Gossan Resources Limited

Gossan Resources Limited

April 03, 2006 08:00 ET

Bird River Property Returned to Gossan

WINNIPEG, MANITOBA--(CCNMatthews - April 3, 2006) - Gossan Resources Limited (TSX VENTURE:GSS)(Frankfurt/Freiverkehr:GSR) has been advised that Lac des Iles Mines Ltd. ("LDI"), a wholly-owned subsidiary of North American Palladium Ltd., has not elected to renew its option beyond March 30, 2006 under its Option and Joint Venture Agreement on Gossan's Bird River Sill Property. LDI is re-focusing its exploration activities on more advanced properties that are closer to a possible production decision.

LDI has recently completed a second drill program on the Bird River Property. Results of the program will be provided to Gossan by April 27, 2006. Gossan provided LDI with a one month extension for a property payment originally due February 28, 2006 in order for it to complete the second drill program which was delayed due to weather conditions.

Gossan appreciates the efforts of LDI to explore the Bird River Property which has been advanced with a considerable amount of new data. Since entering into an agreement on March 14, 2005, LDI has conducted: a 750 line-km, high resolution, time domain, electromagnetic and magnetic survey using Geotech's helicopter-borne "dream-catcher" VTEM System; an initial 8-hole diamond drill program, totaling 934 metres, highlighted by hole BR-05-02, located on the Page Block, that intersected 13.75 meters of 1.077% nickel and 0.501% copper; a 37.8 line-km, deep penetrating, large loop, surface pulse DEEP EM survey along 2.6-km of the Sill on the Page and Peterson Blocks; and the recently completed second drill program at the eastern end of the Property.

Gossan's management believes there are other untested priority targets at the Peterson and Page Blocks and further west on the Property which encompasses 6,870 hectares (16,975 acres) covering over 21 kilometres of the Bird River Sill Complex. As an initial step in the ongoing exploration of the Property, Gossan has retained Frank Jagoditis, Dipl.Eng., P.Eng., to conduct a review of all geophysical data. Gossan is also pleased to report that the Joint Industry-Government Mapping Project intends to examine the National Ledin Block and other areas in the central and western portions of its Bird River Property this summer.

The Bird River Property is located about 40 km east of Lac Du Bonnet, Manitoba and, along the Sill, approximately 6 km west of Mustang Minerals' Maskwa Deposit. Ryan Cooke, P.Geo., is Gossan's Qualified Person for the property.

Gossan Resources Limited is engaged in mineral exploration in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty metals, tantalum, chromium, titanium and vanadium. The Company also has a large deposit of magnesium-rich dolomite and a silica sand prospect. Gossan trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and has 19,694,901 shares outstanding (25,319,678 shares fully diluted).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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