Teslin River Resources Corp.
TSX VENTURE : TLR

Teslin River Resources Corp.

October 04, 2011 09:00 ET

Teslin River Provides Letter to Shareholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 4, 2011) - Teslin River Resources Corp. (TSX VENTURE:TLR) ("Teslin" or the "Company") announces that the following letter has been mailed to its shareholders of record.

Dear Fellow Shareholders:

I am delighted with my appointment as President and CEO of Teslin River Resources Corp. ("Teslin" or "the Company"). This was an appointment that I eagerly awaited following the announcement on August 11, 2011 of Teslin's completion of the acquisition of Queensgate Resources Corporation ("Queensgate") a private company registered in Quebec, Canada in a deal which saw Teslin issue 15,928,203 common shares to fund the transaction.

As a consequence of the completion of this transaction Teslin acquired 100% of a Nevada, USA subsidiary of Queensgate which owns 100% of two significant land packages, namely the Mustang and Morningstar properties located in the Walker Lane mineral trend in Nevada.

This was the culmination of the proposed transaction originally communicated on January 10, 2011.

Needless to say, both Queensgate and Teslin management, directors and key shareholders were frustrated at the length of time that elapsed from original Exchange approval to final documentation and closure.

What is not generally understood is that during the finalization of documentation and subsequent deal closure, Teslin and Queensgate management were working diligently to advance the Company on many fronts.

Suffice it to say since early August there have been some significant milestones communicated. They include:

  • Announcement on August 17, 2011 of the completion of a reverse circulation drill program on the Mustang property. Eight (8) drill holes were completed for a total program of 1800 meters.
  • On August 23, 2011 Teslin announced the assay results of the aforementioned drill program. Management was very encouraged by initial results which have been communicated to the market through issuance of a detailed press release and appropriate Exchange filings. This program has enabled the Company to confirm gold mineralization and will assist in the identification of additional drill holes for a planned second phase of drilling. Permitting for extended drilling has now been approved.
  • A further announcement was made on September 12, 2011 which confirmed that Teslin had signed a binding Letter of Understanding (LOU) with Eureka Resources Inc. to acquire up to 75% of the Frasergold project located approximately 100 kilometers east of Williams Lake, British Columbia. This project has a historical resource which was completed in 2009 by Hawthorne Gold Corp. which estimates 219,000 ounces of a measured gold resource, 392,000 ounces of an indicated gold resource, and 1,225,000 ounces of an inferred gold resource at a cut-off of 0.3 grams per tonne. Historical expenditures on the property total in excess of $16.0 million (50,000 meters of drilling/450 holes and the excavation of a 300 meter tunnel). Of particular interest is that the measured and indicated resource is located in only 3 km strike length of the overall 12 km strike length of the projected mineralization. Management believes that a significant opportunity may exist to increase the size and grade of the deposit.
  • Teslin's new management team has been announced. As well as my appointment to President and CEO I am delighted that John Kerr has agreed to assume the responsibility as Vice President Exploration. John Kerr's experience and knowledge both of the geology of British Columbia and of Nevada will be invaluable in the development of our enterprise. Additionally, John Kerr has been tasked to identify and select key technical personnel to assist in the advancement of our project portfolio.
  • An Advisory Board has been created and its two initial members have been announced. This Advisory Board will be called upon when necessary to provide expertise associated with the development of the Company. I am pleased to be working with Glen MacDonald and Dave Shaddrick as our initial Advisory Board members.
  • Management and the Board of Directors continue to seek new projects to augment our portfolio in the two geographical jurisdictions that are the focus of our attention. We hope to be able to make further announcements relative to the expansion of our portfolio in the near future.

As you can see, our Company has changed dramatically over the course of the past several weeks.

Management and the Board are aggressively working towards:

  1. Completion of a 12 month work program with specific plans for Mustang, Morningstar and the Frasergold projects.
  2. Finalization of an associated budget for the aforementioned programs.
  3. Advancing negotiations on project acquisitions.
  4. Identification of other suitable projects to potentially augment our portfolio.
  5. In conjunction with Gold Fields Ltd., fully understanding the potential of the Rand properties.
  6. Sourcing appropriately qualified and experienced technical professionals to assist in the development and execution of exploration programs on our key assets.
  7. Expanding work programs at Frasergold associated with refreshing/upgrading the historical resource.
  8. Executing a program at Frasergold which we anticipate will result in the publication of a Preliminary Economic Assessment in Quarter 1, 2012.

The activity set at Teslin is very exciting and we plan, as a consequence of this operational tempo, to provide the market with a consistent flow of news which advances all stakeholders' knowledge of our Company and assists in building enterprise value.

I hope this letter has been useful to one and all in developing your understanding of the Company's activities and future plans.

For further information on Teslin and its activities, please visit our website at www.teslin-river.com where we have posted a presentation about the Company and our current and planned activities.

Finally, if at any time in the future, you would like to discuss our activities or plans at Teslin, please do not hesitate to contact me at your convenience.

Yours truly,

ON BEHALF OF THE BOARD

"John Burgess"

John Burgess, President and CEO

About Teslin River Resources Corp.

Teslin River is an early stage exploration company with interests in Nevada and British Columbia. The Company intends to focus on precious metals exploration with new properties currently being sought in both Nevada and British Columbia. Existing properties include the newly acquired Mustang and Morningstar projects. The acquisitions and work programs have been led by John R. Kerr, P. Eng., who has 40 years of expertise and experience in Nevada precious metal deposits.

John R. Kerr, P. Eng., is a Qualified Person pursuant to NI 43-101 and has approved the contents of this release.

Cautionary Notes: Inferred mineral resources have insufficient confidence to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability suitable for public disclosure. Neither the Company nor readers can assume that all or any part of an inferred mineral resource will be upgraded to indicated or measured mineral resource. Most projects at the inferred mineral resource stage do not ever achieve successful commercial production. Each stage of a project is contingent on the positive results of the previous stage and that there is a significant risk that the results may not support or justify moving to the next stage. Mineral resources which are not mineral reserves, do not have demonstrated economic viability.

A qualified person has not completed sufficient work in order to classify historical resource estimates on the Frasergold property as current mineral resources or reserves and the Company is not treating these historical estimates as current mineral resources or reserves but as historical estimates for information purposes only that should not be relied upon.

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

Forward-Looking Statements

Statements in this release that are forward-looking statements, are subject to various risks and uncertainties concerning the specific factors identified in the Company's periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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.

Contact Information