Parallel Resources Ltd.

Parallel Resources Ltd.

January 19, 2010 12:52 ET

Parallel Resources Signs Letter of Intent to Acquire 50% Interest in Charcas West Properties, San Luis Potosi, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2010) - Parallel Resources Ltd. (TSX VENTURE:PAL) announces that it has signed a Letter of Intent with Aztec Metals Corp. (an unlisted mineral exploration company), whereby Parallel can earn a 50% interest in Aztec's Charcas West mineral properties located in the state of San Luis Potosi, Mexico, subject to financing.

The Charcas West project (66,000 hectares in three separate concessions) and is located in the northern part of the state of San Luis Potosi, 20 km west of the city of Charcas. The concessions are situated approximately 110 km south of the huge Penasquito mine now under construction by Goldcorp and 55 km south of the new Camino Rojo discovery by Canplats, currently the subject of a friendly take-over bid by Goldcorp. The northern boundary of the Charcas West concessions ties onto the Camino Rojo concessions of Canplats.

A Phase 1 reconnaissance exploration program was completed by Aztec in 2008, including analysis of aeromagnetic maps and satellite imagery, geological mapping, prospecting, and rock chip sampling. Six highly anomalous prospect areas were identified, four of which cover gold-silver-arsenic-antimony rock float anomalies within the favourable Caracol Formation clastic sediments, the same rocks that host the Penasquito and Camino Rojo mineral deposits.

The other two prospect areas are gold-silver-barite-lead-copper rock float and bedrock anomalies within the Guerrero Terrane Chilitos Formation submarine andesitic volcanic and clastic cherty sediments, the same rocks that host the large Francisco y Madero mine and San Nicholas VMS polymetallic deposit in the neighbouring state of Zacatecas.

Under the agreement, Parallel shall have the right to acquire a 50% interest in the Charcas West Project by paying $150,000 cash to Aztec, incurring $200,000 in non-drilling exploration expenditures in Year 1, and funding a 1500 meter drill program on the property, budgeted at $225,000 within 18 months. A Phase 2 exploration program of grid-based geological mapping, soil sampling and geophysical surveying will be completed as soon as possible over the six prospect areas in order to identify high priority targets for drilling, subject to financing.

Bradford Cooke, Chairman of both Parallel and Aztec, stated: "With this option agreement, Parallel can now acquire a second attractive mineral exploration project in Mexico from Aztec. Charcas West is still at an early stage but has all the ear-marks of being well located and highly prospective for Penasquito and Camino Rojo type mineralization. The independent directors of Parallel and Aztec both approved of the Charcas West transaction as a win-win opportunity for the two companies."

This news release has been reviewed and approved by Bradford Cooke, M.Sc., P.Geo., a director of Parallel and a Qualified Person under NI 43-101.

About Parallel

Parallel Resources Ltd. is a TSX.V listed mineral exploration company focused on acquiring and exploring district-scale poly-metallic properties with precious metal credits in Mexico. Our goal is to create shareholder value by developing mineral projects that have the potential to become large new mineral discoveries and ultimately, profitable mines. Parallel currently holds an option to earn 50% of the Matehuala project in San Luis Potosi. Parallel will drill 1500 meters at Matehuala by May 30, 2010. The Matehuala drill program is fully funded.


David Thornley Hall, President

WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

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