SOURCE: Chancery Resources Inc.

December 18, 2008 08:15 ET

Chancery Resources Announces Plans to Commence Development at El Cafetal Gold Mine

VANCOUVER, BC--(Marketwire - December 18, 2008) - Chancery Resources Inc. (Chancery) (OTCBB: CCRY) is pleased to announce that its 2009 plans will be focused on developing infrastructure at El Cafetal Gold Mine located in the historic Valparaiso gold mining district, Colombia. Chancery's plans include a complete upgrade of the existing processing plant by installing a modern mineral recovery plant to increase production rates. As the current processing plant in place captures only gold, on a marginal capacity, the objective of the new processing plant would be capturing gold, other mineral deposits maximizing cash flow, lowering operating costs and diversifying the company's portfolio of commodities.

It is anticipated after Chancery's geologists assessment of the equipment in place that with a modest investment the actual recovery plant can be put back to work to be used as a pilot plant with a capacity of 15 to 20 tons per day. After assessment the type of ore and the right process of the production can be scaled to 100 ton/day based on the multiple sectors that can be exploited at the same time. The upgraded processing plant should greatly assist and accelerate Chancery's plan to fund and expand in size the El Cafetal concession.

Jeffrey Fanning, Vice President of Exploration, commented: "We expect El Cafetal mine to be a low-cost producer, demonstrating good profit margins. We look forward to reporting further on El Cafetal's operations in the near future."

Notice Regarding Forward-Looking Statements

Forward-Looking Statements: With the exception of historical information contained in this press release, this press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including but not limited to, the effect of economic conditions, the impact of competition, and the results of financing efforts. The words "plans to," "possible," and "seeking" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements.

2008 Chancery Resources Inc. The information herein is subject to change without notice. Chancery Resources Inc shall not be liable for technical or editorial errors or omissions contained herein.

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