Golden Reign Resources Ltd.
TSX VENTURE : GRR

Golden Reign Resources Ltd.

April 12, 2011 12:45 ET

Golden Reign Resources Ltd.: New Gold Zone Discovered in Southern District-Trenching Intersects 12.8 Metres of 16.05 g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 12, 2011) -Golden Reign Resources Ltd. (the "Company" or "Golden Reign") (TSX VENTURE:GRR) is very pleased to report the discovery of a new gold mineralized zone approximately one kilometre south of the historic San Albino Mine area in the Southern District of its San Albino-Murra Gold Property (the "Property"), Nicaragua.

Discovered by trenching, the new zone confirms that the 3 kilometre wide by 15 kilometre long corridor of gold mineralization, which spans the entire Property, has excellent potential to host additional mineralized zones.

A total of 119 samples were collected from four trenches, situated midway between the Las Conchitas and the San Pablo mineralized zones. The floor of each trench was sampled with continuous one metre channel samples.

Highlights from the sampling are:

Trench 1:8.2 metres (from 9.0 m to 17.2 m) averaging 20.64 g/t gold and 26.87 g/t silver
Including:5.2 metres (from 9.0 m to 14.2 m) averaging 28.69 g/t gold and 38.8 g/t silver
Trench 2:8.0 metres (from 13.0 m to 21.0 m) averaging 4.37 g/t gold, minor silver
Including:3.0 metres (from 18.0 m to 21.0 m) averaging 8.83 g/t gold, minor silver
Also:5.0 metres (from 30.0 m to 35.0 m) averaging 9.44 g/t gold and 9.9 g/t silver
And1.0 metre (from 37.0 to 38.0 m) averaging 32.87 g/t gold and 51.5 g/t silver
Trench 3:12.8 metres (from 7.0 m to 19.8 m) averaging 16.05 g/t gold and 9.9 g/t silver
Including:3.0 metres (from 11.0 m to 14.0 m) averaging 40.97 g/t gold and 23.7 g/t silver
And1.8 metres (from 17.0 m to 18.8 m) averaging 42.33 g/t gold and 15.9 g/t silver
Trench 4:1.0 metre (from 4.0 m to 5.0 m) averaging 4.52 g/t gold, minor silver
And2.0 metres (from 19.0 m to 21.0 m) averaging 3.11 g/t gold and 9.1 g/t silver

A table showing the sample intervals reporting more than 1.0 g/t gold follows:

Trench #DescriptionFrom
(m)
To
(m)
Interval
(m)
Gold
(g/t)
Silver
(g/t)
1Quartz vein9.09.60.622.0829.5
1Schist with qtz9.610.20.612.3514.1
1Quartz vein10.211.21.047.9067.6
1Quartz vein11.212.21.026.8436.6
1Quartz vein12.213.21.028.1641.0
1Quartz vein13.214.21.025.6230.4
1Schist with qtz14.215.21.00.610.7
1Schist with qtz15.216.21.011.1510.0
1Schist with qtz16.217.21.08.367.9
2Schist with qtz13.014.01.02.183.4
2Schist with qtz14.015.01.02.940.3
2Schist with qtz15.016.01.01.021.0
2Schist with qtz16.017.01.01.201.2
2Schist with qtz17.018.01.01.131.3
2Schist with qtz18.019.01.013.018.2
2Schist with qtz19.020.01.07.546.7
2Schist with qtz20.021.01.05.9515.8
2Schist with qtz30.031.01.02.431.3
2Quartz vein31.032.01.04.305.5
2Quartz vein32.033.01.016.0313.1
2Quartz vein33.034.01.013.9811.8
2Quartz vein34.035.01.010.469.2
2Quartz vein37.038.01.032.8751.5
3Schist with qtz7.08.01.05.782.7
3Schist with qtz8.09.01.01.471.1
3Schist with qtz9.010.01.02.451.1
3Schist with qtz10.011.01.01.101.0
3Quartz vein11.012.01.017.339.7
3Quartz vein12.013.01.089.7941.2
3Quartz vein13.014.01.015.7820.2
3Quartz vein14.015.01.02.763.5
3Quartz vein15.016.01.01.001.6
3Schist with qtz16.017.01.01.583.5
3Schist with qtz17.018.01.019.9321.5
3Quartz vein18.018.80.856.2619.9
3Schist with qtz18.819.81.01.523.6
4Schist with qtz4.05.01.04.520.9
4Quartz vein19.020.01.02.391.8
4Quartz vein20.021.01.03.8216.3

Trenches averaging 2 metres in depth were excavated by hand, perpendicular to the strike of the steeply dipping vein system, to locate the quartz veins and, in some cases, silicified zones in the host schist.

The veins consist of milky quartz and in some cases quartz-adularia and contain galena, pyrite, arsenopyrite and visible gold. The veins strikes northeast-southwest and dip approximately 70° to 75° to the northwest. The trenches are approximately 50 metres apart giving a total strike length of 200 metres.

Metallic Screen Analysis

Due to the coarse nature of the gold, the Company uses 500 gram metallic screened gold assays for analyzing samples. If metallic screen analysis was not performed, the nugget effect in the deposit would produce extremely high gold assays which would not be representative and reproducible. The procedures for metallic screen assays are as follow:

Samples are dried and crushed to <10 mesh, riffle split to 500 grams which is pulverized, the coarse fraction of which is then screened out by using a 150 mesh size screen. The entire >150 mesh and 2 portions of minus fraction (30 grams each) are assayed separately using a standard 30 gram assay and a combined total gold in grams per tonne is calculated based on the weight of both fractions. Because of the nugget effect of the coarse gold present on the property, sometimes the <150 mesh sample was analysed a third time when the assays were not similar. This third assay was included in the final <150 mesh assay average.

The following table shows the variations between >150 mesh, <150 mesh and total samples.

Sample #Total
Sample
Weight
(g)
>150
Mesh
Sample
Weight
(g)
<150
Mesh
Sample
Weight
(g)
Au (g/t)
>150
Mesh
Gold
Assay
Au (g/t)
<150
Mesh
Assay 1
Au (g/t)
<150
Mesh
Assay 2
Au (g/t)
<150
Mesh
(Average
of Assay
1&2)
Au (g/t)
Total
Weighted Average
>150
Mesh &
<150
Mesh
172534503.635.09498.5421.180.810.980.891.10
172535507.066.62500.44511.1011.1310.4710.8017.33
172536504.1724.16480.01731.8258.3356.6357.4889.79
172537503.9919.78484.2158.0414.5313.5714.0515.78
172538496.0628.25467.8113.731.982.212.102.76
172539493.3529.11464.242.570.940.850.901.00
172540504.026.93497.0914.981.471.331.401.58
172541497.9625.95472.0153.7619.0017.1318.0719.93
172542505.2418.27486.97779.7627.7730.4729.1256.26
172543497.0729.06468.010.701.601.551.581.52
172544506.4429.47476.970.010.010.010.010.01
172545454.2128.92425.29<0.010.010.010.010.01

Quality Assurance

The Company has implemented a rigorous QA/QC program using best industry practices. As described in the Company's news release dated March 9, 2011, the program includes chain of custody responsibility of samples in sealed bags. The samples are delivered to a preparation facility of Inspectorate America Corporation ("Inspectorate"), a certified USA based laboratory (UKAS, NAMAS, STERLAB, ISO 17025), in Managua. The samples are crushed to <10 mesh, then a 500 gram sample is classified with a 150 mesh screen. The coarse fraction (>150 mesh) is weighed and placed in a sample container and the fine fraction (<150 mesh) is weighed and placed in a separate container. The screened samples are couriered via DHL to Inspectorate's analytical laboratory in Richmond, British Columbia, Canada. All of the coarse fractions and two 30 gram splits of the fine fraction are then tested by fire assay techniques. The <150 mesh samples were used for Inductively Coupled Plasma Spectroscopy (ICP) analysis, testing for silver.

Qualified Person

John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under NI 43-101) has reviewed 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.

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