Gulfside Minerals Ltd.

Gulfside Minerals Ltd.

September 10, 2007 19:21 ET

Gulfside Minerals Ltd.: Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2007) - Gulfside Minerals Ltd. (the "Company" or "GULFSIDE") (TSX VENTURE:GMG) is pleased to update the ongoing progress of its exploration program at the Company's coal Project in Mongolia.

GULFSIDE has retained Norwest Corporation ("Norwest") of Salt Lake City, Utah, to assist in the evaluation of the coal project and to prepare a resource estimate compliant with National Instrument ("NI") 43-101 standards. Toward this end, eight (8) boreholes were drilled in August 2007, for a total of 1,592 meters of drilling, in addition to previous work. Norwest oversees all work programs in this phase to ensure that data collection procedures meet international industry standards. In addition 16 holes, totaling 2,353.2 meters, were drilled by the Company.

The coal license area is situated within a Cretaceous-age basin known for relatively thick occurrences of brown coal. GULFSIDE'S goals are to confirm and upgrade known resources to NI 43-101 standards, expand resources through ongoing drilling programs, and provide information to initiate a scoping study focused on a potential large-scale open-pit mine.

About 770 samples have been collected to date, representing 528 meters of core (mostly coal), with acceptable core recovery. The samples have been submitted to SGS Laboratories in Ulaanbaatar, Mongolia, and Tianjin, China for preparation and analytical work, respectively, with specialized testing and check samples analyses conducted at other accredited facilities.

A preliminary assessment of exploration results to date has generally confirmed previous results and demonstrated the following features:

- The cumulative thickness of the coal package typically exceeds 40 meters with some individual seams exceeding 15 meters in thickness;

- The upper seams of the deposit tend to have numerous splits and rock partings, with thicker, more uniform seams occurring in the lower portion;

- The coal occurs in relatively flat-lying seams with low to moderate geological complexity.

GULFSIDE and Norwest have surveyed all borehole locations and completed a topographic survey on a 200-meter grid. A hydrology program was initiated with the installation of three observation wells. At least three more observation wells are planned, along with drilling and installation of large-diameter wells for advanced hydrologic testing.

GULFSIDE is very pleased by the progress to date and expects shortly to release a NI 43-101 compliant resource estimate and technical report for the coal license.

GULFSIDE is exploring the coal project as a joint venture under the terms of a June 2007 Letter of Intent with a private company to hold the lease to acquire a 50% interest with an option to acquire an additional 16% within one year for a total of 66%. The acquisition of this property is subject to the approval of the TSX Venture Exchange.

GULFSIDE is focusing its thinking on multiple use development due to the usual limitations of ground transportation relative to the large size of coal deposits under investigation such as:

1 Truck and train transportation to markets,

2 Coal fired electrical power generation,

3 Coal to diesel: GULFSIDE is evaluating newly emerging technology which promises to cut capital and operating costs dramatically, and

4 In-situ Coal Gasification ("ICG") is the process to produce coal gas in place within the coal seam through the controlled combustion (burning) of part of the coal seam whose heat then releases unburnt combustible gases in other parts of the coal seam. These gases are then recovered for further processing. GULFSIDE is able to access technology and skilled scientists in this area. ICG is one of the keys to developing gas from thick coal seams which are unsuitable for either open pit or underground mining. The key significant issue is to determine which coal seams, of which GULFSIDE has identified, are suitable for ICG, of which there is only a select few.

GULFSIDE has also been invited to evaluate several significant bituminous coal deposits in "Inner Mongolia, China" from the perspective of creating a joint venture partnership with the Chinese coal property owners, whereby, GULFSIDE would direct development, as a majority interest holder, on several fronts: truck and train transport of open pit coal to markets, coal to electricity, coal to diesel and ICG.


The Khentii project is located in a larger Permian - Triassic Volcanic Plutonic Belt analogous to the Erdenet Belt, currently comprising a single lease of 9,818 ha. The Kentii 1 lease contains three large soviet era anomalies (H1 to H3). H1 is indicated as being 4 x 5 km silver anomaly. The H2 anomaly is 1.5 x 1 km in area and is anomalous in gold, silver and base metals. The H3 anomaly is a stream bed (placer deposit) gold anomaly with assays reported between 0.3-1.0 g/t.

Advanced preparations are underway for the next stage of exploration where the company is mobilizing geophysical crews and to conduct further geochemical sampling. Upon successfully identifying geophysical anomalies the company will move to drill test the targets as soon as possible.

Dr. Marc Bustin, PhD, PGeo, a member of the company's advisory board and a qualified person as defined by National Instrument 43-101, reviewed the coal content of the news release.

On Behalf of the Board of Directors of 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 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release.

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