Canadian Orebodies Inc.
TSX VENTURE : CO

Canadian Orebodies Inc.

August 29, 2011 08:30 ET

Canadian Orebodies Provides Update on the Haig Inlet Iron Ore Drill Program

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2011) - Canadian Orebodies Inc. (TSX VENTURE:CO) ("Orebodies") is pleased to announce that it has completed over 5,600 meters (m) in 40 drill holes to date on Orebodies' Haig Inlet Iron Ore Project, located on the Belcher Islands, Nunavut, Canada (the "Property").

All 40 holes to date have been focused on the Kipalu Formation of iron-bearing rocks, following up on the work previously carried out on the Property in the 1950's by Belcher Mining Corporation Ltd ("BMC"), in the central location around Haig Inlet. Of the 40 holes completed, all have intersected iron oxide mineralization and the first 2 batches of samples have been sent out for assay. Assay results for the first set of holes will be released when they are received.

Orebodies continues drilling on the Property utilizing 3 diamond drills, with plans for the drilling to continue well into September for as long as weather conditions allow, with the goal of establishing a NI 43-101 compliant resource estimate. The Property is appealing due to the combination of its potential to host a large tonnage of iron ore based on the historical resource estimate and the Property's proximity to tidewater.

About the Property:

The Haig Inlet Iron Ore Project covers over 14,180 hectares on Flaherty Island. A significant amount of exploration work, including numerous widely-spaced diamond drill holes, was carried out on the property during the 1950's by Belcher Mining Corporation Ltd. ("BMC"). BMC's exploration programs targeted the Kipalu Formation of iron -bearing rocks containing laterally extensive magnetite (with subordinate hematite) iron formations of the Superior type. The Property is host to a significant unclassified historical resource estimate of 907 million tonnes grading 27% iron as defined in the government publication, "Northern Mineral Policy Series; NM1: Mines and Important Mineral Deposits of the Yukon and Northwest Territories, 1982*".

* The mineral resource outlined here is a non-compliant NI 43-101 Mineral Resource since it is historical in nature and should not be relied upon. There is no direct evidence that these numbers or any portion thereof will ever be achieved at any time with further exploration work. These are historical resource estimates that do not comply with the current Canadian Institute of Mining, Metallurgy and Petroleum Resources (CIM) Definition Standards on Mineral Resources and Mineral Reserves as required by National Instrument 43-101 (NI 43-101) "Standards of Disclosure for Mineral Projects." Historical BMC exploration results were studied by a qualified person and compared with other non-BMC exploration programs carried out on the Belcher Islands. Although conclusions support the presence of a large area of iron mineralization, the historical results are not considered reliable given an incomplete database of diamond drill hole logs and the lack of accurate collar surveying related to the BMC historical exploration programs. In addition, the unknown level of quality assurance/quality control implemented during the historic BMC programs, which is currently required to be carried out under the supervision of a qualified person as defined by NI 43-101 policy, questions the reliability and confidence in the historic estimate.

This press release has been prepared under the supervision of Mr. Henry Hutteri (P.Geo.), who is an independent consultant to the Company and a "qualified person" (as such term is defined in National Instrument 43-101). Mr. Hutteri has verified the technical data disclosed in this press release.

Forward Looking Information:

Some of the statements and information contained herein may be forward-looking information which involves known and unknown risks and uncertainties, including statements respecting the Agreement. Without limitation, statements regarding the potential acquisition of a 100% interest in the NTI Agreement, statements regarding potential mineralization and resources, proposed exploration activities and future plans and objectives of Orebodies are forward looking statements that involve various degrees of risk. The following are important factors that could cause Orebodies actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, the uncertainty of access to capital. In particular, there can be no assurance that a definitive joint venture agreement will be entered into, that TSX Venture Exchange or NTI approval of the Agreement will be obtained, or that Orebodies will undertake any or all of the issuances necessary to complete the acquisition of the 100% interest in the NTI Agreement.

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