Sanu Resources Ltd.
TSX VENTURE : SNU

Sanu Resources Ltd.

March 29, 2006 13:25 ET

Sanu Resources Ltd.: Moroccan Exploration Convention

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2006) - Sanu Resources Ltd. (the "Company" or "Sanu") (TSX VENTURE:SNU) is pleased to announce the Company has entered into a Exploration Convention ("Convention") with the Office National des Hydrocarbures et des Mines ("ONHYM") of Morocco. The Convention covers 26 exploration and mining permits in the Taroudant area of southern Morocco for a total of 416 sq km. The licenses cover prospective portions of the Ighrem, Agadir Melloul, and Iguerda Precambrian inliers, and include the Had Imawn gold prospect.

Under the terms of the Convention, Sanu has the option to earn an initial interest of 65% by spending US$ 2.5 million in exploration expenditures over a period of 3 years with US$250,000 in year 1, US$750,000 in year 2, and US$1,500,000 in year 3. Upon incurring US$2.5 million, the Company will have the option to earn an additional 20% (for a total interest of 85%) by spending an additional US$2.5 million within two years. As part of the Convention, ONHYM and Sanu have formed a management committee to oversee the exploration program, while Sanu will be the operator of the exploration program. Sanu and ONHYM will form a joint mining company upon the completion of a positive feasibility study.

ONHYM, which now includes the former Bureau de Recherches et de Participations Minieres ("BRPM"), has incurred approximately US$2.4 million in prior exploration expenditures on the licenses. The BRPM conducted regional stream sediment sampling identifying several prospective areas including the Had Imawn gold prospect. The BRPM drilled 17 holes at Had Imawn for a total of 2992 meters intersecting anomalous to significant gold mineralization.

Sanu will initiate exploration work after approval of the Convention by the Moroccan Authorities. The initial work will include a complete review of all available data (including all drill core), regional and detailed soil sampling and mapping of prospective targets, and a limited drill program to test some of the more significant gold anomalies.

Warrant Exercise

The Company had 1,815,000 warrants exercised at C$0.75 for proceeds C$1,361,250. The balance of the outstanding C$0.75 warrants (2,405,000) expired on March 6, 2006.

Qualified Person/Quality Analysis/Quality Control

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.

Profile

Sanu is a mineral exploration company focused on the acquisition, exploration and discovery of world-class gold and base metal deposits in Africa and is currently exploring in Eritrea, West Africa and Morocco. The Company has 19.4 million shares outstanding and trades on the TSX Venture Exchange under the symbol SNU. For additional information on the Company and its exploration projects please visit our website at www.sanuresources.com.

Forward-Looking Statement

Some statements in this release contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, expenditures, transactions and financings. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, risks related to actual results of exploration activities, the timing and amount of expenditures and the completion of transactions and financings.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Sanu Resources Ltd.
    Michael Winn
    President
    (949) 494-6431
    or
    Sanu Resources Ltd.
    Kim Casswell
    Corporate Secretary
    (604) 688-2199
    www.sanuresources.com