Teras Resources Inc.

Teras Resources Inc.

March 01, 2011 08:30 ET

Teras Receives Assay Results from Preliminary Core Program and Issues Performance Shares

CALGARY, ALBERTA--(Marketwire - March 1, 2011) - Teras Resources Inc. ("Teras" or the "Company") (TSX VENTURE:TRA): Teras is pleased to announce the receipt of assay results from a recently completed preliminary portable core drill program that was conducted at the Cahuilla gold-silver Project in Imperial County, California. 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 preliminary core drill program was supervised by Mr. Thomas Callicrate, Vice-President Exploration of the Company, in January 2011 and focused on one of the high grade banded epithermal veins that outcrops at the Cahuilla site. The program consists of fourteen shallow core holes that were drilled with a portable core drill for the purpose of obtaining a precursory look at the gold and silver mineralization in the high-level banded epithermal vein material. The samples were collected by Mr. Callicrate, they were then split in half for sampling and assaying purposes. The split core was then placed in sample boxes and delivered to Inspectorate laboratory in Reno Nevada for processing. A summary of the drill results follows:

Hole #   From   TD   Thickness – ft. (m )   Gold – oz./ton (g/t )   Silver – oz./t (g/t )
SCH-01   0.00   1.75   1.75 (0.53 )   0.262 (8.97 )   3.77 (129.1 )
SCH-03   0.00   4.90   4.90 (1.49 )   0.079 (2.71 )   7.67 (262.7 )
Including   0.00   1.90   1.90 (0.58 )   0.137 (4.69 )   16.29 (557.9 )
SCH-05   2.50   11.50   9.00 (2.74 )   0.197 (6.75 )   0.78 (26.7 )
including   7.25   11.00   3.75 (1.14 )   0.328 (11.23 )   0.78 (26.7 )
SCH-07   0.00   9.00   9.00 (2.74 )   0.315 (10.79 )   2.14 (73.3 )
Including   1.50   2.50   1.00 (0.31 )   0.625 (21.40 )   12.47 (427.1 )
SCH-08   0.00   2.50   2.50 (0.76 )   0.294 (10.07 )   6.53 (223.6 )
SCH-11   0.00   4.50   4.50 (1.37 )   0.224 (7.67 )   4.90 (167.8 )
SCH-12   0.00   4.00   4.00 (1.22 )   0.200 (6.85 )   1.80 (61.6 )
SCH-13   0.00   2.50   2.50 (0.76 )   0.417 (14.28 )   5.73 (196.2 )

The deepest core hole totalled 11.5 feet while the average depth of all fourteen holes was 3.7 feet. None of the core holes penetrated the entire thickness of the vein at depth. As a result of the extremely hard ground conditions due to the intense silicification that is characteristic of the banded quartz after calcite vein material, not all of the hand drilled core holes were able to reach the desired depth.

The Company plans to conduct a much more comprehensive drilling program of the vein structure with a standard truck-mounted core drill in the second quarter of this year. The main purpose of this program will be to test the surface dimensions of the vein and its down dip extension with a series of gridded holes to develop continuity and increase precious metal mineralization for a new NI 43-101 report, which will be initiated later this year.

The Company is currently awaiting approval of its Phase 2 drill permit for the Cahuilla Project. The Phase 2 permit will allow Teras and Consolidated Goldfields Corp., Teras' earn-in agreement partner, to drill an additional 200 core and reverse circulation holes throughout the project's main area. The primary objective of Phase 2 will be to test the continuity and extent of known high grade veins and disseminated mineralization that was encountered in historic drilling to expand the mineralization as determined by Mine Development Associates of Reno, Nevada for Kennecott Corporation in 1995.

Thomas E. Callicrate B.Sc., Professional Geologist, Vice-President Exploration of the Company, is the Company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company's properties. Mr. Callicrate has reviewed and verified the technical information contained in this news release.

Issuance of Performance Shares

As per a Press Release dated July 21, 2010 regarding the issuance of 1,500,000 performance shares to officers of the Company, Teras has met the obligations to trigger the release of the performance shares when requested by the holder of the right to earn such performance shares. Mr. Thomas Callicrate has requested his 500,000 performance shares be issued immediately while Mr. Peter Leger and Mr. Thomas Mancuso have asked that their shares not be issued until after the Phase 2 drilling permit for the Cahuilla Project has been issued.

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. In particular, this press release contains forward-looking information regarding the issuance of a Phase 2 drilling permit. 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, the requirements for the issuance of drilling permits being similar to the requirements of previously obtained drilling permits 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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