Sanu Resources Ltd.

Sanu Resources Ltd.

March 01, 2005 09:00 ET

Sanu Resources Ltd.: Eritrean Exploration Update and Announcement of $1.375 Million Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SANU RESOURCES LTD.

TSX VENTURE SYMBOL: SNU

MARCH 1, 2005 - 09:00 ET

Sanu Resources Ltd.: Eritrean Exploration Update and
Announcement of $1.375 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 1, 2005) - Sanu
Resources Ltd. (the "Company" or "Sanu") (TSX VENTURE:SNU) is pleased to
provide an update of the Company's activities in Eritrea and announce a
non-brokered private placement financing of up to $1.375 million to
advance its exploration program in Eritrea.

Eritrean Exploration Update

The Company is pleased to announce that a drill program has commenced on
its exploration projects in Eritrea. The initial drilling will focus on
the Company's gold prospects located in the Guluj and Fanco licenses, to
be followed by drilling of VMS prospects on the Kerkebet and Mogoraib
licenses adjacent to Nevsun Resources Ltd. ("Nevsun") Bisha license.
Because many of the best VMS targets, coincident airborne EM and gravity
anomalies, occur under 5-10m of alluvium, the Company will conduct
detailed ground EM to characterize the depth and attitude of these
conductors before drilling. In addition to the drilling program,
regional and detailed exploration work will continue throughout the
Company's entire land position. This work will include mapping, soil and
rock chip sampling, trenching and ground geophysics.

The Company also reports that the Government of Eritrea has extended the
anniversary dates for all of the exploration and prospecting licenses to
compensate for time lost due to the government's halt-work order.
Currently the Company has four exploration licenses and four prospecting
licenses covering 4,788 square kilometers.

Gold Exploration Program - Southern Licenses

Within the Fanco and Guluj licences, the Company has identified five
prospective areas for shear-hosted gold mineralization namely, the
Wegeretai, Adi Kelbay, Melhoy, Demerayeye and Asuna prospects. These
prospects were identified through regional and detailed prospecting
including mapping, stream sampling, soil sampling, rock chip sampling,
and trenching. The current drill program of 2,000 m will evaluate
Wegeretai, Adi Kelbay, Melhoy. Additional work will be conducted on the
other prospect areas to delineate further potential drill targets.

The Adi Kelbay, Melhoy, Demerayeye prospects occur within an 8 kilometer
("km") zone of shearing and carbonate alteration in mafic and felsic
volcanics. Two trenches were completed on Adi Kelbay, one to test the
quartz vein swarm and the other 200m to the southeast over
ankerite-altered mafic volcanics. Trench HD-04 returned 2.9m at 7.2
grams per tonne gold ("g/t Au"), 6m at 1.4 g/t Au, 13m at 0.28 g/t Au
and 4m at 0.44 g/t Au, all over the quartz vein swarm. The altered
volcanics returned insignificant results. Four kilometers to the north,
a single trench on Melhoy returned 33m of 1.3g/t Au in ankerite-altered
mafic volcanics. The quartz vein swarm on this prospect has been shown
to extend under cover to the north for at least 500m to an area
currently being worked by local miners.

The Wegertai prospect consists of a series of quartz veins that have
been traced for over 2 km. Within this system a 1-2m wide quartz vein,
approximately 700m long, has been worked by local miners to a depth of
10-20m. Vein quartz and waste dump grab samples returned up to 30.8 g/t
Au.

At Asuna, eleven trenches exposed a pyritic felsic unit with anomalous
values over about 1.5 km of strike length. Additional work will be
required in the Asuna area to define a drill target. In the Demerayeye
area a broad zone of sheared pyritic felsic tuff was tested by five
trenches and seven extensive, chip-channels but did not return any
significant values. In this area it appears that quartz veins are the
source of high gold value encountered in previous rock chip sampling.

VMS Exploration Program - Central Licenses

The Kerkebet and Mogoraib Licenses contain two horizons of Upper
Proterozoic felsic to intermediate metavolcanic and metasedimentary
rocks interpreted as the eastern and western limbs of a regional
anticline. The eastern limb of the anticline hosts Nevsun's Bisha
discovery and Sanu's Bisha North gossans. The western limb hosts Sanu's
Mai Melih gossans.

The work completed on the Kerkebet and Mogoraib licenses includes 1728
line kilometers of airborne EM and magnetics flown by Fugro Airborne
Surveys (Australia) with data interpretation by Southern Geophysical
Consultants Ltd ("SGC"); detailed gravity surveys over nine separate
prospects; mapping, trenching, and rock chip and soil sampling over
several prospects; and regional and follow-up BLEG sampling. The
following table presents a summary of the highest-rated prospects
investigated to date in the Kerkebet and Mogoraib licenses:



------------------------------------------------------------------------
Anomaly/ EM
Prospect priority Gravity Signature Comments
------------------------------------------------------------------------
Bisha High Strong residual An outcropping, folded
North anomaly comparable horizon of pyritic
to Nevsun's Bisha siliceous rock coincides
North anomaly with the gravity anomaly;
two thin gossan horizons
lie 100m to the west.
Channel 7 conductors and
the gravity data suggest
that this mineralization
may continue to the
northwest.
------------------------------------------------------------------------
Bisha Moderate Gravity survey planned Outcrops of folded
East pyritic, siliceous
gossanous horizons.
Moderate airborne EM
anomaly coincident with
gossan horizon. Strong EM
conductors lie
immediately east of the
outcrops.
------------------------------------------------------------------------
1726 High Narrow residual gravity No outcrop. Coincident EM
Anomaly "ridge" coincident with and gravity. Ground EM
conductor follow-up planned before
drilling.
------------------------------------------------------------------------
1728 Moderate Several N-S striking No outcrop. Coincident EM
Anomaly -High residual gravity and gravity. Ground EM
"ridges" coincident follow-up planned before
with conductors drilling.
------------------------------------------------------------------------
1732 High Several prominent No outcrop. Coincident
Anomaly residual and bouger strong EM and pronounced
anomalies coincident residual and bouger gravity
with EM conductors anomalies. Interpreted to
be anticline by SGC. Ground
EM follow-up planned before
drilling
------------------------------------------------------------------------
1737 Moderate Gravity not yet No outcrop. On strike
Anomaly completed with 1732 anomaly.
------------------------------------------------------------------------
1723 Moderate Several residual Gravity anomalies not
Anomaly gravity anomalies coincident with conductors;
Mai Melih ground EM follow-up and
North soil sampling required
to assess prospect.
------------------------------------------------------------------------
Mai Late-time A gravity survey over The Mai Melih prospect is
Melih conductors the Mai Melih gossan, a significant gossan of
Gossan in the Mai showed the gossans which the thickest part is
Melih gossan occupied a linear about 400m long and 20-30m
area. gravity low thick; thinner extension of
this horizon can be traced
for several kilometers
along strike to the north
and south. The gossan has
yielded anomalous base
metal values throughout
its exposed strike length.
------------------------------------------------------------------------


Sanu plans 2,000 m of reconnaissance core drilling on the five or six
best VMS targets as defined by gossan outcrop, airborne EM, gravity and
ground EM data. It is expected that detailing of anomalies by ground EM
will begin within the next 30 days and the drill rig will be moved to
the Kerkebet-Mogoraib area as soon as this work is complete.

Private Placement

Sanu also announces that it proposes to raise, subject to regulatory
approval, up to $1.375 million by way of a non-brokered private
placement through issuance of up to 2,500,000 units at $0.55 per unit.
Each unit shall consist of one common share (a "Share") and one common
share purchase warrant (a "Warrant"). Each Warrant will entitle the
holder thereof to acquire one additional Share for a period of two years
at a purchase price of $0.80 per share during the first year and $0.90
during the second year. If, after the expiry of all resale restrictions,
the closing price of the Shares on the TSX Venture Exchange is $1.35 or
greater for a period of 20 consecutive trading days, the Company shall
provide notice of an earlier expiry of the Warrants, in which case the
Warrants shall expire 21 trading days after giving such notice. The
proceeds from this million private placement will be used by Sanu for
exploration programs and general working capital purposes.

Dr. Demetrius Pohl, a Qualified Person as defined by National Instrument
43-101 and Vice President of Exploration for the Company, has reviewed
and verified the technical mining information contained in this news
release.

Soil, stream sediment, and rock chip samples were prepared for analysis
by crushing and grinding at African Horn Laboratories under the
supervision of Genalysis Laboratories (Australia). A 100-150g,
pulverized split of the sample was sent to Genalysis Laboratories
(Australia) or OMAC Laboratories (Ireland), a member of the Alex Stewart
Assayers Group for analysis. Samples were assayed for Au by fire assay
with an Atomic Absorption Spectrophotometry ("AAS") finish. All other
elements were analysed by AAS. Approximately 5% of all trench samples
were randomly duplicated, renumbered and sent for analysis as check
samples.

For bulk leach extractable gold ("bleg") stream sediment samples, a
2-4kg sample was screened in the field to -2mm using nylon screens and
shipped direct to OMAC Laboratories (Ireland) for bleg analysis on the
bulk sample. In some cases a -80 mesh split of the sample was taken by
OMAC for additional analysis for base metals (Cu-Zn-Pb) and barium by
AAS and Induction-Couple Plasma (ICP) analysis

For additional information on the Company and its exploration projects
please visit our website at www.sanuresources.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Sanu Resources Ltd.
    Michael Winn
    President
    (949) 494-6431
    or
    Sanu Resources Ltd.
    Kim Casswell
    Corporate Secretary
    (604) 688-2199
    (604) 688-1157 (FAX)
    www.sanuresources.com
    The TSX Venture does not accept responsibility for the adequacy or
    accuracy of this release.