United Reef Limited

United Reef Limited

April 21, 2010 09:30 ET

United Reef Updates West Timmins Option for Nixon-Bartleman Property

TORONTO, ONTARIO--(Marketwire - April 21, 2010) - United Reef Limited (TSX VENTURE:URP) ("United Reef") is pleased to announce that it has finalized the  option agreement to acquire a 70% interest in nineteen contiguous mining claims covering the historic Nixon-Bartleman gold occurrence in the West Timmins area of the Porcupine Gold Camp (see press release dated January 25, 2010). The Porcupine-Destor Fault strikes through the centre of the property from northeast to southwest and the property is also believed to host a cross-cutting fault splay. United Reef retained Mr. Seymour M. Sears, B.A., B.Sc., and P.Geo. of Sears, Barry & Associates ("SBA") to make a site visit to the property, to prepare a compilation report of historic exploration work completed on the property and to make recommendations for future work. The following has been summarized from his preliminary findings.

Most of the known gold deposits in the Timmins camp are spatially related to a major regional fault structure referred to as the Porcupine-Destor Deformation Zone (PDDZ). They occur in Archean aged meta-volcanic rocks although they are typically accompanied by metasedimentary rocks, quartz-feldspar porphyritic and ultramafic intrusive rocks. Almost all known deposits of this type are hosted within shear zones and are accompanied by quartz-carbonate alteration.

The Nixon-Bartleman gold prospect is located within a narrow band of volcanic and sedimentary rocks that are flanked on the north and south by tonalitic phases of a large granitic body, the Kenogamissi Batholith. The main gold occurrences on the property are centered approximately 22 km southwest of Lake Shore Gold Corp.'s West Timmins Mine and 10 km from their west claim boundary. The PDDZ structure is not precisely delineated in the property area because of overburden cover and the lack of detailed geological mapping. To date the West Timmins area has not been well explored.

Five gold bearing quartz veins have been located on the Nixon-Bartleman property. Two of these have been exposed by stripping along a bedrock ridge near the center of the claims. There is limited bedrock exposure in other parts of the property. One of the known gold occurrences is located within a sheared and metamorphosed (diopside-amphibole-carbonate-silica) mafic volcanic rock that has been described as an autoclastic breccia. A quartz vein and stringer zone within this shear has been traced for approximately 60 metres in the most westerly stripped area. Historic samples reported from this zone have returned gold values ranging from trace to 50.7 g/t. Three chip-channel samples collected by Mr. Sears from this zone during an October 2009 property visit assayed 9.10 g/t Au over 0.8 m; 6.11 g/t Au over 2.0 m; and 8.65 g/t Au over 2.0 m. The samples were collected to confirm the presence of gold mineralization and did not cover the total width of the zone in these areas.

A second occurrence was located beside an old shaft that is reported to be from 3 to 5 metres deep. The shaft is located approximately 80 metres northeast of the sheared zone but, unless offset by faulting, is not the same structure. A quartz vein beside the shaft is approximately 1.5 metres wide but narrows rapidly along strike towards the west. A grab sample from this vein collected by Mr. Sears assayed 4.33 g/t Au and a 1.5 metre chip-channel sample across it assayed 1.52 g/t Au. A further grab sample collected by him from a narrow quartz vein (20 cm) located 35 m southwest of the shaft assayed 13.15 g/t Au and is from a different vein system than either of the two described above. All of the vein material sampled during the property visit contained minor amounts of pyrite, chalcopyrite and galena.

Based upon the data examined to date by SBA and observations during their property visit in October 2009, they have suggested that the sheared and altered zone exposed in the western stripped area has very good exploration potential. The mineralized veins exposed at surface along the 60 metre strike of the sheared structure have complex shapes and orientations. Individually the veins appear to pinch and swell along strike ranging from several cm to 0.8 m in width, but they occur as multiple parallel veins within a deformed and altered zone that are often mineralized for a width of several metres. The wider veining is actually believed to be caused by folding and appears to be folded along two axes, one of these being near vertical and the other near horizontal.

SBA is continuing their compilation work from historic exploration data from the property and has recommended an initial two phased exploration program for the property. The budget for the two phases is approximately $639,000 (Phase I - $300,000; Phase II - $339,000). An initial close spaced diamond drilling program of 1,200 m is planned in Phase I and an additional 2,000 m in Phase II. A further delineation type program consisting mainly of diamond drilling will be required contingent upon encouraging results from these first two phases.

United Reef has made the initial cash payment of $10,000 and issued 1,100,000 common shares to the property owner pursuant to the terms of the option, which has been amended to have an effective date of April 7, 2010.

Mr. Seymour M. Sears has reviewed the technical content of this Press Release.

For further information about United Reef please visit our website at www.unitedreef.com.

Shares issued: 85,219,980

Fully diluted: 99,411,030

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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