SOURCE: Steele Resources Corporation

January 25, 2011 13:15 ET

Steele Resources Corporation Completes Financing Arrangement

Begins Plans to Develop Mineral Hill Property

CAMERON PARK, CA--(Marketwire - January 25, 2011) - Steele Resources Corporation (the "Company") (OTCBB: SELR) announced today that it has signed a $10.0 million drawdown equity financing agreement with Auctus Private Equity Fund, a Boston-based institutional investor.

Company CEO Scott Dockter commented on the financing saying, "Completing this funding agreement with Auctus is an excellent step for the continued development of our precious metals exploration properties. With this in place, we have committed financing for future development that we will be able to take advantage at the appropriate time."

Mr. Dockter continued, "This financing does not address the short term capital needs of the Company, nor is it intended to do so. We are currently reviewing offers for short term financing that, if accepted, will enable the Company to complete its acquisition of the Mineral Hill Exploration project in Pony, Montana, as well as provide for the first major development of that property."

Pursuant to a Registration Rights Agreement, the Company intends to register up to 20 million shares of its common stock with the Securities and Exchange Commission. Upon such registration being declared effective the Drawdown Agreement allows the Company, at its discretion, to sell to Auctus up to $10 million of its common stock from time to time over a 36-month period. The Company will have the right, but no obligation, to sell stock to Auctus in amounts up to $500,000 per week depending on certain conditions as set forth in the Drawdown Agreement.

There are no upper limits to the price Auctus may pay to purchase the Company's common stock and the purchase price of the shares related to the $10 million of future funding will be based on 95% of the average lowest bid price during the pricing period as outlined in the Agreement. The Company will control the timing and amount of any sales of shares to Auctus. There are no financial or business covenants, restrictions on future funding, rights of first refusal, participation rights, penalties or liquidated damages in the Drawdown Agreement. The Agreement may be terminated by the Company at any time, at its sole discretion, without any cost or penalty.

A more detailed description of the agreement is set forth in the Company's Current Report on Form 8-K filed with the SEC on January 24, 2011.

About Steele Resources Corporation:

Steele Resources Corporation is a precious metals exploration and development company operated by professionals with extensive exploration, mining, and public market experience. The Company is working to become an active gold producer through exploration, acquisitions, mergers, and by developing its existing portfolio of properties. Its current ensemble of exploration properties, held by its subsidiaty,Steele Resources, Inc., includes two Nevada properties, its Comstock Tyler Project which consists of 600 acres in the historic Comstock District and its Fairview-Hunter Project which consists of 2,300 acres near the Denton-Rawhide Mine. The Company has also announced plans to acquire the Mineral Hill Exploration project which is located near Pony, MT.

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 subsequent filings with the Securities and Exchange Commission.

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