Salazar Resources Limited
TSX VENTURE : SRL
FRANKFURT : CCG

Salazar Resources Limited

July 22, 2011 09:00 ET

Salazar Reports Gold-Silver Mineralogical Study of El Domo VMS Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 22, 2011) - Salazar Resources Ltd. (TSX VENTURE:SRL)(FRANKFURT:CCG) - Mr. Fredy Salazar, President and CEO, is pleased to provide an update on the progress of a precious metals mineralogical study of the El Domo volcanogenic massive sulphide deposit being carried out by Surface Science Western (SSW) in London, Ontario under the supervision of Kevin Scott, P. Eng., of Roscoe Postle Associates Inc. (RPA).

Previous metallurgical test work by G&T Metallurgical Services Ltd. (G&T) completed in February 2011 indicated precious metals reported to copper and zinc flotation concentrates, however overall gold and silver recoveries were lower than anticipated. A separate mineralogical analysis has been completed by SSW to determine all major carriers and forms of gold and silver in order to better understand what improvements can be made to recover more gold and silver.

The gold and silver deportment study was completed by Surface Science Western (SSW) on the same master composite sample used in the G&T tests at a grind fineness of 80% passing 91 μm. The results indicate that gold occurs in two forms: microscopic (visible) and sub-microscopic gold. The analysis shows that 61.3% of the gold was visible (free) gold while 38.7% was sub-microscopic gold. The gold contained in the sample assayed 4.855 g/t.

Most of the visible gold grains are fully liberated or exposed. Where the gold grains are attached to other minerals it is most commonly with pyrite. Over 90% of the free gold was in the size range of 5 μm to 150 μm, and is considered amenable to gravity recovery which has yet to be tested to in the metallurgical lab.

The sub-microscopic gold was detected and quantified by Dynamic Secondary Ion Mass Spectrometry (D-SIMS) instrument. This gold is refractory gold, i.e. it is locked within the crystalline structure of the mineral. The mineral pyrite was found to contain 33.1% of the total gold. Other main minerals containing sub-microscopic gold include chalcopyrite (3.7% of the total), bornite (0.3% of the total) and sphalerite (1.3% of the total).

The sub-microscopic gold contained in pyrite will not be appreciably recovered by flotation however the gold contained in the other minerals would be recovered in copper and zinc concentrates.

All of the silver in the sample occurs in the sub-microscopic form only. The silver contained in the sample assayed 65.4 g/t. Pyrite was found to contain 48.9% of the total. Other minerals containing sub-microscopic silver include chalcopyrite (13.3% of the total), bornite (21.0% of the total), sphalerite (6.1% of the total) and galena (1.1% of the total). A total of 8.2% of the silver was unaccounted for and may be related to other minerals while 1.1% was associated with gold particles and 1.4% is contained with minor minerals.

The sub-microscopic silver contained in pyrite will not be appreciably recovered by flotation, however the silver contained in most of the other minerals, up to 51% according to this study, would likely be recovered in various concentrates.

Mr. Salazar says "The Company is highly encouraged with the results of the SSW study".

Surface Science Western is a research laboratory at The University of Western Ontario, in London, ON, providing one of the most comprehensively equipped surface analytical laboratories in Canada. SSW offers a variety of analytical services to the mining industry related to the characterization and processing of value minerals.

This press release has been reviewed by Kevin Scott, P.Eng., Principal Metallurgist, RPA who is a Qualified Person (QP) as defined by NI 43-101 Standards.

ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED

Fredy Salazar, President & CEO

Salazar Resources Limited

Salazar Resources Ltd. is a publicly-listed (TSX VENTURE:SRL)(FRANKFURT:CCG) mineral resource company engaged in the exploration and development of new highly prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador. Being an Ecuadorian based company gives the company a strategic advantage enabling the company to complete exploration at a rapid pace. With an excellent property portfolio (3 projects- 42,900 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America.

Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in the forward looking statements. Although we believe that the expectations in the forward-looking statements are reasonable, actual results may vary, and future results, levels of activity, performance or achievements cannot be guaranteed.

Neither 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 release.

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