SOURCE: Steele Resources Corporation

December 02, 2010 08:30 ET

Steele Resources, Inc. Enters an LOI to Expand the Mineral Hill Exploration Project

CARSON CITY, NV--(Marketwire - December 2, 2010) - Steele Resources Corporation (the "Company") (OTCBB: SELR) announced today that its subsidiary, Steele Resources, Inc. ("SRI"), has entered into a non-binding Letter of Intent with a group of individual land owners in the state of Montana to acquire rights to 2 patented mining claims known as the Atlantic and Pacific Mine ("the A&P"). The A&P was actively mined in the early 20th Century and produced 128,600 ounces of gold grading 0.09 ounces per ton from 1934 to 1941. Chicago Mining also briefly open pit mined the project in 1991 but did not finish processing an approximately 12,000 ton stockpile grading an average of 0.114 opt gold which remains at the mine site.

The A&P is contiguous with the larger Mineral Hill land position announced in early November and is considered a key piece of the regional mineralization target. Historic reports by Chicago Mining and Newmont Mining state that their geologists believed the A&P contained a substantial gold resource.

CEO Scott Dockter stated, "This mine has a solid history and some very positive indicators. It is a key piece of the Mineral Hill project and the center of a major trend in the area. The historic estimates and the resource potential make it an excellent addition to this land package."

The non-binding LOI provides terms for SRI to lease two patented mining claims located in the Pony Mining District, near Pony, MT. The LOI includes a $5,000 deposit and allows for a 90 day due diligence period. Upon satisfactory completion of due diligence, execution of definitive agreements, and securing project financing, SRI will enter into a five year lease period with an initial payment of $200,000 and an annual commitment of $100,000 for the next five years. After the lease period expires, SRI will own the A&P outright. The Lessors will also have a 2% NSR on the property during the lease term.

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 SRI, 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.

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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