Glass Earth Gold Limited
TSX VENTURE : GEL

Glass Earth Gold Limited

May 21, 2009 10:07 ET

Glass Earth Gold Limited: Exploration Update

FINANCIAL STATEMENTS and MANAGEMENT'S DISCUSSION & ANALYSIS for the 3 Months Ended 31 March 2009

TORONTO, ONTARIO--(Marketwire - May 21, 2009) - Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth") announces the release of its first quarter financial statements and Management's Discussion and Analysis ("MD&A") report pertaining to that period.

EXPLORATION UPDATE

Glass Earth progresses towards planned gold production.

- Glass Earth plans bulk testing of its McAdie Prospect, the success of which would be a precondition to moving into initial placer production in the Central Otago region of New Zealand.

- Active exploration campaigns of drilling, ground-based resistivity surveys, mapping, and analysis in the Hauraki (funded and operated by Newmont); Mamaku-Muirs; and Otago Regions (see map below).

Newmont continues its active diamond drilling of Glass Earth's Hauraki projects, commencing the highly prospective Wentworth/Glamorgan evaluation in April 2009. The first of four diamond drill holes is underway on the Goldwyn Prospect, just 17kms from its Waihi operations, with the hole currently at 30m depth.

Infill resistivity surveying on the Muirs/Massey Reefs is planned to commence in July 2009 assisting in delineating two potentially new high level vein systems adjacent to the known Massey and Muirs reefs. Rock chips assaying up to 4.58g/t gold, and soil geochemical anomaly's up to 458ppb gold confirm surface evidence of the two new West Muirs and East Muirs vein systems. Drilling is planned to follow as funding becomes available.

Otago exploration has focussed on developing prospects highlighted in its recent targeting campaign, with emphasis on targets recognised as having the signature of orogenic gold mineralisation, and the size to generate large gold deposits.

Work has commenced on the Fruidburn Prospect (Southeast Otago) following encouraging stream sediment geochemistry results. Detailed stream sediment surveying is focussed on a 10km x 7km area where sampling of a 540ppb BLEG (bulk leach extractable gold) sample returned 86 grains of gold in pan concentrate, determined to have been derived very close to source. Coincident magnetic and resistivity anomalies rank this target highly.

Central Otago Placer Mining

Glass Earth geologists have identified that the vectors to the major mineralizing structures, recognized to host significant hard rock gold, lie directly under placer gold mineralisation. 175 shallow RC holes have been completed in the Ida Valley region, leading to the focus of initial attention on the McAdie Prospect, Poolburn.

Bulk testing of its McAdie Prospect, as a necessary precursor to proposed placer production in the Central Otago region, is scheduled to commence as soon as requisite land use and water use consents are in place. Securing equipment and experienced local personnel for placer mining operations is well advanced.

FINANCIAL RESULTS

Glass Earth is an exploration company and therefore classified as being at the 'development stage', as it has no mining or other significant income. With all general and administration expenses being expensed, Glass Earth records losses each year arising from the expensing of these cash operating costs as well as other non-cash expense items.

The Company has recorded a small profit this quarter due to a foreign exchange gain upon the transfer of 90% of remaining Canadian dollars into the currency of operations, the New Zealand dollar. This gain is a one-off gain and is not expected to recur this year.



3 months ended 3 months ended
March 31 2009 March 31 2008
Operating costs (166,000) (260,000)
Interest income 8,000 25,000
Foreign exchange gain 169,000 8,000
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Net Gain/(loss) for the period $11,000 $(227,000)
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Notes:

- Cash operating costs were lower, in line with a concerted effort to reduce general and administration overheads;

- Interest earned has dropped from $25,000 to $8,000 due to reduced cash held and the drop in interest rates attainable;

- Cash operating costs are expected to be approximately $630,000 (NZ$0.9m) for fiscal/calendar 2009.

Qualified Persons

Glass Earth's exploration programmes are carried out under the supervision of Glass Earth's President and CEO, Simon Henderson, M.Sc, M.AUSIMM, F.SEG. Mr. Henderson meets the qualified person requirements (as defined by National Instrument 43-101) with more than 30 years of experience in the gold mining and exploration industry.

About Glass Earth Gold Limited

Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a land position of over 17,000 km2 in the North and South Islands. With its main office in Wellington, New Zealand, Glass Earth Gold Limited is listed on the TSX Venture Exchange (TSX VENTURE:GEL) and the New Zealand Alternative Stock Exchange (NZAX:GEL).

To receive Company news via email, contact sasha@chfir.com and mention "Glass Earth news" in the subject line.

To view a map of "New Zealand Permit Areas", please visit the link below:

http://media3.marketwire.com/docs/nz_area_521.pdf

Neither the TSX Venture Exchange nor New Zealand Exchange Limited has reviewed this release and neither accepts responsibility for the adequacy or accuracy of this release.

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