Caerus Resource Corporation

Caerus Resource Corporation

September 23, 2010 14:16 ET

Caerus Resource Sets the Record Straight on Buritica Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 23, 2010) - Caerus Resource Corporation (the "Company" or "Caerus") (TSX VENTURE:CA) is responding to the news release issued by White Gold Corporation ("White Gold") on Wednesday, September 22, 2010, in regards to the Buritica Gold Project located in Colombia. The Buritica Gold Project consists of a 326 hectare parcel located in the Buritica District, in the municipality of Buritica in western Antioquia, Colombia. The concession area is surrounded by ground owned by Continental Gold and also adjoins a small claim owned by AngloGold Ashanti Ltd. Within the boundaries of the Buritica Gold Project is a block also controlled by Continental Gold. Access is via the major highway between Medellin and the port city of Turbo on the Caribbean coast, which crosses the southern part of the concession. The property lies about 63 airline kilometers (39 miles) northwest of Medellin, the capital of the department of Antioquia, and about 20 kilometers (12 miles) from the nearest large city, Santa Fe de Antioquia. The Company has been conducting exploration work at the project, and has obtained 29 stream sediment samples which have been sent to SGS Laboratories, Medellin Colombia, for 24 hour agitated cyanide leaching (BLEG processing). A further five rock chip samples have been obtained and have been forwarded to ACME Laboratories, Medellin for ICP analysis. Project reconnaissance is continuing. A recent site visit conducted by management has confirmed present exploration activity by Continental Gold. Continental Gold is drilling a mineralized system that appears to trend towards the claim area. Recent drilling by Continental Gold returned an intercept of 14.3 meters of 449.99 grams per tonne gold (08/31/2010), which is located immediately east of the project area.

On Wednesday's, September 22, 2010 White Gold press release, White Gold demands the Company terminate its agreement for the acquisition of the Buritica Gold Project. On September 21, 2010, after the close of business, and inconsistent with the demand in today's White Gold press release, the Company received a letter from counsel for White Gold which demanded the Company "assign" its rights or interest in the Buritica Gold Project to White Gold.

The Company rejects the claims by White Gold and maintains that it has acted appropriately at all times. The Company denies that White Gold has any claim or interest in the Buritica Gold Project.

In its press release, White Gold alleges providing the Company with confidential information pertaining to the Buritica Gold Project. In 2009, the Company had entered into Arrangement Agreement with White Gold. During this period, Mr. Gomez and White Gold represented that White Gold had filed to claim the ground comprising the Buritica Gold Project, as noted in a joint press release of June 15, 2009. This was later found to be inaccurate. The Company's position is that no confidential information was provided to it by White Gold or John Gomez in relation to the Buritica Gold Project.

After the Arrangement Agreement ended, the Company was approached by the owners of interests in the Buritica Gold Project who inquired whether the Company was interested in acquiring such interests. In June, 2010, and after the completion of legal due diligence, the Company announced it had entered into a Letter of Intent with Nancy Moreno and Diana Moreno for the 100% acquisition of the Buritica Gold Project. In the Letter of Intent, the vendors warrant that they are the owners of this project, and that the claims in relation to this project are in no way encumbered. This is the position of the Company regarding this project.

In relation to the Arrangement Agreement, the Company's position is that it has complied with any obligations it may have had in relation to that agreement.

With respect to the resignation of David M. Camp and Lawrence W. Talbot referred to in the White Gold press release, these resignations occurred in the normal course and were in no way related to the events described in the White Gold press release.

The Company considers the allegations made by White Gold to be frivolous, vexatious and completely without merit and intends to vigorously defend this matter and take all appropriate steps to protect its interests. The Company is currently reviewing the matter with legal counsel in order to determine potential course of action against White Gold, its directors, officers and shareholders for any damages to the Company that may arise as a result of the news release issued by White Gold on Wednesday, September 22, 2010.

Allen V. Ambrose, a consulting geologist, director of the Company and Qualified Person as per NI 43-101 has reviewed the contents 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.

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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