Cloudbreak Resources Ltd.

Cloudbreak Resources Ltd.

November 17, 2010 10:03 ET

CDB'S Airborne Identifies Key Structures Coincident With Gold Trends

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2010) - Cloudbreak Resources Ltd. (TSX VENTURE:CDB)(FRANKFURT:C6K) is pleased to report positive results from geophysical surveys over its BRC and Lucky Strike properties, located 5 km east of the Kinross Golden Saddle deposit. The survey revealed patterns of structures and anomalous potassium that coincide with extensive gold trends discovered as a result of reconnaissance soil geochemical surveys reported in the Company's February 25, 2010 news release. The structural patterns closely resemble those associated with the gold discoveries reported by Kaminak on its Coffee Creek property, 30 km to the south, and by Underworld on its 1.6 million ounce Golden Saddle and Arc discoveries (now owned by Kinross), located only 5 km west of Cloudbreak's BRC claims. All of Cloudbreak's claims are underlain by the same package of Devono-Mississippian metamorphic rocks that host the Coffee Creek gold discoveries and the Golden Saddle, and Arc gold deposits. The BRC claims are contiguous with and surrounded by Kinross to the west, south, and east, and by Golden Predator to the north. The Lucky Strike property is bordered by claims owned by Kinross and Golden Predator to the north and west, and by Shawn Ryan's Brew claims to the south.

BRC (White Gold) Property

On the BRC property, reconnaissance soil sampling outlined two strong parallel gold trends, each approximately 1 km long, that coincide with an east-northeast trending magnetic low. These two anomalous trends are parallel to and approximately on trend with the surface trace of the Golden Saddle deposit as shown in Underworld's NI 43-101 report dated March 3, 2010. The densest cluster of gold anomalies occur where the key east-northeast structures intersect with several other linear magnetic structures oriented northwest, northeast and north-south. The anomalous gold values on the BRC claims are comparable to gold values contoured as strongly anomalous on Underworld's initial soil geochemistry over the Golden Saddle deposit. Underworld's NI 43-101 report states that 12.5 ppb is a cutoff for outlining significant gold anomalies in the area. The ridge that adjoins the west side of the BRC block is at the head of four active placer creeks. The highest government gold silt anomaly in the area (49 ppb) was taken from a creek draining the area of Cloudbreak's parallel gold trends. Based on the geochemical trends and their orientation, and the geology, and geophysics, the BRC claims appear to have many of the indicators that led to the discovery of the Golden Saddle deposit.

To view the BRC (White Gold) Property Map, please visit the following link:

Lucky Strike Property

The geophysical surveys show that the Lucky Strike property covers part of a regional shear zone with a network of northwest structures that enclose a zone of strongly potassic rocks. Similar structures can be clearly seen on geophysical maps that cover Kaminak's Coffee Creek property. Numerous linear gold soil anomalies up to 7 km long with values up to 75 ppb are concentrated within the potassic zone along well defined key northeast, north-northeast and north-south trends that are interpreted as cross- cutting extensional structures as seen at Coffee Creek. An historic 585.2 ppb gold soil sample taken by Shawn Ryan 3 km west of the Lucky Strike property appears to be located on the same northeast trend as a strong gold soil anomaly and an associated geophysically indicated structure on Cloudbreak's claims. The Lucky claims are less than 1 km from active placer claims on Brewer Creek, and the property is bisected by a surveyed placer baseline along Simmons Creek. High level Cretaceous intrusions on and 1.5 km southwest of the Lucky claims could have provided a source for both potassic alteration and gold in the metamorphic rocks. These rocks belong to the same geologic package that hosts the Kinross Golden Saddle deposit and the Kaminak Coffee Creek discoveries.

To view the Lucky Strike Property Map, please visit the following link:

Based on a compilation of all the positive results seen to date, an exploration program of mechanized trenching and deep infill auger drilling is recommended to confirm the source of the many extensive gold soil anomalies coincident with key geophysically indicated structures located on both the Lucky Strike and BRC properties.

"With Cloudbreak's properties showing many of the key indicators that led to the discovery of the Golden Saddle deposit and Coffee Creek, the Company has great expectations for the next phase of exploration on its Yukon gold properties", stated Cloudbreak President Peter Bryant. "We are confident that having exposure to this emerging new gold district will continue to add shareholder value well into the future."

The technical information in this news release has been reviewed by Trevor J. Bremner, M.Sc., P.Geo., a qualified person for the purposes of National Instrument 43-101.


Peter Bryant, President & Director

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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