Minsud Resources Starts Drilling at Flagship Chita Valley Project, San Juan Province, Argentina

TORONTO, ONTARIO--(Marketwire - May 25, 2011) -Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") is pleased to announce a 3,500 meter Phase I diamond drilling program at the Chita Valley Project ("Chita") strategically located in the world-class El Indio mining district of Chile and Argentina where the Pascua-Lama and Veladero mines (Barrick) and the Del Carmen project (Malbex Resources) are located.

The Chita Property, which covers a total of 12,850 hectares, consists of four contiguous parcels of land, three government approved mining concessions (8,350 ha) operated under separate option agreements, and one pending exploration application (4,500 ha).

The Chita property is underlain by a large, 4,800 hectare hydrothermal alteration system related to at least three separate porphyry intrusions; however less than 20% of the property has been systematically prospected and sampled.

The first documented exploration work started in 1968 by a Argentine government agency, the Direccion General de Fabricaciones Militares who drilled eight shallow diamond drill holes on porphyritic monzodiorite intrusives searching for a Cu-Mo porphyry type system. The project was then explored by Barlow Exploration (1989), Minas Argentinas (1995), Apex Silver (2006) and Rio Tinto (2008).

Structurally the Chita Property is located along a WNW striking valley corresponding to a regional transfer fault where it intersects N-S, arc parallel faults of the Andean fault system. Mineralized intrusive complexes such as the Chita Cu-Mo porphyry are typically located at such junctures. More specifically, mineralization on Chita is controlled by three main structural systems, namely, WNW, N-S, and ENE to NE, which correspond to veins, stockworks and hydrothermal breccias that may grade into one another at depth.

In 2008, Minera Sud Argentina S.A., Minsud's Argentinean subsidiary operating company ("MSA") collared three diamond drill holes totaling 845 m in the areas of the Chinchillones South zone and the Chinchillones Breccia testing geophysical anomalies and intersected low sulphidation epithermal mineralization and shallow levels of a Cu+Au porphyry system. During 2009, MSA carried out a program of trenching over the main vein swarms and breccia structures and over 1,200 rock chip samples were collected and assayed. Geochemical assay results and mineralized intersections in the drill holes were used for targeting new areas for future drilling.

High grade gold-silver-base metal values were returned from epithermal veins in and around the porphyry system and extensive low grade gold-silver was obtained from hydrothermal breccias and altered granodiorite.

Minsud has commenced its Phase I drilling program to systematically explore the high grade gold-silver zones in the Project consisting in 3,500 m in 16 holes distributed as follows (see attached map):

Mr. Carlos Massa, President and CEO said, "In conjunction with Minsud's recent completed financing and commencement of trading on the TSX-Venture Exchange on May 25,, 2011, we are very pleased to announce the commencement of the drilling program at Chita Valley Project. These are major milestones that demonstrate our serious commitment to project development in the shortest possible time‐frame."

Mr. C. Gustavo Fernandez, Professional Geoscientist in the Province of Ontario, is the Qualified Person as defined by NI 43-101. Mr. Fernandez has read and approved the contents of this release.

About Minsud Resources Corp.:

The Company, is a mineral exploration company focused on exploring its flagship Chita Valley project, primarily for gold, silver and copper in San Juan Province, Argentina.

Additionally, the Company holds a portfolio of approximately 75,000 ha of 100% owned exploration properties in Patagonia. Most of the key properties held by the Company are located in mining friendly provinces of San Juan and Santa Cruz, Argentina.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, spending commitments, future operations, results of exploration, anticipated financial results, future work programs, capital expenditures and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's TSXV Filing Statement dated under the heading "Risk Factors". 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 information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

To view, "Figure 1: Chita Valley Property, geology, location of target areas for Phase I diamond drilling," please visit the following link: http://media3.marketwire.com/docs/msrchitavalley525.pdf.