Typhoon Exploration Inc.
TSX VENTURE : TYP

Typhoon Exploration Inc.

July 13, 2011 08:00 ET

Typhoon Exploration Inc. and Aurizon Mines Ltd. Intersects 1,480 g/t Au at More Than 1 Kilometer of the Fayolle Deposit

LAVAL, QUEBEC--(Marketwire - July 13, 2011) - Typhoon Exploration Inc. (TSX VENTURE:TYP) announces that it has received the assay results for the first fifteen (15) holes of the 2011 exploration campaign on the Fayolle Project, 100%-owned by Typhoon. This campaign covers the north-east sector of the property, excluding the Fayolle Deposit and was planned by the Aurizon-Typhoon tandem. To date, 28,140 metres of drilling were completed on the 2011 campaign, planned for 50,000 metres. More than 39 exploration drillings were carried out and several more are planned. Furthermore, 38 drillings were completed on the Fayolle Deposit and many more are in the planning phase. Drilling results should be revealed shortly.

Highlights of exploratory drilling results (see table of best results below):

Holes FAX-11-01, FAX-11-02, FAX-11-03, FAX-11-04-B, FAX-11-05, FAX-11-10, FAX-11-11 and FAX-11-13 intersected a zone of sheared komatiite, fuschitised and brecciated. This rock formation can be correlated between all drillings to form a corridor of 1.5 km EW. The magnetic survey also shows that this structure corresponds to a low magnetic zone. This gold bearing zone is located immediately south of the Vang and Vang extension Showings and coincides with the gold and silver bearing zones intersected by hole FAX-10-05, where grades of 10.2 g/t Au over 0.7 meters and 10.4 g/t Ag over 1.0 meter were obtained. (See press release dated March 15, 2011)

Holes FAX-11-01, FAX-11-03, FAX-11-04 and FAX-11-04-B are intersecting altered auriferous monzodiorites (dominant hematite) rich in plagioclase phenocrysts. This set of dykes appears to be oriented NW-SE with a vertical dip and a thickness of 5 to 30 meters.

Hole FAX-11-15 is intersecting a slightly altered magnetic gabbro, with quartz and chlorite veins. The intrusive appears to be subvertical and can be traced over nearly 2 km EW up to the Vang Showing sector, with an average thickness of 50 m. A quartz vein showing a high concentration of visible gold has been intersected at 50 meters deep with a grade of 1,480 g/t Au over 1.0 meter, at more than 1 kilometre S-W of the Fayolle Deposit.

DETAILED TABLE OF RESULTS

Hole No. E N Azimuth Dip Total From To Length Grade
(mE) (mN) Length (m) (m) (m) (g/t Au)
FAX-11-01 662047 5366642 200 degrees -47 degrees 351 105.0 118.0 13.0 0.6
200 degrees -50 degrees 303 79.0 86.0 7.0 1.0
94.0 104.0 10.0 1.1
FAX-11-04-B 662654 5366569 including 100.0 103.0 3.0 2.4
192.0 200.0 8.0 2.7
including 196.0 198.0 2.0 7.3
FAX-11-05 662654 5366569 205 degrees -51 degrees 492 413.0 419.0 6.0 1.5
FAX-11-06 662902 5366997 201 degrees -45 degrees 290 46.0 49.0 3.0 4.9
FAX-11-15 663194 5366673 271 degrees -49 degrees 366 51.0 52.0 1.0 1480.0

The true thickness is approximately 75% of core length.

*Holes FAX-11-02, FAX-11-03 and FAX-11-07 to FAX-11-14 returned no values superior to 5 g/t Au*m.

In light of this information, we can say that the Fayolle Property holds great potential for new discoveries that may significantly increase the resource already established on the Fayolle Deposit. The geological model of the Fayolle Deposit, applied to the rest of the property for exploration drilling in the 2.5 km long corridor, has allowed to define several new gold targets.

The mineralization of these new targets is hosted by strongly brecciated, altered and deformed ultramafic rocks and by dykes of varied composition, but generally intermediate and bordered by zones of brecciation. The alteration is characterized by carbonatization and fuschitization of ultramafic rocks and by hematization of dykes.

QUALITY CONTROL

All drill cores were oriented using the instrument "CorientR" to measure geological structures observed in core.

The drill core is sawed in two, one part being retained as a witness and the second being analyzed. Analyses were performed by standard fire assay with atomic absorption finish. Certified reference materials, field duplicates and blanks are inserted into the sample sequence for quality control purposes. Primary assaying is performed by ALS-Chemex in Val-d'Or. Releases for all samples containing more than 10 grams of gold per ton are completely pulverized and re-analyzed.

ADDITIONAL INFORMATION

The map attached to this press release shows part of the Fayolle Property's geological context, as well as the drilling locations.

TERMS OF AGREEMENT FOR THE FAYOLLE PROJECT

Aurizon Mines Ltd. may earn a 50% interest in the Fayolle Project, subject to a 2% royalty, by incurring $10 million dollars of exploration expenditures and an additional $2,000,000 million dollars in private placement. Aurizon Mines Ltd. can earn an additional 15% (for a total interest of 65%) by either delivering a feasibility study or incurring an additional $15 million dollars toward the project for a total of $27 million dollars.

ABOUT TYPHOON

Typhoon targets the excellent mineral potential and investment climate in Quebec for the development of new world class gold deposits and is proud to count on reputable partners such as Aurizon Mines Ltd. (www.aurizon.com). Their support, as well as that of its investors contributes greatly to the success of the company.

In early 2011, three drilling programs were underway on Typhoon Exploration Inc. projects, such as:

  • Destorbelle (50% Diamond Frank Inc. and 50% Typhoon Exploration Inc.), campaign completed
  • Aiguebelle-Goldfields (Typhoon Exploration Inc. has an option agreement with Agnico-Eagle Mines Limited in order to acquire 51% of the property), campaign completed
  • Fayolle (100%-owned by Typhoon Exploration Inc.) Aurizon Mines Ltd. has the option to acquire 65% of the Fayolle Project by investing $25,000,000 in exploration work and an additional $2,000,000 in capital stock of Typhoon Exploration Inc. A 50,000 meter drilling campaign is underway on the Fayolle Deposit and results of infill drillings will be available shortly.

All work is carried out by Ressources Lutsvisky Inc., under the supervision of Typhoon Exploration Inc. acting as operator.

QUALIFIED PERSONS

Mr. Robert Gagnon, P. Geo. (OGQ) of Typhoon Exploration Inc., and Mr. Daniel Gaudreault Eng., Geo (OIQ) of Geologica Groupe-Conseil Inc., are the Qualified Persons as defined by National Instrument 43-101 to supervise the preparation of this press release.

The common shares of Typhoon Exploration Inc. are listed on the TSX Venture Exchange under the symbol "TYP".

Financial Profile:

19,905,657 Shares outstanding

Highlights:

Agreement of $27 million dollars with Aurizon Mines Ltd. for the development of the Fayolle gold Project located in the heart of Abitibi's developing mining projects

A 50,000 metre drill program is currently underway on the Fayolle Project, with a budget of $6.5 million invested by Aurizon Mines Ltd.

Main deformation corridor of 2.5 km long by 1 km wide and open at depth, on the Fayolle Project

Winner of the 2010 Entrepreneur of the Year Award (granted by the AEMQ)

Winner of the 2010 e3 Plus Award for Responsible Exploration (granted by the AEMQ)

All work is carried out by Ressources Lutsvisky Inc., under the supervision of Typhoon Exploration Inc. acting as operator.

A map is available at the following address: http://media3.marketwire.com/docs/typhon-eng.jpg

Forward-Looking Statements

This news release contains statements that constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities legislation. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Typhoon. Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Typhoon will derive therefrom. Forward-looking information is based on the estimates and opinions of Typhoon's management at the time the information is released and Typhoon does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. 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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