SOURCE: Steele Resources Corporation

July 06, 2011 16:00 ET

Steele Resources Corporation Announces Acquisition of Copper Canyon Copper/Cobalt Mine

CAMERON PARK, CA--(Marketwire - Jul 6, 2011) - Steele Resources Corporation (the "Company", "SRC") (OTCBB: SELR) announced today that it has executed a definitive mineral lease agreement with option to purchase the Copper Canyon Mine from Salmon Canyon Copper Company near Salmon, ID.

A technical report and mineral evaluation was completed by Behre Dolbear & Company in 1979. Their report postulated a body of ore totaling up to 465,000 tons of mineralized material possibly containing approximately 12 million pounds of copper, 6.4 million pounds of cobalt, 23,000 ounces of both gold and silver. Interested parties are advised that this is an estimate based on limited geologic data which is highly subjective in nature.

The Company's technical report for the Copper Canyon Mine includes the original Behre Dolbear report as an appendix and is available upon request. The Behre Dolbear report, combined with SRC's preliminary geologic review, has lead the Company to believe there could be a large scale copper-cobalt deposit at the Copper Canyon Mine. The Company has submitted an application to conduct a 25-hole drill program in the underground workings of the mine with the intent of verifying the findings of the Behre Dolbear & Company report and further define the mineralization at the site.

CEO Scott Dockter stated, "Based on the figures from the Behre Dolbear report, this project could have a significant value. It is a very promising property with enough evidence of mineralization to justify additional exploration efforts. We believe that our drilling will confirm the figures stated in the Behre Dolbear report and possibly add value by defining additional mineralized targets. If our drilling confirms the presence of an economically viable mineral body then we believe this project has the potential to be moved into production quickly."

About Cobalt:

Cobalt is a strategic and critical metal used in many diverse industrial and military applications. The largest use of cobalt is in superalloys, which are used to make jet engine parts. Cobalt is also used in magnetic alloys and in cutting and wear-resistant materials such as cemented carbides. The chemical industry consumes significant quantities of cobalt in a variety of applications including catalysts for petroleum and chemical processing; drying agents for paints and inks; ground coats for porcelain enamels; decolorizers for ceramics and glass; and pigments for ceramics, paints, and plastics.

The United States is the world's largest consumer of cobalt, but currently has no domestic mine or refinery production. Therefore, the United States is 100% dependent on imports for its supply of primary cobalt. In terms of total supply, currently about 15% of U.S. cobalt consumption is from recycled scrap, resulting in a net import reliance of 85%. To ensure an adequate supply for military, industrial, and essential civilian needs during a national emergency, cobalt metal is included in the National Defense Stockpile.

(Source USGS website: http://minerals.usgs.gov/minerals/pubs/commodity/cobalt/stat/)

About Copper:

According to ICSG data, global growth in copper demand for 2011 is expected to exceed global growth in copper production and the annual production deficit, estimated at about 250,000 metric tons (t) of refined copper in 2010, is expected to be about 380,000 t in 2011. In response to prevailing high copper prices and increased end use demand, production increases are expected at operations curtailed following the 2008 economic crisis and, to a lesser extent, from startup of new operations. Industrial demand in 2011 in all of the major consuming regions is expected to continue the upward trend begun in 2010 and exceed the growth in refined production. Following a year of extraordinary growth (38%) in 2009, China's apparent consumption in 2010 grew by only 4.3% and accounted for more than 38% of global copper demand. In 2011, the growth rate is projected to be around 6%: an anticipated growth in semifabricate production and possible restocking of working inventories could be partially offset by greater reliance on direct melt scrap and potential drawdown of unreported inventories that likely accumulated in preceding years.

(Source International Copper Study Group: http://www.icsg.org/images/stories/pdfs/icsg_press_release_-_2011_04__forecast.pdf)

About Steele Resources Corporation:

Steele Resources Corporation is a precious metals and mineral exploration company operated by professionals with extensive exploration, mining, and public market experience. The Company is working to become an active metal and mineral producer through exploration, acquisitions, mergers, and by developing its existing portfolio of properties.

More information about Steele Resources Corporation can be found at www.steeleresources.com.

Safe Harbor Statement

The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended that involve risks and uncertainties. Although Steele Resources Corp. believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Steele Resources Corp. cautions investors that any forward-looking statements made by Steele Resources Corp. are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those reflected in forward-looking statements include, but are not limited to, risks and uncertainties regarding the actual mineralization of Steele Resources Corp.'s mining properties, the unproven nature of and potential changes to Steele Resources Corp.'s business model, the risk that the capital and other resources that Steele Resources Corp. will need to exploit its business model will not be available, and the risks discussed in Steele Resources Corp.'s Form 8-K dated June 17, 2010 and in Steele Resources Corp.'s other filings with the Securities and Exchange Commission.

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