FOUNDATION RESOURCES INCREASES PRIVATE PLACEMENT

Foundation Resources Inc. (FDN: TSX-V) (the �Company�) is pleased to announce that due to increased interests it has increased the size of its non-brokered private placement to 14,000,000 units (each a �Unit�) at a price of $0.05 per Unit for aggregate proceeds of $700,000 (the �Offering�).
As previously announced on June 22, 2012, each Unit is comprised of one common share and one share purchase warrant. Each share purchase warrant (the �Warrant�) entitles the holder to acquire one additional common share for a period of five years, subject to 30 day accelerated conversion in the event that the closing price of the Company�s shares on the TSX Venture Exchange trades at $0.25 or above for a period of 20 consecutive days. The exercise of the price shall accelerate with the term of the Warrant such that the exercise price of the Warrant shall be $0.10 per share during the first year of the Warrant term, $0.15 per share during the second year, $0.20 per share during the third year, $0.25 during the fourth year and $0.30 per share thereafter.
The Offering is subject to the approval of the TSX Venture Exchange and any regulatory approvals.
Proceeds of the Offering will be used to further advance the Company�s Coldstream gold property and for general working capital purposes.
About Foundation Resources Inc.
Foundation Resources is a mineral exploration company focused on the exploration and development of its flagship Coldstream Gold Project located in the Shebandowan Greenstone Belt, 115 Km North West of Thunder Bay, Ontario.  The Company�s NI 43-101 resource estimate reported September 20, 2011 by Wardrop delineated a total inferred mineral resource of 763,276 ounces gold and an indicated resource of 96,400 ounces gold on the Osmani deposit, which is one of five highly prospective gold targets that Foundation has within this 16 km long Coldstream Gold Trend

On behalf of the board,


Ike Osmani, M.Sc., P.Geo.
President & Director