Pershimco Resources Inc.

Pershimco Resources Inc.

May 06, 2008 10:06 ET

Pershimco and Dia Bras Sign Binding Letter of Intent to Joint Venture the San Miguel and La Bamba Properties in the Cusi Silver Mining Camp, Mexico

CHIHUAHUA, MEXICO--(Marketwire - May 6, 2008) - PERSHIMCO RESOURCES INC. (TSX VENTURE:PRO)(FRANKFURT:BIZ) ("Pershimco" or the "Company") is pleased to announce that the Company and its Mexican affiliate Minero Metalurgica San Miguel has signed a binding Letter of Intent (the "LOI") setting the terms of a 50-50 Joint Venture Agreement (the "JV") with Dia Bras Exploration Inc. (TSX VENTURE:DIB) and its affiliate Dia Bras Mexicana ("Dia Bras") for Pershimco's La Bamba and San Miguel Properties (the "Properties") located in the Cusi Silver Mining District in the State of Chihuahua, Mexico.

Dia Bras earned its 50% interest in the Properties by investing US$ 1.5 million in the Phase 1 exploration and development programs. As part of the JV terms, both Pershimco and Dia Bras will inject a sum of US$ 1.25 million each to finance the Phase 2 drilling to define the ultimate silver mineral resources at the Properties. Dia Bras has already completed US$ 500,000 in Phase 2 work. A Final Agreement containing all necessary administrative and legal Mexican compliances is being completed and both parties are expected to sign shortly.

All future exploration and development of the Properties will be managed under a Mexican subsidiary ("MEXCO") operated by Pershimco. The MEXCO Board of Directors will consist of representatives from both Pershimco and Dia Bras, and will be chaired by Pershimco for the first two years. Dia Bras will have an option to earn an additional 20% in MEXCO and the Properties, by notifying Pershimco of its intent to exercise this option, and by completing a Phase 3 work program with a minimum work expenditure of US $1.75 million. Pershimco will have a similar right, assuming Dia Bras does not exercise the 20% additional interest option within 45 days after completing the Phase 2 work program.

Alain Bureau, P. Eng., Interim President & CEO of Pershimco states "The JV and proposed expenditure commitments for the Properties are significant milestones for Pershimco and its shareholders. MEXCO will ensure that the exploration and development of the Properties will be done effectively in the near term. Both Pershimco and Dia Bras are confident that a significant silver mineral resource is present within the Properties, possibly containing higher grade and lower volume and lower grade and larger volume silver mineralization using the narrow higher grade silver veins and/or wider lower grade silver haloes. We are planning a major drill program that will fully test the silver resource potential from surface to a minimum 500 m vertical depth, slated to start by mid 2008".

The La Bamba and San Miguel Properties

Mineralized host rocks are highly oxidized, revealing the black centimetric silver veins and stockworks, in places accompanied by quartz, sphalerite (zinc sulphide) and galena (lead sulphide). Individual veins trend in several directions, including N-S, NE-SW, NW-SE and sub-horizontal. They are generally 10 cm to 1 m wide and contain silver grades between 100 g/t to more than 1,000 g/t in the narrower intervals. Veins outline several rectangular or lozenge-shaped and metric-sized blocks, composed of highly fractured and brecciated hosts that plunge very steeply to the SW. Silver grades inside these blocks tend to be less than 100 g/t. The pattern was observed across a minimum 35 m true width based on the underground workings at La Bamba. The pattern may have horizontal and vertical extents in the tens of meters. Additional surface and underground work, including drilling, should reveal their full extent, litho-structural relationships, and potential higher-narrow and lower-bulk grade potential.

Drill hole results to date confirm that narrower intervals contain higher silver grades, generally approaching the 1 kg/t, and can exceed 3 kg/t, and when wider envelopes are included, silver grades generally remain over 100 g/t, up to 40 m intervals. Both Pershimco and Dia Bras believe that there is a significant silver system that could contain a potential higher grade / lower volume and lower grade and larger volume silver mineralization using combined narrow higher grade silver veins and wider lower grade silver haloes.

Pershimco and Dia Bras are poised to initiate a 20,000 m drill program at La Bamba and San Miguel, where both parties expect outlining the full silver potential within the next year.

This news release has been prepared and reviewed by Mr. Jean Lafleur, P. Geo., Director and Technical Advisor at Pershimco, the Company's Qualified Person under National Instrument (NI) 43-101 regulations.

About Pershimco Resources Inc.

Pershimco Resources Inc. is a Canadian based junior resource and exploration company trading under the symbol PRO on the TSX Venture Exchange and under the symbol BIZ on the Frankfurt Stock Exchange. The Company holds 100% of several mining properties, including the Courville Gold Project, near the Val-d'Or Gold Mining Camp. The Company also has the Cu-Au-Ag skarn Magistral Project also in the State of Chihuahuha. Pershimco's strategy is to advance its exploration properties towards metal reserves and eventual production.

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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements that could reflect either party's objectives, estimates, expectations and the impact of either party's financial performance. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from either party's projections or expectations.

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