Iconic Minerals Ltd.
TSX VENTURE : ICM
FRANKFURT : YQG

Iconic Minerals Ltd.

June 06, 2012 09:30 ET

Iconic Announces Clarification of Property Disclosure

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2012) - As a result of a review by the British Columbia Securities Commission, Iconic Minerals Ltd. (the "Company" (TSX VENTURE:ICM)(FRANKFURT:YQG) wishes to clarify certain disclosure previously made on the Company's website.

Hercules Project, Nevada

The Company's website referred to a "potential resource deposit" on the Hercules property reported by Joseph Tingley of Nevada Bureau of Mines and Geology (the "Tingley Estimate"). The Tingley Estimate, prepared in 2000, is a historical resource estimate and a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves under National Instrument 43-101 ("NI 43-101"). The Company wishes to retract its previous disclosure of the Tingley Estimate and has removed it from the Company's website. The Company considers the Tingley Estimate to be not relevant, in view of the more recent historical resource estimate discussed below. The Company's previous website disclosure did not explicitly characterize the Tingley Estimate as a historical estimate and did not include or address all of the disclosure items required for a historical estimate under section 2.4 of NI 43-101.

The Company's website disclosure of resource estimates triggered the requirement to file a NI 43-101 technical report and, as a result, the Company expects to file its initial, independent NI 43-101 technical report on the Hercules property within 45 days of the date of this news release (the "Initial Technical Report"). The Company may also subsequently file an updated technical report after it completes its current drill program.

In addition to the Tingley Estimate, the Company's website also referred to resource areas and drill inferred polygons generated by consulting geologist Paul Noland and a drill indicated resource area identified in a non-compliant NI 43-101 resource report completed in May, 2011 (the "Willow Creek Estimate") for the Company's joint venture partner, Willow Creek Enterprises, Inc. ("Willow Creek"). The Company has now included on its website additional details of the Willow Creek Estimate, which the Company confirms is a historical resource estimate. A qualified person has not done sufficient work to classify the Willow Creek Estimate as current mineral resources or mineral reserves, and the Company is not treating the Willow Creek Estimate as current mineral resources or mineral reserves under NI 43-101. The Company's previous website disclosure did not explicitly characterize the Willow Creek Estimate as a historical estimate and did not include or address all of the disclosure items required for a historical estimate under section 2.4 of NI 43-101. Further information on the Willow Creek Estimate is set forth below and is also contained in the Company's website (under "Gold Projects - Hercules").

Mr. Paul Noland completed a technical report for Willow Creek on the Hercules property entitled "Hercules Project, Lyon County, Nevada, Revised Technical Report" and dated April 6, 2011 (the "Report"), which contained the Willow Creek Estimate. Willow Creek is quoted on the NASDAQ OTCQB and is not a reporting issuer in Canada. The British Columbia Securities Commission has expressed concern that the Willow Creek Estimate and the Report may not be independent, as required by NI 43-101, for a report supporting an initial current resource estimate disclosed by the Company.

The Report identified the Hercules property as having, effective April 6, 2011, a "drill indicated resource" of 24 million tons at an average grade of 0.024 gold-equivalent based on 0.010 opt gold-equivalent cut-off grade equating to approximately 580,000 contained ounces (470,000 ounces gold and 6,500,000 ounces silver). The Report also identified the Hercules property as having an "inferred mineral resource" of approximately 24 million tons at an average grade of 0.021 gold-equivalent for approximately 527,000 contained ounces (427,000 ounces gold and 6,000,000 ounces silver). Gold equivalent was calculated by adding the assayed gold value to 1/60 of the assayed silver value. These "drill indicated resources" are referred to as the Willow Creek Estimate in this news release, which the Company is treating as a historical estimate. The Willow Creek Estimate was prepared prior to the Company acquiring an interest in the Hercules property.

The Report used methods to calculate the Willow Creek Estimate similar to an "indicated mineral resource" as identified in section 1.2 of NI 43-101. The Willow Creek Estimate was based on 113 of 221 drill holes distributed throughout four separate areas (West Cliffs, Loaves, Northeast and Hercules). Many of the earliest drill holes were assayed for gold only and were consequently removed from the Willow Creek Estimate. The Willow Creek Estimate utilized polygons created on cross-sections of the existing drill holes. The polygons were projected to surface where detailed and reliable surface trench sampling was available. The sections were spaced on 100 foot centers through the Hercules and Northeast areas and spaced at 200 foot intervals on the Loaves and West Cliffs areas. A gold equivalent was used based on the historic and unverified metallurgical work conducted in the mid 1980's. The reported and unverified recoveries in conjunction with the near surface, oxidized intercepts in historic drilling and trenching suggest the low cut-off grades may be an acceptable working hypothesis.

The Report used methods to calculate an "inferred resource" in an equivalent manner as an "inferred mineral resource" identified in section 1.2 of NI 43-101. The method used to identify the "inferred resource" utilized some of the additional 221 drill holes not previously used in the Willow Creek Estimate as well as abundant surface sampling and geologic mapping of apparent undrilled extensions of alteration and veining from the four areas identified above. The inferred areas were restricted to obvious outcropping alteration and drill intercepts and did not include any significant areas of post-mineral cover.

Based on the above descriptions of the techniques and data used, the Company believes that the Willow Creek Estimate in the Report is an historical estimate and does not represent current mineral resources or mineral reserves under NI 43-101. A qualified person has not done sufficient work to classify the Willow Creek Estimate as current mineral resources or mineral reserves under NI 43-101. However, the Company considers the Willow Creek Estimate to be suitable for public disclosure based on its scientific method of calculation.

As stated in the Company's April 12, 2012 news release, the Company has commenced a Phase 1 drilling program at the Hercules project of approximately 2,300 meters of core and reverse circulation drilling. As indicated above, the Company may update the Initial Technical Report with the results of that drill program, to the extent required by applicable securities laws.

Although the Willow Creek Estimate remains relevant as a historical estimate as indicated above, it should not be relied upon until the Company has replaced it with a mineral resource estimate contained in a current, NI 43-101 compliant technical report prepared for the Company.

Foster Lake Project, Four Lakes Athabasca Basin

The Company's website stated that the Foster Lake uranium project hosts historical drill results with indicated resources of 65,000 tons, grading 0.19% U3O8 to a depth of 65 m, and that these numbers are historical in nature and are not part of any recognized NI 43-101 mineral resource or reserve categories, and should not be relied upon. The Company wishes to retract its previous disclosure of this historical resource estimate, which is not considered relevant, and has removed it from the Company's website along with other disclosure relating to the Foster Lake project. The Company does not consider this property to be material.

All scientific or technical information in this release has been reviewed and approved by Mr. Herb Duerr, P. Geo., a director and the Vice President of Exploration of the Company, who is a "qualified person" as defined in NI 43-101.

On behalf of the Board of Directors

Richard Kern, CEO

The Company's public documents may be accessed at www.sedar.com.

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Hercules property, the possibility of calculating a National Instrument 43-101 mineral resource estimate on that property, the timing of the preparation of technical reports, and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current and planned exploration activities, including the results of the Company's proposed Phase 1 drill program on the Hercules property; the geology, grade and continuity of any mineral deposits; fluctuating precious metals prices; risks associated with property option agreements, leases, joint ventures and the ability to conclude joint venture agreements on favourable terms; possibility of accidents, equipment breakdowns and delays during exploration; exploration cost overruns or unanticipated costs and expenses; availability of capital and financing required to continue the Company's exploration programs; general economic, market or business conditions; regulatory changes and restrictions including in relation to environmental liability; timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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