Salazar Resources Limited

Salazar Resources Limited

November 29, 2007 08:00 ET

Salazar Resources Ltd.: President's Letter

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2007) - Salazar Resources Ltd. (TSX VENTURE:SRL)(FRANKFURT:CCG) -

Dear fellow shareholders,

As President and CEO of Salazar Resources Ltd., I am pleased to report on a successful 2007 and preview our upcoming work and future opportunities in 2008.

Over the past year we have implemented a multi-faceted exploration program on several of our Projects with primary focus at our premiere Curipamba Project in Central West Ecuador. We have a workforce of over 100 personnel conducting sampling, trenching, ground geophysics and drilling at our two highest priority targets at the Curipamba Project - Sesmo Sur and Las Naves. We believe both Sesmo Sur and Las Naves have the potential to be large tonnage poly-metallic deposits, as they have produced anomalous high grade gold and silver channel and trench samples over 800m x 400m, and 2km x 1km areas respectively.

We had numerous achievements this past year including receiving our Environmental Impact Assessment for the Curipamba Project in August, closing a $10.4 million bought deal in May, and becoming a listed public company in March. The amount of work completed to date on our significant landholdings (152,000Ha) has been tremendous with several different teams focused on reconnaissance exploration at five different target areas throughout Ecuador.

After a brief interruption in October of this year, our team recommenced operations at Curipamba's Sesmo Sur target. During this downtime we had close communications with Government authorities and local authorities and set in place a quality control and security program. The Government of the Republic of Ecuador made a pronouncement in favor of mining activities in the country, and specifically supported our Project because of our strict adherence to environmental and social guidelines. The local government has fully supported us from the outset because of the positive community relationships we have nurtured for several years. We have been "on the ground" and have involved the local community in every step taken by the Company to date. The recent support expressed from both levels of Government was a great encouragement for us to move forward with our exploration program confidently and aggressively. As a truly 100% Ecuadorian Company, we feel honored to set a positive example for the country as to how all Ecuadorian people can be successful within our own country.

In regards to our current exploration program at the Curipamba Project - Sesmo Sur, results of the drilling to date in combination with the recent ground geophysics program confirm that the Sesmo Sur target is an auriferous area (containing gold). The El Lobo anomaly at Sesmo Sur will be tested at depth and is the first of 9 anomalies discovered at Curipamba's Sesmo Sur. We are still on target to test the second high priority area, Las Naves, at Curipamba, with a second drill scheduled to be onsite early December. The first planned drill target at Las Naves will be the El Gallo anomaly; past channel sample results include: 17m of 11.2 g/t Au, 505 g/t Ag; 10m of 12.13 g/t Au and 235 g/t Ag; 12m of 7.09 g/t Au and 299 g/t Ag. The Sesmo and Cade Sur anomalies will be followed up next with other anomalies to follow thereafter.

Currently we are drilling Hole DDH-007-011, our third drill hole since the recommencement of drilling. We are eagerly anticipating the drill results at Sesmo Sur because of the large IP anomaly targeted which was recently discovered from our ground geophysics program.

Our ground geophysics program will resume in approximately 10 days at the Sesmo Sur area so to complete the initial grid, following a move to Las Naves where an extensive ground geophysics survey will take place.

Through extensive reconnaissance exploration our teams have prioritized our projects and the next stages of exploration in a very short timeframe. Curipamba and Ruminahui were chosen as our first priority projects for drilling.

Moving forward, we expect 2008 to be a very important year for Salazar. Our primary objective is to develop our two high priority target areas, Sesmo Sur and Las Naves at Curipamba. We are well financed with over $9M in working capital which is sufficient funds to accomplish our planned Phase 2 exploration program consisting of 10,500 metres of diamond drilling, an extensive ground geophysics program, geologic mapping and sampling at Curipamba. Secondary objectives include our Ruminahui Project and developing the northern areas of the Curipamba Project. Ruminahui currently has a team of 12 including 3 geologists and has made excellent headway in achieving a positive environmental impact assessment. We anticipate in the first half of 2008 to be moving forward aggressively at Ruminahui with a drill program as soon as the assessment is accepted. There is no shortage of potential targets. We will strive to remain focused on our highest priority areas while bringing along all other Projects to drill ready stage. We anticipate a lot of exciting news for the New Year.

Ecuador has made positive strides in the mining industry, with recent announcements such as Dynasty Metals receiving the go ahead for production, and Corriente having been given notification of the resumption of activities related to the development of an environmental impact assessment amendment (EIAA), covering the complete Mirador concession area.

It is very encouraging to see companies such as Dynasty having secured all permits at its Zaruma underground gold mine in Ecuador, which we feel, is a significant achievement for the mining industry in Ecuador. With the Constitution anticipated to be ready in 2008 followed by new mining regulations, clarity for Ecuador and the mining industry should be achieved. This long awaited transparency will pave the way for progressive Company's to work with the government and the people so to bring new and long lasting successes to the mining industry. We feel encouraged to be one of these Companies in a new Ecuador in 2008.

In closing, I would like to take this opportunity to express my gratitude to the employees of Salazar Resources for a year of hard work, and dedicated service; to our shareholders for their loyal support; and to our directors and officers who have worked so hard to get us to where we are today. We look forward to a prosperous 2008 as we continue to explore our Projects and implement strategies to increase shareholder value.


Fredy Salazar, President & CEO

Salazar Resources Limited

Salazar Resources Ltd. is a publicly-listed (TSX VENTURE:SRL) mineral resource company engaged in the exploration and development of new highly prospective areas of 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, including Aurelian's Fruta del Norte discovery, IAMGOLD's Quimsacocha Deposit, Mozo Deposit, Ex Newmont's Cangrejos Project and International Minerals Rio Blanco and Gaby Deposit. Being an Ecuadorian based company gives us a strategic advantage enabling us to complete exploration at a rapid pace, with over sixty personnel on the ground, including twelve geologists. With an excellent property portfolio (4 projects - 131,300 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador.

To view maps and photos related to the Curipamba Project please visit

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