Module Resources Incorporated
TSX VENTURE : MLE

Module Resources Incorporated

July 27, 2011 16:47 ET

Module Announces Initial Results of Surface Diamond Drill Program at New Gold Zone, Indicating Potential Gold Porphyry System

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 27, 2011) -

NOT FOR DISTRIBUTION IN THE UNITED STATES

Module Resources Incorporated (TSX VENTURE:MLE) reports results from the first of a five-hole diamond drill (NQ size) program on the newly discovered McMaster Zone, at its Ladner Gold Property near Hope in southeast British Columbia. The McMaster Zone is located approximately 1.3 km north of the former Carolin Gold Mine.

A step out hole (McM-32-09) was drilled at the McMaster Zone by Module in 2009 and announced on January 6, 2010. This hole intersected 2.86 gm/t gold over 43.6 metres, including 27.6 metres grading 3.96 gm/t gold (see more detail in press releases of January 06 and 12, 2010). Hole McM-34-10 and an additional four holes were part of a program to further explore the McMaster Zone to the north. All five holes were drilled from two locations approximately 60 and 100 metres north of hole McM-32-09.

Surface mineralization was discovered at the McMaster Zone in the mid 1980s, which led to three holes being drilled over a 10-year period by previous owners. The objective of stepping to the north of hole McM-32-09, is to extend the zone, increase strike length and advance the prospect of an open pit, which is one of the Company's primary objectives in respect to future development.

Hole McM-34-10 intersected 156.21 metres (from 20.73 to 176.94 metres) of 0.39 gm/t gold. Within this intersection are several mineralized zones (see table below) and the continuity of gold mineralization suggests a potential gold porphyry system. Gold and various elements associated with alteration indicate that hole McM-34-10 may have been prematurely stopped before intersecting another mineralized zone. The Company is therefore planning deeper holes as part of its overall exploration and mine development plan at the McMaster Zone.

Calculated weighted averages of gold grades for hole McM-34-10 are presented in the following table. The true widths of these intersections are not known.

McM-34-10
azimuth 90
Dip -70
Depth 224.94 metres
From To Interval Grade
(metres) (gm/t)
20.73 176.94 156.21 0.39
includes
20.73 28.65 7.92 1.03
32.92 42.06 9.14 1.32
109.12 122.83 13.71 0.98
147.22 176.94 29.72 0.42
217.32 220.37 3.05 0.53

Core was transported to a core shack in Aldergrove, BC, where it was logged and sampled. Mineralized core was sawn in half with half of the sample being shipped to Acme Analytical Laboratories, an ISO 9001:2000 certified analytical laboratory, located in Vancouver, BC. The remaining core was replaced in the core box and stored for future reference. Core recovery for this hole averaged 97%. Blanks and standards were inserted in the sample stream at the time of sampling and all samples subsequently underwent testing by fire assay for gold and ICP-MS for multi-elements. Results for the blanks and standards were comparable and acceptable. The other four holes remain to be logged and sampled.

For further Company and technical information, please visit the Company's website at www.moduleresources.com.

The technical information contained in this press release has been prepared by Bruce Downing, P.Geo., a qualified person who is the president and CEO of the Company.

ON BEHALF OF THE BOARD OF DIRECTORS

Bruce W. Downing, M.Sc., P.Geo., Hon.FEC, President & Chief Executive Officer

We seek Safe Harbor.

Caution concerning forward-looking information

This news release may contain forward-looking statements that are based on the Company's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

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 the accuracy of this press release.

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