ICN Resources Ltd.
TSX VENTURE : ICN

ICN Resources Ltd.

December 16, 2010 12:15 ET

ICN Enters Into Agreement With Lode-Star Gold on the Goldfield Bonanza Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - ICN Resources Ltd. ("ICN" or the "Company") (TSX VENTURE:ICN) is pleased to announce that it has entered into a Letter Agreement (the "Interim Agreement") to earn an 80% interest in certain claims (the "Property") held by Lode-Star Gold Inc. ("Lode-Star"), a private Nevada corporation. The Property consists of 30 patented, and several unpatented lode claims, and one unpatented mill site claim (approximately 450 acres), and forms the Goldfield Bonanza Project, located in the historic mining district of Goldfield Nevada. The Property lies directly east of the town, roughly 270 miles southeast of Reno, Nevada, and includes some of the historic past producing mines and workings.

The Goldfield District was discovered in 1903 and has produced intermittently since that time, with the last recorded production coming from open pit operations conducted during the 1980's. According to Nevada Bureau of Mines and Geology Bulletin 78 (1972), the Goldfield District has recorded production in excess of 4.1 million ounces of gold from high grade reefs or veins, with some historic stopes grading in excess of 1 oz/ton Au (>34 g/tonne). Average grade of recorded gold production is in excess of 0.5 oz/ton (>17 g/tonne), and recorded production in the district also includes about 1.5 million ounces of silver.

The Goldfield district is a classic, epithermal, high sulfidation gold system, hosted by volcanic rocks of Tertiary age. Portions of the Property are covered by a thin veneer of post mineral volcanic rocks, and thus yield additional untested exploration targets. During the past ten years, Lode-Star has completed over 35,000 feet of reverse circulation and core drilling, from surface and from underground. They have encountered intercepts of multiple ounces per ton in their underground drilling, and ICN is in the process of completing check assay verification on representative drill samples from this work.

The Interim Agreement between ICN and Lode-Star is subject to certain due diligence conditions, including legal, land and environmental review. ICN shall have 45 days, with and extension if necessary, to complete their due diligence and to plan an exploration program to commence immediately upon signing a Definitive Agreement for an Option to earn an 80% interest in the Property. Upon signing of the Definitive Agreement and approval thereof from the TSX Venture Exchange, ICN will pay Lode-Star US$50,000 and issue Lode-Star 500,000 units (each unit consisting of one ICN common share and one full share purchase warrant with each warrant entitling the holder to purchase one additional common share of ICN for a period of two years at an exercise price equal to 110% of the average closing market price of ICN's common shares over a five consecutive day period immediately prior to the date of issuance). ICN's year one work commitment will be a minimum of US$1 million. Following execution of the Definitive Agreement, ICN plans to complete a CSAMT geophysical survey over the entire property, while coordinating and planning an exploration program. Drilling is likely to include both surface exploration and underground drilling to verify some of the past results obtained by Lode-Star, which include high grade underground drill intercepts. Assay work conducted by Lode-Star was completed by ALS Chemex, an ISO certified assay laboratory, and included the use of Chemex's in-house standards, duplicates and blanks. The reliability of Lode-Star's historical data is unknown but is considered relevant by ICN. It is ICN's intention to complete a National Instrument 43-101 report on the Property; however, final results may produce results that differ substantially from the results stated above. Due diligence work to be conducted by ICN will include verification sampling of surface dump samples located around historic shafts, along with sample pulps from core drilling completed by Lode-Star. Results are not anticipated until January.

To earn their 80% interest in the Property, ICN would be required to pay to Lode-Star a total of US$3 million in cash, issue 3 million units and complete US$5 million of exploration work over a 4 year option period. If ICN completes all requirements of the Option to earn 80%, a standard mining joint venture would be formed.

Carl Hering, President and CEO of ICN, commented that, "I have been working on this acquisition for some time and believe that it will add a high quality, potentially very high grade gold project to ICN's portfolio of volcanic hosted exploration properties in Nevada. Furthermore, upon completion of ICN's due diligence, and execution of a final agreement, ICN will be in a position to initiate a significant drill program, subject to drill rig availability, as winter drilling conditions on the Property located in the southern portion of Nevada, should not be severe."

Lonnie Humphries, owner and President of Lode-Star Gold, stated that, "Lode-Star Gold has reviewed numerous possible venture opportunities over the years, and we believe that we have found the right partner in ICN Resources."

Mark Walmesley, Director of Operations for Lode-Star Gold, said, "As Carl Hering and I have been working on this acquisition, Lode-Star Gold has been very diligent in partnering with a quality organization that believes in the merits of the Goldfield Bonanza Project. I believe that Carl and ICN are the right group to take this property to the next level. We at Lode-Star Gold look forward to supporting ICN as we progress the Project."

The final agreement will be subject to the planned due diligence and TSX Venture Exchange approval.

Tom Temkin, a Qualified Person as defined by National Instrument 43-101, and General Manager for Lode-Star Gold, has reviewed the technical content of this news release.

Mr. Temkin has been the principle geologist for Lode-Star on the Goldfield Bonanza Project for the past 10 years, and is quite familiar with the property and the district. His continuity with the Project will be a significant benefit to ICN moving forward. Mr. Temkin believes "an important element of the association with the ICN group is the mutual understanding of the style of gold mineralization in the Goldfield district that will maximize our efforts towards discovery."

About ICN Resources

ICN is primarily focused on exploration for volcanic-hosted precious metal deposits in western Nevada, emphasizing targets with geological similarities to Sleeper, Sandman, Hollister, Midas and Aurora in Nevada and El Peñon in Chile. ICN plans to explore for the high-grade feeder zones associated with large low-grade gold and silver systems, primarily in western Nevada, but is looking for other opportunities in established metallogenic belts elsewhere in the United States. The ICN management and geologic team have extensive experience in Nevada and will utilize this experience to generate prime opportunities for ICN shareholders.

On Behalf of the Board of Directors of ICN Resources Ltd.,

Carl Hering, President & CEO

ICN Resources Ltd.

The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, ICN does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires ICN to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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