Yankee Hat Minerals Ltd.
TSX VENTURE : KHT

Yankee Hat Minerals Ltd.

October 26, 2006 17:24 ET

Yankee Hat Minerals Ltd.: Fran Continues to Produce High Grade Gold Intersects

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2006) - Yankee Hat Minerals Ltd. (the "Company") (TSX VENTURE:KHT) is pleased to announce further assays results from its 2006 drilling program at its Fran Property, located in the Omineca mining division in the central part of British Columbia, 60 kilometres north of Fort St. James, 10 kilometres north of Inzana Lake. The claims are 30 kilometres southwest of Terrane Metals' Mount Milligan Deposit.

Preliminary shallow drilling at the eastern end of the known North Contact Zone has produced exciting results. Both narrow high grade and broad low grade gold zones up to 50 metres true width have been encountered. The results to date indicate good continuity of gold mineralization over 1,400 metres strike length, open in all directions.

Three holes FR-058, 059 and 060 were drilled northwest of hole FR-042. Hole FR-042 in 2005 returned a significant gold intercept of 2.94 gt gold over to 10.70 metres. FR-058 and 059 were drilled at the same azimuth; FR-058 was the deeper, hole FR-060 was drilled more to the west. All three holes intersected strong quartz-sulfide vein replacement style mineralization within feldspar porphyry intrusives proximal to the north contact with altered siltstones and biotite hornfels country rocks.

Holes FR-058 and 059 both encountered two zones of strong quartz-sulphide (pyrite, pyrrhotite and chalcopyrite) mineralization separated by 20 to 30 metres of weak-spotty mineralization. The combined zones in each hole have close to 50 metres true width with steep north dips and average gold grades between 0.82 and 1.18 gt. The higher grade internal zones include 2.47 gt Au over 12.97 metres in FR-059 and 5.29 gt Au, 19.21 gt Ag and 0.71 % Cu over 10.30 metres in hole FR-058. Hole FR-060 to the west also had two zones with 0.64 gt Au over 11.99 metres and 4.81 gt Au over 1.60 metres core length.

Hole FR-056 at the eastern end of the North Contact Zone tested beneath Trench E (38.10 gt Au/1.5m and 4.35 gt Au/1.0m) and hole FR-051 (2.03 gt Au/ 6.39m). FR-056 encountered a sulphide rich fracture zone with quartz veinlets that returned 4.44 gt Au, 7.70 gt Ag over a 2.25m.

Hole FR-057 was collared east of FR-042 and tested the zone at 50 metres vertical depth. It encountered a strong fracture-fault zone with minor sulphides that returned an average of 0.80 gt Au over 3.25 metres. Porphyritic dykes with fracture sulphides above the fault returned 0.131 gt Au over 12 metres core length with local higher values up to 0.45 gt Au.

Terry R. Fields, President said, "these continuing high grade assays with increasing widths are confirming the existence of a potentially significant gold resource. The North Contact Zone is still open to the east and west. Gold bearing mineralization is now in excess of 1,400 metres strike length. The 50 metre plus true width sections in Holes FR-058 and 059 show that there is tonnage and grades that could prove to be economic."

Phase 1 diamond drilling on the North Contact Zone was completed in late August and consisted of 14 holes for a total of 2060 metres. Selected gold intercepts from holes FR-056 to 60 are compiled in Table A; hole and trench locations are shown on Figure 1.

The results from the initial drill holes in the eastern parts of the North Contact Zone are highly encouraging with similar grades and widths to the western area (News Release dated October 2, 2006). Results from the last holes FR-061 and 062 will be released shortly. A 200 metre gap between the two drilled areas is left to be tested at shallow depth. At this time the North Contact Zone appears to have excellent continuity with both broad low grade and narrower high grade gold intercepts.



Table A: Further Gold Intercepts North Contact Zone Drilling 2006

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Hole No. From To Length Au Ag Cu
M M M g/t g/t %
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FR-056 97.10 101.55 4.45 2.34 3.86 0.063
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Inc. 97.10 99.35 2.25 4.44 7.20 0.095
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FR-057 59.85 63.10 3.25 0.81 0.45 0.023
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115.89 116.75 0.86 1.21
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FR-058 63.16 120.60 57.44 0.82
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Inc. 63.16 79.83 16.67 0.57 0.134
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Inc. 69.80 73.64 3.84 1.65 9.46 0.29
------------------------------------------------------

------------------------------------------------------
Inc. 107.63 120.60 12.97 2.47 0.087
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Inc. 107.63 116.10 8.47 3.04 1.57 0.062
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152.40 152.90 0.50 2.04 3.70 0.122
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FR-059 24.80 79.40 54.60 1.18
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Inc. 24.80 35.10 10.30 5.29 19.21 0.71
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Inc. 28.752 33.60 4.85 10.96 40.15 1.48
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Inc. 69.00 79.40 10.40 0.88 0.55 0.05
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Inc. 69.00 74.08 5.08 1.51 0.92 0.08
------------------------------------------------------

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FR-060 90.50 102.49 11.99 0.64 0.57 0.035
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128.58 129.70 1.12 4.81 1.60 0.198
------------------------------------------------------


About Yankee Hat Minerals Ltd.

Yankee Hat Minerals is actively exploring the Fran Property, a gold/base metals target near the Mt. Milligan deposit in central British Columbia; and the Shanghai Creek Project, a gold target within the Tintina Gold Belt - near Stratagold's Aurex and Dublin Gulch projects in the Yukon Territory. The Company also recently acquired the Union Mine Property in the Greenwood Mining Division near Grand Forks, British Columbia.

ON BEHALF OF THE BOARD

Terry R. Fields, President and Director

This news release has been prepared by management. This document contains certain forward-looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward-looking statements. We seek safe harbor.

To view figure 1 please click on the following link: http://www.ccnmatthews.com/docs/kht1026.jpg


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