Nuinsco Resources Limited
TSX : NWI

Nuinsco Resources Limited

January 23, 2012 16:24 ET

Nuinsco Buys Back 2% Royalty Interest on Prairie Lake Property

Prairie Lake Now Royalty-Free

TORONTO, ONTARIO--(Marketwire - Jan. 23, 2012) - Nuinsco Resources Limited ("Nuinsco") (TSX:NWI) (www.nuinsco.ca) today announced that it has purchased back the 2% production royalty on its Prairie Lake phosphate and rare metals project in consideration for the issuance of 3,157,894 common shares of Nuinsco. The royalty was obtained by Stares Contracting Corp. in 2001.

"The buy-back of this royalty enables Nuinsco shareholders 100% participation as the Company moves forward to capitalize on the significant tonnage and tremendous upside potential at Prairie Lake," said René Galipeau, Vice-Chairman and CEO. "Already the second largest deposit of its kind in contained tonnes in North America, we know that the tonnage at Prairie Lake has the potential to become much larger. The property is now royalty-free as we await the results of the ongoing metallurgical evaluation program."

Phosphorus rock represents a vital, non-renewable, resource that can be neither substituted nor recycled in agricultural applications. Hence total world demand must be met through the mining, beneficiation and processing of naturally derived sources. The increased needs of world food production assure the long-term growth in world phosphate rock demand (excerpted from Sis and Chander, 2003).

Optimized metallurgical evaluation is underway to produce separate niobium (Nb2O5) and fertilizer-grade phosphorus (P2O5) concentrates from Prairie Lake mineralization. It has already been demonstrated that a concentrate grading up to 23.6% P2O5 can be produced using a non-optimized metallurgical process. The target is to produce a concentrate containing greater than 30% P2O5 as well as a distinct Nb2O5 concentrate.

The testing is evaluating gravity, flotation and magnetic separation methods. A 1,000kg sample was submitted to COREM in Quebec City to evaluate production of an apatite concentrate that can attain the requirements of the fertilizer industry - namely P2O5 content of >30%, CaO/P2O5 <1.6% and magnesium oxide ("MgO") content <1%. COREM conducted an earlier metallurgical program on Prairie Lake mineralization (see news release dated Nov. 4, 2010) in which it was demonstrated that the production of high grade phosphorus concentrates is possible. Production of a second and distinct niobium/pyrochlore concentrate will also be investigated.

About Prairie Lake

Located about 45 kilometres northwest of Marathon, Ontario, Nuinsco's Prairie Lake property covers the entire 2.8 km2 (at surface) Prairie Lake Carbonatite Complex and is easily accessible from the TransCanada Highway. The Prairie Lake project hosts an Exploration Target Mineralization Inventory ("ETMI") of 515-630 million tonnes grading between 0.09-0.11% Nb2O5 (0.9 to 1.1 kg/tonne) and 3.0-4.0% P2O5 (see news release dated October 26, 2011).

The ETMI increase places Prairie Lake well within the ranks of the ten largest carbonatite-hosted niobium deposits in the world. In North America, Prairie Lake is second only to the Iron Hill Project in Colorado owned by Colorado Rare Earths Inc., in contained tonnes (the average grade at Prairie Lake is however greater). All of the mineralization is exposed at surface and could be exploited by simple quarrying methods. The suite of minerals of potentially economic significance also includes tantalum (Ta), uranium (U) and rare earth elements (REE) (including lanthanum (La), cerium (Ce), samarium (Sm), neodymium (Nd) and yttrium (Y)).

The ETMI was undertaken by Eugene Puritch, P.Eng. and Antoine Yassa, P.Geo of P&E Mining Consultants Inc. of Brampton, Ontario. All exploration work is supervised by Paul Jones, P.Geo, President, who acts as Nuinsco's Qualified Person under National Instrument 43-101. Mr Jones has reviewed and approved the contents of this news release. The potential quantity and grade of the ETMI is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the discovery of a mineral resource.

About Nuinsco Resources Limited

Nuinsco is a growth-oriented, multi-commodity mineral exploration company that is focused on world-class mineralized belts in Canada, Turkey, Egypt and Sudan. In addition to its property holdings, Nuinsco owns common shares in Coventry Resources Limited (ASX:CVY) and Victory Nickel Inc. (TSX:NI). Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.

Please visit the Company's website at www.nuinsco.ca. Should you wish to receive Company news via email, please email juliet@chfir.com and specify "Nuinsco Resources" in the subject line.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historic fact, that address activities, events or developments that Nuinsco believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Nuinsco based on information currently available to Nuinsco. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Nuinsco to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Nuinsco. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain tenure to properties and/or necessary permits and approvals from government authorities in Egypt and elsewhere, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Nuinsco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Nuinsco believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

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