Elissa Resources Ltd.

Elissa Resources Ltd.

November 17, 2011 09:00 ET

Elissa Receives Permits to Drill Its Thor Rare Earth Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2011) - Elissa Resources ("Elissa" or the "Company") (TSX:VENTURE:ELI)(OTCQX:ELSRF)(PINK SHEETS:ELSRF)(FRANKFURT:E30) has received the required permits to drill its 100%-owned Thor heavy and light rare earth project in Nevada. The program is scheduled to begin in December and preparations to commence drilling are currently being finalized. Thor contains substantial rare earth element (REE) mineralization discoveries in at least nine widely separate prospect localities within three distinct and sizeable discovery zones. The property is located in southern Nevada, about 47 miles (76 km) south of Las Vegan, and is 16 miles (28km) east of Molycorp Minerals' (NYSE: MCP) Mountain Pass REE mine and processing facilities in the neighbouring state of California.

"Drilling locations at Thor were selected following multiple successful ground exploration programs. We have also had favourable feedback to our project from several prominent and regional rare earth experts," said Paul McKenzie, President and CEO of Elissa Resources. "Additional drilling is planned immediately following our initial program if results warrant and we eagerly anticipate the drill results."

Elissa's Thor Project is represented at surface in nine heavy rare earth elements and five light rare earth elements including dysprosium, neodymium, yttrium and terbium in addition to lanthanum, cerium, praseodymium, samarium, gadolinium, holmium, erbium, thulium, ytterbium, and lutetium. These strong surface representations of both heavy and light rare earths correspond with prominent magnetic anomalies defined by both a district-scale airborne magnetic geophysical survey and a detailed followup ground magnetic geophysical survey.

Substantial REE mineralization has been discovered at Thor in at least nine widely separate prospect localities in three distinct discovery zones grading from anomalous to 10.6% (12.75% rare earth oxide). The largest zone defined to date is the Lopez Trend, a 1.5 mile (2.6 km) long REE-bearing monazite structure that is coincident with a prominent magnetic anomaly as defined by the aforementioned geophysical surveys. The ratio of heavy to light rare earths in assays of surface samples from the entire Thor Project is significant, averaging approximately one part heavy REE per 9 parts light REE.

In July, Elissa Resources increased its holdings in the Thor Project area by approximately 12% to a total of 2,366 hectares.

The Company also reports that it will also apply for additional drill permits to test a structure on the northeastern section of the project referred to as the NED Area. REE mineralization in the NED area occurs in a mostly concealed, small outcrop located approximately one mile (1.6 km) east of the northern end of the Lopez Trend. The outcrop consists of a dark-coloured (biotite-rich) igneous rock containing REE mineralization of probable magmatic origin. Elissa believes the outcrop could be merely the small part of a much larger, but concealed igneous body, as suggested byresults of the two geophysical surveys. The REE mineralization at NED, like that in the Lopez Trend, is enriched in HREE. Elissa is currently scheduling to drill a minimum of 5,000 feet (1,500m) along the Lopez Trend.

Elissa also reports that it completed four holes in the Sage Creek project to evaluate a stratiform gold target in a bedded rock sequence of Precambrian age. Drilling confirmed the presence of anomalous gold values associated with a stratiform horizon in this sequence, but the values were much lower than hoped and of sub-economic grade. These results combined with additional surface work suggests that the higher-grade mineralization found in surface rock float throughout the area is likely derived from local veins that cut the rock sequence or from small sulfide-bearing pods associated with ancient seafloor hot spring vents. Elissa will continue studying geological data from the project throughout the winter months to determine whether or not the project merits further work.

The technical information outlined in this news release, has been reviewed and approved by Mel Klohn, PGeo, Director of Elissa Resources, and a Qualified Person as defined in the current National Instrument 43-101.

About Elissa Resources Ltd.

Elissa Resources is advancing its 100%‐owned Thor heavy and light rare earth element project in Nevada, 16 miles (28 km) east of Molycorp Minerals' Mountain Pass deposit and processing facility in California. Strongly represented at the Thor project are four rare earth elements that have been deemed as being in critical short supply by the U.S. Department of Energy: neodymium (Nd), terbium (Tb), dysprosium (Dy), and yttrium (Y). Additionally, Elissa has an option to earn a 100% interest on both the Sage Creek (Idaho) and St. Elmo (Nevada) gold projects.

On behalf of Elissa Resources Ltd.

Paul McKenzie, President & CEO

Disclaimer: Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable. We seek safe harbour.

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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