Salmon River Resources Ltd.
TSX VENTURE : SAL

Salmon River Resources Ltd.

January 25, 2012 09:00 ET

Salmon River Resources: Detailed Laboratory XRF Assays From Drilling on E77/1208 (Mt Manning South) Indicative of Potential for High-Grade & Direct Shipping Ore Style Hematite Iron Mineralization

Significant Intersections with Grades as High as 61.57% Fe and 68.82% Fe

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2012) - Salmon River Resources Ltd. (TSX VENTURE:SAL) -

HIGHLIGHTS

  • Detailed laboratory XRF assays have been received from Genalysis-Intertek for the core samples obtained from the two-hole helicopter-assisted scout diamond drilling program completed at E77/1208 (Mt Manning South) on November 24, 2011.
  • Results largely validate the preliminary handheld XRF results for the core samples from the above drill holes as reported in the Company's Press Release dated 3 January 2012.
  • Results are consistent with regional mapping and geophysics which demonstrate the potential for high-grade and Direct Shipping Ore (DSO)-style hematite iron mineralization based on these more detailed and representative laboratory XRF results with iron grades as high as 61.57% Fe and 68.82% Fe being returned for diamond holes MMS001 and MMS002, respectively.
  • Significant drill hole intersections include:
    • Drill Hole MMS001 - 40.4m @ 55.54% Fe
    • Drill Hole MMS001 - 4.7m @ 50.04% Fe
    • Drill Hole MMS002 - 17.5m @ 65.53% Fe
    • Drill Hole MMS002 - 8.85m @ 42.73% Fe

Salmon River Resources Ltd. ("Salmon River" or the "Company") is pleased to announced the detailed and more representative Laboratory XRF assay results (as provided by Genalysis-Intertek Laboratory in Perth, Western Australia) for the initial two-hole helicopter assisted drilling program at the "J-Hook Area" within E77/1208 (Mt Manning South) portion of its Treppo Grande Iron Project.

E77/1208 is located in Western Australia approximately 220km west by road from the township of Menzies or about 130km north by road from the township of Koolyanobbing (Figure 1 and 2). This update should be read in conjunction with the previous update of 11 October 2011, which describes the tenement, geology and the drill hole programme, and with the initial press release dated January 3, 2012, which reported the particulars for this drilling program and the preliminary hand held XRF assay results from the core samples.

The drill hole details are shown in Table 1 below. The locations of the diamond drill holes are shown in Figure 3 and 4.

All core were initially logged and photographed on site before being transported to Kalgoorlie in Western Australia where they were then subjected to more detailed geological mapping, photography and sampled accordingly based on sample intervals nominated by a Salmon River-contracted geologist. Blanks and standards were inserted as per the company's existing QA/QC sampling protocols. All core were then cut in half using an Almonte core saw, with one half kept for geological records and the other half bagged in pre-numbered calico bags and submitted to Genalysis-Intertek Laboratory in Perth for routine XRF Fluorescence Spectrometry analysis covering an Extended Iron Ore Suite.

Prior to submission of the core samples to Genalysis-Intertek, the nominated core sample intervals were subjected to a preliminary XRF testing of their averaged iron content using a handheld Olympus InnovX Delta DP 6000C XRF tool provided and operated by an independently-contracted geologist from BM Geological Services in Kalgoorlie.

The significant drill hole intersections, based on the laboratory XRF results, are shown in Table 2 and confirms the potential for high-grade and Direct Shipping Ore (DSO)-style hematite iron ore mineralization. As shown in Tables 3 and 4, the detailed and more representative Laboratory XRF assay results (as provided by Genalysis-Intertek Laboratory in Perth, Western Australia) have (a) largely validated the preliminary handheld XRF results; (b) predominantly confirms the main mineralized intercepts (i.e. ≥ 40% Fe) encountered from the completed diamond drill holes; and (c) are consistent and within the logged geology for the major zones of hematite iron enrichment.

To view Figures 1-4 and Tables 1-4 click on: http://media3.marketwire.com/docs/sal.pdf

Laboratory XRF results with iron grades as high as 61.57% Fe and 68.82% Fe were returned for diamond holes MMS001 and MMS002, respectively.

Doug Betts, Salmon River Chair, commented:

"We are pleased with the results to date from this initial scout diamond drilling programme. The detailed and more representative laboratory XRF results validates the potential for high-grade and DSO-style hematite iron ore mineralization and further supports the company's understanding of the current geological model that shows the on strike and down dip continuity on the potential for a high-grade DSO hematite deposit in the "J Hook" area in the southern portion of our Treppo Grande Iron Project (E77/1208). These updated laboratory XRF assays for the core samples will enable us to plan appropriate follow-up sampling, exploration and drilling strategies."

Salmon River will provide additional exploration updates as results become available.

Qualified Person

Mr. Hector Galam, B.App.Sc. (Hons) (App. Geology), M.Sc. (Geology), is a Member of both the AIG and the AusIMM; and the Exploration Manager responsible for the geological programmes on all the EL's referenced in this document. He is a full time employee of the Company. Mr. Galam is a Qualified Person as defined in National Instrument 43-101 and has assisted in the preparation of and approved this news release.

Salmon River has established and maintains a comprehensive quality assurance-quality control (QA/QC) program.

About Salmon River Resources Limited (TSX VENTURE:SAL)

Salmon River Resources Limited is a mineral exploration company engaged in the exploration for and development of commercial deposits of iron ore in Western Australia. It exercised its option to acquire five tenements in the Yilgarn region of Western Australia including the Treppo Grande iron ore project, approximately 210 kilometres northwest of Kalgoorlie, comprising two tenements covering Mt Manning (298 km2) and the Barlee tenement (98.7 km2). Completion of the acquisition of the tenements is subject to certain conditions, including payment of A$100 million to the optionor. Salmon River believes the Treppo Grande project has the potential to be a world-class iron ore deposit with early development potential. Salmon River has recently announced the signing of a Memorandum of Understanding with General Steel Holdings Inc. ("General Steel", NYSE:GSI) providing for substantial future financing, off-take arrangements and the provision of management oversight (see press release dated 4 November 2011). The shares of Salmon River are listed on the TSX Venture Exchange under the symbol "SAL".

For further information see our website at www.salmonriverresources.com.

On behalf of the Board of Directors of SALMON RIVER RESOURCES LTD.

J.G. Stewart, President

Cautionary Language and Forward-Looking Statements: This press release contains forward-looking statements that are based on the beliefs of management and reflect Salmon River's current expectations. This press release relates to the exploration programmes of Salmon River. All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results, performance or developments may differ materially from those in forward-looking statements. By their nature, forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Factors that could cause actual results to differ materially from those in forward looking statements include the fact that the Company must complete the acquisition of the tenements (which requires regulatory and shareholder approval, execution of a definitive agreement with GSH, completion of a minimum of $110 million in financing, all prior to April 30, 2012), the risks that mineral resources are not as estimated, the actual results of exploration activities not being as anticipated, fluctuations in commodity prices in general and iron ore prices in particular, and the availability of capital and financing, and general economic, market or business conditions. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required in accordance with applicable laws.

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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