Takara Resources Inc.

Takara Resources Inc.

June 20, 2011 09:49 ET

Takara Resources Closes Arakaka Gold Project, Guyana & Provides Update at Tassawini

TORONTO, ONTARIO--(Marketwire - June 20, 2011) -


Takara Resources Inc. ("Takara")(TSX VENTURE:TKK) announces that it has completed the purchase of Guyana Goldfields Inc. ("GUY") 70.1% interest in the Arakaka Joint Venture Project by exercising its right of first refusal in respect of the acquisition. Takara now holds 100% interest on this advanced-stage gold project subject to various entitlements held by underlying property vendors.

The Arakaka Project is located in Northwest Guyana in the Arakaka Gold District. The final acquisition price paid by Takara was a cash payment of US$3,734,000 (no NSR royalty as previously announced on May 19, 2011). Although a specific exploration plan and budget for the Arakaka project has not finalized, the Company anticipates conducting an airborne survey and carrying out diamond drilling at Arakaka prior to the end of the year, if funding permits.

Tassawini Update:

The airborne geophysical survey has been underway at Tassawini and is scheduled to be completed this month. The Company has contracted for up to a 10,000 meter diamond drilling campaign and expects the drill to be mobilized at the Tassawini project in July. A structural geologist, Stefan Kruse, Ph.D., P.Geo. of Terrane Geoscience Inc., has been working at the Tassawini project since June 1 for the purpose of structural mapping and data interpretation. Dr. Kruse's work, together with the interpretation of the airborne survey, will be instrumental in drill-target selection. Dr. Tania Ilieva, the Company's Vice-President, Exploration, who formerly worked at Sandspring Resources' Toroparu project in Guyana, will be managing the drilling campaign, together with two other field geologists employed by the Company, both of whom are currently active at the Tassawini site.

In respect of preliminary mine-development activities, an in-house scoping study has encouraged the Company to continue taking the steps toward preliminary engineering activities and accordingly, an independent engineering company will conduct a site visit at Tassawini next week for the purposes of assessing the viability of a pre-feasibility study. This process will be managed by Takara's in-house engineer, who is based in Toronto and has had over 19 years working as a project planning engineer and senior environmental officer in the Bauxite industry in Guyana.

The Company is also undertaking further steps in developing a Corporate Social Responsibility plan with the local Amerindian Village at Tassawini and with other stakeholders.

Additionally, the Company has provided notice to the underlying property vendor at Tassawini, advising of its intent to purchase the holder's alluvial mining rights by paying USD$90,000. These activities shall cease as at August 3, 2011, however, the underlying vendor remains entitled to a 2.5% net smelter return royalty interest which can be purchased at any time by the Company by paying USD$4,000,000.

About Takara

Takara Resources Inc. is a Canadian based (TSX VENTURE:TKK) gold company focused on exploring and developing its Guyana gold assets in the Guiana Shield that are held within a wholly-owned subsidiary, StrataGold Guyana Inc., namely: (i) the Tassawini Gold Project; and (ii) the Arakaka Project. The Tassawini Gold Project hosts a National Instrument ("NI") 43-101 compliant mineral resource of 437,000 ounces gold (indicated) and 62,000 ounces gold (inferred).
Dr. Tania Ilieva, P. Geo. is the Vice President Exploration for Takara Resources and is Takara's Qualified Person for the company's Guyana gold projects, and is responsible for the verification and quality assurance of analytical results, and technical content of Takara's disclosures.

Transactions of Takara are most often subject to regulatory approvals. The securities of Takara Resources Inc. have not been registered under the United States Securities Act of 1933, as amended, or the securities laws of any U.S. State, and may not be offered or sold in the United States or to any "US Person" (as defined in Regulation S under the Securities Act of 1933) absent registration or an exemption from registration.

Statement Regarding Forward Looking Information

This news release of Takara contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Takara's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Forward-looking statements in this document include statements regarding Takara's expectations regarding ownership, entitlements, drilling and exploration activities on properties in which Takara has, or believes it has an interest. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from Takara's expectations. Takara undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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