SOURCE: Dana Resources

September 16, 2009 08:30 ET

Dana Considers Possible Base Metals Company Spin Off

LAS VEGAS, NV--(Marketwire - September 16, 2009) - (OTCBB: DANR) (FRANKFURT: OD0) -- Dana Resources is a US-based precious metals development company with advanced stage gold and base metal properties in Peru. Dana is evaluating a strategy to maximize shareholder value and focus the company on the development of the Collota Gold deposit.

One key strategy would be to spin out a new base metals-focused company with copper and base metals experienced management team and issue shares to our existing shareholders of Dana. This would give the existing management more focus on the development of our gold assets. With Dana planning to begin gold production at its 100% owned 1.17 million ounce Collota gold deposit by 2012, the company believes that the Turmalina and Las Horquetas properties would benefit from a separate listing in order to maximize shareholder value.

The Turmalina high-grade copper resource is located in Northern Peru in the Piura region and covers approximately 600 hectares. As of 2007, existing high-grade reserves were 305,586 tons of 2.5% copper (15 million pounds of copper). Dana Resources believes the Turmalina Project initially has a copper potential of over 660 million pounds, valued at approximately $1.9 billion. Additional development plans are being set to increase existing reserves.

The Las Horquetas project is located in close proximity to Turmalina. BHP Billiton's proprietary Falcon survey was flown over the project. Samples of 5.39 grams per ton gold and 5.71% copper have been assayed.

Northen Peru is a hotbed for mineral explroation, development and production. Within the region is TSX listed Candente Resources. Their Cañariaco Copper-Gold Porphyry Project contains a resource of 6.46 Billion pounds of copper. Operators in the area include Chinalco, China Minmetals and Jiangxi Copper.

Mr. DeMelt, Dana Resources' President has commented, "With gold and copper prices surging, we are weighing the opportunity with institutional financiers of spinning off some of our key base metals projects into a new public company. This effort would create distinct Dana Gold and Dana Copper companies. Existing shareholders would receive shares in both companies and realize the full potential of ownership in two of Peru's emerging precious and base metals companies. Strategically, this move can accelerate Dana's plan to production of both gold and copper in the current high priced commodity era."

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.

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 Dana Resources control with respect to the 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 Dana Resources' filings with the Securities and Exchange Commission.

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