South Grass Valley Permit Secured And Drilling Contract Signed

RENO, NV – Nevada Exploration Inc. has completed the permitting process for additional drill sites and signed a contract for a deep-capacity diamond core rig to begin its next phase of drilling at its South Grass Valley Carlin-type gold project, located south of Nevada Gold Mines’ Cortez Complex. NGE expects drilling to begin in March. CEO, Wade Hodges, said, “Having confirmed the discovery of a large Carlin-type mineral system with our initial Phase 1 drilling program, and identified what we believe to be the major controls for mineralization with our Phase 2 drilling program, the objective of this next phase of drilling is to demonstrate that we can follow these controls to increasing concentrations of gold. Our geologic modeling has highlighted the importance of the regional-scale, north-northwest-trending Water Canyon structural corridor as the likely primary control for the mineralized hydrothermal fluid flow through the district, and the potential source of the stratigraphic-hosted mineralization that defines our main East Golden Gorge target. In addition to using these next drill holes to follow the geochemistry and alteration gradient at East Golden Gorge down dip along the favorable “Clm” stratigraphic unit, towards the Water Canyon structural corridor, we also plan to use a number of these holes to collect more information about the corridor – including testing for potentially-shallower mineralization similar to the structurally-related breccia-hosted mineralization at Cortez Hills to the north, as suggested by a series of intensely-silicified mineralized boulders in the mudflow units above the lower-plate limestones encountered in our Phase 1 and 2 drilling.”

To provide the flexibility to collect information from both East Golden Gorge and the Water Canyon structural corridor, the Company has modified its drilling permits to add drill sites further to the east in order to complete a number of drill holes angled back towards the west, designed to intersect both features. These new additional drill sites are now fully permitted and bonded. The anticipated depths for these initial holes are up to 1,200 meters. To complete these relatively deep holes, NGE has contracted Redcor Drilling, based in Carlin, Nevada, to provide a Longyear LF-230 drill rig and associated equipment. The Company’s drilling plan is to set casing through the alluvium and the volcanic units sitting on top of the prospective lower-plate limestone, and then to continue core drilling to the target depths. Drilling is expected to continue 24-hours, 7-days per week, and the Company expects each hole will take an average of five weeks to complete.