Spider Resources Inc.
TSX VENTURE : SPQ

Spider Resources Inc.
UC Resources Ltd.
TSX VENTURE : UC

UC Resources Ltd.

August 30, 2007 17:30 ET

Spider Resources Inc. and UC Resources Limited Update on Diamond Drilling Program at McFaulds VMS Project in Northern Ontario

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2007) -

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN SECURITIES LAW, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Spider Resources Inc. ("Spider") (TSX VENTURE:SPQ), and UC Resources Ltd. ("UC") (TSX VENTURE:UC) are pleased to announce the progress of a diamond drilling program at the McFauld's Lake volcanic-hosted massive sulphide ("VMS") project, located in northern Ontario in the James Bay Lowlands. Drilling commenced on June 30, 2007 and the first phase of drilling was completed on August 23, 2007, at which time the drill was moved 22 kilometers to the southwest to commence drilling on a property held by Noront Resources Ltd. (TSX VENTURE:NOT).

Diamond drilling update

A total of 2,354 meters has been drilled in 7 holes. The on-site field aspects of the project were overseen by Dr. Howard Lahti P.Geo., an Independent Qualified Person and Mike Kilbourne, both of which are in the employ of Billiken Management Services Inc. of Toronto. Neil Novak P.Geo., President of Spider Resources Inc., Vice President of UC Resources Ltd., is fulfilling the role of Qualified Person on behalf of Spider and UC.

Drill hole McF-07-73 was set up on section 7+75 NE (Grid "C" McFaulds #3 occurrence) and drilled grid south at - 69 degrees for 374 meters. The main mineralized zone was encountered between 329 meters and 345.2 meters, consisting of heavily chloritized magnetite - pyrite zone, with trace sphalerite (zinc sulphide) and chalcopyrite (copper sulphide). Samples were selected from the mineralized intercept and were sent out to lab on July 22, assays pending.

Drill hole McF-07-74 was set up on Line 8+00 NE with an initial dip of -80 degrees, designed to undercut Hole McF-04-57 that had intersected 8% Cu over 18 meters, as well as hole McF-04-29 (4.39 % Cu over 2.5m). The drilling of hole McF-07-74 encountered problems early, at the interface between the overlying Paleozoic (limestone and sandstone) with the volcanic rocks, the hole flattened from -80 degrees to -43 degrees, causing this hole to be abandoned at 154 meters.

Drill hole McF-07-75 was set up on line 8+25 NE and the initial dip was -64 degrees for a total length of 192 meters. The hole was designed to overcut historic 2004 hole McF-04-41 (6.49% Cu and 3.45% Zn o over 8 meters) and infill an area in the mineralized zone that had not been previously tested, as required for an update on the resource estimate for this occurrence. The mineralized zone was encountered between 164.28 meters and 183.3 meters (19.02 meters). This intersection consisted of massive sulphides, mostly chalcopyrite and sphalerite. Samples were selected from this section and were sent to the lab on July 22, assays pending.

Drill hole McF-07-76 was started at the same set up as hole McF-07-75, however the dip was decreased to -49 degrees, thus testing another area as required for resource estimate update. The hole was completed a total core length of 178 meters. The mineralized zone was encountered between 152.66 meters and 160.13 meters (7.47 meters), the mineralization consists of massive sulphides including chalcopyrite and sphalerite. Samples representing the mineralized intersection were selected and sent to lab on July 22, assays pending.

Drill hole McF-07-77 was started on line 8+00 NE (same section as hole McF-07-74), the drill collar was moved closer to the intended target, the hole initial dip was steepened to -85 degrees drilling grid south. Once again the hole started flattening, even using two stabilizing rods, however the hole was allowed to continue and it do so, at much less of a flattening rate. The hole intersected the main mineralized zone at 458.9 meters and remained in the altered (mineralized) zone until 504 meters, the hole was drilled for a total length of 543 meters. The mineralization at this depth consisted of a magnetite rich chlorite - semi massive sulphide (chalcopyrite, pyrrhotite and pyrite) zone over 45.1 meters, short (centimeter scale) bands consisted of massive to semi-massive pyrrhotite - chalcopyrite. Samples have been selected and were shipped to laboratory in early August, assays pending.

Hole McF-07-78 was started on Line 9+50 NE with an initial dip of -78 degrees, This hole was completed during a site visit by management on August 13 at a depth of 500 meters, The mineralization encountered consisted of a chlorite rich - magnetite zone between 474.1 meters to 488.8 meters, which included a 2.45 meter (479.82 to 482.27) massive sulphide zone consisting of pyrite, chalcopyrite and pyrrhotite, undercutting the mineralized zone in hole McF -04-55. Samples were selected and left the camp on August 27, 2007.

Hole McF-07-79 was started on Line 7+50 NE with an initial dip of -73 degrees, and was set to undercut holes McF-04-22, McF-04-23, McF-04-24 and McF-04-56 to test for a south-westerly plunge of the main copper zone, designed to intersect the main mineralized zone 75 meters below McF-04-56. This hole was completed on August 23 at a total depth of 413 meters. The main mineralized zone was encountered below hole 56 as well as approximately 75m and 25m down dip and to the west of MCF-05-59 (7.9%Cu over 8m) and 25m west of 04-29 (4.4% over 2.9m). This hole hit the mineralized zone at 360.58-384.55m. The majority of mineralization consists of disseminated and thin bands of massive fine grained magnetite and minor pyrite. The lower section, over a few meters, had less magnetite and erratic small patches and disseminations of pyrite and chalcopyrite. Samples were selected for analysis and left the camp on August 27, 2007.

Samples selected from this drill program have been cut by diamond core saw, one half remains stored at main base camp at McFaulds Lake, the other half core samples were individually bagged and sealed in plastic bags, labeled with durable tags inserted into each bag and groups of samples were placed in rice bags and then sealed with laboratory number coded seals. All samples were then placed in plastic pails, resealed and sent via bonded carrier to the ALS Chemex Laboratory facility in Thunder Bay, Ontario.

Geophysical program update

Preliminary results of the recent (June 2007) UTEM3 survey by LaMontagne Geophysics have been received, that suggest that there are several early time channel anomalies located throughout the area covered by the main "C" grid, however there are two conductors of possible interest, with a possible third conductor depending on loop/line geometry.

The first UTEM3 conductor is located at the Grid "C" baseline on line 800NE being coincident with the McFauld's #3 occurrence, as well as the main gravimetric anomaly "M3" identified in the JVX Ltd. gravimetric survey completed in April 2007. The up dip side of the anomaly is located near the surface 50 meters south of the base line in the vicinity of L 800NE, and dips southwards at an angle possibly 60 to 80 degrees. This conductor can also be seen on the neighboring line 700NE. This suggests the conductor is centered on line 800NE or possibly closer to 700NE.

The second conductor is located 150m south of the baseline on line 2400NE, being coincident with McFaulds #1 VMS occurrence, as well as one of the other gravimetric anomalies identified in the JVX Ltd. Gravimetric survey. The anomaly is interpreted as a conductive plate, again dipping steeply towards the south with the up dip side very near the surface, at 150 meters south of the base line. The neighboring lines that were surveyed (2100NE and 2700NE) are 300 m on either side of this anomaly and have some early time channel response, but suggest a narrowing in the conductor, as there is no late time channel response.

The third conductor consists of a Channel 1 anomaly located on line 1400NE near the loop between stations 600S to 900S, this location has not yet been tested by diamond drilling. It is likely that this is a magnetic response but the possibility of the geometry being inaccurate is currently being considered.

Project update summary

The current program is funded entirely by UC Resources Limited ("UC"), in compliance with their funding obligation for the project. UC has an option to earn-in up to a 55% undivided interest in the McFauld's Lake project, which is currently owned as to an undivided 50% interest, by each of Spider and KWG, as per the LOI signed in early March 2007. UC is the operator of the project during the term of their option.

The McFauld's Lake VMS project was initially discovered in 2002, while Spider, KWG and De Beers Canada Exploration Inc. were exploring the project area in joint venture for kimberlites. De Beers holds a 1.5% net smelter royalty on the project, 0.5% of which can be purchased from De Beers by Spider and KWG for $1.5 million. To date, 10 isolated VMS occurrences have been identified and drill tested on the project, two of which (McFauld's #1 and #3) have undergone detail drilling.

UC is continuing to explore this new VMS camp by initially concentrating their efforts on the McFaulds #3 and #1 occurrences, then they will be looking at completing additional exploration on the other occurrences as the program progresses, through year two, three and four of the agreement.

Neil D. Novak, P,Geo., along with Richard Hamelin, President of UC Resources Ltd., accompanied by Dr. James Franklin P.Geo. (director of Spider), recently visited the project. States Mr. Novak, President & CEO of Spider, as well as VP Exploration for UC: "Spider and UC are quite excited with the preliminary results of this drilling program on the McFaulds project. The completion of the recent gravity survey offered some understanding of the scope of the project. The ongoing compilation of existing geophysical data for the project, merged with the new UTEM data, facilitated the planning of the recent round of exploration that included definition and step out drilling of the McFaulds #3 VMS occurrence, beyond what has already been drilled. Spider and UC are currently finalizing an updated NI 43-101 report that summarizes the project results to date, and will file same upon completion. In addition, an RPA Scott Wilson representative was on site to review the project as required for their independent review and estimate of the resource potential of the two massive sulphide zones that have already undergone historical drilling as well as incorporating the current drilling results. The resource estimate by RPA Scott Wilson, along with the conclusions of their report will be released upon receipt." (There have been no assay results from the recent Noront discovery, so there is no guarantee that there will be any results of economic significance.)

McFaulds Lake Area - New Discovery News

Noront Resources Ltd. recently (see Noront press release dated August 29, 2007) announced some very encouraging exploration news in the McFaulds Lake area, where chalcopyrite and pyrrhotite in a peridotite cumulate setting was encountered by diamond drilling in the first two holes of their exploration program. The Noront discovery site is approximately 22 kilometers to the west-southwest of the two main McFaulds Lake massive sulphide occurrences, the option property with UC extends to within 5 kilometers of the Noront discovery. The UC option property includes the main McFaulds Lake property as well as the McFaulds Lake west property. The Noront discovery is located in between the two optioned properties.

Spider Resources Inc. is a tier 2 Canadian exploration company, quoted for trading on the TSX Venture Exchange under the symbol SPQ. There are 242,193,535 shares issued in Spider as of June 30, 2007.

On behalf of the board of directors,

Neil Novak, President and CEO

This press release, required by applicable Canadian securities law, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.

Contact Information

  • Spider Resources Inc.
    Toronto Head Office
    #1000, 15 Toronto St.
    Toronto Ontario, M5C 2E3 Canada
    (416) 815-8666
    or
    Spider Resources Inc.
    Jim Voisin
    Communications Manager
    (519) 699-5352
    Website: www.spiderresources.net