SOURCE: Dana Resources

March 05, 2010 09:45 ET

Dana Announces Letter of Intent to Acquire Silver Producer

LAS VEGAS, NV--(Marketwire - March 5, 2010) -  Dana Resources (OTCBB: DANR) (FRANKFURT: OD0), a US-based precious metals exploration and development company, is pleased to announce the signing of a Letter of Intent ("LOI") to acquire the Chota Silver Mine.

Dana Resources has entered into a letter of intent to acquire 100% interest in the Chota Silver Mine located in Peru. Under the terms of the LOI, Dana will be granted 100% ownership of the mine for an aggregate consideration of $425,000 in cash payments, a commitment to upgrade the infrastructure of the mine and a share allotment to be determined at closing. An initial cash payment of $25,000 upon signing the LOI secured the project for Dana Resources.

The property is currently producing silver, lead, zinc and gold. Average grades are 25oz/ton Ag, 7% Pb, 7% Zn and 2 grams/ton Au respectively. The company believes with moderate investment it could increase production to 50 tons a day. A 50-ton per day mill will yield significant cash flow at today's metal prices. Dana Resources expects a profit of over $300 per ton. Initial production at 50 tons per day will realize the Company approximately $6 million of profit in its first year. Dana Resources plans to implement a growth strategy to increase its current rate of 50 tons per day production up to a capacity of 1000 tons per day.

The highly prolific region affords Dana Resources the opportunity to acquire additional neighboring land packages and the opportunity of toll mining. There are several satellite deposits in the area run by local families who have to transport ore several hundred kilometers away for processing. Having a local mill would be beneficial to all the small-scale miners in the area and add an additional stream of cash flow for Dana Resources.

Mr. Len De Melt, President of Dana Resources, commented, "Dana Resources signed the agreement to acquire the Chota Silver Mine based on the inspection of the property, the initial draft of the 43.101 presently being written by Luc Pigeon, P.Geo. , numerous samples and economic calculations. The immediate cash flow and myriad of other profitable opportunities will benefit the Company and its shareholders."

About Dana Resources
Dana Resources is a precious and base metals exploration company with offices in the United States and Peru. Dana's management team possesses local knowledge, extensive international connections, a wealth of experience and technical expertise in mining, mining finance, exploration and production. Dana Resources has acquired a portfolio of gold, silver and other precious & base metal properties located in Peru's most prolific mining regions. With Peru growing as a producer of gold, silver and other metals on the international market, Dana Resources is well positioned to capitalize on the escalating global demand for commodities. The management team and Directors are committed to creating value for their shareholders and to the long-term success of Dana Resources.

Forward-Looking Statements
The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to commencement of drilling operations, concentration in mineral deposits, delays in testing and evaluation of ore samples, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

On Behalf of the Board,

Contact Information