Kria Resources

Kria Resources

February 29, 2008 14:40 ET

Kria Reports Wardrop Inferred Resource Estimate for Ruttan of 17.15 Million Tonnes at 1.23% Cu and 1.60% Zinc

TORONTO, ONTARIO--(Marketwire - Feb. 29, 2008) - Kria Resources announces an initial National Instrument 43-101 compliant mineral resource estimate for its Ruttan Project located outside of Leaf Rapids, Manitoba. The resource estimate, which used historical data, incorporates the West Anomaly, Hanging Wall Zinc Zone (HW Zinc) and Main Mine areas, and is based on 4,845 holes totaling 568,140 meters.

The Inferred Resource at the Ruttan Mine project is estimated to be 17.15 million tonnes grading 1.23% copper and 1.60% zinc using a 1.0% capped copper equivalent cut-off grade.

Table 1 shows the resource estimate at various copper-equivalent cut-off grades using an Inverse Distanced Squared (ID2) interpolation technique. The base case is highlighted.



Table 1. CuEQ_C 2007 Tonnes and Grades: ID2 capped values


Kria Resource Estimate: Inverse Distance Squared

--------------------------------------------------------------------------
Solid Names Grades Density Tonnage Cu Zn CUEQc07
--------------------------------------------------------------------------
Tonnes per Tonnes % % %
cubic
meter
--------------------------------------------------------------------------
greater than 2.0 3.672 3,285,659 1.90 3.13 2.59
----------------------------------------------------------
Main, West and greater than 1.5 3.642 8,252,155 1.50 2.30 2.06
HW Zinc Zones ----------------------------------------------------------
greater than 1.0 3.616 17,148,138 1.23 1.60 1.64
----------------------------------------------------------
Total 3.463 23,563,309 1.07 1.28 1.39
--------------------------------------------------------------------------


Dayle Rusk, P. Geo., Vice President of Exploration, commented, "We are pleased with these results as they quantify the remaining drilled-off mineralization at this past-producing mine using current industry standards. Based on a new structural model, our work at Ruttan indicates that the orebody remains open to depth and along strike. We look forward to receiving the results from our current drilling program to further expand this resource. Completing the planned property-wide VTEM survey in late March to early April will help to provide us with further exploration targets."

Mike Hoffman, President and CEO, added "Updating the historic resource estimate from Ruttan allows Kria to evaluate future exploration and development options for the property. This is a critically important step in the development of a new mining company such as Kria."

It should be noted that the resource estimate is the base case scenario and does not include results from the 2007 summer and fall drilling program, or the results from the 2008 winter drilling program currently underway. Please refer to press releases dated October 30, 2007 and January 10, 2008 for assay results from the 2007 summer drilling program at West Anomaly and HW Zinc. To date, Kria has drilled 30 holes for 9,197 meters. Kria expects assay results from 21 holes in March and April.

Refer to Figure 1 for an illustration of the location of the drill holes included in this resource estimate. Figure 2 is a vertical longitudinal section depicting the outline of the Ruttan mineralization and the drilling that Kria has completed on the property.

The Ruttan Project, located 21 kilometres east of Leaf Rapids, Manitoba, is a copper-zinc sulphide orebody that was discovered in 1968. Production from the mine began in 1973 with continuous mine production for 29 years. Historical production from Ruttan has been reported to be approximately 55 million tonnes grading 1.23% copper and 1.41% zinc. Kria has the option to acquire 100% of Ruttan.

In addition to continuing drilling at Ruttan and completing a VTEM geophysical survey on its Ruttan claim position, Kria will also utilize BHEM to optimize drill targeting in the spring of 2008. Kria plans to complete an evaluation of the potential to use the existing underground workings to access drilling and to initiate a scoping study on development scenarios.

Mineral Resource Estimate

The mineral resource estimate has been reviewed and confirmed by Christopher Moreton, P.Geo Senior Geologist and Pierre Desautels, P.Geo Lead Geologist, both of Wardrop Engineering Inc, a consulting firm retained by Kria to complete this estimate. Christopher Moreton P.Geo of Wardrop, who is a Qualified Person under NI 43-101, visited the Ruttan site from August 7-8, 2007. The resource estimation procedures and classification used will be outlined in a technical report that will be filed on the Kria Resources website, www.kriaresources.com.

The block model resource estimate is based on data supplied by Kria. This data included the drillhole headers, surveys and assays as well as the 3D rings defining the mineralization and mined stopes. The 3D rings of the mineralization (at 10 meter intervals) were defined by Hudson Bay Mining and Smelting (HBM&S) using a 1% uncapped copper equivalent (CuEQ) cut-off. These rings were extruded vertically 5m on either side of the level to generate solids. A similar procedure was used to generate solids of the stoped-out areas. Each block is 5m by 10m by 10m in size. For Pass 1 of the interpolation the minimum and maximum number of composite samples used to estimate each block is 6 and 15 respectively. For Pass 2 the minimum and maximum composites are 3 and 45 respectively. A flattened search ellipse oriented in the plane of the mineralization was also used.

The resource estimate has been created using a copper-equivalency formula as outlined below:



CUEQ_C_07 equals (((Copper Price (i) Copper Recovery (i) Copper Grade
Capped (i)22.04622) + (Zinc Price (i) Zinc
Recovery (i) Zinc Grade Capped (i) 22.04622)) /
(Copper Price)) / 22.04622
Cu Price: $2.50
Cu Recovery: 93.80%
Zn Price: $1.14
Zn Recovery: 77.31%
Pounds per tonne: 2204.622
CUEQ_C_07: Copper equivalency capped using 2007 data


Other parameters used in estimating the mineral resource are as follow:

Cu values in the formula are capped at 5.9% while the Zn values are capped at 11.75%. The mill recovery values are derived from the five-year estimates (1985 to 1989) shown in a report by Tenney (1985) while the metal prices are three-year moving averages (September 2004 to October 2007) from a database maintained by Wardrop. The densities are interpolated using the available specific gravity values from the database.

HBM&S estimated the remaining 'reserve' at the time of mine closure in 2002 amounted to 8.2 million tonnes at 0.86% Cu and 1.23% Zn (using a 1% CUEQ cut-off for 2002). The 'reserve' values are historic and they are provided here for information only; the reserve definition is no longer relevant because the mine is closed. The 'reserves' are not NI 43-101 compliant and they should not be relied upon.

Inferred Resources for the area were prepared in accordance with the Canadian Institue of Mining, Metal and Petroluem (CIM) definition standards regarding Minerals Resources and Reserves.

Quality Control

The technical contents of this press release have been supervised and reviewed by Steve Davies, P. Eng., Vice President Operations of Kria and Dayle Rusk, P. Geo., Vice President Exploration of Kria, both of whom are Qualified Persons as defined under National Instrument 43-101.

About Kria Resources

Kria Resources is a private base metal exploration and development company focused on zinc, copper and nickel. Kria is working to acquire a 100% interest in the Ruttan copper-zinc sulphide project and is earning a 60% interest in the Minago River nickel-copper-platinum claims in northern Manitoba. Please visit our website at www.kriaresources.com for additional information.

Cautionary Note Regarding Forward-Looking Information This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future operating performance of the Company and its projects, statements regarding exploration prospects, the identification of mineral reserves and resources, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, title disputes or claims. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

To view Figure 1 - Ruttan Drill Holes Included in the Resource Estimate please view the following link:

http://media3.marketwire.com/docs/kriarelease%205.pdf

To view Figure 2 - Ruttan Longitudinal Section of Drilling Completed and Underway please view the following link:

http://media3.marketwire.com/docs/kriarelease%206.pdf

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