SOURCE: Punchline Resources

October 10, 2012 06:00 ET

Punchline Resources Selects Drill Targets and Completes Preparation for Drilling at Empress Project in Nevada

LAS VEGAS, NV--(Marketwire - Oct 10, 2012) - Punchline Resources Ltd. (OTCQB: PUNL) (OTCBB: PUNL) ("Punchline" or the "Company") is pleased to announce that its geologists have completed data compilation, drill target selection, and drill site preparation at the Empress and Wonder mines, located within the central portion of the Empress Project area. The selected targets at both historic mine sites are believed to be down-dip extensions of high-grade gold/silver quartz veins mined at the turn of the century by previous operators.

"Our work crews and geologists continue to make rapid progress at the Empress Project in Nevada. Now that we have chosen drill targets, built access roads, and constructed the drill pads, we can move on to the next stage of proving a possible new mine at Empress," said Ramzan Savji, CEO and President of Punchline. "Initial drilling at both sites will be conducted using angled reverse circulation drills with five foot sample intervals taken for assaying. Final preparations are currently underway to contract with a regional drilling rig and crew. Drilling is expected to begin within two weeks."

Drilling at the Wonder Mine target is intended to follow up on historic drilling that intersected substantial mineralization in -35° and -65° holes drilled from the same location. Drill hole E0702 intersected 3 feet assaying 0.47 oz/ton gold and 3.85 oz/ton silver. Drill hole E0706, which intersected the vein approximately 100 feet below E0702, cut 5 feet assaying 0.79 oz/ton gold and 0.46 oz/ton silver. Drill roads and pads have been surveyed that would allow drilling of the possible down-dip and lateral extensions of the vein.

At the Empress Mine target, located 3,000 feet east of the proposed Wonder Mine drill sites, roads and pads have been established to test the down-dip extensions of gold and silver bearing veins in Adits 2 and 3. Recent underground sampling conducted by the Company found significant gold values ranging from 0.302 to 0.841 oz/ton gold and 0.13 to 0.63 oz/ton silver in Adit 3.

The Company expects that further details regarding exploration plans and schedules for the Empress Project will be released over the next few days.

About Punchline Resources

Punchline Resources Ltd. is an emerging mineral resources company focused on both domestic and international exploration and development projects. The Company is currently exploring the Empress Project and Winnemucca Mountain Gold Property in Nevada, USA. The Company is also evaluating several additional projects for potential acquisition and/or participation.

Forward-Looking Statements

Some information in this press release constitutes forward-looking statements or statements which may be deemed or construed to be forward-looking statements such as but not limited to, the ability of the company to prove a new mine at the Empress Property. The words "plan", "forecast", "anticipates", "estimate", "project", "intend", "expect", "should", "believe", and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The risks, uncertainties and other factors are more fully discussed in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Punchline Resources Ltd. herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Punchline Resources Ltd. disclaims any obligation to update forward-looking statements contained in this press release, except as may be required by law. Historical exploration results as well as more recent sampling should in no way be construed as sufficient evidence of a commercially viable reserve on the Empress property. There can be no assurance that the company will be able to prove up a commercially viable reserve on the property.

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