Creso Exploration Inc.
TSX VENTURE : CXT
FRANKFURT : C3X
OTCQX : CRXEF

Creso Exploration Inc.

May 27, 2011 09:35 ET

Creso Reports up to 266 g/t Au From Surface Sampling Program at the Downey Property, Asquith Township at the Shining Tree Project

MONTREAL, QUEBEC--(Marketwire - May 27, 2011) - Creso Exploration Inc. ("Creso" or the "Corporation") (TSX VENTURE:CXT)(OTCQX:CRXEF)(FRANKFURT:C3X) is pleased to announce that 30 rock-chip samples recently taken from the Downey property (100% controlled by Creso), Asquith Township on the Shining Tree project in NE Ontario, averaged 12.01 g/t Au, with the highest single sample running 266.00 g/t Au (7.77 oz/t Au) and a second sample running 73.60 g/t Au (2.15 oz/t Au). Fifteen of the samples have assays greater than 0.10 g/t Au and occur throughout an area of 60 meters by 120 meters. This area is cut by several parallel shears containing quartz-carbonate veins and veinlets trending approximately East-West within a broader zone exhibiting a strike extent in excess of 500 meters and a width of approximately 100 meters. Follow-up work is planned to test the broader zone observed in intermittently exposed outcrops.

The main showing of the Downey prospect is exposed by an excavation and adjoining washed outcrop that covers an area of about 60 meters by 55 meters, within which 23 samples averaged 15.65 g/t Au. In addition to the numerous shallow trenches, a backfilled shallow shaft, reportedly less than 10 ft deep, is located in the northern part of the prospect. The area is underlain by a sequence of volcanic rocks, predominately felsic in composition with minor mafic flows, including pillow lavas crosscut by a northwest-trending diabase dike. The sequence strikes east-northeast and dips steeply to the southeast. The felsic flows are strongly lineated, which may be an expression of folding.

Also exposed in this prospect is a series of narrow shear zones with quartz veins that vary in width from 0.1 meters to about 1.5 meters. Two significant shear zones are present on the property, with the northernmost shear zone exposed by a shaft that is now filled with water. This zone strikes approximately E-W and dips steeply to the SE at 74 degrees. The predominate sulfide in the shears and in the host rock is pyrite, which rarely exceeds 3 percent. A 10 cm-wide quartz-carbonate vein with visible gold is exposed in one of the shear zones.

The highest gold grades are developed within the shear zones and quartz veins with up to 266 g/t Au. However, a silicified zone of mafic and felsic volcanic layers containing large blebs of pyrite and minor quartz veinlets runs 3.56 g/t Au.

A total of 30 samples of quartz veins and host rock were randomly collected at the prospect as a first pass. Twenty-three samples were taken on the main showing, four from an outcrop 90 meters SSW of the main showing, and three were taken on a small outcrop about 300 meters to the northeast. Many samples were chips across intervals and, to a lesser extent, grab samples. None of the samples were channel cuts. The values ranged from <0.005 g/t Au to 266 g/t Au. It appears that a coarse gold effect may be present and metallic screen analysis is pending for 16 samples.

The average of the 30 samples is shown below in Table 1.

RangeUn-CutAverage SamplesAverage Samples
g/t AuAverageCut to 60 g/t AuCut to 30 g/t Au
<0.005 to 26612.014.692.69
Main showing only15.656.103.49
(incl. host rock sample)
(Avg value-23 sample)

Historic data from the Downey property is not available to Creso owing to records of previous work having reportedly been destroyed in a court house fire.

This surface sampling at the Downey zone will be followed-up shortly with a portable Winkie Drill and continuous rock-saw channel sampling program, that is also planned for the Moore-MacDonald, Buckingham, and Bennett properties, all located in the western half of the Shining Tree District. Each of these properties is controlled 100% by Creso, subject to certain underlying royalties. None of these properties are included in the Letter Agreement covering the Minto, Tyranite, Duggan, and Matona (and surrounding) properties signed on April 29, 2011 with Hunter Dickinson Resources Ltd., which has up to June 27, 2011 to complete its due diligence.

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 Inc. gold QA/QC procedures follow standard industry practices. Chip samples are 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.

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. 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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