TYLER RESOURCES INC.
TSX VENTURE : TYS

TYLER RESOURCES INC.

October 22, 2007 10:24 ET

Tyler Resources Receives Unsolicited Proposal

CALGARY, ALBERTA--(Marketwire - Oct. 22, 2007) - Tyler Resources Inc. ("Tyler") (TSX VENTURE:TYS) has been informed that Mercator Minerals Ltd. ("Mercator"), announced on October 19 that it intends to make an unsolicited offer to purchase all of the outstanding shares of Tyler on the basis of 0.113 of a Mercator share for each Tyler share. Tyler is not aware that a formal offer has been formulated subsequent to the October 19th announcement, and no formal offer has been received. The Board of Directors of Tyler has formed a special committee comprised of Messrs. Scott Reeves (Chairman), Lesley Hayes, Gregory Smith and Alan Craven to consider this unsolicited proposal and will make a statement in due course. The committee intends to retain legal and financial advisors to assist them in considering the Mercator proposal and all appropriate alternatives.

At this time, and until such a time as a formal offer is presented, the Company's Board of Directors can only speculate as to the reasons why Mercator would announce an intention to make an offer to purchase Tyler for an ascribed price per Tyler share that is materially lower than the indicative price per share previously presented to Tyler by Mercator under a conditional proposal that was made following a field visit to the Bahuerachi project by key Mercator representatives.

While Tyler is obviously pleased that an experienced and credible mine development company agrees with Tyler's assessment that the Bahuerachi Deposit is now at a size and stage that may support fast tracking to development, the Company also believes that now is one of its most important phases of building value at Bahuerachi through the following events, results for which are expected over the coming few weeks to months:

Growing the Main Deposit:

Continued drilling results anticipated shortly on the west side of the known Bahuerachi deposit are expected to demonstrate Main Deposit growth potential and outline the expansion potential of initial PEA pit resources.

Update the Resource:

A third resource estimate calculation is planned for December 2007/January 2008 incorporating all new drilling information from May to December of 2007. Management currently estimates that a significant amount of new mineralization will be defined in this exercise. Most importantly, the new resource blocks have been targeted within the PEA pit environment and are anticipated to positively impact the economics of a starter pit operation as outlined in the Bahuerachi PEA published in September of this year by expanding the resources and replacing certain areas initially modeled as waste with higher grade mineralization.

Opening the District:

Full drilling results from initial RC drill testing of the Cerro Prieto high-grade skarn target in the northern part of the property are expected shortly. Seven drill holes were completed and sent for assay between August and September of this year. Cerro Prieto has strong potential to return a new high-grade, near surface polymetallic discovery at Bahuerachi, and to further unlock the district's exploration and development potential.

Advancing the Project:

The pre-feasibility study for Bahuerachi is currently targeted to be completed in the first half of 2008.

Tyler is fully financed to accomplish all of the items listed above and anticipates taking the project to and through the critical pre and full feasibility stages during 2008.

The Bahuerachi district is still open with several large porphyry and skarn targets remaining to be explored, in addition to the large mineralized North and South porphyry lobes that have been identified adjacent to the Main deposit.

Having regard to his role as VP Engineering & Mine Manager to Mercator, Mr. Gary Simmerman has tendered his resignation from the Board of Directors of Tyler following the Mercator announcement. The Board of Directors and management of Tyler thank Mr. Simmerman for his valuable contributions.

About Tyler - Tyler Resources is a well funded Canadian junior exploration company focused on base and precious metals exploration in Mexico. Tyler's primary project is the Bahuerachi property, which hosts Mexico's fourth largest mineralized porphyry deposit. As part of its ongoing drill program, the Company has now drilled in excess of 52,000 meters of combined diamond and reverse circulation drilling since 2004, making it one of the most active Canadian junior exploration companies operating in Mexico.

Jean Pierre Jutras, President/CEO/Director

Cautionary language: Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates" and similar expressions, are forward-looking information that represents management of Tyler's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Tyler. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Tyler's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Tyler's filings with the Canadian securities authorities. Accordingly, holders of Tyler shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. Tyler disclaims any responsibility to update these forward-looking statements.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release.

Contact Information

  • Tyler Resources Inc.
    Jean Pierre Jutras
    President/CEO/Director
    (403) 269-6753
    (403) 266-2606 (FAX)
    Website: www.tylerresources.com