Goldstone Resources Inc.

Goldstone Resources Inc.

May 12, 2011 16:27 ET

Goldstone Deploys Third Rig for Key Lake, Beardmore Properties; Undertakes Limited Drilling Program at Faymar, Near Timmins

IP Identifies Additional Anomalies

TORONTO, ONTARIO--(Marketwire - May 12, 2011) - Goldstone Resources Inc. (TSX:GRC)(PINK SHEETS:GRSZF) today announced that a third drill rig has been added to its 2011 exploration program, initially for use at its Key Lake property in Geraldton and subsequently at its Northern Empire and Leitch-Sand River properties near Beardmore, Ontario. The Company also said that it plans to drill several targets over the next few weeks on its Faymar property near Timmins, Ontario. Goldstone's overall exploration budget for the year is approximately $6.5 million.

The Key Lake drilling program, of which 8,286 metres has been completed by May 10, 2011 as a result of a later–than-anticipated March 1 start and some earlier operational difficulties, is primarily focused on identifying near surface gold mineralization amenable to open pit mining. About 30,000 metres of drilling are planned for the year at Key Lake. Initial assay results are expected to be announced soon.

In addition, in March and April, two large grids totalling 54 km were cut over other favourable geological horizons and an IP survey was completed with initial interpretation received from JVX Ltd., a geophysical contactor and consulting services company. A number of significant anomalies have been identified and will be tested by drilling as soon as ground conditions are drier.

The Key Lake property is contiguous to the Hardrock Project where eight rigs will be active in 2011 and where diamond drilling by the Company's joint venture partner, Premier Gold Mines Limited (TSX: PG) as operator, has established a gold resource (near surface as well as in high grade intersections at depth). Goldstone holds a 30% carried interest in the Hardrock Project and in the estimated NI 43-101 resource of 3.6 million ounces of gold and a 100% interest in Key Lake and all other properties mentioned in this news release.

Beardmore Properties

In the Beardmore area, interpretation of data on the Leitch-Sand River and Northern Empire Mine properties is underway. Current expectations are for approximately 11,000 metres of diamond drilling to begin shortly, to explore structural targets along strike from the Sand River, #16 Vein and Creek Vein systems at Leitch-Sand River, with drilling planned on the northeast portion of the Northern Empire mine and possibly elsewhere. In addition, drilling will expand on the outcome of the limited 2010 program completed on the McWilliams prospect, with an initial four drill holes scheduled. Work is being conducted by George Langstaff, P.G., P.Geo. (Temporary), the Qualified Person for the information contained in this section and a Qualified Person within the meaning of National Instrument 43-101.

Faymar Property

At the Faymar property, a former producer located in Deloro Township in the Timmins Gold Camp just south of and adjacent to the Destor-Porcupine Fault, results from the Fugro Airborne GEOTEM survey carried out earlier this year have outlined a number of anomalies, four of which will now be tested over the next few weeks as part of an initial phase of approximately 1,500 metres of diamond drilling in a co-operative program with another exploration company which owns adjoining land.

"We got off to a late and slow start on the Key Lake program, but have since hit our stride," said Philip Cunningham, Goldstone's Chairman and Interim Chief Executive Officer. "These are early days for 2011 exploration, but what we have seen so far is encouraging."

"Over the course of the year, we will be conducting infill drilling in previously explored areas to increase confidence about previous results, as well as testing new targets suggested by historical results, the IP survey, and a preliminary open pit analysis conducted earlier," he added.

Goldstone's previously-stated objective is to establish the viability of an open pit mining operation at Key Lake and to build a NI 43-101 resource. The program is also seeking to extend the zone another kilometre to the west of 2010 drilling where, in addition to open pit potential, there is higher grade underground potential as a result of Hole 195-46 drilled by Cyprus in the 1990's, which returned 44.9 g/t Au over 3.4m, including 136.1 g/t over 1m (uncut-not true width).

"As we've said before, our objective in Beardmore—where we are currently prioritizing drill locations—is to develop more gold resources near our Northern Empire mill which could be developed sequentially with those identified at our Brookbank and Northern Empire properties." Cunningham stated. "We have already outlined a number of promising anomalies at the McWilliams structure and look forward to testing these and others in the Beardmore Camp with one of the three rigs currently at Key Lake."

About Key Lake

The Key Lake property hosts the former Jelex Mine which had historical production of 5,675 oz of recovered gold. The gold mineralization is hosted by greenschist facies metagreywacke and is associated with alteration, quartz veining, and disseminated arsenopyrite and pyrite. Mineralization boundaries are generally gradational and not visually distinctive. By the end of 2010, over 200 holes had been drilled over a 3 km long north-northwest trending zone down to a depth of about 200 m with horizontal spacing of 25-50 m in the eastern two-thirds and spacing of 25-100 m in the western third.

About Goldstone

Goldstone Resources Inc. is a gold exploration and development company operating in the historically significant Geraldton-Beardmore camp of Northwestern Ontario and focused on gold exploration and deposit delineation at its Key Lake, Brookbank, Northern Empire and Leitch-Sand River gold properties, and as a partner in the Hardrock Project joint venture with Premier Gold. Goldstone's 100%-owned NI 43-101 resources in the Beardmore area total more than 800,000 ounces. In April 2011, Premier announced an updated NI43-101 resource estimate for the Hardrock Project in the Geraldton area of 3.6 million ounces of gold of which Goldstone has a 30% interest (more than 1 million ounces). The camp is host to several past producers in a district that has historical production of more than 4.1 million ounces of gold from high grade ore before being shut down primarily as a result of a $35 gold price—and to Goldstone's fully permitted, expandable 200-TPD Northern Empire mill.

Further information is available on the Company's website at and on SEDAR under the Company's profile at

Forward-Looking Statements

This news release may contain forward-looking information under applicable securities laws concerning Goldstone's business, operations, financial performance, condition and prospects, as well as management's objectives, strategies, beliefs and intentions. Forward looking information is frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "intend" and similar words referring to future events and results. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, delay or inability to retain a senior exploration and/or operating officer, inability to raise funds if and when required, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions and changes in conditions in the financial markets. Readers are cautioned not to place undue reliance on this forward-looking information as actual results may differ materially from those expressed or implied in the forward looking information. Goldstone does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Neither the Toronto Stock Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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