Kirrin Resources Inc.
TSX VENTURE : KYM

Kirrin Resources Inc.

January 27, 2011 12:12 ET

Kirrin Resources Reports Results of Geophysical Interpretation Program at Grevet REE Project; Awards Options

CALGARY, ALBERTA--(Marketwire - Jan. 27, 2011) - Kirrin Resources Inc. (TSX VENTURE:KYM) today announced the results of December's geophysical interpretation program at its Grevet REE project in northwestern Quebec. The program met its objectives in confirming the relationship between magnetic signatures and magnetite-bearing carbonatite showings at Grevet and these interpretative results will assist in focusing the 2011 exploration program.

Commenting on the results, Kirrin President and CEO, Derek J Moran said: "The results of the geophysical interpretation have contributed to our understanding of the geology at Grevet. They have confirmed the relationship between magnetic signatures and the carbonatite and carbonatite-magnetite showings. Importantly, the geophysical interpretation has identified 15 key targets for follow-up during the 2011 Grevet exploration program."

The geophysical program comprised geophysical interpretation of the ground magnetic data from the 2001, 2002 and 2010 surveys. In particular, the geophysical interpretation included a detailed examination of magnetic profiles in conjunction with known carbonatite and magnetite-carbonatite showings at Grevet. The intent was to define the trends of magnetic carbonatite and other magnetite-bearing rocks, and, especially, search for larger continuous potentially REE-bearing blind carbonatite bodies. In addition, integration of historic exploration and other geological data with the geophysical interpretation of the ground magnetic data has refined target selection and defined the specific follow-up program of work at selected targets in 2011.

The results and conclusions of the geophysical interpretation may be summarized as follows:

  • The merged, edited, then interpreted magnetic data resulted in a more coherent magnetic map of the Grevet REE property.
  • Two major magnetic domains were outlined: Domain A, which is towards the northeast of the property and covers the mafic and ultramafic rocks; and Domain B, which is immediately adjacent and to the southwest and is over the felsic to intermediate composition volcanic rocks.
  • Based on the magnetic evidence, numerous interpreted, dominantly northeast and north-northeast striking shear zones and/or brittle faults were outlined.
  • The interpretation established, in large part, a relationship between magnetic signatures and the carbonatite and carbonatite-magnetite showings. Specifically, 52% of the carbonatite showings and 67% of the carbonatite+magnetite showings are associated with recognizable magnetic signatures derived from the ground magnetic survey data.
  • Lastly, the interpretation identified 15 targets for follow-up during the 2011 exploration program.

The geophysical interpretation was prepared by Savaria Geophysics Inc.

Kirrin also announced that its Board of Directors has granted options over 1,755,000 common shares at an exercise price of $0.13 per share to nine directors, employees and consultants (closing price on January 26, 2011 was $0.13 per share). The expiry date is January 27, 2016 and one quarter of the options will vest annually. Included in the option award is a grant over 60,000 common shares at an exercise price of $0.13 per share to an IR consultant. Kirrin now has 3,046,000 options outstanding under its Option Plan, at an average exercise price of $0.13 per share.

Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Kirrin on the Grevet REE project.

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 of the expected follow up exploration program. 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 follow up exploration program 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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