Caerus Resource Corporation

Caerus Resource Corporation

June 27, 2011 14:54 ET

Caerus Reports Significant Results from El Cafetal Gold Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 27, 2011) - Caerus Resource Corporation (TSX VENTURE:CA) "the Company" is pleased to report further results from the ongoing exploration program at the El Cafetal Gold Mine, located in Valparaiso District, Colombia. Work to date has included a surface Mobile Metallic Ion (SGS Laboratories Proprietary Process) sample program and a chip sample program within existing adits. Additional geological reconnaissance has focused on exploration outside of the known zone. Newly discovered veins outcropping at surface were sampled, along with several workings. Significant gold, silver and copper values were encountered.

Samples were shipped to Inspectorate Laboratories of Medellin, Colombia for sample preparation and analyzed by Inspectorate Laboratory in Reno, Nevada, an ISO 9001:2008 certified laboratory. Analysis was by fire assay for gold. For silver and other base metals (Cu, Mo, Ni, Pb, Sb and Zn) the primary analytical method was ICP followed by Atomic Absorption Analysis for ore grade samples. Gold, silver and copper were the only metals showing significant values.

A total of 18 areas of interest were sampled, of which 14 are outcrops and 4 are tunnels. Of the 18 areas, 11 are outside the known stockwork zone. Values ranged from a low of 0.1 gpt Au over .9 of a meter to 42.06 gpt Au from a prospect. All results are in a table at the end of this press release. Several significant gold results were obtained from outside the stockworks zone and are:

Sample 22515: 42.06 gpt, Au 38 gpt Ag and 0.20% Cu / a newly uncovered tunnel located 500 meters from the western edge of the stockworks zone / 12 centimeter chip sample from the roof

Sample 22516 1.4 gpt Au / located within a tunnel 300 meters southwest of the stockwork zone / 0.35 meter chip sample

Sample 22518 : 5.21 gpt Au / located 500 meters southwest of the stockwork zone / chip sample of outcrop

Sample 22525: 7.298 gpt Au / located 300 meters west of the stockwork zone / 1.4 meter ship sample of outcrop

Sample 22527 / 0.356 gpt Au / located 200 meters west of the stockwork zone / 3 meter chip sample of heavily weathered outcrop

Sample 22522: 1.12 gpt Au, 113 gpt Ag and 0.40% Cu / 500 meters east of the stockwork zone / 0.40 meter chip sample from within an adit

Sample 22523: 0.88 gpt Au, 58.8 gpt Ag and 1.27% Cu / 300 meters east of the stockwork zone / 1.7 meter chip sample of outcrop

Sample 22532: 0.64 gpt Au / 550 meters east of the stockwork zone / chip sample of prospect

Final Report - Job No: 11-338-03311-01
Sample Au Ag Cu
Designation g/ton ppm ppm
Au-1AT-AA Ag-AR-TR BM-AR-TR Width in CM
22515 42.068 38.7 2106 12 chip within tunnel
22516 1.396 2.3 683 35 chip of working
22517 0.279 1.3 865 100 outcrop chip sample
22518 5.216 6.4 422 5 outcrop chip sample
22519 0.169 2.4 389 90 outcrop chip sample
22520 0.292 1.8 136 100 outcrop chip sample
22521 0.109 1.4 814 90 outcrop chip sample
22522 1.12 113.8 4016 40 chip sample within Velez Adit
22523 0.882 58.8 1.27% 170 outcrop chip sample
22524 0.11 2.3 1680 120 outcrop chip sample
22525 7.298 7.7 314 140 outcrop chip sample
22526 0.531 0.6 84 80 outcrop chip sample
22527 0.356 1.1 34 300 outcrop chip sample
22528 1.648 1 177 50 outcrop chip sample
22529 0.349 2.5 73 - outcrop grab sample
22530 0.096 0.2 60 - outcrop grab sample
22531 1.728 5.1 32 100 outcrop chip sample
22532 0.638 22.4 785 50 roof chip within tunnel

The Company has contracted KTTM Geophysics of Medellin, Colombia to conduct a geophysical survey of the project. This will include induced polarity (IP), resistivity and chargeability surveys, as well as ground magnetometry. Subsequent to the completion of financing, the Company plans to drill test various locations. A NI 43-101 Technical Report is in the final stages of completion and is expected shortly.

Mr. Paul A. Pelke, a registered geologist in the state of California and a Qualified Person as defined by NI 43-101 has reviewed the content of this press release.

On Behalf of the Board of Directors of Caerus Resource Corporation.

Adrian F.C. Hobkirk, President and Chief Executive Officer

This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. The transaction described in this News Release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this News Release. We seek safe harbour.

The TSX Venture Exchange has not reviewed the content of this News Release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this News Release.

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