Regal Resources Inc.

March 16, 2011 14:49 ET

Regal Resources Inc.: News Release

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2011) - Mr. Gregory M. Thomas, President of Regal Resources Inc. (CNSX:RGR) is pleased to announce the Company completed its brokered private placement announced February 22, 2011 and has issued 7,682,394 units (a Unit consisting of 1 common share and 1 share purchase warrant at a strike price of $.40), at a price of $0.25 per Unit, for aggregate gross proceeds of $1,920,598CDN (the "Offering"). Should the Company's share price trade at $0.60 or greater for 10 consecutive trading sessions, the expiry date on the warrants will be shortened to 30 days subsequent to the triggering event. The Units issued are subject to a four-month + 1 day hold. As a result of the completion of the Offering, the Company now has 27,433,802 common shares issued and outstanding.

Casimir Capital L.P. (the "Agent") acted as agent on the financing and as consideration for acting as Agent, the Company paid to the Agent a 7% finder's fee, as well issued to the Agent "B" warrants equal in number to 7% of the units sold by the Agent. Each agent's warrant entitles the holder to purchase one common share of the Company for a 12 month period at a price of $0.40 per share.

The Company will use a portion of the proceeds for ongoing development of the company's Squaw Peak and Patagonia projects as well as general operating capital.

The Company will fund a detailed analysis of the 35,000 feet of historic drill core from its Patagonia project in Southern Arizona. This new data will prioritize targets for drilling three deep holes in the Cu, Pb, Zn, & Ag skarn zone in order to further investigate past work which includes three deep holes from Asarco. Listed below, are a portion of the historic technical data from Asarco's drill program which occurred in the 1970s.

-349 ft grading 0.6% copper, 2% lead, 7% zinc & 5.5 oz/ton silver
-57 ft of 1.3% copper, 4.7% lead, 12.2% zinc & 10.8 oz/ton silver
-13 ft of 2.2% copper, 7% lead, 20% zinc & 22 oz/ton silver
-124 ft of 0.3% copper, 0.7% lead, 14.1% zinc & 7.4 oz/ton silver
-10 ft of 1.3% copper, 2% lead, 25% zinc & 18 oz/ton silver
-5 ft of 6.5% copper, 1% lead, 0.5% zinc and 10.5 oz/ton silver

Additionally, the Company proposes to drill a minimum of four holes at its Squaw Peak project in south central Arizona for the purposes of expanding the known zone of mineralization and further investigate the large geophysical magnetic low target at the north end of the property.

The Patagonia project is located near Nogales, Arizona, 45 miles (72 kilometers) south of Tucson and is on trend in the prolific Laramide porphyry copper province with the Resolution Copper deposit (1.5 billion tons @ 1.5% copper) to the north and the Cananea Mine (7.14 billion tons @ 0.41% copper) to the south.

The Squaw Peak Project is located near Camp Verde, Arizona approximately half way between Flagstaff and Phoenix. Squaw Peak is an advanced exploration property hosting a porphyry copper-molybdenum system with drill intercepts averaging 0.4% copper and 0.025% molybdenum.

The technical information in this release has been reviewed and approved by Mr. Richard Kern, BSc., M.Sc., P. Geo. Registered Geologist Nevada & California; a 'qualified person', as defined by NI 43-101, Standards for Disclosure of Mineral Projects unless otherwise noted.


Regal Resources Inc. is an emerging mineral exploration and development company focused on high quality copper and base metal projects in the historically prolific copper producing state of Arizona and currently holds the option to acquire 100% interest in its Patagonia and Squaw Peak Properties.

Visit the Company's website for updated information on the ongoing exploration programs and corporate development.

Forward-looking statements

This news release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Regal Resources Inc. Statements regarding future fund raising are subject to all of the risks and uncertainties normally incident with the raising of capital including, but are not limited to, financing risks, inflation and regulatory approvals. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Regal Resources Inc. does not assume the obligation to update any forward-looking statement, except as required by applicable law.

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