Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

May 19, 2011 21:36 ET

Golden Reign Resources Ltd.: Lab Data Entry Error Detected

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2011) - Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) announces that a material data entry error has been identified with respect to metallic screened gold assays reported in news releases NR11-11 and NR11-14 dated April 6, 2011 and May 2, 2011, respectively. Silver grades were not affected by this clerical error.

The affected assays pertain to results from underground sampling at the Mina Francisco adit and six trenches located in the San Pablo area of the Southern (San Albino) District. The laboratory error impacts 53 of a total 58 reported samples. The Company is confident and has the full assurance of the laboratory - Inspectorate America Corporation ("Inspectorate"), a certified USA based laboratory (ISO 17025) - that the error is an isolated incident affecting only the samples disclosed in this news release.

Correction of the data entry error has resulted in a reduction of the original gold assays by approximately 30%. The error arose during the calculation of the final total gold analysis, when an incorrect weight of the original screened sample was used. Inspectorate, did not ship the entirety of the 500 gram samples from its preparation facility to its analytical laboratory in Richmond, British Columbia. The preparation facility sent all of the plus 150 mesh fraction and approximately 30% of the minus 150 mesh fraction for all samples. Included with these samples was a list of the original sieved weights. Instead of using the entire 500 gram sieved sample weight (as reported on the sample shipment list) in the calculation of the combined gold analysis, the analytical laboratory used the reduced weight of sample that was shipped to Canada. The data entry error was recognized by Inspectorate when the sample weight discrepancy was questioned by the Company as part of its on-going quality assurance and quality control program ("QA/QC") program.

The revised gold assays are presented below and compared to the previously reported results.

Mina Francisco (NR11-11):

Sampling highlights of 9.0 metres of 7.43 g/t gold (originally reported as 15.23 g/t gold)

Including: 2.5 metres of 11.72 g/t gold (originally reported as 25.26 g/t gold); and
0.5 metre of 20.18 g/t gold (originally reported as 47.24 g/t gold)
Prospect NameSample #Type of WorkingType of SampleLength of sample (m)Rock typeOriginal Assay
Au (g/t
)Corrected Assay Au (g/t)Corrected Assay as % of Original Assay
Mina Francisco172743TunnelChip channel1.0Schists, Qtz veinlets4.462.4054%
Mina Francisco172778TunnelChip channel0.5Quartz0.060.0583%
Mina Francisco172779TunnelChip channel1.0Quartz4.431.8241%
Mina Francisco172780TunnelChip channel1.0Quartz31.1614.2246%
Mina Francisco172781TunnelChip channel1.0Quartz8.365.0060%
Mina Francisco172782TunnelChip channel0.5Quartz47.2420.1843%
Mina Francisco172783TunnelChip channel1.5Quartz19.498.1042%
Mina Francisco172784TunnelChip channel1.0Quartz17.5012.7573%
Mina Francisco172785TunnelChip channel1.0Quartz5.872.9951%
Mina Francisco172786TunnelChip channel1.5Quartz5.523.3260%
Mina Francisco172787TunnelChip channel1.2Quartz16.036.7242%
Mina Francisco172788TunnelChip channel2.0Quartz0.150.16107%
Mina Francisco172789TunnelChip channel1.2Quartz0.400.3075%
Mina Francisco172790TunnelChip channel1.2Quartz0.290.2172%
Mina Francisco172791TunnelChip channel2.0Quartz0.140.14100%
Mina Francisco172792TunnelChip channel1.0Schists, Qtz veinlets0.040.04100%

San Pablo Trenches (NR11-14):

Highlights from the sampling are:

Trench 1:2.0 metres averaging 0.55 g/t gold (originally reported as 4.02 g/t gold)
and1.0 metre averaging 6.68 g/t gold (originally reported as 13.50 g/t gold)
and1.0 metre averaging 1.11 g/t gold (originally reported as 3.52 g/t gold)
Trench 2:1.0 metre averaging 0.43 g/t gold (originally reported as 2.47 g/t gold)
and:8.5 metres averaging 8.94 g/t gold (originally reported as 9.22 g/t gold)
including:4.5 metres averaging 15.26 g/t gold (originally reported as 15.44 g/t gold)
Trench 3:6.5 metres averaging 1.80 g/t gold (originally reported as 4.32 g/t gold)
including:1.0 metre averaging 6.54 g/t gold (originally reported as 13.31 g/t gold)
Trench 4:16.0 metres averaging 6.25 g/t gold (originally reported as 9.10 g/t gold)
including9.0 metres averaging 6.51 g/t gold (originally reported as 10.03 g/t gold)
and3.0 metres averaging 13.14 g/t gold (originally reported as 17.73 g/t gold)
Trench 5:3.0 metres averaging 9.19 g/t gold (originally reported as 26.97 g/t gold)
Trench
#
DescriptionFrom
(m
)To (m)Interval (m)Original Assay Au (g/t)Corrected Assay Au (g/t)Corrected Assay as % of Original Assay
1Schist0.01.01.01.100.3229%
1Schist1.02.01.06.930.7711%
1Quartz vein13.014.01.013.506.6849%
1Quartz vein18.019.01.03.521.1132%
2Schist with qtz9.010.01.02.470.4317%
2Quartz vein20.021.01.00.220.1777%
2Quartz vein21.022.01.03.743.5996%
2Quartz vein22.023.01.00.880.8597%
2Quartz vein23.024.51.520.7813.6766%
2Schist with qtz24.525.51.012.6712.5399%
2Quartz vein25.526.51.017.3015.4089%
2Quartz vein26.527.51.018.7420.24108%
2Schist with qtz27.528.51.00.120.12100%
2Quartz vein28.529.51.04.122.7567%
2Schist with qtz29.530.51.00.480.4390%
3Quartz vein9.510.51.07.153.0743%
3Quartz vein10.511.00.50.010.02200%
3Schist with qtz11.012.01.013.316.5449%
3Schist with qtz12.013.01.00.030.04133%
3Quartz vein13.014.01.02.400.6427%
3Schist with qtz14.015.01.03.221.1134%
3Schist15.016.01.01.940.2613%
4Schist with qtz1.02.01.00.490.4286%
4Schist with qtz2.03.01.028.1918.9967%
4Schist with qtz3.04.01.010.677.0866%
4Schist with qtz4.05.01.014.707.7152%
4Schist with qtz5.06.01.08.707.0181%
4Schist with qtz6.07.01.013.327.6658%
4Quartz vein7.08.01.01.001.00100%
4Quartz vein8.09.01.09.425.2255%
4Quartz vein9.010.01.01.992.00101%
4Quartz vein10.011.01.02.301.9283%
4Quartz vein11.012.01.00.900.8797%
4Schist12.013.01.00.150.15100%
4Quartz vein13.014.01.05.465.4099%
4Quartz vein14.015.01.045.3132.1071%
4Schist15.016.01.02.431.9279%
4Schist16.017.01.00.520.53102%
5Quartz vein8.09.01.00.360.1542%
5Quartz vein9.010.01.018.237.2039%
5Quartz vein10.011.01.048.0915.77033%
5Quartz vein11.012.01.014.584.5931%

Golden Reign is, obviously, extremely disappointed and concerned that such an error has occurred. However, the Company is satisfied that Inspectorate has taken the necessary measures to correct this situation and put into place safeguards to prevent such errors in the future. In addition, the Company plans to increase the number of check assays it performs. Presently, Golden Reign undertakes one duplicate check assay for every 50 samples. Hereafter, the Company plans to perform one check assay for every 25 samples, with an emphasis on mineralized intervals. Check assays are performed by an independent laboratory other than Inspectorate.

Qualified Person

John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release.

On behalf of the Board,

Kim Evans, CGA, President & CEO

About Golden Reign:

Golden Reign Resources Ltd. is a publicly listed (TSX VENTURE:GRR) mineral exploration company engaged in exploring the San Albino-Murra Property located in Nueva Segovia, Nicaragua. Held under a 25 year mining license expiring February 3, 2027, the property covers an area of 8,700 hectares (87 sq km).

The Company has outlined a structural corridor approximately 3 kilometres wide by 15 kilometres long, which spans the Property, stretching from Las Conchitas in the south to the northeast mining town of Murra. Old workings exist along the corridor. The San Albino Mine flanks the northwestern edge of this structural trend.

Nicaragua, a mining-friendly jurisdiction, is situated in the Central American Gold Belt, which extends from Costa Rica in the south to Guatemala in the north. Within this prolific gold belt, estimates of historical production total more than 20 million ounces.

For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.

Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management's best judgent as of the date hereof, based on information currently available.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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