


James Tuer, President

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.

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

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