Alder Resources Ltd.

October 18, 2010 08:00 ET

Alder Resources Begins Its Drill Program at La Montanita

Alder Enters Into Letter Agreement With Respect to the Canadian Creek Property in the Yukon

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2010) - Alder Resources Ltd. ("Alder" or the "Company") (TSX VENTURE:ALR) is pleased to announce that the previously announced drill program has commenced at site with respect to the La Montanita property located in Colombia. The company has engaged Energold Drilling Corp. to do a 2,500 meter drill program, which began on October 6th, 2010. The Company anticipates that assay results will be available within 45 days. Will Randall, VP Exploration stated, "We are pleased to announce the commencement of the drill program at La Montanita. Recent and historical artisanal mining on this property has helped to identify the potential of this prospect. The drill program, in conjunction with the geophysical and IP program aims to better quantify this potential resource and mark the transition from exploration to potential production for Alder Resources."

The Company also announces that it has entered into a letter agreement (the "Letter Agreement") to sell its right to earn a 60% interest in its Canadian Creek mineral property located in the Whitehorse Mining District (the "Property") to Castillian Resources Corp. ("Castillian"). Alder acquired its interest in the Property pursuant to an option agreement (the "Option Agreement") dated June 11, 2009 entered into between Alder and Cariboo Rose Resources Ltd. (the "Optionor").

In consideration for the acquisition of the right to earn a 60% interest in the Property, Castillian shall pay Alder an aggregate cash fee of $250,000 and to issue to Alder that number of common shares of Castillian which in the aggregate shall equal $1,000,000 over a three (3) year period.

In addition, the parties shall enter into an assignment agreement with the Optionor in accordance with the terms of the Option Agreement (the "Assignment Agreement").

Completion of the transaction remains subject to the satisfactory completion of a 30 day due diligence period, and receipt of all required regulatory and securities approvals, including the approval of the TSX Venture Exchange, along with other customary closing conditions.

Rene Bharti, President and CEO states, "The company is excited at the prospect of being able to focus exclusively on Colombia, while continuing to participate in the upside of what we feel is a valuable asset in the Yukon."

In addition, the Company announces that Carl Jonsson has resigned from the Board of Directors of the Company effective September 28, 2010. The Company would like to thank Mr. Jonsson for his hard efforts with respect to the Company and wish him all the best on future endeavours.

About Alder Resources

Alder Resources is a Colombian-based company focused on gold development at its La Montanita property 40 km northeast of Medellin, as well as accretive acquisitions in the area. The La Montanita property is approximately 80 km from Continental Gold's Buritica asset. The Company also holds an option to acquire a 60% interest in Cariboo Rose's Canadian Creek Mineral Property located in the Whitehorse Mining District of the Yukon Territory, which is 160 km south of Dawson City, Yukon.

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Cautionary Note Regarding Forward-looking Information

Will Randall, a Director of the Company and a qualified person under NI 43-101, has reviewed and approved the scientific and technical information in this press release. 

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the proposed transaction and timing with respect to the proposed transaction, the Property, mining in Colombia, statements with respect to the development potential and timetable of the property of the Company; the potential to identify mineral resources; the timing and amount of estimated future exploration, success of mining activities; and receipt of government approvals. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; risks associated with operation in foreign jurisdictions; ability to successfully integrate the purchased properties; foreign operations risks; and other risks inherent in the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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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