Sampling Program Encounters Significant Enriching Gold

VANCOUVER, BC - Nevada Exploration Inc. reported that the Scorpion sampling program at the Kelly Creek project is encountering significant enriched gold at the bedrock-alluvium contact. The results of the Scorpion sampling program have established that the elevated gold and gold-associated trace-element geochemistry at Kelly Creek is consistent with the size and characteristics of the hydrothermal system associated with the nearby Marigold and Lone Tree gold deposits.

NGE's Scorpion drill rig was custom-designed to provide low-cost, early-stage drilling for the purpose of collecting groundwater, alluvium, and bedrock geochemistry samples at NGE's gold projects in Nevada's highly-prospective and under-explored covered basins. Based on the results of the Scorpion sampling program at Kelly Creek, NGE is successfully using its Scorpion drill rig to vector in to bedrock-hosted mineralization that can now be followed with conventional exploration methods.

NGE has completed 53 Scorpion drill holes at Kelly Creek, totaling approximately 4,560 m (15,000ft). The drill holes ranged in depth from 23 - 146 m (75 - 480 ft); and 38 of the 53 drill holes intersected bedrock. In addition to sampling alluvium and bedrock at 1.5 m (5ft) intervals, NGE collected approximately 490 groundwater samples, generally at 9 m (30ft) down-hole intervals. The Scorpion holes were focused along four fences across NGE's primary targets defined by earlier, wider-spaced groundwater sampling on a regional structure known to control mineralization at the Marigold gold mine, as well as along four additional fences across parallel target areas. Hole spacing varied from 50 - 400 m (160 - 1,312ft) along the fences, which were spaced between 150 - 1,000 m (490 - 3,280ft) apart.

The results of Scorpion sampling at Kelly Creek confirm that the enriched gold in groundwater seen in earlier programs is now supported by elevated gold and related geochemistry in both alluvium and bedrock at depth, as well as increasing concentrations of gold in groundwater at depth. Together, the groundwater results define a hydrogeochemical plume of elevated gold and related elements measuring 1.4 mile in strike length and 1 mile in width, beneath 150 - 800 feet of alluvial cover, which has now been closed off in one direction. The bedrock and alluvium sampling results within the hydrogeochemical plume have defined areas of significant enrichment of gold and related trace elements, including most significantly one drill hole containing 35 feet averaging 0.095 ppm Au at the bedrock-alluvium contact from 365 - 400 feet, which included two 10feet intervals averaging 0.149 ppm Au and 0.120 ppm Au respectively, as well as shorter intervals at the bedrock-alluvium contact containing from 0.100 ppm Au to 0.153 ppm Au in six other drill holes.