SOURCE: HE-5 Resources, Corp.

January 31, 2008 08:30 ET

HE-5 Resources, Corp. Achieves a Preliminary Agreement for Mining Concession With the Republic of Côte d'Ivoire

Properties Situated in Mountain Regions That Contain Estimated 3 Billion Metric Tons of Iron Ore Resources

NEW YORK, NY--(Marketwire - January 31, 2008) - HE-5 Resources, Corp. (PINKSHEETS: HRRN) today announced that it has achieved a Preliminary Agreement for an iron ore mining concession with the Republic of Côte d'Ivoire. The concession constitutes several massive iron ore Properties situated in the mountain regions in Côte d'Ivoire.

According to published reports of 2000 by MBendi Information Services (Pty.) Ltd, the iron ore resources in the mountain regions amounted to an estimated 4 billion metric tons at a grade of 40% iron.

As per the Preliminary Agreement, HE-5 will generate substantial revenues from the export of iron ore extracted from the Properties for a period of at least 15 years. HE-5 will be authorized by the Government to exclusively perform the following tasks: mine exploration, development and production; in-country infrastructure; international financing; and iron ore sales to international steelmakers (hereinafter referred to as the "Project").

The strategic international economic goal of this iron ore Project is to create a long-term, multi-billion dollar funding source to improve the living standard; economic growth; and political stability of Côte d'Ivoire and its people.

Background of Preliminary Agreement

HE-5 has retained the services of Mr. Fernand Gilbert as our international representative to negotiate the iron ore mining concession with SODEMI (Société d'État pour le Développement Minier de la Côte d'Ivoire). The current Governor of the District of Yamoussoukro -- the official capital city of Côte d'Ivoire, Mr. N'Dri Koffi Apollinaire, favors and supports HE-5 as the concessionaire for this Project. The iron ore Properties are situated in the District of Yamoussoukro. The authority to award the iron ore mining concession is under the constitutional authority of Governor Apollinaire.

The final documentation for the iron ore concession called a binding Agreement is currently being negotiated. The key participants in the negotiations are Mr. Gilbert representing HE-5; the Project Committee of the Director General (PCDG), who reports directly to the President of Côte d'Ivoire; and the Ministry of Mines and Energy. The PCDG includes the National Bureau of Technical Studies and Development (BNETD); the Port of San Pedro; and SODEMI.

HE-5 CEO Denyse Raynault stated: "Obtaining this multi-billion dollar iron ore concession will represent the most significant accomplishment in the history of HE-5. The profits earned from this concession will allow HE-5 to fund future acquisitions and the exploration, development and production of its gold mining properties. We have set a goal to accomplish complete international legalization of the concession Agreement by April 15, at which time the final signed documents will be posted on the corporate website."

HE-5's Iron Ore Mining Strategy

This multi-billion dollar Project will signal HE-5's entry into the global iron ore industry with the objective to position it as an important player in this multi-billion dollar market. HE-5's decision to aggressively establish a significant presence in this industry via the pursuit of this Project was based primarily on the significant value that it would create for the Company's shareholders. In addition, its decision was supported by HE-5's capabilities and familiarity with large mining projects, and the current robust global iron ore market. HE-5 will leverage its experience and extensive network in the mining industry, gained mainly during its ongoing Overman Property gold mining project in Nevada, to this major iron ore mining Project in Côte d'Ivoire.

Global Iron Ore Market

The iron ore in steel is mined and exported in far greater quantities than nickel and copper. Global iron ore production reached 1.7 billion tons in 2006, up from one billion tons in 2000. World consumption of iron ore grows 10% annually. The competing consumers to acquire iron ore sources are: China, India Japan, Korea, and the United States. Current market conditions are extremely favorable as evidenced by a recent report stating that the world's three largest iron ore miners, CVRD; BHP Billiton; and Rio Tinto, are committed to keeping pace with China's increasing iron ore demand. Despite China's campaign to eliminate outdated capacity, the country's steelmaking capacity is set to grow in 2008, further tightening global iron ore supplies.

Rio Tinto Ltd. recently announced that it plans to take advantage of the high spot iron ore price and sell up to 15 million tones of ore into the spot market in 2008. The difference between spot prices and contract prices are significant, with benchmark contracts fetching about $US85 per tonne for iron compared with spot prices of about $US190 per tonne.

About HE-5 Resources, Corp.

HE-5 Resources, Corp. (HE-5) is a growth-oriented and emerging natural resources company. HE-5's mission is to maximize shareholder value by investing in pre-production mining projects, which are undervalued and have proven reserves that will increase the revenue and profit of the Company. HE-5's goal is to establish a vast mineral reserve and resource base with a focus on the following 5 metals: gold, silver, iron, zinc and platinum.

Forward-Looking Statements

Please be advised that statements made herein, other than historical data, constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, potential volatility in the company's stock price, increased competition, customer acceptance of new products and services offered by the company, and uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. Please also be advised that the company's stock is not currently registered with the Securities and Exchange Commission.

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