Hudson Resources Inc.

Hudson Resources Inc.

October 24, 2006 10:00 ET

Hudson Resources Inc.: 2006 Drill Core Results Deliver Largest Diamond to Date From Greenland

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 24, 2006) - HUDSON RESOURCES INC. ("Hudson")(TSX VENTURE:HUD) is pleased to announce diamond results from drill core for the 2006 exploration program. The highlight is the recovery of 35 diamonds, including the largest diamond ever found in Greenland. Sample 06DS02-DI, which was a 14.60kg core sample taken from a 4.5m kimberlite intercept in the dike, yielded the two largest stones weighing 0.122 carats and 0.028 carats.

The results illustrate the highly diamondiferous nature and coarse diamond distribution of the kimberlite dike at Garnet Lake. Previously, the two largest stones recovered from a 266.6kg kimberlite sample, also from Garnet Lake, weighed 0.073 carats and 0.034 carats, respectively. To date, a total of 357kg of kimberlite from the Garnet Lake dike has yielded nine commercial sized stones (+0.85mm) totalling 0.31 carats or a nominal 0.87 carats/tonne.

"We are very excited by these initial results from the 2006 exploration program on the Garnet Lake dike," stated James Tuer, President of Hudson. "The fact that such large stones have been recovered from such small sample sizes is very encouraging for the prospective grade and value of the dike. We believe this demonstrates the potential for larger diamonds to be found as we move forward with the analysis of our 50 tonne bulk sample extracted from the Garnet Lake dike this September. The sample has now arrived in Canada and we expect to have the results before the end of the year."

The core results confirm the continuity of the Garnet Lake dike as being a significantly diamondiferous body. Hudson has now intersected in situ diamondiferous kimberlite over a strike length of 900m and 450m down-dip. Additional results are pending from 06DS13 located 900m down-dip and 06DS14 and 06DS15 located 500m and 700m down-dip to the northeast, respectively. The 2006 seismic reflection survey, which corroborates these results, images the Garnet Lake kimberlite from surface to 2,100m down-dip to the east where the survey stopped.


Kimberlite Pierce Weight
Sample Point (kg)
06DS02-D1 180m(1) 14.60
06DS03-D1(3) 340m(1) 5.15
06DS04-D1 450m(1) 6.35
06DS06-D1 60m(2) 9.20
06DS07-D1 110m(2) 4.25
06DS08-D1 215m(2) 5.20

Kimberlite Diamonds in Square Mesh Sieve Sizes
Sample (microns)
+75 +106 +150 +212 +300 +425 +600 +850 +1180 +1700
06DS02-D1 17 6 7 1 2 1 1
06DS04-D1 2 2 1 1 1
06DS06-D1 1
06DS07-D1 1 2 2 3
06DS08-D1 1

Kimberlite Total Wt+ Wt-
Sample Diamond (milligrams)
06DS02-D1 35 29.834 0.265
06DS03-D1(3) 0 0.000 0.000
06DS04-D1 7 0.625 0.103
06DS06-D1 1 0.000 0.002
06DS07-D1 8 0.000 0.117
06DS08-D1 1 0.000 0.014

Notes: Wt+ refers to the weight of macrodiamonds (greater than 0.5mm
in 3 dimensions) - 1 Carat equals 200 milligrams
Wt-refers to the weight of microdiamonds (greater than 0.075mm
and less than 0.5mm)
1. Down-dip pierce point measured easterly from Garnet Lake.
2. Down-dip pierce point measured easterly from sample MHGB10,
located 500m south of Garnet Lake.
3. Sample 06DS03 represents the top 1.57m intersection along the
dike. An additional 1.47m intersection that occurs 13m below
has not yet been submitted for caustic fusion analysis.

The 3 largest stones are described as follows:

Length Width Height Weight Diamond Description
mm mm mm carats
2.92 2.72 2.10 0.1216 Colorless, included, aggregate, broken,
resorbed (06DS02)
1.96 1.60 1.16 0.0276 Colorless, included, octahedron, broken,
resorbed (06DS02)
0.88 0.76 0.64 0.0031 Colorless, clear, dodecahedron, resorbed

The 2006 drill program was primarily designed to define the structure of the Garnet Lake kimberlite body which it has been successful in accomplishing. Core samples were selected from various kimberlite intersections, both above and below the main Garnet Lake kimberlite. They were submitted for testing of mineralogy by thin section, kimberlite indicator minerals, and diamond recovery.

Samples from Itisooq lake and other kimberlite intersections, not related to the main Garnet Lake dike, contained no diamonds. Mineral chemistry analysis results, which are an important element in understanding the diamond provenance of the kimberlite in general, are pending. Sample results from the last four drill holes, three of which are from the Garnet Lake dike, are also pending.

The samples were processed by the GeoAnalytical Laboratories at the Saskatchewan Research Council ("SRC"), Saskatoon, Saskatchewan, an independent laboratory. SRC GeoAnalytical Laboratories is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for specific tests. Dr. Mark Hutchison, Trigon GeoServices Ltd., was in charge of the collection of the samples in Greenland and managed the chain of custody from the field to the SRC. Dr. John Ferguson reviewed this press release and is a qualified person under National Instrument 43-101.


James Tuer, President

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.

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

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