Gossan Resources Limited

Gossan Resources Limited

June 27, 2005 15:30 ET

North American Palladium Drills Gossan's Bird River Property

WINNIPEG, MANITOBA--(CCNMatthews - June 27, 2005) - Gossan Resources Limited (TSX VENTURE:GSS)(Frankfurt/Freiverkehr:GSR) is pleased to report that, Lac des Iles Mines Ltd. "LDI", a wholly-owned subsidiary of North American Palladium Ltd., has initiated a diamond drilling program on the Bird River Property. The drill program consisting of approximately 10 holes totaling 1200m will test several priority targets located at or near the base of the Bird River Sill for nickel, copper and PGE mineralization. These targets were previously identified by the helicopter-borne VTEM electromagnetic and magnetic "dream-catcher" survey flown earlier this year by LDI. The diamond drill program is expected to be completed in 3 to 4 weeks.

The Property, encompassing 6,870 hectares (16,975 acres), covers over 21 kilometres of the Bird River Sill Complex. Locally, about 500 to 600 meters thick, the Bird River Sill is a differentiated gabbroic complex, which trends east-west, dips steeply to the south and is subdivided into a basal ultramafic, a transitional and an upper mafic series. This complex carries significant concentrations of palladium and platinum along with nickel, copper, zinc and chromite. The Bird River Property is located about 40 km east of Lac Du Bonnet, Manitoba and, along the Sill, approximately 6 km west of Mustang Minerals' Maskwa Deposit.

Additional information regarding the recent identification of high-grade nickel sulphides on the Bird River Sill, published as an extract of a Manitoba Geological Survey presentation, is available at www.gossan.ca/mgs.pdf. Previously in 2001, Manitoba Industry, Trade and Mines conducted a re-assaying program on historic drill core from the Page Block, now part of Gossan's property, that identified a 4.6 metre section of drill core grading 1.38% copper, 1.43% nickel and 1.6 gpt palladium.

North American Palladium Ltd. (PDL-TSX & PAL-Amex) is Canada's only primary producer of palladium and is the owner/operator of the Lac des Iles Mine located northwest of Thunder Bay, Ontario. Under the terms of an Option and Joint Venture Agreement, LDI can earn up to an undivided 75% interest in the Bird River Property by completing a bankable feasibility study and arranging project financing.

LDI's Qualified Person supervising the work being carried out on the Bird River Property by LDI is Bruce W. Mackie, Vice-President - Exploration of North American Palladium Ltd.

Gossan Resources Limited is engaged in mineral exploration in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty metals, tantalum, chromium, titanium and vanadium. The Company also has a large deposit of magnesium-rich dolomite and a silica sand prospect. Gossan trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and has 17,418,124 shares outstanding (21,043,124 shares fully diluted).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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