SOURCE: GLR Resources

June 13, 2007 13:28 ET

GLR Completes Final Feasibility Study for Goldfields Project

KIRKLAND LAKE, ON--(Marketwire - June 13, 2007) - GLR Resources Inc. (TSX: GRS) (FRANKFURT: GKF) ("GLR" or "the company") is pleased to announce the completion of its Final Feasibility Study for its Goldfields Project in Northern Saskatchewan.

Highlights

Proven and Probable reserves estimated at 10,997,000 tonnes containing 601,007 ounces Gold and 559,000 ounces of recoverable gold.

----------------------------------------------------
           Tonnes      Grade g/T    Contained Ounces
----------------------------------------------------
Proven     1,683,717      2.03               109,619
----------------------------------------------------
Probable   9,313,283      1.64               491,388
----------------------------------------------------
Projected base case outcomes over the six-plus years of production
- Total cash costs of US$373.55 per ounce
- Operating cost per ounce US$280.26
- Average annual after-tax net cash flows of US$15,533,400
Average life of mine production estimates at 1,800,000 million tonnes per year for 6 years, with estimated average annual production of 90,000 ounces Gold.

Base case after tax net present value at discount rates of 0% and 8% estimated at US$61,600,000 and US$33,100,000 respectively with an IRR of 30.5% and a payback of three years.

The above information does not include the Athona Pit portion of the Goldfields Project which is projected to extend mine life by at least three years. The Athona data will be incorporated in the near future. (See Press Release of Feb. 26, 2007)

Goldfields Project Feasibility Study Results

Bikerman Engineering and Technology Associates, Inc. (BETA), of Connecticut USA together with Dan Mackie and Assoc., have completed the Final Feasibility Study of GLR'S Goldfields project situated in the Uranium City area of Northern Saskatchewan. The study confirms the economic viability of a conventional open-pit mining and milling operation using base case long-term gold prices and a base case of US$525 gold. The Goldfields Feasibility Study was completed under the direction of Dr. Michael Bikerman P.Geo, an independent Qualified Person as defined by National Instrument NI 43-101 and David Bikerman, Engineer of Mines and President of Bikerman Engineering and Technology Associates, also an independent and qualified person. BETA has reviewed and approved the technical content of this news release. An NI 43-101 compliant summary of Goldfields Feasibility study will be filed on SEDAR shortly.

Using a base case price of US$525 Gold, estimates of annual production and cash costs for Goldfields are summarized below.

----------------------------------------------------------------
First 6 Years of Production  Total Cash Costs($US)  Gold(ounces)
----------------------------------------------------------------
Average Total Cash Costs     $373.55
Operating Costs per Ounce    $280.26
Annual Production                                         98,000
----------------------------------------------------------------
Total Recovered Gold                                      91,236
----------------------------------------------------------------


Project Economics

--------------------------------------------------------------------------
Mine Basis                                     Units
--------------------------------------------------------------------------
Mine Life                                      Years                     7
--------------------------------------------------------------------------
Ore Tonnage milled                             Million tonnes           11
--------------------------------------------------------------------------
Strip Ratio (waste to ore)                                            3.16
--------------------------------------------------------------------------
Mill throughput (nominal)                      Tonnes per day        5,000
--------------------------------------------------------------------------
Total capital cost
(mine facilities + infrastructure)             US$ (millions)         46.3
--------------------------------------------------------------------------
Unit Operating Costs
--------------------------------------------------------------------------
Mining cost per tonne ore mined                US$/Tonne              2.12
--------------------------------------------------------------------------
Mining cost per tonne waste mined              US$/Tonne               1.3
--------------------------------------------------------------------------
Milling / Process cost per tonne ore           US$/Tonne              5.94
--------------------------------------------------------------------------
G&A and Environmental cost per tonne ore       US$/Tonne              2.07
--------------------------------------------------------------------------

----------------------------------------
NPV @ 8% =                    33,135,911
----------------------------------------
IRR =                              30.5%
----------------------------------------
Operating Cost Per Ounce Gold    $280.26
----------------------------------------
Total Cost Per Ounce Gold        $373.55
----------------------------------------

Sensitivity Analysis

--------------------------------------
Gold Price($US)  NPV (@8%)         IRR
--------------------------------------
$450             $12,891,841     16.2%
--------------------------------------
$525             $33,135,911     30.5%
--------------------------------------
$550             $39,777,955     35.5%
--------------------------------------
$575             $46,288,399     40.4%
--------------------------------------
$600             $52,776,785     45.3%
--------------------------------------
$650             $65,643,892     55.3%
--------------------------------------
$700             $78,369,299     65.0%
--------------------------------------
Commenting on the Feasibility Study, Robert Kasner, President and CEO of GLR, noted, "I have spent over 20 years of my life on this project and finally seeing it come to fruition is a great feeling. I want to thank our project team, Jim Kermeen, John Cook and contractors and especially our COO John Orr for achieving this major milestone for the company as it represents another fundamental step in the Company's market capitalization being revalued from exploration to producer status. I am confident that more resources will be found at the existing Box and Athona pits prior to mine start up. I have always felt that the Beaverlodge area has been an ignored mineral belt that will produce many more mines. I am also grateful to see this project proceed and provide many new jobs for Native and Northern people in the area -- some of whom have become good friends of our family."

Also commenting on the Feasibility Study, COO John Orr noted, "The results of this feasibility validate the past confidence we have had in the Box property and I am looking forward to the next twenty years as we move past the pushing of paper and into moving rock and producing gold. We look forward to leading the re-establishment of mining in the region and growing a team of professionals whom will develop our future."

Project Environmental Aspects

The Environmental permitting has been ongoing since the mid 1990s but in February 2007 a submission was made to Saskatchewan Environment for final review prior to public input. There have been numerous consultations with stakeholders in the region who are eagerly anticipating the project's start up as well. It is management's expectation to have permits in place by late summer of this year. The use of best practices and minimum disturbance is anticipated to keep the footprint of this operation to a minimum.

Project Construction

GLR is currently staffing to do its own EPCM and to control the construction from design stage through to operations. GLR has been active in sourcing equipment and has an aggressive development schedule ahead in the next 1 1/2 years to bring the project forward. It is management's feeling that a combination of modular construction techniques and innovative design and procurement will allow the project to be brought in on time and on budget in accordance with the Feasibility Study.

Measured, Indicated and Inferred Resource estimate Box and Athona Pits
---------------------------------------------------------------------------
                       Au         Tonnage        Au   Contained Metal(Gold)
---------------------------------------------------------------------------
DEPOSIT   CATEGORY     Cut-off    000's tonnes   g/t      kg       000's oz
---------------------------------------------------------------------------
Box       Measured     > 0.250           2,401   1.68   4,011.1         129
---------------------------------------------------------------------------
          Indicated      0.250          14,500   1.34  19,371.6         623
---------------------------------------------------------------------------
          Inferred     > 0.250           3,710   0.93   3,451.4         111
---------------------------------------------------------------------------
(Box: June 1 press release)
---------------------------------------------------------------------------
Athona    Indicated    > 3.0             371.4   4.08    1514.2        48.7
---------------------------------------------------------------------------
                       > 2.5             1033.2  3.00    3104.4        99.8
---------------------------------------------------------------------------
                       > 2.0             1870.7  2.43    4549.1       146.3
---------------------------------------------------------------------------
                       > 1.0             3399.8  1.89    6417.3       206.3
---------------------------------------------------------------------------
                       > 0.5             7036.4  1.28    8994.5       289.2
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Athona     Inferred    > 3.0               50.3  4.45     223.8         7.2
---------------------------------------------------------------------------
                       > 2.5               88.8  3.46     307.8         9.9
---------------------------------------------------------------------------
                       > 2.0              213.7  2.44     522.5        16.8
---------------------------------------------------------------------------
                       > 1.0              558.6  1.69     943.9        30.3
---------------------------------------------------------------------------
                       > 0.5             1406.4  1.10    1548.8        49.8
---------------------------------------------------------------------------
Cautionary Note

Readers are cautioned that the conclusions, projections and estimates set out in this PR are subject to important qualifications, assumptions and exclusions, all of which are detailed in the Feasibility Study. To fully understand the summary information set out above, the Feasibility Study should be read in its entirety.

Forward-looking statements:

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond GLR's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although GLR believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.

About GLR

GLR is a Canadian-based junior mining and exploration company focusing on projects in North America and with existing projects in Ontario, Quebec and Saskatchewan. The most advanced project is the Goldfields Project, located near Uranium City in Northern Saskatchewan. The Goldfields project consists of two open-pitable Gold deposits -- The Box and The Athona -- containing a resource in excess of one million ounces Gold. GLR is focused on bringing the Goldfields project into production in late 2008. GLR trades on the TSX under the symbol GRS. More information is available on line at: www.glrresources.com.

John D. Orr, P.Eng. is the qualified person responsible for reviewing the contents of this press release.

Contact Information

  • For further information please contact:

    Robert Kasner
    President & CEO
    T: 1-(705) 567-5351
    E: Email Contact

    Malcolm Bucholtz
    V.P. Investor Relations
    T: 1-(306) 525-0852
    E: Email Contact

    John Orr, P.Eng.
    C.O.O.
    T: 1-(416) 979-4601
    E: Email Contact

    GLR RESOURCES INC.
    P.O. Box 546, 4 Al Wende Avenue
    Kirkland Lake, Ontario
    P2N 3J5
    Tel: (705) 567-5351
    Fax: (705) 567-5557
    Email: Email Contact
    www.glrresources.com