SOURCE: HE-5 Resources, Corp.

August 22, 2007 10:17 ET

HE-5 Resources, Corp. Publishes Geologist Summary and NI-43-101 Report of Its Montauban, (Batiscan) Property

Summary of NI-43-101 Report From Independent Geologist Mr. Christian Derosier, President, P. Geo., M.Sc., D.Sc., C.D.G.C. Inc.

NEW YORK, NY--(Marketwire - August 22, 2007) - HE-5 Resources, Corp. (PINKSHEETS: HRRN), an emerging mining firm with a portfolio of vast mineral-rich territories, today published the NI-43-101 report and geologist Summary of its Canadian subsidiary IZZA-Minerals Inc. Montauban (Batiscan Region, Province of Quebec).


The market value evaluation of a mining property is a complex and delicate task which request the consideration of several factors of which some of them are relatively subjective. The following list of possible factors is not exhaustive. It gives an outline of the main parameters to take in consideration.

1) The geological potential of the property with the possibilities to discover a profitable mining operation;

2) The total amount of expenses spent by the present and/or previous owners within the limits of the present property;

3) Results obtained during the previous exploration campaigns within the limits of the present property;

4) The geographic situation of the property in term of manpower, infrastructures, mining services, etc.;

5) The resource status (tonnage, grade, etc.);

6) The degree of certitude on reserves (proven, probable, measured);

7) The existence or not of underground workings (shaft, drift, cross-cuts, etc.);

8) The existence of surface infrastructures (office, power line, mill, audit, etc.);

9) The present value of future profits (discount cash flow);

10) The previous experience and expertise of the board of directors as well as the employees of the company;

11) The market value of similar properties existing in the area when this information is available;

12) The stock exchange conjuncture at the time of the transaction.


Exploration work executed on the Montauban property since the beginning of the colonization permit to foresee an interesting mining potential. The cover of the claims by successive geological, geophysical and geochemical surveys by the individual, mining companies and the Quebec Government, in addition the trenches, diamond drill holes and the sinking of shafts, testify a certain economic potential of the claims. In spite of this, the degree of progress of the property does not permit to proceed with a conventional evaluation based on an actualization of anticipated incomes. Exploitation of the Pb-Zn mines in the past and more recently of the gold bearing zones by Muscocho permits to foresee a potential on the longitudinal extensions and at depth of the mineralized zones.

This property has a non negligible market value that must be defined in accordance with the economic potential, being itself function of certain parameters which, as discussed before, are different from one property to another one.

Concerning the present evaluation, we are suggesting the use of the following formula:

Vp = Market value of the property for the owner of the "A" interest;

Vb = Staking cost or acquisition cost, received amount or payable amount;

W = Cost of all exploration works spent during the previous phases;

E = Cost of exploration work for the present phase;

A = Interest of the concerned party;

Pe = Weighted Index of the economic potential.

Concerning the Montauban property, all these variables are easily quantitative, except for the variable Pe. We have the following values:

Vb = (117 claims x CAD$ 100) = CAD$ 11 700.00

W = CAD$ 1 775 000.00 (in 2007 dollars)

E = CAD$ 25 000.00

A = 100%

The evaluation of the Pe variable is more delicate but it is essential because it is evident that the fact to incur inappropriate exploration expenditures or to obtain very negative results on one mining property diminishes its market value. In this same way, a well done work program with good results, will obligatory increase the value of the property.

Presence of old tunnels and stapes under a part of the Montauban property and the extension at depth of the Pb-Zn mineralized zones of the old Satellite mine add value to the property it is the same for the extension to the north of the Muscocho gold zone.

In order to define the value of the Pe variable, we generally use a scale of evaluation numbered from 1 to 10. Each step represents a level of exploration work. According to our grid, the Montauban property is placed on level 2. The surface work is for a great part executed and completed. There are some evaluation of mineralization or geophysical anomalies at depth , by drilling or shaft sinking. In addition, a small production has been made from underground working over a small part of the property.

At the present stage, the following variables are those that are mostly influencing P2:

1) The economic potential in term of possible discovery of a profitable mining operation and the proximity of a mining producer (past or present);

2) Results obtained during the previous exploration campaigns carried out on the present mining property;

3) The accessibility of the property.

Considering these variables, the Montauban mining property presents a favorable situation and therefore a good potential of development. Consequently, according to our grid, we award to the property, a value corresponding to its stage of progress, leave a value of Pe equal to 1.5.

Pe = 1.5

Consequently, we have the following equation:

Vp = (11 700 + 1 775 000 + 25 000) x 100% x 1.5

Vp = CAD $ 2 718 300.00

This value constitutes the approximate market value of the Montauban property owned by IZZA Minerals Inc. Considering an eventual transaction which would be a transfer of interest from a private mining exploration company to an other one, we are recommending to use this evaluation for all purposes of the transaction.

Sincerely yours,

Christian Derosier
President, P. Geo., M.Sc., D.Sc.
C.D.G.C. Inc.

For complete version of the Montauban NI-43-101 Report, please consult our Web site at

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, copper, zinc and platinum.

For more information on HE-5 Resources, Corp. please contact CEO Denyse Raynault at or visit the Corporate website at

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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