Cedar Mountain Exploration Inc.

Cedar Mountain Exploration Inc.

September 26, 2011 08:30 ET

Cedar Mountain Exploration Inc.: Drilling Confirms Broad Gold Zones at Kelly Creek Prospect

Results include 1.04 g/t Au over 26.8 metres and 0.74 g.t Au over 21.70 metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 26, 2011) - Cedar Mountain Exploration Inc. (TSX VENTURE:CED) ("Cedar Mountain" or the "Company") is pleased to announce the initial drill results from the Kelly Creek Project on the Seward Peninsula, Alaska. Drill core assay results from the first 18 diamond drill holes (1820.5 metres) at the Kelly Creek Prospect have confirmed the presence of broad intervals of gold mineralization in sheared and brecciated carbonaceous schist.

"We are very encouraged by the results of our 2011 drilling at the Kelly Creek Prospect," stated Charles Chebry, President and CEO. "The drill results confirm the presence of zones of bedrock gold mineralization which were targeted from broad soil geochemistry targets generated last year. The 2011 drilling indicates that the best grades are associated with zones of quartz veining and stockworking within fractured and sheared carbonaceous schist and ongoing studies will allow us to effectively target the mineralized trends in future campaigns," added Mr. Chebry.

Eighteen drill holes totaling 1820.5 m were completed on the Kelly Creek prospect in 2011. Eight holes (11KC01-05 and 11KC10-12) targeted a strong linear soil anomaly first tested by Anaconda in 1984, four holes (11KC06-09) tested possible extensions of this zone to the southeast, and six holes (11KC13-18) tested another area with a strong soil anomaly in the headwaters of Kelly Creek.

The drill results (see Table 1) confirm the gold-bearing zone first drilled by Anaconda (11KC05; 1.04 g/t Au over 26.8 metres). This zone extends 500 metres northeast to near Kelly Creek (11KC12; 0.85 g/t Au over 16.5 metres, including 1.34 g/t Au over 7.5 metres) and remains open to the northeast. The drill holes in the headwater area of Kelly Creek identified one strong but narrow mineralized zone (11KC14; 2.27 g/t Au over 3.10 metres) which has not fully explained the source of the strong gold-in-soil anomaly in this area.

The results from the Kelly Creek Prospect are the initial tranche (18 holes in 1820.5 metres) of 4815.2 metres in 45 holes completed at the Kelly Creek Project in 2011. Results for all the drill holes at the Wolf (four holes totaling 469.6 m), Wolverine (seven holes totaling 755.4 m), South Fox Zone 1 (seven holes totaling 864.6 m), South Fox Zone 2 (three holes totaling 237.2 m), and North Fox (6 holes totaling 668.5 m) prospects are pending.

Table 1: 2011 Drill Results Kelly Creek Prospect
Hole ID From (m) To (m) Length (m) Au g/t
11-KC-01 60.00 67.50 7.50 0.35
11-KC-02 21.00 33.00 12.00 0.71
11-KC-03 42.80 64.50 21.70 0.74
including 43.80 51.00 7.20 1.08
and 57.00 63.00 6.00 1.08
11-KC-04 81.00 84.00 3.00 1.28
11-KC-05 26.20 53.00 26.80 1.04
including 27.90 38.00 10.10 2.07
11-KC-06 80.30 83.30 3.00 0.34
11-KC-07 4.00 7.00 3.00 0.41
11-KC-08 77.50 85.00 7.50 0.17
11-KC-10 9.00 34.00 25.00 0.38
11-KC-12 17.00 33.50 16.50 0.88
including 24.50 32.00 7.50 1.34
and 113.00 117.50 4.50 0.41
11KC-13 assays pending
11-KC-14 32.90 39.00 6.10 1.31
including 32.90 36.00 3.10 2.27
11-KC-15 4.50 7.50 3.00 0.31
11-KC-09, 11, 16, 17 and 18 no significant intersections.

The Property

The Kelly Creek Property is located on the Seward Peninsula, Alaska, 145 km north of Nome. Kelly Creek is a drill-permitted early-stage gold exploration property comprising 105,280 acres (42,605 hectares) that cover an entirely new gold district. Historic results indicate the presence of disseminated gold deposits in metasedimentary rocks. These deposits have similarities to disseminated gold deposits in Nevada and are a new type for the region.

The Company's disclosure of a technical or scientific nature in this press release has been prepared by Dr. Travis Hudson, registered geologist, who serves as a Qualified Person under the definition of national Instrument 43-101. The Kelly Creek project represents an early stage property and does not contain any mineral resources as defined by National Instrument 43-101.

About Cedar Mountain Exploration Inc.

Cedar Mountain Exploration Inc. is a mineral exploration company with a clear and distinct business strategy to identify, acquire, and explore high potential projects ready for rapid advancement. The flagship Kelly Creek Property on the Seward Peninsula of Alaska fits with the Cedar Mountain business strategy and demonstrates substantial potential for major gold discoveries.

Cedar Mountain is a member of the Discovery Group of Companies: www.discoveryexp.com.


Charles Chebry, Chief Executive Officer & Director

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.

Neither the 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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