Hudson Resources Inc.

Hudson Resources Inc.

February 19, 2009 18:05 ET

Hudson Resources Inc.: 2008 Garnet Lake Bulk Sample Diamond Results; Additional High-Grade Niobium-Uranium Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 19, 2009) - HUDSON RESOURCES INC. ("Hudson" or the "Company") (TSX VENTURE:HUD) is pleased to announce diamond results from the 2008 bulk sampling program at Hudson's Garnet Lake diamond property and additional assay results from the Sarfartoq Niobium-Uranium-Tantalum-Rare Earth Element (REE) Project in Greenland.

Garnet Lake Diamond Project

Hudson continues to recover large, high quality diamonds from the Garnet Lake kimberlite dike. The 2008 bulk sample program processed 499 dry tonnes of kimberlite through the Company's on-site DMS plant and yielded 78.26 carats. There were 23 diamonds in the 0.25 to 1.0 carat range, including an exceptional 0.95 carat amber coloured diamond. A high proportion of the diamonds recovered were high quality, inclusion free stones. Photos are available on the Company's website at The program was successful in liberating 80% more stones in the 0.10 to 0.25 carat range than in the 2007 sample. To date, over 108 carats have been recovered from the dike. This latest sample continues to demonstrate a coarse diamond distribution that suggests larger stones are likely to be found with larger sample sizes.

Even with improved crushing mechanics introduced into the plant in 2008, approximately 15% of the diamonds recovered were found to have significant amounts of kimberlite adhering to the stones. This implies that a significant number of un-liberated diamonds are still reporting to the tails instead of the concentrate when processed through the DMS plant cyclone. Diamond liberation and higher recoveries continue to be a challenge with the competent Garnet Lake kimberlite and work is planned during 2009 to further address this issue.

Sarfartoq Carbonatite Project

A second sample from the Sarfartoq Carbonatite Project further indicates the very high grades of this niobium-uranium-tantalum-REE project. The surface rock sample assayed 35.7% Nb2O5 (niobium oxide), 1.19% U3O8 (uranium oxide), 0.53% Ta2O5 (tantalum oxide) and 0.70% Rare Earth Elements (REE). This sample is comparable to the first surface sample reported by Hudson on December 4, 2008.

"We are very pleased that we continue to recover large, high quality diamonds from the Garnet Lake dike. In addition, we have recovered significantly more diamonds in the plus 0.17mm to minus 3.35mm size fraction, demonstrating that changes in crushing methods does increase diamond liberation," stated James Tuer, President of Hudson. "These smaller stones are +70% gem quality, therefore, alternative liberation methods need to be investigated in order to fully liberate the diamonds locked in the kimberlite to maximize the economic grade of the project. The high value potential, due to the size, colour and quality of the diamonds that have been recovered to date, including a 2.4, 2.5 and broken 4.0 carat stone, requires that larger bulk samples be extracted to further evaluate the economics of the project. The next logical step would be the extraction of a 3,000 to 5,000 tonne sample once the current economic climate improves. Hudson will continue to explore for additional kimberlite bodies, including pipes, on its licenses and will conduct further testwork on crushing methodologies to improve liberation of the Garnet Lake kimberlite. The extent of this future work will be governed by the ability of the Company to access more capital."

In addition, Hudson will focus its 2009 field efforts on further delineation of the Sarfartoq Niobium-Uranium-Tantalum-REE Project, which has demonstrated the ability to generate very significant contained mineral values. The Sarfartoq Project has produced some of the highest known niobium intercepts and includes highly elevated uranium and tantalum assay values.

Garnet Lake Bulk Sample Results

Sample Total Number of Diamonds
Kimber- Wt. by Sieve Size (mm)
lite (dry ----------------------------------------- Cts/
Sample tonnes) +0.85 +1.18 +1.70 +2.36 +3.35 +4.75 +6.80 Carats ht
GBF-08-Pit 1
(1.) 437 135 636 235 83 7 72.5 16.6
GBF-08-Pit 2
(2.) 62 9 70 14 4 1 5.76 9.3
GBF-07-Pit 1
(3.) 109 18 97 30 14 2 1 1 18.36 16.8
GBF-06-Pit 1
(4.) 47 240 114 22 5 1 1 12.07 25.7
1. GBF-08-Pit 1 represents the main sample processed in 2008 from the main
pit at Garnet Lake. The sample was crushed at -12mm, -6mm and -4mm.
Twenty-three percent of the sample was completed at the -4mm screen
size. The same results were grossed up to match the complete sample
weight. Approx. fifteen percent of the diamonds had significant
kimberlite adhering to the stones. Hudson estimates that depending on
particle size, there was only a 10% to 25% chance of these stones
reporting to the concentrate suggesting a significant populated of
diamonds reporting to the tails as a result of incomplete liberation.
Stones sizes have been estimated based on visual examination and
resized accordingly.
2. GBF-08-Pit 2 represents kimberlite that was collected from an exposed
area 1.2km southeast of the main pit. No third crush was employed with
this sample.
3. GBF-07-Pit 1 represents the complete 2007 dry sample weight that was
processed by x-ray and grease at the SRC. The sample has been
reorganized to account for the broken 4 ct diamond.
4. GBF-07-Pit 1 represents the initial sample processed at SGS Lakefield.
Bottom screen sizes had a much finer tolerance than the Company's field
DMS plant, which operates at commercial tolerances. This accounts for
significant increase in small stone recoveries from the initial sample.

Sarfartoq Carbonatite Results

Hudson has received assay results from a second surface rock sample collected along strike from the initial high-grade niobium-uranium-tantalum result (reported December 4, 2008) from occurrence SU1 on the Sarfartoq Carbonatite Complex. This second sample, comprised of 15 Kg of pyrochlore rich material, confirms the very high-grade nature of this target. Assays are as follows:

Nb2O5 U3O8 Ta2O5 REE
(Niobium) (Uranium) (Tantalum) (Rare Earth Elements)
SU1 Sample 2 35.7% 1.19% 0.53% 0.70%
SU1 Sample 1 40.3% 1.02% 0.91% 0.63%

The Sarfartoq Carbonatite Complex is unique in terms of the high niobium, uranium and tantalum concentrations, which are unusually high in comparison to any other such deposits throughout the world. It is one of the larger carbonatite complexes with approximate dimensions of 13 X 8 km. Hudson controls 100% of the property. It is located near tidewater and adjacent to very good potential hydroelectric sites.

The mineral of economic interest is pyrochlore, which is a niobium and tantalum oxide, and is also the main host for uranium and light rare earth elements on the Sarfartoq Project. Heavy-REE enrichment is encountered in a thorium-rich mineral within the Complex. Non-compliant NI 43-101 historical results from previous work on the Sarfartoq Project include a trench sample grading 14.4% Nb2O5 over 200 meters and a diamond drill hole averaging 12.13% Nb2O5 over 20 meters starting near surface.

There are over 30 radiometric targets identified on the Sarfartoq Project and a significant portion of the area is covered by disaggregated material, which the Company believes may be masking additional radiometric anomalies. The Company has outlined over a dozen drill ready niobium-uranium targets on the Sarfartoq Project.

Hudson recently received a comprehensive metallurgical report carried out by the previous owners of the project. Bench-scale testwork carried out on the pyrochlore material from 2000-2003 demonstrated that recoveries of over 95% for niobium and uranium are achievable utilizing solvent extraction.

Niobium, which is corrosion resistant and has superconducting properties, is primarily used in the production of high-grade structural steel such as that used in gas pipelines. Niobium containing superalloys are an important component in jet engines due to their temperature stability qualities. Of emerging importance are new developments in the use of niobium as a catalyst for treating biodiesel fuels.

The samples were processed by the GeoAnalytical Laboratories at the Saskatchewan Research Council ("SRC"), Saskatoon, Saskatchewan, an independent laboratory. SRC is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for specific tests. The circuit is comprised of a Flow Sort twin pass x-ray unit followed by a grease table. The material is first sized over a vibrating screen into 0.85-3mm, 3-6mm and 6-12mm size fractions. Concentrate from the Flow Sort goes directly into a locked container, which is opened in a secured picking room for hand sorting. The Flow sort tailings pass over the grease table in order to capture any diamonds missed by the x-ray unit. The Grease table concentrate is then placed into a secure cage for overnight degreasing then moved to a secure hand sorting room. Dr. Karen Hanghoj 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.

Hudson management will be available to meet with shareholders at the PDAC Convention in Toronto from March 1-4, 2007 (Booth #2648). James Tuer, President, will be making a presentation on Tuesday March 3 at 2:40PM in Room 801B, which is located on level 800 in the Metro Toronto Convention Centre, South Building.


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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