Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

May 19, 2011 08:30 ET

Pershimco Advances Drilling and Sampling at Cerro Quema

Drilling at depth below LaPava, Chontal and Quema-Quemita intersects significant sulphides below known gold bearing oxide zones

Regional surface geochemical sampling from western segment of the 17 kilometre Cerro Quema gold-copper mineralized trend extends known mineralized oxide zones northwards ranging from 150 meters to 650 metres at LaPava, Chontal, Mesita and Quema-Quemita targets

ROUYN-NORANDA, QUEBEC--(Marketwire - May 19, 2011) -PERSHIMCO RESOURCES INC. (the "Corporation" or "Pershimco") (TSX VENTURE:PRO) (FRANKFURT:BIZ) is pleased to update shareholders and stakeholders on the progress of the latest work from the 2011 exploration campaign at the Corporation's Cerro Quema Gold-Copper Project (the "Project") in Panama.

In Q1 of 2011, Pershimco has completed 3,044 metres of a 6,000 metres diamond and Reverse Circulation drilling program within the western 4 km segment of the 17-kilometre Cerro Quema gold-copper mineralized trend (the "Trend"). In 2010, Pershimco had completed confirmation drilling of 1,280 m as part of its due diligence efforts and to confirm the LaPava historical mineral resources of 240,000 ounces of gold. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Results of this verification program showed NI 43-101 compliant mineral resources of 269,000 ounces of gold.

In the current drill program, a total of 1,642 metres (1,495 metres in diamond drilling and 147 metres in Reverse Circulation drilling) was drilled at the LaPava and contiguous Chontal targets to potentially expand the mineral resources at depth and to the north, where two additional geochem targets have been identified. The first target consists of the LaPava Pit Extension, located between the historic LaPava gold deposit and the historic fence of mineralized drill holes 250 metres north; whereas the second, the LaPava North Target, sits along a second parallel trend line of altered (silicic) and mineralized bedrock identified 650 metres to the north. These targets could significantly increase the potential of the existing LaPava mineralization. A diamond drilling rig has been performing the exploration in order to better define and increase the target's value. At the adjacent Chontal target, located east of LaPava, strong silicification can now be confirmed by diamond drilling over a 2 kilometre length and 150 metres width, between the LaPava and Quemita mineralized domes. A total of 1,402 metres (406 metres in diamond drilling and 996 metres in Reverse Circulation drilling) was drilled at the Quema-Quemita target located 2 kilometres east of the Chontal target along the same mineralized trend. Here the oxide mineralization has been extended northwards by 250 metres.

Pershimco's drilling is oriented towards significantly increasing the mineral resources in the oxides and also the gold and copper contained in the supergene and primary sulphide zones below the oxides.

Pershimco's technical team has also advanced and supplemented the systematic surface litho-structural mapping with channel and rock chip sampling of the western trend. To date, 787 rock samples have been taken utilizing portable rock saws to channel sample zones of silicic/vuggy alteration cropping out in the western targets. The work will complement the existing database and add to the regional picture along the Trend.

Assays are pending for all this work.

The Cerro Quema Project

The Cerro Quema mineralization belongs to a system of high-sulphidation, epithermal gold-copper deposits and mineralized zones found in the North American, Mexican, Central American and South American Cordilleras. Targeting criteria along the 17 kilometres trend includes brecciated dacite lapilli tuffs, silica-alunite-clay alteration, iron oxides after pyrite, and advanced argillic alteration halos These strongly silicic altered rocks are typical of the residual quartz (vuggy) occurences that are associated with gold-copper high-sulphidation deposits. Advanced argillic alteration minerals at Cerro Quema include dickite, alunite, and at lower elevations, pyrophyllite. Pershimco has initiated a PIMA survey program to help map out the alteration patterns associated with the gold and copper mineralization.

Pershimco previously announced positive results of the Preliminary Economic Assessment ("PEA") study on the LaPava Target performed by Scott Wilson RPA. The PEA study using the current Indicated Mineral Resources of 7,231,000 tonnes grading 1.10 g/t gold (0.35 g/t gold cut-off grade) shows, for LaPava pit only, an internal rate of return ("IRR") for the project of 69%. The LaPava Target gold mineralization is a viable project with the current Mineral Resource estimates. The ongoing 6,000 m drilling campaign has the potential to enhance the project's economics if it increases the compliant Mineral Resources and production profile that could result in higher Net Present Value and extend the mine life. This PEA has an accuracy of +/- 30%, which is considered industry standard for preliminary capital and operating cost estimates.

The information contained in this news release has been reviewed and approved by Mr. Jean Lafleur, M.Sc., P. Geo., Director and Technical Advisor at Pershimco, the Corporation's Qualified Person under NI 43-101 regulations.

About Pershimco Resources Inc.

Pershimco Resources Inc. is a Canadian-based resource and exploration corporation listed on the TSX Venture Exchange (symbol PRO.V) and the Frankfurt Exchange (symbol BIZ). The Corporation holds several mining properties in Canada and South America including the recently acquired Cerro Quema advanced project in Panama and the Courville Gold Project, in the Val-d'Or Gold Mining Camp. The Corporation is managed by skilled, reputable people with extensive mining exploration and development experience. The Pershimco Team and our investors are the key to our success.

The Corporation's documents are available on www.sedar.com.

For more information, please visit the Corporation's website at www.pershimco.ca.

Statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.

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 accuracy of this news release.

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