Gossan Resources Limited

Gossan Resources Limited

March 02, 2009 08:30 ET

Gossan Conducting Magnesium Testwork at Process Research ORTECH

WINNIPEG, MANITOBA--(Marketwire - March 2, 2009) - Gossan Resources Limited (TSX VENTURE:GSS)(FRANKFURT/FREIVERKEHR XETRA:GSR) is pleased to announce that an initial phase of bench scale testing of the Zuliani Process to extract magnesium metal from dolomite is nearing completion at Process Research ORTECH Inc. (PRO) of Mississauga, Ontario. The work to date has confirmed the volatilization of magnesium from dolomite using Gossan's technology within the desired temperature range. A report from PRO detailing the results of the Phase 1 tests is expected during March.

Douglas Reeson, President of Gossan, stated, "Initial bench scale tests are in progress towards substantiating the validity of Gossan's Zuliani Process. Gossan holds a large high-purity magnesium dolomite property at Inwood, Manitoba and the world-wide rights for the Zuliani Process, a new, high efficiency magnesium production process projected to significantly reduce the direct operating cost of magnesium metal production. Should additional testing prove to be successful, Inwood has the potential to restore magnesium production in Canada with a technology capable of bringing costs down sufficiently to compete globally."

Process Research ORTECH Inc. (PRO), a private corporation formed from ORTECH, an Ontario Government crown corporation established 80 years ago, provides extensive facilities and services to develop bench scale, pilot, pre-commercialization plant environment to industries in the mining, metallurgical, environment, energy and specialty chemicals sectors with emphasis on clean technologies and renewable energy. Its 40,000 sq. foot industrial facility, located in Mississauga, Ontario, is equipped with the necessary regulatory and environmental permits and supports a number of diverse initiatives and customers simultaneously. PRO's capabilities to support the mining and metallurgical sector include Mineral Processing, Hydrometallurgy and Pyrometallurgy.

The new process being developed by Douglas Zuliani is designed to achieve operating cost savings by process efficiency improvements that significantly reduce both energy and key raw material requirements. These enhancements to the traditional Magnetherm method should materially improve both magnesium recovery and silicon reduction efficiency without the need for a vacuum. Energy use is reduced by development of a technically straightforward method that will ensure highly efficient condensation of liquid magnesium metal. Low cost hydro electricity is abundantly available in Manitoba. For further information refer to Gossan NR-07-02 dated March 16, 2007.

The previously announced bench scale testing of the Zuliani Process at CANMET Materials Technology Laboratory (CANMET-MTL) of Ottawa, Canada, has been deferred until the completion of initial testing at PRO.

Gossan will meet with shareholders and investors at Booth 2533 in the Investors Exchange at Prospectors and Developers Convention (PDAC) on March 1 - 2 in Toronto. Core from the current drilling program of the Page Block at the Bird River Sill Project is on display at Marathon PGM's Booth.

Gossan Resources Limited is engaged in mineral exploration and development in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty and minor metals, tantalum, lithium, chromium, titanium and vanadium. The Company also has a large deposit of magnesium-rich dolomite, the world-wide rights to the Zuliani magnesium production process, and a silica sand deposit. Gossan trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and has 29,020,900 common shares outstanding.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include but are not limited to those identified and reported in Management's Discussion and Analysis for the interim period ended June 30, 2008. Circumstances or management's estimates or opinions could change, and management disclaims any obligation to revise or update forward-looking statements, whether for new information, future events or otherwise. The reader is cautioned not to place undue reliance on forward-looking statements.

For further information, please bookmark www.gossan.ca.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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