Teslin River Resources Corp.

Teslin River Resources Corp.

August 11, 2011 09:00 ET

Teslin Completes Acquisition of Queensgate Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 11, 2011) - Teslin River Resources Corp. (TSX VENTURE:TLR) ("Teslin" or the "Company") is pleased to announce that further to its press release dated January 10, 2011, it has completed the acquisition (the "Acquisition") of Queensgate Resources Corporation ("Queensgate"). Queensgate is a private company registered in Quebec. Through its 100 percent owned subsidiary in Nevada, Queensgate owns 100% of the Mustang Property and the Morning Star Property in the Walker Lane mineral trend in Nevada.

About Mustang

The Mustang Property is comprised of 66 claims that are 100% owned by Queensgate, and is located in Nye County. The property offers potential for volcanic-hosted high sulphidation, epithermal precious metal deposits, similar in nature to the Paradise Peak deposit, located 8 miles to the northeast. Paradise Peak was mined from 1985 - 2001, recovering 1.5M ounces of gold and 40M ounces of silver.

About Morning Star

The Morning Star Property in Esmeralda County is comprised of 97 claims with Queensgate having 100% mineral rights with a 3% NSR. A 40 line-kilometer IP survey identified two significant drill targets, indicative of a sedimentary-hosted gold deposit, similar to the Santa Fe mine in Mineral County. The Santa Fe mine produced 700,000 ounces of gold from 1986 - 1998.

The Acquisition was facilitated through an amalgamation of Queensgate with a wholly owned subsidiary of the Company. Each shareholder of Queensgate received one common share of the Company for each share of Queensgate held. Further, each option and warrant holder of Queensgate also received an option or warrant, as the case may be, to acquire common shares of the Company on the same terms as their Queensgate options and warrants.

An aggregate of 15,928,203 common shares of the Company were issued to Queensgate shareholders. The Company also issued 505,000 replacement stock options exercisable at a price of $0.45 per share until October 3, 2014 and 647,720 replacement share purchase warrants also exercisable at a price of $0.45 per share until September 22, 2011.

In connection with the Acquisition, Mr. John Burgess and Mr. John Kerr have joined Teslin as Chief Executive Officer and President, and VP Exploration respectively. Both Mr. Burgess and Mr. Kerr have also joined the Company's Board of Directors. Michael Sweatman has relinquished the positions of President and Chief Executive Officer but will remain as a member of the Board of Directors. Mr. Glen MacDonald has resigned from the Board of Directors.

The Company also announces that it has created an Advisory Board and appointed its first members: Glen MacDonald and David Shaddrick. The Advisory Board will be made up of members, appointed from time to time by the Board, who will be called upon when necessary to provide expertise in their respective fields to assist in the Company's development.

Finally, the Company has granted incentive stock options to new directors, certain officers and consultants of the Company, entitling them to purchase up to 1,810,000 common shares of the capital stock in the Company at a price of $0.10 per share for the next 5 years.

John Burgess graduated from Oregon State University with a degree in Civil Engineering and subsequently completed his MBA at McGill University. His experience includes work with Schlumberger Limited working offshore in Indonesia and the Gulf of Mexico. Mr. Burgess also worked with shopping centre developer Ivanhoe Cambridge as assistant director of planning and strategy before working with TiCan Metals Inc., a company working on developing sustainable titanium sponge capacity in Quebec. Mr. Burgess was appointed president and CEO of Queensgate Resources from January 2008 until its acquisition.

John Kerr, P. Eng. Geologist, graduated from the University of British Columbia with a Bachelor of Applied Science (B.A.Sc) degree in Geological Engineering. He has participated in the mining industry continuously since graduation as an exploration geologist. His expertise is epithermal and sedex-hosted precious metal deposits in the southwest United States, strata controlled gold deposits and porphyry copper/gold/molybdenum deposits of the western Cordillera and VMS deposits in all areas of North America. Successful ventures include recognition and discovery of the Santa Fe gold mine, identification of the Calvada gold mine and discovery of the Mindora gold/silver deposit, all located in Nevada. Mr. Kerr has sat on the boards of numerous public companies. He currently runs a geological consulting practice out of Vancouver, B.C., with projects located in all areas of North America.

Dave Shaddrick, P.Geo., is a consulting geologist residing in Reno, Nevada. He has lived and worked in Nevada since the early 1980s, and is responsible for several significant ore discoveries in eastern Nevada. "Mr. Shaddrick is very familiar with all aspects of Nevada style mineral deposits throughout the State, and will be a welcome addition to our Advisory Board," stated John Burgess, recently elected CEO and President.

About Teslin River Resources Corp.

Teslin River Resources Corp.'s strategy is to build shareholder value by acquiring, exploring and developing a portfolio of copper and copper-gold porphyry properties throughout North and South America. Teslin holds the Rand Claims located approximately 7 kilometres southeast of Horsefly in the Cariboo region of central British Columbia. Teslin has optioned the Rand Claims to Gold Fields Limited which is also drilling under an option agreement with Fjordland Exploration Inc. and Cariboo Resources Ltd. on contiguous properties. Based on the reported work and drilling on the surrounding properties, the area is considered prospective for a large copper-gold porphyry body.

About Queensgate Resources Corporation

Queensgate Resources Corporation is a private company, founded in 2008, whose principal interest has been exploring and developing epithermal precious metal resource potential in Nevada. Queensgate is currently developing two properties, both having sufficient work to develop drilling programs for the 2011 drilling season. The acquisitions and work programs have been led by Mr. John Kerr, whose has 40 years of expertise and experience in Nevada precious metal deposits and Mr. Kerr will continue to provide similar opportunities to the management team of Teslin.


John Icke, Executive Chairman

For further information on the Company and its projects, please visit our website at: www.teslin-river.com.

Neither 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 release.

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