Western Troy Capital Resources Inc.

Western Troy Capital Resources Inc.

October 30, 2009 09:38 ET

Western Troy Completes Drilling at Schefferville Gold Prospect, Forms "Canadian Remote Power Corporation" and Signs Employment and Severance Agreements with Key Management Personnel

TORONTO, ONTARIO--(Marketwire - Oct. 30, 2009) - Western Troy Capital Resources Inc. (TSX VENTURE:WRY) ("Western Troy") is pleased to announce that it has completed an 800 meter drill program on its Schefferville Gold Prospect in Quebec. Also, its Board of Directors has approved the formation of "Canadian Remote Power Corporation," and approved employment and severance agreements with key management personnel.

Schefferville Gold Prospect: Western Troy contracted with Cartwright Drilling of Goose Bay, Newfoundland to drill approximately 800 meters of core holes at Western Troy's Schefferville Gold Prospect, northwest of Schefferville, Quebec. The claims are located approximately 50 kilometers north of Schefferville and there is an existing road that is within 5 kilometers of the southern portion of the prospect area.

Western Troy became interested in the Schefferville properties as a result of examining Quebec Assessment Files (GM52442) which showed approximately 50 gold showings (greater than 1 g/t gold) over a 30 by 50 kilometer area in grab samples, channel samples and three short drill holes. Most of the showings are located in banded iron formations discovered during previous exploration programs. The historical drilling records indicate the holes were drilled no deeper than 20 meters. The current drilling program, consisting of 8 holes, tested the deeper potential of the three of the more promising gold showings. An NI 43-101 assessment of the prospect has not been prepared.

The drilling intersected gold mineralization in two of the three areas tested. Lead, zinc and silver mineralization was encountered in one of the three areas. The most significant results were found in the area drilled with Holes 4 to 8. Hole 4 intersected significant gold, lead, zinc and silver mineralization which included 5.56 g/t gold over a core length of 7.11 meters, and 8.56% lead, 1.96% zinc and 27.67 g/t silver, over a core length of 3.05 meters (see chart below). Hole 5 was drilled approximately 30 meters to the southeast of Hole 4 and Holes 6 and 7 were drilled approximately 30 and 60 meters northwest of Hole 4 respectively. Holes 4, 5, 6, and 7 were all drilled at an angle of 45 degrees to the northeast. Hole 8 was drilled at a 55 degree angle under Hole 4 from the same setup. All 4 holes intersected lead, zinc, and silver mineralization. No significant gold values were found in holes 5 through 8. The mineralized zone has been traced on surface for approximately 400 meters and only about 90 meters of the zone has been investigated by diamond drilling.

DDH# Angle Azimuth From(m) To(m) Width(m) Gold(g/t)

Hole 1 -45 190 no significant intersections
Hole 2 -45 150 24.38 26.41 2.03 1.43
Including 25.40 26.41 1.01 2.43
Hole 3 -45 150 5.79 7.72 1.93 1.25
Including 5.79 6.71 0.92 2.04
Hole 4 -45 50 52.83 59.94 7.11 5.56
Including 53.85 55.88 2.03 10.24

DDH # Angle Azimuth From(m) To(m) Width(m) Lead(%) Zinc(%) Silver(g/t)

Hole 4 -45 50 19.29 27.41 8.12 1.52 0.32 5.75
Including 25.38 26.40 1.02 3.03 1.47 11.00
39.32 40.39 1.07 1.32 0.02 6.00
56.89 59.94 3.05 8.56 1.96 27.67
Hole 5 -45 50 37.34 38.10 0.76 1.21 0.54 6.00
Hole 6 -45 50 26.41 27.43 1.02 1.14 0.21 6.00
48.76 53.84 5.08 1.45 0.55 6.20
Hole 7 -45 50 62.18 67.97 5.79 1.10 0.21 6.50
Hole 8 -55 50 43.68 44.70 1.02 1.50 0.25 9.00

The widths shown on this chart are not necessarily true widths.

The drilling in the area of Hole 1 did not intersect significant mineralization. The highest value was 0.057 g/t gold over a core length of 2.02 meters. Although significant gold values were documented from previous surface work, the drill hole did not appear to intersect the zone. It is postulated that the mineralized zone may have been folded in a synclinal structure with the drill hole passing underneath. The zone has been traced on surface for about 100m and additional drilling is recommended to evaluate the subsurface structure of the zone.

Holes 2 and 3 were drilled in an area about 1.8 km southeast of Hole 1. Both holes intersected gold mineralization. Hole 2 intersected 1.43 g/t gold over a core length of 2.03 meters and Hole 3 intersected 1.25 g/t gold over a core length of 1.93 meters.

Western Troy's Vice President Exploration, Wayne Holmstead commented, "The results from this very limited drilling program indicate that good gold and base metals mineralization is present in the region, and given the large size of the area where surface sampling has indicated the presence of gold, we believe a more extensive exploration program in the area may give favourable results. The drill program tested only a small number of the potential surface exploration targets on the property. Additional work in the form of geophysical and geochemical surveys may generate many more drill targets."

Western Troy is planning a geophysical program over the areas where favourable mineralization was found with the recent drill program and also other areas that were not drill tested A regional geochemical program is also planned to outline other areas of high potential. Additional drilling will follow once data from these programs have been evaluated.

Canadian Remote Power Corporation: At its quarterly Board of Directors meeting held on October, 22, 2009, Western Troy's board ratified management's decision to form Canadian Remote Power Corporation (CRPC) as a separate venture with the purpose of providing power to remote locations in Canada and elsewhere. Because the venture does not fall within the scope of Western Troy's primary business of mineral exploration and development, Western Troy formed CRPC as a subsidiary with its own management and Board of Directors.

The Board of Directors of CRPC includes Stanley Mourin and W. Steve Vaughan, currently members of the Western Troy Board of Directors. A third member of the board is Dr. Gary Kugler. Dr. Kugler has a Ph.D. in Experimental Nuclear Physics and is currently the Chairman of the Board of Canada's Nuclear Waste Management Organization. He is also a member of the Board of Ontario Power Generation (OPG). Prior that, he was with Atomic Energy of Canada Limited (AECL) for 34 years where his last position was Senior VP responsible for AECL's commercial operations. A special advisor to the board is the Hon. James S. Peterson. Mr. Peterson is currently an attorney with Fasken Martineau in Toronto and has first-hand experience in government affairs, having served in Canada's House of Commons for 23 years, and as Minister of International Trade, Secretary of State (International Financial Institutions), and Chair of the House of Commons Standing Committee on Finance.

Western Troy has retained a distinguished group to act as a Technical Advisory Committee for CRPC. Dr. Kugler is a member of this Committee along with Dr. Glenn Harvel, Dr. Dan Meneley, and Dr. R. L. Bob Hemmings. Dr. Harvel has a Ph.D. in Nuclear Engineering and is an Associate Professor on the Faculty of Energy Systems and Nuclear Science at the University of Ontario Institute of Technology (UOIT). He worked at AECL from 1995 until 2006. Dr. Dan Meneley has a Ph.D. in Reactor Physics and has worked as a Chief Engineer with AECL as well as many other nuclear power agencies and companies in Canada and around the world. He also teaches nuclear science and engineering on the Faculty of Energy Systems and Nuclear Science at UOIT. Dr. Hemmings has a Ph.D. in Chemical Engineering and has over 40 years experience in the chemical process and nuclear power industries. He was awarded the Medal of Engineering Excellence by the Professional Engineers of Ontario in 2008.

During the summer and fall, CRPC management began discussions related to the venture with the Canadian Nuclear Safety Commission (CNSC), AECL, Natural Resources Canada, and a number of the Ministers that serve of the House of Commons Natural Resources Committee. The technical team has been studying a number of options for reactor design and whether CRPC will develop its own reactor, or work with a vendor design that will meet the needs of remote communities and mines in Canada. The goal is to have the reactor design selected by the end of November, 2009.

CRPC also executed a Letter of Engagement with Dominick & Dominick of Toronto to raise up to $20 million for CRPC. The agreement calls for Dominick & Dominick to receive a cash commission on any offering equal to six percent of the funds raised and broker warrants representing 8 percent of the funds raised with an exercise price equal to the price of the transaction. Western Troy's decision to proceed with the new venture will depend on many factors, including the availability of suitable reactor technology, an assessment of the regulatory environment, and the ability of the venture to attract adequate funding.

Key Management Agreements: Western Troy's Board of Directors approved employment agreements for Western Troy's President, Rex Loesby, and VP Exploration, Wayne Holmstead, and a Severance Agreement for Western Troy's Executive Chairman and CFO, Stanley Mourin. The employment agreements have a one year term, with automatic renewals in subsequent years. In the event of a change of control of the company and if the agreements are terminated by the company, Mr. Loesby and Mr. Holmstead will be entitled to receive a severance payment of one year's salary, and Mr. Mourin will be entitled to receive a severance payment of $350,000. More information on Western Troy's management compensation can be found in the company's annual report published on the SEDAR system or at Western Troy's Website, www.westerntroy.com.

About Western Troy

Western Troy Capital Resources Inc. is a mineral exploration company. Its 100% owned MacLeod Lake Project, located about 275 km north of Chibougamau, Quebec, hosts a well defined Main Zone of mineralization as outlined by extensive drilling. In addition, a South Zone resource and several IP anomalies of potential interest have been identified. In April of 2008, Western Troy received an independent Preliminary Assessment (Scoping Study) consistent with National Instrument 43-101 on its MacLeod Lake Property. The report has been filed on SEDAR and is available at www.SEDAR.com and on Western Troy's website, www.WesternTroy.com. Western Troy also has a number of early stage molybdenum, copper, gold, uranium, platinum, and other minerals exploration properties in Quebec. The shares of Western Troy trade on the TSX Venture Exchange under the symbol WRY, with 19,284,970 shares outstanding.

This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: risks related to mining and exploration operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates; accident; labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Rex E. Loesby, P.E., is the qualified person that has reviewed the content of this press release.

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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