Teras Resources Inc.
TSX VENTURE : TRA

Teras Resources Inc.

May 05, 2011 08:30 ET

Teras Resources Inc. Initiates 2nd Phase Drill Program

CALGARY, ALBERTA--(Marketwire - May 5, 2011) -Teras Resources Inc. ("Teras" or the "Company") (TSX VENTURE:TRA) is pleased to announce that the Company has initiated its Phase 2 diamond drill program 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 Company has engaged Sierra Madre Exploration Drilling Company who has recently commenced a core hole program to drill approximately 1,500 feet (500 meters). The purpose of these drill holes will focus on delineating the surface dimensions of the outcropping sheeted quartz vein on High Grade Hill and down dip extensions with a series of fenced angled core holes to develop continuity and increase the precious metal mineralization for a new NI 43-101 report, which is currently in progress. This program is expanding upon the portable drill program performed in January 2011 (reference our press release dated March 1st, 2011 for the results).

Core from the current drill program will be cut in half as each hole is completed and samples will be delivered to Inspectorate Laboratory in Reno, Nevada with assay results to follow. In addition to the currently approved and permitted 200 drill holes (reference our press release dated April 7th, 2011), the Company has recently finalized and submitted a permit expansion plan to authorize an additional 200 holes at Cahuilla. The Company anticipates that approval of the additional 200 drill holes will be obtained in the second half of 2011 and as a result, 400 total holes will be drill-ready for 2011 and 2012.

Teras is also planning to initiate a substantial reverse circulation and core drill program later this year that will test many other high-grade veins that have been intersected throughout the project area. In addition, reverse circulation drilling will focus on the development and expansion of disseminated mineralization that was defined by historic drilling to enhance the existing mineralization as reported by Mine Development Associates of Reno, Nevada for Kennecott Corporation in 1996.

The primary objective of the Company is to expand the historical mineral model to substantially increase high grade gold-silver mineralization.

Thomas E. Callicrate B.Sc., Professional Geologist, Vice-President of Exploration of Teras, 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 through his continuing work and experience on the Cahuilla Project.

About Teras

Teras' vision is to acquire and advance properties with established technical merit. Teras' 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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