TYLER RESOURCES INC.
TSX VENTURE : TYS

TYLER RESOURCES INC.

November 29, 2007 16:48 ET

Tyler Reports Stepout Drilling, Highlights Significant Additional Tonnage Potential at Bahuerachi

--Company Also Responds to Mercator Minerals' News Release--

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2007) - Tyler Resources Inc. (TSX VENTURE:TYS) ("Tyler" or the "Company") today announced assay results from seven additional drill holes at the Main Zone of its 100% owned Bahuerachi project in Mexico. Tyler also responded to unfounded claims made by Mercator Minerals Ltd. In its press release dated November 27th regarding Mercator's unsolicited offer for Tyler.

"This latest series of positive drill results supports the Tyler Board of Directors' belief that the Bahuerachi project is a significant asset with further upside potential and highlights the opportunistic nature of Mercator's hostile attempt to acquire control of Tyler. This is one of the reasons for the Board's recommendation to reject the Mercator offer," said Jean-Pierre Jutras, Director, President and CEO of Tyler.

"We are moving aggressively towards an updated resource estimate and a pre-feasibility study for the project, both of which are expected in the first half of 2008. Based on positive ongoing information from our drilling programs, we are optimistic that the project's resource base and ultimate project size will increase as the Company continues to reach, and complete critical milestones. Positive work from our ongoing work at Bahuerachi, such as today's drill results clearly demonstrate why we believe that the Mercator hostile offer undervalues this Company and its growing asset base at Bahuerachi."

New Step Out Holes Expand Bahuerachi Deposit to the West

The seven new drill holes, significant results of which are tabulated in this release, are from Tyler's ongoing drilling program at Bahuerachi. All holes completed to depth successfully met the objective of extending mineralization to the west in the northern half of the deposit, and targeting a potentially significant increase in the ultimate tonnage of the Main Zone in the upcoming resource estimate to be completed in January 2008. Based on engineering work completed to date as part of the scoping study, an increase in the overall width of the Main Zone Deposit can be expected to allow a wider, deeper pit to be designed for the pre-feasibility study, allowing access to a greater portion of the existing resource base and positively impacting the scale of the Bahuerachi Project going forward.

The seven drill holes reported here have been successful in extending the known mineralization of the Main Zone deposit to the west over a strike length of approximately 800 meters, and adding 120 to 275 meters of new width to the known mineralization westwards (in some cases doubling the previous deposit widths as modeled in May 2007). While Tyler initially believed that mineralization to the west in this part of the deposit was cut off by a fault, the results of drilling to date demonstrate that a full suite of mineralized porphyry, skarn, marble and sediments is present, as was found in the southern half of the deposit. All sections remain open to the west for further expansion, and drilling will continue to test this potential until year-end for the new resource modeling scheduled to start on or about December 15, 2007.

Significant results for these drill holes are presented in the following table and discussed below. Drill hole collar locations are shown on the attached drill plan map: http://www.ccnmatthews.com/docs/1129TYS_map.pdf.



Significant Intervals, Main Zone

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From To Interval Copper Gold Silver
Hole # (m) (m) (m) (%) (g/t) (g/t)
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DDH 124 108.4 176.1(1) 39.05(1) 0.57 0.16 14.86
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and 227.8 275.3 40.80(2) 0.56 0.05 5.06
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within 108.4 293 127.65(3) 0.46 0.07 7.35
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DDH 125







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DDH 126 46.95 54 7.05 0.26 0.39 9.94
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and 257 383.3 126.03(4) 0.30 0.02 2.43
---------------------------------------------------------

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DDH 127 138 178.5 40.5 0.17 0.02 6.37
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and 299 345 23.5(5) 0.71 0.05 7.60
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within 200 435.8 130.90(6) 0.29 0.03 5.99
---------------------------------------------------------

---------------------------------------------------------
DDH 128 332 341.85 9.85 0.26 0.17 61.01
---------------------------------------------------------
and 415 448 25.45(7) 0.56 0.11 8.88
---------------------------------------------------------
within 332 460.35 107.17(8) 0.26 0.07 11.48
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---------------------------------------------------------
DDH 129 119.6 126 6.4 0.45 0.06 6.34
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and
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DDH 129 137 152.1 15.1 0.26 0.03 4.6



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DDH 130 127 139 12 0.14 0.01 14.78
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and 219 496.5 133.90(9) 0.30 0.01 3.45
---------------------------------------------------------
---------------------------------------------------------


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From To Interval Moly Zinc
Hole # (m) (m) (m) (%) (%) Rock Type
----------------------------------------------------------------------------
DDH 124 108.4 176.1(1) 39.05(1) 0.008 0.27 Marble/skarn
----------------------------------------------------------------------------
and 227.8 275.3 40.80(2) 0.007 Trace Porphyry
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within 108.4 293 127.65(3) 0.008 0.1 Marble/skarn/porphyry
----------------------------------------------------------------------------

----------------------------------------------------------------------------
DDH 125 DDH 125 was a 600 meter
step back targeting deep
skarn. It was ended in
favourable marble
stratigraphy due to
difficult ground
conditions, before
reaching target depth.
----------------------------------------------------------------------------

----------------------------------------------------------------------------
DDH 126 46.95 54 7.05 Trace Trace Skarn
----------------------------------------------------------------------------
and 257 383.3 126.03(4) 0.015 Trace Sediments/Porphyry
----------------------------------------------------------------------------

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DDH 127 138 178.5 40.5 0.002 0.31 Marble/Sediments
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and 299 345 23.5(5) 0.005 0.24 Marble/Skarn
----------------------------------------------------------------------------
within 200 435.8 130.90(6) 0.007 0.118 Marble/Skarn/Sediments
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DDH 128 332 341.85 9.85 0.002 8.22 Skarn
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and 415 448 25.45(7) 0.002 0.34 Marble/Skarn
----------------------------------------------------------------------------
within 332 460.35 107.17(8) 0.003 1.04 Marble/Skarn/Sediments
----------------------------------------------------------------------------

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DDH 129 119.6 126 6.4 0.005 0.48 Marble
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and
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DDH 129 137 152.1 15.1 Trace Trace Marble. Drill hole was not
completed to target depth
due to difficult ground
conditions.
----------------------------------------------------------------------------

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DDH 130 127 139 12 Trace 3.22 Marble
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and 219 496.5 133.90(9) 0.012 Trace Marble/Sediments/Porphyry
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(1) Excluding 28.65 meters of unmineralized dykes
(2) Excluding 6.70 meters of unmineralized dykes.
(3) Excluding 56.95 meters of unmineralized dykes.
(4) Excluding 0.27 meters for geotechnical testing.
(5) Excluding 22.5 meters of unmineralized dykes.
(6) Excluding 104.9 meters of unmineralized dykes.
(7) Excluding 7.55 meters of unmineralized dykes.
(8) Excluding 21.18 meters of unmineralized dykes.
(9) Excluding 143.6 meters of unmineralized dykes

Note: Due to drilling directions, dykes are estimated to be exaggerated by
30-50%.


All assay work was performed by ICP at ALS-Chemex labs of Vancouver, with gold done using standard fire assay methods. All samples sent to the lab are sealed with security tags for delivery to ALS-Chemex. Duplicate samples as well as standards and blanks are inserted in each batch of samples delivered to the laboratory and then checked to ensure proper quality assurance and quality control (QA/QC).

The Qualified Person responsible for the design and implementation of the Field Program as well as the preparation of this news release was J. P. Jutras, P.Geol., Director, President and CEO of the Company. The work program is being carried out with the participation of Dr. Shane William Ebert, Ph.D, P.Geo, Vice President and Director, Grant Couture, M.Sc Geology, Paul Turnbull, B.Sc, P.Geol, Cornell McDowell, B.Sc Geology, and Charla Boyer, B.Sc Geology, consultants to the Company.

Tyler Responds to Mercator News Release

Separately, Tyler takes issue with a number of the statements made by Mercator in its news release issued November 27, 2007 regarding Mercator's unsolicited offer for Tyler, and wishes to set the record straight for shareholders with the following points of clarification:

- Tyler's Bahuerachi resource, as disclosed by news release on May 23, 2007, was calculated by qualified independent third parties and subsequently disclosed in accordance with all requirements of National Instrument Policy 43-101. The author of the resource estimate, Keith McCandlish, P. Geol, is an Independent Qualified Person as defined by NI 43-101. Mr. McCandlish, P. Geol., is fully familiar with NI 43-101 as he assisted in the implementation of the regulations and sits on the MTAC committee advising the securities commission on policy development. The complete resource study, dated July 9, 2007, is available at www.sedar.com.

- Mercator's assertion that a transaction would be less dilutive to Tyler shareholders than Tyler proceeding to advance Bahuerachi independently is a further attempt to mislead Tyler shareholders. Mercator chooses to ignore the fact that its current offer would dilute Tyler shareholders' ownership in the Bahuerachi project from 100% to 15%. Given Mercator's current cash position and commitments, as well as its current debt, there may be even further dilution as Mercator may require significant equity financing to construct the project.

Alan Craven, Chairman of the Tyler Board and of the Special Committee, said, "There is nothing in the Mercator press release that changes our view that the Mercator offer significantly undervalues Tyler and fails to adequately compensate Tyler's Shareholders for the loss of opportunity to participate in Tyler's future growth. The Board remains firm in its unanimous recommendation that shareholders reject the Mercator offer and not tender their shares."

The Tyler Board encourages shareholders to read the November 23rd Directors' Circular, particularly the "Analysis and Reasons for Rejecting the Offer" (page 2) and "Background to the Offer and Response of Tyler" (page 15) sections, for further information.

How to Withdraw Shares from the Mercator Offer

Shareholders who have already tendered their shares to the Mercator offer and wish to withdraw them, may do so by contacting Kingsdale Shareholder Services Inc., the information agent retained by Tyler, toll free at 1-866-639-3460. Shareholders may also contact Kingsdale Shareholder with any questions they have regarding the Mercator offer and/or Tyler's recommendation.

About Tyler Resources

Tyler Resources Inc. is a well-funded Canadian junior exploration company focused on base and precious metals exploration in Mexico. Tyler's primary project is the Bahuerachi property, which hosts Mexico's fourth largest mineralized porphyry deposit. As part of its ongoing drill program, the Company has now drilled in excess of 52,000 meters of combined diamond and reverse circulation drilling since 2004, making it one of the most active Canadian junior exploration companies operating in Mexico. For more information, visit www.tylerresources.com.

Reader Advisory - As required by National Instrument 43-101, Tyler cautions that the scoping study is a preliminary assessment and is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates", will and similar expressions, are forward-looking information that represents management of Tyler's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Tyler. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Tyler's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Tyler's filings with the Canadian securities authorities. Accordingly, holders of Tyler shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. Tyler disclaims any responsibility to update these forward-looking statements.

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

Contact Information

  • Corporate Contact
    Tyler Resources Inc.
    Jean Pierre Jutras, President/CEO/Director
    (403) 269-6753 or Toll Free: 1-888-237-7898
    (403) 266-2606 (FAX)
    Website: www.tylerresources.com
    or
    Media Contact
    Longview Communications Inc.
    Alan Bayless
    (604) 694-6035
    or
    Media Contact
    Longview Communications Inc.
    David Ryan
    (604) 694-6031
    or
    Shareholder Information
    Kingsdale Shareholder Services Inc.
    Toll Free: 1-866-639-3460