Western Troy Capital Resources Inc.
TSX VENTURE : WRY

Western Troy Capital Resources Inc.

May 25, 2010 08:30 ET

Western Troy Provides Update on Exploration and Development Projects

TORONTO, ONTARIO--(Marketwire - May 25, 2010) -  Western Troy Capital Resources Inc. (TSX VENTURE:WRY), herein provides and update on its exploration and development projects in Quebec, Canada.

Western Troy's main asset is the MacLeod Lake Copper/Molybdenum Project in Quebec. The project is currently in the feasibility stage. A Preliminary Assessment (Scoping Study) was completed by Scott Wilson Roscoe Postle Engineers of Toronto in early 2008. This study indicated the project has robust economics with a Net Present Value (at a 10% discount rate) estimated at $156 million and an Internal Rate of Return of 32% (see Western Troy's press release dated March 10, 2008, at www.westerntroy.com). These economics used a copper price forecast of $2.25 per pound and a molybdenum price forecast of $17 per pound. With copper currently at about $3.00 and molybdenum currently at over $17, these economic indicators have improved.

Because the MacLeod Lake Project is relatively remote, there have been road and electric power issues that need study. Western Troy's management has investigated a number of electric power options. The Eastmain River is very close to the project site and it has the potential to provide hydroelectric power at a reasonable cost. A preliminary feasibility study is under way. This development, combined with the Quebec Ministry of Transport's plans for commencement of the Otish Mountain Road construction in 2011, means that the construction of the MacLeod Lake Mine could commence in 2012 or 2013, depending on the road construction schedule and hydropower permitting.

But MacLeod Lake is not Western Troy's only asset. It has a number of early stage exploration projects, any one of which has a reasonably good chance to become a substantial mineral resource. Most notable are the Schefferville Gold and Strange Lake Rare Earths Prospects. Drilling at Schefferville last summer resulted in a drill hole intercept of 7 meters of 5.5 grams per tonne (see Western Troy's press release dated October 30, 2009, at www.westerntroy.com). The Strange Lake Rare Earths Prospect has very high anomalies in stream and soil samples, in fact higher than Quest's (Quest Rare Metals, QRM – TSX-V) nearby rare earths resource where they have identified a large inferred resource (see Western Troy's press release dated December 30, 2009, at www.westerntroy.com). Western Troy has the cash to fund exploration programs, including drilling, at these and other prospects in Quebec. Preliminary surface sampling and mapping were recently completed on the Fabiola molybdenum and Troilus molybdenum prospects. Crews are now heading to Strange Lake and Schefferville for more surface work. Drilling programs are scheduled for later this summer and fall. The drilling will be done on those projects with the best probability of success based on the surface work. 

All of these exploration prospects are 100% owned by Western Troy. There are no royalties, work commitments, or cash payments due to third parties except for nominal claim fees. Also, since all of the prospects are in Quebec, Western Troy receives payments from the Quebec government in the form of tax rebates and mining duty refunds amounting to about 47% of exploration spending. 

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, rare earths, 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 23,284,970 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.

* Scoping Study: Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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

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