Kirrin Resources Inc.
TSX VENTURE : KYM

Kirrin Resources Inc.

February 03, 2011 08:00 ET

Kirrin Resources Confirms 2011 Exploration Plans; Continued Focus on Rare Earth Elements, Uranium and Acquisitions

CALGARY, ALBERTA--(Marketwire - Feb. 3, 2011) - Kirrin Resources Inc. (TSX VENTURE:KYM) today announced plans for its 2011 exploration program. Kirrin, which in December announced the completion of two private placements raising gross proceeds of $2.2 million, will continue its focus on rare earth elements (REE) and uranium. The budget for its 2011 outline program amounts to $2.0 million. Kirrin will also pursue corporate development opportunities as well as the acquisition of additional exploration projects.

Kirrin evaluates its exploration projects in a streamlined fashion, using its cash resources efficiently. The current financial environment and government land assessment cost burden mean that available funds must be used in a focused manner, with objectives set, programs professionally managed and results assessed expeditiously. The Key Lake Southwest ('Key Lake SW') uranium property located on the southeastern margin of the Athabasca Basin in Saskatchewan will attract an estimated budget of $0.7 million. Later this month, Kirrin will commence a 1,400 line km. helicopter-borne time domain electromagnetic geophysical survey. Following the interpretation of results, Kirrin is planning a program of summer fieldwork with the objective of finalizing the selection of drill sites.

The Bottom Brook REE project, located near Stephenville, Newfoundland & Labrador, where drilling results point to high grade REE mineralization - 4.47% TREO over 5.64 m core length, 4.32% TREO over 2.0 m core length, and 1.16% TREO over 15.3 m core length - has nine targets that Kirrin plans to evaluate with a program of ground magnetics and detailed litho-geochemical follow-up. It is expected that this will be followed by trenching and/or drilling on the discrete magnetic targets. Additional prospecting on other targeted areas is included in the plans. The Lost Pond uranium project, which shares essentially the same land area as Bottom Brook, awaits interpretation of assay results from December's 1,400 m drill program. 

Following the satisfactory results from December's geophysical interpretation program at the Grevet REE project in northwestern Quebec, Kirrin is planning a three phase exploration season commencing in late April. The first phase will complete prospecting on priority areas, including the collection of samples and assessment of exploration potential. The second phase will primarily identify drill targets and will commence in July. The third phase, commencing in September-October, will be determined by the compilation and interpretation of the results obtained from the earlier 2011 phases and will likely comprise a 1,500 to 2,500 m drill program in 15 to 25 holes.

Kirrin's senior technical advisors, Dr. Reg Olson and Dr. Dave Lentz, together with senior management, pursue the identification of suitable uranium and REE companies and assets for acquisition, merger, strategic partnership or joint venture in Canada and elsewhere that offer potential to add shareholder value. Kirrin's modus operandi emphasises quality of project selection and effective program development and implementation alongside efficiency of expenditure and growth in portfolio value. Many junior companies recognise the need and value of consolidation, particularly where overhead costs have expanded beyond what can be sustained. While the focus remains on Canada, Kirrin's directors, management and technical advisors have broad international experience and selected opportunities outside of Canada are considered.

Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Kirrin who has reviewed the contents of this news release.

Additional information relating to Kirrin is available on Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.

Kirrin is engaged in uranium and rare earth element exploration in Newfoundland & Labrador, Quebec and Saskatchewan and in the expansion of its portfolio through acquisition, merger, strategic partnership and joint venture. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. Kirrin's shares trade on the TSX Venture Exchange under the symbol KYM.

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Forward-looking information: Except for statements of historical fact, all statements in this news release including, without limitation, future plans and objectives of the Company are forward-looking statements which involve risks and uncertainties. Specifically, this press release contains forward-looking statements concerning the timing and constituents of the expected exploration programs. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those expressed or implied by such forward-looking information and undue reliance should not be placed on it. The anticipated 2011 time frame for the planned exploration programs assumes that the Company will continue to allocate sufficient priority to this work relative to its finite cash resources for its overall exploration activity. In each case the risk factors that could cause actual results to vary from results expressed or implied by the forward-looking statements contained in this press release are primarily events beyond Kirrin's control. These forward-looking statements are made as of the date hereof and except as required by applicable securities legislation, the Company undertakes no obligation to publically update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Neither 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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