Serengeti Resources Inc.

Serengeti Resources Inc.

November 08, 2005 08:30 ET

Serengeti Identifies Major Extension to Davie Creek Moly System

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2005) - Serengeti Resources (TSX VENTURE:SIR) is pleased to report that a major extension has been identified on the Company's 100% controlled Davie Creek molybdenum property located in the highly prospective Quesnel Trough of north-central British Columbia. The recently completed ground geophysical and geochemical program has outlined a 35% increase in the size of the system. Moreover, re-assaying of prior drill core indicates a possible 10% increase in the molybdenum grade.

The Davie Creek project encompasses roughly 18 sq. kilometers (km) and is located about 80 km south of the Kemess Mine (300,000 oz./yr. gold mine). The property is accessible via secondary road from the Kemess Mine road/power line corridor. Based on the new geophysics and soil geochemical sampling in combination with prior work, the mineralized system now has an average width of 600 meters over an indicated strike length of greater than 3.0 km. Of considerable interest, is that Davie Creek shows many similarities to the well-known Endako Molybdenum Mine (also located in B.C.) which is Canada's only primary molybdenum (moly) producer. Both properties contain structurally elongated moly systems of identical geological age and have similar geochemical and geophysical signatures. Endako's mineralized zone has an average width of approximately 400 meters over a strike length of 3.2 km.

Prior drilling on the Davie Creek project only tested the central 20% of the strike length of the currently known mineralized system and the moly (Mo) grade in the assays increased as the drill holes moved south - the same direction as the newly identified extension. As previously reported (see News Release August 3, 2005), the best hole recorded 203 meters of 0.073% Mo, while an undercut hole intersected 195 meters of 0.052% Mo. Higher grade sections were encountered in both holes and re-assaying of one of these sections yielded a grade 10% greater than the previously reported grade. As a matter of interest, the average grade currently being mined at Endako is 0.066% Mo and 2004 production was slightly over 10 million pounds.

David Moore, President of Serengeti, stated: "We are very pleased that these results have greatly expanded the size of the Davie Creek moly system. In fact, it now has a similar footprint to the Endako Molybdenum Mine. The best Mo grades at Davie Creek are open-ended and have not been adequately drill tested close to surface. The target at Davie Creek is a major open pit moly deposit and we believe that the results we've obtained from the current work program have substantially enhanced this potential. A delineation drill program to further test this large mineralized system is the next logical step. We have had previous joint-venture inquiries on the project and now that we have further defined the system, we may consider a joint-venture partner if a suitable company is interested."

As an informational review, molybdenum is a metallic element which is almost indispensable as an alloying agent in steel, stainless steel and super alloys to enhance hardenability, strength, toughness, weldability, wear and corrosion resistance. It has one of the highest melting points of all pure elements. The strong demand from the petroleum sector and from China for steel and other alloys has in turn greatly increased the demand for moly and many analysts see this continuing. Canada has approximately 7.6% of the world's molybdenum reserves. The market price of moly has risen from the mid $2.00 per lb. level in 2002 to over $30.00 per lb. in 2005, sparking a strong interest in molybdenum exploration and development properties.

Serengeti is a mineral exploration company with an experienced management team who have a solid track record of exploration success. The Company is focused on the discovery and development of copper-gold-molybdenum deposits in British Columbia, especially in the highly prospective Quesnel Trough where the Company controls 13 separate properties totaling over 340 sq. km.

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, David W. Moore, P. Geo., President and CEO of Serengeti Resources Inc.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

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