SOURCE: Teuton Resources Corp.

April 11, 2007 09:00 ET

Teuton Inks $5 Million Option on Treaty Creek Property

VANCOUVER, BC -- (MARKET WIRE) -- April 11, 2007 -- Teuton Resources Corp. ("Teuton") (TSX-V: TUO) (FRANKFURT: TFE) is pleased to announce that American Creek Resources Ltd. ("American Creek") (TSX-V: AMK) has been granted an option to explore the Company's Treaty Creek project, located 20 km east of the Eskay Creek gold-silver mine in northwest British Columbia.

The agreement allows American Creek to earn a 51% interest in the Treaty Creek by funding $5 million in exploration and making staged share payments amounting to 100,000 shares over three years. An additional 9% interest in the project may be acquired by funding all expenditures through to the completion of a feasibility study. American Creek will be project operator.

Under the agreement, American Creek must spend $1 million in the first year to maintain its interest. The terms of the agreement are the strongest ever negotiated by Teuton in its 23 year history. "We were able to negotiate such favourable terms due to the outstanding potential of the Treaty Creek property, particularly in light of recent, highly encouraging exploration results from two properties located immediately south of Treaty Creek that are owned by Seabridge Gold and Silver Standard Resources," stated D. Cremonese, P.Eng., President of Teuton. "American Creek is an aggressive company with a proven track record in financing large exploration projects. We welcome the association with this dynamic group."

Treaty Creek Property

The 11,400 hectare (28,200 acre) large, Treaty Creek property is located 70 km north of Stewart, BC. Adjoining to the south is the Kerr-Sulphurets property of Seabridge Gold Inc. In February of 2007, Seabridge announced a National Instrument 43-101 compliant, inferred mineral resource in their Mitchell deposit on the Kerr-Sulphurets property of 564 million tonnes grading 0.72 g/t gold (13.1 million ounces) and 0.18% copper (2.23 billion lbs). Earlier, Silver Standard Mines announced a 3 million ounce gold resource on their Snowfield deposit, located to the east of the Mitchell deposit on a separate Sulphurets property. Including three other deposits within the Seabridge Gold and Silver Standard properties, the total metal endowment for the Sulphurets district now stands at 20 million ounces gold and 4.98 billion pounds, firmly establishing it as one of the most important new mining camps in British Columbia.

A recently completed geological review of $3 million of exploration carried out from 1984 to 2006 on the Treaty Creek property indicates that it likely covers the northeast extension of the same structural and geological features that host the Sulphurets gold and gold-copper deposits of Seabridge and Silver Standard. Potential for discovering and delineating similar bulk tonnage deposits on the Treaty Creek property is considered excellent.

American Creek's $1 million 2007 program will target in particular the Eureka zone in the central portion of the Treaty Creek property. Limited drilling in this area has resulted in intersections grading 0.67 g/t gold over 72.3 metres and 0.46 g/t gold over 169 metres. The Eureka lies on the flank of an extremely intense alteration system with a surface exposure over a square kilometre in size, of which only a very small fraction has been tested by drilling.

Several high-grade gold and silver epithermal and high-sulphidation targets from the GR-2, AW and Konkin zones will also be tested. Selected trench results from these zones, many containing exceptional silver values, follow:

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                               TRENCH RESULTS
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Structure     Trench/Chipline     Width        Gold (g/)    Silver(g/)
                                 (metres)
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      AW            #4              0.9           1.42         3,359
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      AW            #6              2.7           3.70         1,066
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      AW            #7              4.1           2.40          641
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      AW            #9              0.9            --           644
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      AW           #12              1.3           1.71          528
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      AW           #13              3.0            --           665
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      AW           #14a             2.8           7.47          346
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      AW           #14b             4.0            --           555
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      AW           AW-1             8.7          15.67          353
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      AW           AW-2             6.4           1.13          806
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      AW           AW-3             5.0           0.68         1,049
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     GR-2          A-1              4.0           3.94          387
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     GR-2          A-2              1.7           0.68         1,954
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     GR-2          B-1              3.8           4.73         2,475
-----------------------------------------------------------------------
     GR-2          B-2              4.6           1.34          504
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    Konkin      Gold Pit            1.3          959.84         --
-****-

The 2007 program is scheduled to begin once work approvals are in place and ground conditions permit, estimated to be mid-June to early July. Full details of the program will be announced at a later date.

For the purposes of this news release, the Company's President, D. Cremonese, P.Eng., is the Qualified Person.

On Behalf of the Board of Directors,
Teuton Resources Corp.
"D.Cremonese, P.Eng.",

D. Cremonese, P.Eng., President Teuton Resources Corp

The foregoing securities have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation or sale would be unlawful. This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may," "will," "plan," "expect," "anticipate," "estimate," "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon.

The TSX Venture Exchange does not accept responsibility for the accuracy or the adequacy of this release.

Contact Information

  • TEUTON RESOURCES CORP.
    207-675 West Hastings St.
    Vancouver, B.C. V6B 1N2
    Tel: 604 - 682 - 3680
    Toll Free: 1-800-879-2333
    http://www.teuton.com