Southern Rio Resources Ltd.

Southern Rio Resources Ltd.

June 08, 2005 19:27 ET

Southern Rio Resources Ltd.: Property Acquisition and Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 8, 2005) - Southern Rio Resources Ltd. ("Southern Rio" or the "Company") (TSX VENTURE:SNZ) is pleased to announce that it has reached agreement with Bearclaw Capital Corp. ("Bearclaw") whereby Southern Rio may earn an interest in the Rey Lake copper-molybdenum property. The 430 hectare property is road accessible and located in southern British Columbia between Merritt and Logan Lake, approximately 25 kilometres from the Highland Valley copper mine, one of the largest copper producers in North America.

Southern Rio may acquire an initial 51% interest in the Rey Lake property by making exploration expenditures totaling $500,000, issuing a total of 500,000 shares and paying $5,000 cash to Bearclaw by September 15, 2008. Upon vesting a 51% interest, Southern Rio may elect to earn an additional 24% interest (75% total) by spending an additional $400,000 on exploration and issuing an additional 400,000 shares by December 15, 2010. The terms of this agreement are subject to regulatory acceptance.

Previous exploration work mainly carried out in the seventies by ASARCO and Craigmont Mines outlined extensive copper-molybdenum mineralization adjacent to an intrusive contact, principally in breccia and stockwork zones. One ASARCO diamond drill hole in a breccia zone is reported to have assayed 0.5% copper over several hundred feet (BC Department of Mines, 1973). Southern Rio intends to evaluate the previous work and then utilize modern geophysical techniques to identify targets for future drill testing.

In addition, the Company has recently completed detailed lake sediment sampling of a number of lakes on the 3Ts project, located 120 km southwest of Vanderhoof, B.C. This sampling was carried out to follow-up on strongly anomalous gold results obtained from earlier reconnaissance sampling by the BC Geological Survey (refer news release of April 13, 2005). Fifty-one lake sediment samples were collected under the supervision of David Pawliuk, P.Geo. and have been sent to Acme Analytical Laboratories in Vancouver for multi-element analysis.

The Company has also initiated permitting for a diamond drill program of up to 1500 metres to test multiple epithermal gold and silver targets on its recently acquired Davidson (formerly Blackwater-Davidson) property (refer news release dated April 27, 2005). Of particular interest is high grade, structurally controlled gold mineralization identified in several old drill holes which may indicate the presence of a previously unrecognized zone of higher grade, shear-hosted veining on the property.

This news release has been reviewed by Lindsay Bottomer, P.Geo. who is a qualified person as defined in NI 43-101.


Lindsay Bottomer, President

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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