Gulfside Minerals Ltd.

Gulfside Minerals Ltd.

August 10, 2009 17:06 ET

Gulfside Minerals Ltd.: Onjuul Coal Project Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2009) - Robert L. Card, President of Gulfside Minerals Ltd. ("Gulfside" or the "Company") (TSX VENTURE:GMG), is pleased to report that the TSX Venture Exchange ("TSXV") has conditionally approved the acquisition of the Onjuul Coal Project ("Onjuul") subject to completion of the proposed financing. The acquisition is composed of two agreements covering three mineral exploration licenses, covering 2156 ha, located in the Onjuul coal basin, 170 km SW of Ulaanbaatar, the capital of Mongolia.

The acquisition of the three licenses consists of a payment of USD$19 million over 22 months, the issuance of two million common shares and a 6% Royalty on production. The first installment of the purchase price of US$3,370,000 is due 60 days after approval by the TSXV. The first tranche of 1,000,000 common shares is due 60 days after approval, 500,000 common shares 12 months after approval and 500,000 common shares 18 months after approval. All shares issued are subject to a four month hold period.

A National Instrument (NI) 43-101 technical report has been prepared on the properties by Norwest Corp., of Salt Lake City Utah ("Norwest") which utilizing unverifiable data from maps and cross sections presented in historical documents has estimated the ranges of preliminary potential in place tonnages to be 159 - 178 million tonnes within the license areas. Though not clearly defined, it is estimated that the license areas may cover approximately 10% of the entire Onjuul Coal Field. The Company expects to file the NI 43-101 technical report on SEDAR within the next few days.

The (NI) 43-101 technical report reported the coal at the Onjuul is classified as Lignite A based on ASTM standards. The potential in-place coal quality for the Onjuul lignite, reported in historical documents for both core and trench samples are as follows;

Average Minimum Maximum
Moisture % 6.1 3.9 8.7
Ash % 28.9 14.0 44.0
Sulfur % 0.09 0.4 1.7
Caloric Value(kCal/kg) 4,223 4,198 4,738

Norwest has recommended a drilling program that would consist of approximately 20 geotechnical/coal quality core holes and three hydrologic pump test locations. Five of these holes should be drilled to verify the coal thicknesses reported in the historical documents. The estimated cost of this drill program is US$1,000,000 and will take approximately three months to complete. The drilling program may be accelerated if equipment is available.

The Company is looking forward to the summer work program to enhance the Onjuul coal Project and to increase the Company's asset base. Once the drilling program has been completed the Company will be in the position to further analyze the viability of the coal project for a coal fired power plant, coal liquefaction project, coal to chemicals project and/or local in-country use of the resource for other purposes. Independent geological and engineering studies will be required to determine if these potential uses are technically and economically viable.


The Company wishes to clarify that the potential tonnage estimates for Onjuul are based on historical data. A qualified person has not done sufficient work to classify the potential tonnage estimates as current mineral resources, the Company is not treating the potential tonnage estimates as current mineral resources and the potential tonnage estimates should not be relied upon. There has been insufficient exploration to define a resource, it is uncertain if further exploration will result in the discovery of a mineral resource and there is no guarantee that all or any of the estimated potential tonnages will be recoverable. The potential quantity and grade of the coal at the Onjuul is conceptual in nature.

John Jenks, BSc, PEng, a qualified person as defined by NI 43-101, a Director of the Company, has reviewed the contents of this news release.

On Behalf of the Board of Directors,

Gulfside Minerals Ltd.

Robert L. Card, President

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning GMG's planned exploration program in Mongolia and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although GMG believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian securities regulators.

"Neither the 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 release."

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