Cloudbreak Resources Ltd.

Cloudbreak Resources Ltd.

April 17, 2007 00:01 ET

Cloudbreak Resources Corporate Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 17, 2007) - Cloudbreak Resources Ltd. (TSX VENTURE:CDB)(FRANKFURT:C6K) ("Cloudbreak" or the "Company") is pleased to report on the status of the company's projects in Turkey, Romania and Nevada.

The evaluation of the 2006 field season results on its Ikiztepe-Sarp copper/molybdenum/gold property in the Tethyan Belt of Northwest Turkey has outlined four top priority targets warranting further testing. The Company has planned an extensive 2007 exploration program, including 6,500 metres of drill testing at the project.

Ikiztepe Hill comprises several Cu-Mo-Au mineralized skarn and porphyry style occurrences (including East Camp and Sogukpinar drilled and reported in 2006). Historically, the state mining company Turk Maadin carried out a 56 hole exploration program in the Ikiztepe Hill area in the 1970s. In 1978 the Swedish company Granges International Mining calculated a resource based on the work carried out by Turk Maaden of 2.2Mt @ 1.17% Cu and 0.07% Mo in the skarn and 13.5Mt at 0.52% Cu and 0.05% Mo of disseminated porphyry style mineralization. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. Historical resources merely provide a target for further exploration.

A total of 6500 metres of drilling is planned to begin in the coming weeks. President Blair Naughty states, "After last year's successes on the property with a limited budget, we look forward to doing a large scale drill program and defining defining a resource to current standards (CIM Guidelines) in 2007. The company has budgeted C$1.65 million to be spent in Turkey this year."

In Romania, the company is pleased to announce it has identified six priority exploration drill targets for the Martin Hill prospect at the Company's 100% owned Muntele Rotund Gold / Copper Property. The Company has planned an aggressive exploration program for 2007.


- Drill targets have been identified on the Martin Hill prospect, based upon previous gold / copper surveys and 2006's work program on the property.

- The final stage of its geophysical program (including ground magnetic survey and IP pole-dipole lines) on the Martin Hill prospect is scheduled to take place in April-May of 2007 to further identify drill targets.

- A first-stage, 600 meter diamond drill program is planned to follow the April-May geophysical program.

Company president, Blair Naughty, commented, "The initial exploration success in Romania is the first step in the Company's efforts to outline a significant gold/copper deposit. With the world-class Rosia Montana gold/silver deposit (15.8 million oz Au; 67.9 million oz Ag) located nearby, Cloudbreak's preliminary findings have left management eager to drill. The planned drill programs will give us a clearer understanding of sub-surface mineralization at this highly prospective project."

Geophysical Survey

The first phase geophysical survey completed on the Martin Hill prospect consisted of ground magnetic and induced polarization ("IP") surveys outlined to identify drill targets. Cloudbreak geological staff's interpretation of the geophysical survey data has provided the Company with a good understanding of the geology at the Martin Hill prospect, increasing the project's potential for discovery of valuable mineral deposits.

The ground magnetic survey was completed using a 25x25 m array, covering approximately 2 km2. The surveyed area was detailed with a grid of 10x10 m covering 0.4 km2, being focused on the rediscovered old exploration pits and gallery.

A one line-kilometer pole-dipole IP survey with 10 meter measure points was completed. This line crosses the middle part the ground magnetic surveyed area, being orientated NNE to SSE. Readings were taken at N equals 1 to 11 separations allowing an effective depth penetration of approximately 180 metres. The measurements were pre-processed into pseudo-sections which were inverted to reach a more accurate model.

The magnetic survey outlines a number of high values of the total magnetic field (up to 51,000 nT) being correlated with the mapped magnetite-skarn and intrusive rocks. In places, the high value of the total magnetic field has a direct correlation with maximum of chargeability and low resistivity, being interpreted as potentially mineralized areas.

Martin Hill Prospect Geology and Mineralization

The Martin Hill prospect is approximately 7 km2 and is located in the central part of the license area. The geology consists of magmatic rocks of likely Neogene age, intruding primarily limestone, sandstones and shales of Upper Cretaceous age. Along the contact much of this has been converted to magnetite-garnet skarn and chloritic hornfels bodies.

According to historical surveys, a Hematite - Chalcopyrite mineralization has been located in the skarn body. This mineralization has been emphasized and detailed in recent rock surveys. Mineralized skarns collected from the float, are oxidized and indicate a gossan zone in the area. A new geophysical program (ground magnetic survey and IP pole-dipole lines) is scheduled to provide further data, to outlining new drill targets and increasing the potential for discovery of economic mineral deposits.

In Nevada, Cloudbreak Resources Ltd. is pleased to announce that it has commenced the first year's exploration work at the Dolly Varden South West copper/gold property southeast of Elko, Nevada. The work being done is part of a greater exploration program budgeted at C$850,000 over the next three years.

The Dolly Varden South West property is comprised of 26 optioned claims where the Company completed grid development in mid March. Cloudbreak recently commenced ground magnetometer surveying and a 3D Induced Polarization ("IP") geophysical survey, an exploration process which was successful in delineating drill targets on the adjacent Dolly Varden property.

Drilling of the 3D IP anomaly to the east has intersected several bands of north-south trending mineralization. The geology logged at Cloudbreak's property is consistent with that on the Dolly Varden property. The showing on the Company's property has a north-south strike noted in preliminary work completed. Further showings were logged by Company president Blair Naughty and Cloudbreak's Nevada geological staff during a property visit in early March 2007.

Mr. Naughty noted, "The zones of mineralization extend across the small road in the valley in a similar direction to the adjacent property's zone for at least 500 feet. The proposed drill site for testing the down dip extension of this zone has been agreed to by management following consultation by Company geologists. Permitting for the planned drill testing is underway."

A diamond drill rig on site at the Dolly Varden project will be mobilized and moved to Cloudbreak's property in the next 3-5 weeks to test the anomalies. Meanwhile, drilling on the adjacent properties continues at an aggressive rate.

The Dolly Varden Property is a copper gold skarn property located just south of Kennecott's past-producing Victoria Mine. The Victoria Mine produced well over 2 million tons of high grade copper ore in the 1960s.

Consolidated Gold Win has met with considerable success having drill-tested a 3000+ foot long 3D IP anomaly to the east with favorable results. Preliminary results from exploration on Cloudbreak's claims are consistent with that on Gold Win's property.

The company is taking a group of brokers, analysts and geologists to visit the Dolly Varden East claims this coming weekend (April 19-23) and will have videos and pictures of the trip on the website shortly thereafter.

Blair Naughty states, "It is a very exciting time for the company with work on all three of our projects starting in the immediate future."

Cloudbreak Resources Ltd. is a mineral exploration company with projects in Nevada, Romania and Turkey. Company management seeks to increase shareholder value through the identification, acquisition and exploration of mineral exploration projects of merit worldwide.

Marvin Mitchell, P. Geo, a director of Cloudbreak Resources and qualified person as identified by National Instrument 43-101, has reviewed and verified the technical content of this release.

On Behalf of the Board

Blair Naughty, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information