Teras Resources Inc.
TSX VENTURE : TRA

Teras Resources Inc.

February 16, 2011 08:30 ET

Teras Moves Forward to Earn in on the Cahuilla Gold Project and Issues Shares to Consolidated

CALGARY, ALBERTA--(Marketwire - Feb. 16, 2011) - Teras Resources Inc. ("Teras" or the "Company") (TSX VENTURE:TRA): Teras announces that pursuant to the terms of an earn-in agreement (the "Earn-In Agreement") entered into by Teras with Consolidated Goldfields Corporation ("Consolidated") dated February 10, 2010, Teras has formally submitted $800,000US and issued 5,000,000 common shares to Consolidated to satisfy its second year work commitment on the Cahuilla Project. This completes the cash requirements for earning a 65% interest in the Cahuilla Gold Project. The common shares were issued at a deemed price of $0.20 per share and are subject to a four month hold period. 

The Cahuilla Project is a large epithermal, paleo-hot springs system hosting multiple bonanza-grade veins that occur within an extensive body of disseminated gold-silver mineralization. For further information on the Cahuilla project refer to the NI 43-101 technical report entitled "Cahuilla Property 43-101 Technical Report," dated October 25, 2007 prepared by Todd Wakefield, MAusIMM of AMEC E&C Services filed on Sedar on November 15, 2007.

The Company will report assay results from holes 2 and 3 after results are received from hole 3. Phase 1 drilling is planned to resume in the first quarter of 2011. We are currently awaiting approval of our second phase drill permit which consists of 200 additional holes. Phase 2 is planned to extend the continuity of the high grade vein that outcrops on the property and evaluate other high grade veins that were intersected in historical drilling.

"We are very optimistic with respect to moving forward on Cahuilla and anxious to continue our drilling program, especially on the high grade vein as supported by favourable channels samples that we received from a sampling program conducted in May 2010" states Mr. Peter Leger, President & CEO of Teras (please refer to the news release dated June 22, 2010).

About Teras

Teras' vision is to acquire and advance properties with established technical merit. The Company's exploration work will be focused on detailed diamond drilling programs with the goal of proving resources with an NI 43-101 compliant resource report.

[This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein may be forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", " expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects the Company's current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports or prior exploration results, and future costs and expenses being based on historical costs and expenses, adjusted for inflation. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Company and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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 of accuracy of this news release.

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