Module Resources Incorporated
TSX VENTURE : MLE

Module Resources Incorporated

October 12, 2010 20:25 ET

Module Resources Announces Up to C$500,000 Non-Brokered Flow-Through and Up to C$300,000 Unit Private Placements

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 12, 2010) -

NOT FOR DISTRIBUTION IN THE UNITED STATES.

Module Resources Incorporated (TSX VENTURE:MLE) announces today that, subject to regulatory approval, it intends to complete a non-brokered private placement of up to 5,000,000 flow-through shares at C$0.10 per flow-through share for gross proceeds of up to C$500,000. The Company also announces today that, subject to regulatory approval, it intends to complete a non-brokered private placement of up to 5,000,000 units at C$0.06 per unit for gross proceeds of up to C$300,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable to acquire one additional common share of the Company at any time for a twelve month period following issuance, at an exercise price of $0.09 per share.

Module may pay a finder's fee in respect of investors introduced to the Company of up to 7% of the gross proceeds of the private placements in cash plus finder's warrants of up to 7% of total shares issued. Each finder's warrant will be exercisable to acquire one additional common share of the Company at any time for a twelve month period following issuance, at an exercise price of $0.09 per share.

All of the securities issued under these private placements will be subject to a four-month hold period. The private placements are expected to close no later than November 5, 2010.

The proceeds from the sale of the flow-through shares will be used to incur Canadian Exploration Expense ("CEE"), as defined in the Income Tax Act (Canada). The Company will renounce such CEE to the subscribers effective for the 2010 tax year. The funds will be used for an airborne geophysical survey and grass roots exploration on the Company's Ladner Gold property in British Columbia. The proceeds from the sale of the units will be used for general corporate purposes.

About Module Resources

The Ladner Gold property includes 229 claims (11,175 hectares) covering 18 kilometres of the Coquihalla Gold Belt, and contains several historic gold producers including the Carolin Mine, a former small underground gold producer from 1982 – 84, Emancipation Mine (intermittent small gold producer from 1916 – 41), Pipestem Mine (intermittent small gold producer from 1935 - 37), and numerous gold prospects situated along the under-explored Coquihalla Gold Belt. Based on historical exploration and development work in 1995 - 1996 and historical production records of the Carolin Mine, the Company believes that there is potential to reopen the mine at some time in the future if the exploration and development programs are successful and a positive feasibility study is obtained given a favorable gold market. The Company believes that there may exist the potential for a bulk tonnage gold deposit situated at the McMaster Zone, where additional work is required in order to delineate such potential. This zone is approximately 1,200 metres from the Carolin Mine.

The Company also believes that there is potential to process the tailings from the former Carolin Mine operation economically assuming a positive feasibility study is obtained given a favorable gold price. Depending upon a positive study, Module could realize some potential cash flow from treatment of the tailings to recover contained gold in the near term.

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

ON BEHALF OF THE BOARD OF DIRECTORS

"Bruce W. Downing"
Bruce W. Downing, M.Sc., PGeo., Hon.FEC
President & Chief Executive Officer

We seek Safe Harbor.

Caution concerning forward-looking information

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Module in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Module's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Module disclaims any obligation to update or revise any forward-looking information or statements except as may be required 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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