Red Crescent Resources Limited
TSX : RCB

Red Crescent Resources Limited

May 24, 2011 10:20 ET

Red Crescent Issues Detailed Management Update & Progress Report

Company now positioned and resourced to unlock value of its copper and zinc projects

TORONTO, ONTARIO--(Marketwire - May 24, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Red Crescent Resources Limited (TSX:RCB), a mineral exploration and development company focused on base metals in Turkey, issued today a detailed management update on its achievements to date, its immediate position, and its short term plans designed to unlock the full value of the Company's projects, including its flagship projects, the Hakkari Zinc Project and the recently acquired Sivas Copper Project.

RCR Projects and Operations

During the last 6 months the Company was mainly focussed upon exploration works on the Hakkari Zinc Project in the Hakkari region of SE Turkey, technical due diligence studies on the Tufanbeyli Zinc Project situated in the Adana region of South Central Turkey and on the SIVAS Copper Project situated in the SIVAS region of North-West Central Turkey. See attached location map (http://media3.marketwire.com/docs/RCR_Projects%20Map_May%202011.pdf).

Additional technical works were completed on a number of opportunities related to the potential for asset consolidation in the core areas of interest, some of which have subsequently been acquired under specific agreements.

Some specific headline operational achievements are:

  • Initial global environmental impact reports completed in Hakkari, resulting in government approval permits for operations;

  • 4697 Man days worked safely at Hakkari site in 2010, as a direct result of Safety training and installation of operational Safety systems induction and issue of PPE (personal protective equipment) to site staff;

  • Over 5 km of road development to facilitate both the 2010 and 2011 exploration drilling program site access;

  • Successful achievement of the full target metres (2000m) of the initial 2010 exploration drilling program at Hakkari;

  • On time reporting (Feb 2011) of the initial NI43-101 compliant resource statement for Hakkari Zinc Project;

  • Completion of an independent expert mineralogical study (March 2011) to inform both exploration strategy and future mineral processing strategy and design;

  • Completion of technical due diligence at Tufanbeyli (Feb 2011) and subsequent acquisition;

  • Completion of technical due diligence at SIVAS (March 2011) and subsequent acquisition;

  • Completion of detailed planning for 2011 exploration works at Hakkari (10,000m May to Oct with 3 drills), Tufanbeyli (5,000m July to Sept with 2 drills) and SIVAS (15,000m June to Oct with 4 drills);

  • Completion of Metallurgical testwork and design study for Zinc processing and Concentrator plants with placement of order for Manufacture in South Africa (Build program is currently reported at 65% complete);

  • Successful extraction of bulk sample (20 tonnes) at Hakkari and shipment to South Africa for "wet-commissioning" of the concentrator plants prior to shipment for deployment in the field in second half 2011; and

  • Tufanbeyli historical drillings of 12500m successfully audited and independently verified, with inaugural NI43-101 resource statement under construction and expected to be available for release in June 2011.

The ability of the company to continue to deliver good operational performance has also been strengthened considerably with the addition of new professional and technical staff in the period and has reduced reliance on consultants. Dedicated project teams are beginning to operate at the Tufanbeyli Zinc and SIVAS Copper project sites and updates will be forthcoming during the year.

Mr. Alan Clegg, Chairman, President & CEO of Red Crescent Resources commented. "Within the short period of approximately 200 days representing the life of Red Crescent as a public company, the management team has made many significant operational and corporate development achievements which, has set the company on the right path towards the attainment of its stated Goals; i.e. to be a significant base metals producer in the lower cost quartile of the cost curve, be the pre-eminent mining company in Turkey and generate sustainable value and development for all its stakeholders. To have done the job in any other way, especially in a territory where Red Crescent is significantly the true 'first mover' would have been counterproductive to the achievement of our Goals and in the creation of real sustainable value for our shareholders and stakeholders alike."

Funding of Operations and Plans

The Company decided that it wanted to reduce shareholder's dilution by concentrating on ways to advance its principal projects and showing their value prior to further public equity issues at a low stock price, hence the teams focus since the listing on the TSX was on two fronts;

First, identifying and placing a strategic mining company investor who could add both, further credibility to RCR's strategy through equity investment in RCR and access to additional capital for "earn-in" at project level; and

Second, generate early cashflow from small targeted mining and processing on our Zinc Projects. Negotiation of an offtake agreement for Zinc ore and concentrates for a period of 3 years is well advanced.

The succesful accomplishment of the above steps has resulted in a funding of some $21 M.

The company has reasonable expectation that it will be in a position to make further announcements in respect of the off-take agreement and a non-dilutive associated funding arrangement within the short term, while the timing for any future placements of Red Crescent Stock to the open market to improve liquidity are currently under consideration by the Chairman and Board and announcements in this regard will be made as and when appropriate.

Alan Clegg, a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information contained in this news release.

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

About Red Crescent Resources

Red Crescent Resources (TSX:RCB) is a Turkey-based junior mining company targeting historically inaccessible areas where no modern application of exploration techniques or technology has been applied, with high potential for discovery of significant base metal deposits. For more information, please visit: www.redcrescentresources.com

Contact Information

  • TMX Equicom
    Joe Racanelli
    416 815 0700 ext 243
    jracanelli@equicomgroup.com

    Alan Clegg
    Red Crescent Resources
    +90 530 662 8964
    +27 82 469 8378
    +90 312 448 2926 (FAX)