Serengeti Resources Inc.

Serengeti Resources Inc.

April 13, 2010 08:30 ET

Serengeti to Drill at Kwanika to Expand South Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 13, 2010) - Serengeti Resources Inc. (TSX VENTURE:SIR)(FRANKFURT:34S) today reported its intention to complete a 10,000 meter drill program on its Kwanika copper-gold project in the Quesnel Trough of north-central British Columbia. "This planned $2.7 million program provides the opportunity to move Kwanika over the development threshold both in terms of tonnage and grade," said David Moore, President & CEO of Serengeti. "The South Zone offers the potential for discovery of near-surface, open-pitable mineralization," elaborated Moore. The Company expects to have the two-drill program started in early June, 2010.

The upcoming drill program will be comprised entirely of step-out drilling to expand the existing resource at the South Zone where 70% of the favorable target area remains to be tested. The Company's previously reported NI 43-101 compliant resources, combining the South and Central Zones, total 1.1 billion pounds of copper and 1.6 million ounces of gold in the Indicated Resource category, and 1.0 billion pounds of copper and 0.5 million ounces of gold in the Inferred Resource category all estimated at a 0.25% copper-equivalent cut-off grade (see following table).

Kwanika Mineral Resources


CuEq % Cut-off Tonnage
  Central Indicated 0.40 75.1 0.41 0.42 - - 0.69
  0.25 182.6 0.29 0.28 - - 0.47
  Inferred 0.25 28.5 0.19 0.20 - - 0.32
  South Inferred 0.40 62.2 0.41 0.09 2.25 0.014 0.59
  0.25 129.1 0.30 0.09 1.76 0.010 0.45

Note 1: Copper equivalent calculation uses the following USD metal prices; copper, $2.00/lb; gold, $900/oz; molybdenum, $15/lb; silver, $12/oz; and makes no provision for metallurgical recoveries and net smelter returns. CuEq = Cu % +(Mo% x 15/2.00) +(Au g/t x ( 900 / 31.1 / 2.00) / 22.06) + (Ag g/t x (12/31.1/2.00)/22.06) The base case cut-off used for the Mineral Resources was 0.25% CuEq which is comparable to other porphyry copper open-pit deposits in BC.

Note 2: CIM definitions were followed for mineral resource estimation and classification. By prescribed definition Mineral Resources do not have demonstrated economic viability and Indicated Resources have a higher degree of confidence than do Inferred Resources. The mineral resources fall within a pit shell defined by long term USD metal prices of copper, $3.00/lb; gold, $1,000/oz; molybdenum, $15/lb; silver, $16/oz.

Note 3: Silver content of Central Zone not modeled; and molybdenum content of Central Zone not significant.

In addition to the budget for the Kwanika project, $1.0 million is allocated for target development work on other regional exploration targets in the Company's extensive portfolio, as well as funding for new project development outside of BC.

Upon completion of this summers' drill program at Kwanika, the Company expects to update the Resource Estimate, followed by a Preliminary Economic Assessment.

The Company also reports that it has been advised by Newcrest Mining BC Limited, that it has elected to withdraw from the Croy Bloom/Davie Creek option agreement. The work completed at the property has resulted in the tenure being extended to 2019.

About Serengeti

Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of discovery. The Company is focused on the advancement of its Kwanika copper-gold project located in the Quesnel Trough of British Columbia. For more details, see the recently updated NI 43-101 compliant Resource Estimate, filed in March 2010 and available at Drill sections for Kwanika can be viewed at Serengeti is well funded to advance its projects with a current working capital position of approximately $8.0 million which includes $2.3 million receivable from the B.C. government's METC program. Serengeti has 46.0 million shares issued and outstanding or 51.6 million shares on a fully diluted basis.

Quality Assurance/Quality Control

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's Qualified Person, David W. Moore, P.Geo., President & CEO of Serengeti Resources Inc.

Cautionary Statement

This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound.

Neither the 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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