Goldsource Mines Inc.
TSX VENTURE : GXS
FRANKFURT : G5M

Goldsource Mines Inc.

February 01, 2012 08:00 ET

Goldsource Reports Coal Analyses From Border Property Converts Exploration Permits to Coal Leases

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2012) - Goldsource Mines Inc. (TSX VENTURE:GXS)(FRANKFURT:G5M) ("Goldsource" or the "Company") is pleased to report that it has received proximate analyses for the 8 core holes completed during the fall 2011 exploration program at its wholly-owned Border Project ("Border") located near Hudson Bay, Saskatchewan, Canada. Multiple intercepts of up to 32 metres of continuous thermal coal were encountered. Drilling to date has discovered 17 coal deposits at Border with good potential for additional coal discoveries.

J. Scott Drever, President stated: "This program was successful in expanding the coal resources in the Niska 105 deposit and added to the understanding of the nature of the coal occurrences in Pasquia 98. We will revise our current resource estimates to confirm that we have exceeded the threshold target of 100,000,000 tonnes of Indicated Resources to support a potential economic operation. We are continuing our efforts to identify a useable technology and possible participants to assist in development of the Border coal deposits as well as exploring other business opportunities with respect to corporate growth of the Company".

Summary of Coal Proximate Analyses at Border:

Five of the 6 drill holes that intercepted significant coal were in the Niska 105 deposit which was estimated in the 2009 Preliminary Economic Assessment Technical Report to contain 26.6 million tonnes of speculative resource based on one original drill hole and the application of a restrictive geophysical outline (see attached figures: http://media3.marketwire.com/docs/Border%20Results-MapFeb2012.jpg). The new holes served to define the actual boundaries of the deposit and are expected to improve the category of the resource from Speculative to Indicated. A revised tonnage estimate will be reported once the compilations and computer modeling are complete.

Hole ID Deposit From To Coal Ash
(ad)
H20
(ar)
Sulphur
(ar)
CV (ad)
(m) (m) (m) % % % KJ/Kg
BD11-142 Pasquia 98 76.1 78.7 2.6 26.1 26.4 1.5 15,292
BD11-143 Niska 105 121.0 133.3 12.3 15.2 21.0 2.6 23,631
140.0 143.1 3.1 20.9 19.5 2.6 21,556
166.8 179.6 12.8 20.3 19.2 2.6 22,597
189.0 201.4 12.4 12.6 25.4 2.6 24,193
BD11-144 Niska 105 82.0 93.3 11.3 21.8 22.3 3.5 21,570
104.5 115.6 11.1 13.8 26.7 2.6 23,927
148.3 155.5 7.2 15.3 21.5 2.7 24,063
166.7 176.3 9.6 14.5 24.7 3.1 23,908
BD11-145 Niska 105 61.0 92.5 31.5 13.3 29.6 2.5 24,402
103.0 107.1 4.1 13.4 32.2 2.6 24,952
112.4 117.3 4.9 16.9 28.2 2.5 23,976
123.9 133.8 9.9 36.1 27.1 1.9 17,632
BD11-146 Niska 105 73.0 105.6 32.6 19.9 26.0 2.3 22,570
116.7 126.9 10.2 21.1 27.2 2.3 22,134
136.9 142.0 5.1 17.1 25.3 2.1 21,353
BD11-147 Niska 105 76.0 85.0 9.0 18.5 28.2 2.8 21,380
88.0 105.3 17.3 25.5 28.5 2.4 20,425
112.6 117.8 5.2 20.4 24.8 2.3 21,396

The weighted average ash and calorific values on an air dried basis from the PEA for the Indicated Resources were 24.4% and 17,555 KJ/Kg respectively and for the Inferred Resources these values were 25.11% and 19,620 Kj/Kg respectively. The weighted average ash and calorific values for the intercepts reported above were 18.6 % and 22.570 KJ/Kg respectively. These results show a notable improvement in the general characteristics of the coal quality of Niska 105 that could make it one of the best deposits found to date.

Proximate analysis was completed by Loring Labs in Calgary, Alberta. Drill holes DD11-141 and 148 did not intercept significant coal. Compilation of drill results is now completed and will be incorporated into an updated NI 43-101 Technical Report that will include an updated resource model at Border.

Current coal resources at Border, as established in the Company's NI 43-101 "Preliminary Assessment Report on the Border Coal Project, Saskatchewan, Canada" prepared by Marston Canada Ltd. And EBA Engineering Consultants Ltd., a Tetra tech Company December 24, 2009 and available at www.sedar.com, include:

Indicated Resources: 79.1 million tonnes
Inferred Resources: 34.8 million tonnes
Speculative Resources: See NI43-101 Preliminary Assessment Report

Goldsource has strengthened its land position by the conversion of its three year exploration permits to Coal Mineral Leases. The Company has received 81 Coal Mineral Leases comprising 56,109 hectares from the Saskatchewan Ministry of Energy and Resources that cover all of the coal deposits discovered to date as well as areas that are considered favorable for the discovery of additional coal deposits. The leases are for a period of 15 years renewable upon the terms and conditions set out in the Regulations which include an annual rental fee of $5.50 per hectare.

The Company has been notified by Westcore Energy Ltd. (Westcore) of its intent to carry out an extensive winter drill program on Westcore's Black Diamond property in Manitoba and the Hudson Bay North property in Saskatchewan in which Goldsource retains a 25% working interest. The primary objectives of the program are to delineate previously identified coal deposits and to test several new geophysical targets identified from interpretation of airborne geophysics carried out in 2010 and 2011. Westcore expects to drill 30 to 38 holes (3600 metres) at Black Diamond and has been approved for up to 20 holes for the Hudson Bay North property, drilling of which will be contingent on the successful results from the Black Diamond drilling.

N. Eric Fier, CPG, P.Eng., COO and Qualified Person for this news release has reviewed and approved its contents.

Goldsource Mines Inc. is a Canadian resource company engaged in the exploration and development of Canada's newest coal field in the province of Saskatchewan. The Company has aggressively drilled only a portion of this new thermal coal field and has discovered 17 coal deposits of varying size with coal zone thicknesses up to 126 meters within the permit area of the Border Coal Project. Headquartered in Vancouver, BC, the Company is managed by experienced mining and business professionals.

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of coal permits and mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in commodity product prices; currency fluctuations; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

J. Scott Drever, President

GOLDSOURCE MINES INC.

Neither the TSX-Venture Exchange nor its Regulation Services Provider accepts responsibility for the accuracy or adequacy of this release.

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