Creso Exploration Inc.

Creso Exploration Inc.

April 21, 2011 10:17 ET

Creso Drills 10.6 g/t Au Over 4 Meters and Extends Historic Gold Zone to 470 Meters Below the Tyranite Mine Shaft Collar

MONTREAL, QUEBEC--(Marketwire - April 21, 2011) - Creso Exploration Inc. ("Creso" or the "Corporation") (TSX VENTURE:CXT) (OTCQX:CRXEF) (FRANKFURT:C3X) is pleased to announce the results of three diamond drill holes totaling 1698 meters completed at the Tyranite zone in the Shining Tree project in NE Ontario. The Tyranite results, as presented below, demonstrate that significant gold mineralization is developed over some 470 vertical meters and 1,200 meters along strike, open vertically and along strike. Moreover, airborne geophysics suggests that the Tyranite Main Zone mineralization aligns with the Minto deposit, 2.5 km to the SSE, along a narrow structural corridor trending N10W.

Highlights from this program are shown in Table 1 below. Significant widths and gold grades are evidenced along multiple strands of mineralization within the Main Zone (N-S strike; 73° W dip) of the Tyranite mine. The best and deepest intercept from this drill program had 5.22 g/t Au over 11.8 meters in hole TY11-02, from 492.5m to 504.3m (including 10.61 g/t Au over 4m). This intercept penetrated the Main Zone at approximately 130m depth below the deepest level (1125 level) of the old Tyranite mine, some 470m vertically below the surface. In addition, hole TY11-03b intercepted 3.68 g/t Au over 30 meters, including 6.5 g/t Au over 4.5 meters, with the highest individual assay from this interval grading 11.85 g/t Au over 1.5m, from 429.5m to 431m. The highest single sample value from this drill program is 14.0 g/t Au over 0.3m, from 419.8m to 420.1m in hole TY11-01. Additional outliers of mineralization occur locally away from the Main Zone, both in the hanging wall and footwall, with the latter exemplified by the interval of 5.53 g/t Au over 0.7m, from 437.4m to 438.1m in hole TY11-01 as shown below. Creso geologists believe there is additional gold potential deeper beneath the current drilling.

The significant intercepts encountered in the drilling are shown in Table 1 below.

NumbermetersmetersmetersAu gpt
409.3412.83.55.02Tyranite approximately 50
41942126.31Tyranitemeters below
437.4438.1.75.53Tyranitethe lowest working
including495.5499.5410.61130 meters below the 1125 level
TY11-03b406.7408.92.24.3Tyranitesuggests a
413443303.68Tyranite southerly rake to
including426.54314.56.5Tyranitethe mineralized zone

*Note: True widths are approximately 0.65 of reported interval lengths.

Historic production at the Tyranite(1939 to 1942) totaled 223,810 tons at an average grade of 0.14 opt Au ( 4.81 g/t Au). The Tyranite Main Zone was developed by 7 levels and a 3-compartment shaft, with the lowest level (1125) approximately 340 meters below the surface. All drilling by Creso intercepted the mineralized zone(s) below this lowest level. Figure 1 is a plan map that shows the outline of the historic workings, old drill holes, as well as the recent drill holes completed by Creso.

All three drill holes of this program were designed to test targets of coincident IP (Chargeability) and Resistivity highs that are also coincident with projected extensions of historic mineralization and high grade drill intercepts directly beneath the bottom of the Tyranite shaft that ranged from 0.16 oz/t Au over 4.8m to 0.49 oz/t Au over 4.7m at vertical depths of approximately 400m below the surface. Drill hole TY11-01 passed approximately 10 meters below the historic drill hole I-325 that returned the 0.49 oz/t Au grade.

Geophysical data has proven to be very useful in targeting drill holes at Tyranite. Data derived from the TerraQuest Ltd magnetic, radiometric, and VLF-EM helicopter survey with 15m line separation, together with evidence from historic geological mine maps, indicate that the shaft was driven through a quadruple intersection of NS, EW, NE, and NW-trending fault sets, each of which appears to have had some control on mineralization. Of these, NS structures exhibit the most significant control. The dip of the NS-trending Main Zone at Tyranite varies between 80° and 50° west, with the higher grade gold mineralization historically tending to occur at the bends ("rolls") to the lower dip angles. This prominent structural trend that can vary in azimuth between NS, N10W, and locally N10E, dipping on average 73° west, appears to align the Minto and Tyranite zones over a distance of 2.5 km. Notably, Creso has previously reported 13.3 g/t Au over 82.5m, from 508.5m to 591.4m in hole MC-09-01 from the Minto zone (see Creso Press Release dated August 9, 2010).

The gradient array IP/Resistivity anomalies determined by Insight Geophysics Inc from their surface network were further detailed in the vertical dimension by surveying them with Insight DC/IP sections. This approach was particularly useful in locating areas with strong silica-carbonate-sericite alteration with disseminated sulfides (pyrite, with lesser chalcopyrite and trace molybdenite) variably 1% to 15% by volume. Interestingly, the most intense silicification with pyrite, representing up to 40% silica and 15-20% sulfides provided the most distinct IP and Resistivity highs, but not necessarily the highest gold values. Gold is most closely associated with a slightly earlier phase of quartz-carbonate-pyrite+/-hematite veinlets with, on average, 2% to 5% sulfides. Mineralization appears to be concentrated at the south boundary of the Milly Creek syenodiorite stock where it is in contact with a sequence of fine to coarse grained mafic volcanics interbedded with serpentinized komatiitic flows. It is theorized that hydrothermal fluids may have emanated from hidden plugs of syenite at depth, representing multiple phases of the Milly Creek stock.

Figure 2 shows a view of the Tyranite zone in long section (inclined) looking east. Historic drilling used in this drawing includes 60 drill holes totaling more than 12600 meters. Recent drilling since 2009 totals 4 holes and 1854.7 meters. Figure 2 shows the mined-out portions of the zone (223,810 tons), the different levels of the Tyranite mine, and the projections of the drill holes where they penetrate the structure. The gram-meter (gm-m) calculation for each hole is done using the composite intercept of the zone (in g/t Au) multiplied by the length of the composite in meters. Any gm-m value less than 10 is not shown. Those from 10 to 25 are green, and from 25 to 50 are yellow. All gm-m values greater than 50 are in red. It should be noted that it is likely that some of the older holes in the northern and southern parts of the long section do not appear to have penetrated the Main Zone. The highest gm-m values are developed below the lowest level of the Tyranite Mine and suggest a vertical to steep southerly plunge to what may be high grade shoots that rake across the Main Zone structure.

Figure 3 is a cross-section showing the drill holes TY11-02 and 03b as well as the underground workings of the Tyranite mine and a projection of the Main Zone.

All drilling is currently paused at Creso's Shining Tree project to allow time for the evaluation and tabulation of all drilling and geophysical data that has been collected over the past several months. Geologists are presently re-logging, and selectively re-sampling, old core from the Tyranite mine. Additional exploration targets are being developed from this work, in combination with the data review.

This Press Release has been reviewed and approved by Mr. Alex Kutah, M. Sc, P. Geo., the Qualified Person under National Instrument 43-101.

Creso Exploration Gold QA/QC procedures follow standard industry practices. Sealed core boxes are transported twice daily from the drill rig to the core logging facility by qualified Creso personnel. Core is logged and prepared for sampling in a secure building. Sample intervals are selected according to geologic contacts, visible mineralization, and alteration. Drill core is cut along a center line using a typical circular rock saw designed for core cutting. Sampled core is placed into sample bags, sealed, and shipped to an assay lab that follows ISO 9000 series of Quality Management standards. All samples are analyzed for gold and other trace elements at ALS Canada Ltd. laboratories in North Vancouver, British Columbia by standard industry procedures. These procedures include gold by fire assay-AAS finish, with follow-up gold analyses by fire assay-gravimetric finish and/or metallic screen. Multi-element analysis is done by ICP (ME-MS61) using a four-acid digestion.

Blank and certified standard samples are routinely submitted with all sample batches sent to the lab for assay. In addition, replicates, duplicates, and field duplicates are routinely included in sample batches. Samples with visible gold, are analyzed with procedures designed to reduce the variability of the sample results. And finally, samples are routinely sent to other labs for additional checks.

To view the figures, please visit the following link:

About Creso

The Corporation's principal mining exploration holdings are located in the Shining Tree mining camp of Northern Ontario within 100 km of the Timmins and Kirkland Lake mining camps, and additional interests are held in base metal properties in Guatemala.

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. Forward looking statements in this press release may be identified by the words "estimate", "believe", "anticipate", "intend", "expect", "plan", "may", "should", "will", and the negative thereof or other variations thereon or comparable terminology. Actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Corporation's control. These factors include: results of exploration activities, general market and industry conditions, and other risks disclosed in the Company's filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Corporation's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Depending on exploration results and available financing, the Corporation may at any point modify the suggested work program for 2011.

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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