SOURCE: Dana Resources

March 01, 2010 12:28 ET

Dana Resources' Flagship Gold Deposit's In-Situ Value Surges Over $1.25 Billion

LAS VEGAS, NV--(Marketwire - March 1, 2010) - Dana Resources (OTCBB: DANR) (FRANKFURT: OD0), a US-based precious metals exploration and development company, is pleased to announce that the strong global demand for gold and precious metals is driving a major increase in the value of its proven gold deposits. Dana Resources currently owns and operates seven mining projects located in Peru's most prolific mining regions.

The Collota Gold Deposit is located in Northern Peru in the region of Ancash on the eastern side of the Cordillera Negra, (Black Range Mountains). It is 45km south of the city of Huarez. Elevation ranges from 4,100m to 4,600m.

The Collota gold deposit estimated resource totals 1,170,000 ounces of gold, equivalent to a current gross in-situ value in excess of $1.25 Billion. Efforts are underway to increase the size of the Collota Deposit to 3,000,000 ounces of gold. At recent global gold prices, Dana Resources can potentially reach in-situ levels close to $4 billion ($USD).

Dana Resources plans on processing the oxide zone first due to the low cost open pit heap leach process. Initially, Dana Resources expects to net over $18 per tonne of ore. The Collota gold deposit oxide zone has 27 million tonnes available to be processed using a cut-off grade of 0.25 grams per ton. At this cut-off, Dana Resources will net over $400 million profit from the oxide zone. The sulphide zone has over 13 million tons ready to be processed with expectations to net over $150 million profit.

Gold is priced over $1100 USD per ounce due to the global demand for the precious metal as a hedge to inflation and the weak U.S. dollar. Further, the consumption of gold from India and China has rebounded sharply over the last two quarters. This bullish investment climate is driving the demand for gold bullion and the stock of gold companies.

Mr. De Melt, President of Dana Resources comments,"We expect the global appetite for gold and precious metals to directly benefit Dana Resources due to the Company's proven gold deposits and active silver production project acquisition program. It is a great time to be a gold and silver company."

With some of the richest mineral reserves in the world, Peru is one of the highest producing countries of precious & base metals in Latin America. Previously inaccessible regions are now becoming available through modern technology and equipment, making the high diversity of marketable minerals an extremely attractive prospect. In total, Peru holds about 16 percent of the world's known mineral reserves.

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,

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