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Monday, September 10, 2007
Work Commences at Butarni Property, Far East Russia
With the recent completion of an agreement to acquire two highly-prospective gold projects in the prolific Magadan Region of Far East Russia, Golden Reign Resources Ltd. (the "Company") is very pleased to announce that work has commenced at the Butarni property.
The Butarni property, covering an area of 9.3 square kilometres, is situated approximately 310 kilometres north of Magadan, the capital city of the province. It is underlain by clastic sediments which have been intruded by a biotite granite stock with dimensions of approximately 3.0 km x 1.6 km. Five known mineralized quartz vein zones are outlined within the stock, with a length ranging from 700 metres to 1,500 metres. Major veins are between 0.1 and 1.5 metres in width, 100 to 150 metres in length and are accompanied by zones of parallel quartz veinlets. Previous grab and channel sampling returned values from 1 g/t to 334.4 g/t, with an average grade of 21.3 g/t gold from 45 selected grab samples and 29.6 g/t gold from 22 channel samples.
The Company has established a camp and mobilized exploration equipment, including a D-9 Cat. Work currently being conducted includes: extensive trenching; geochemical soil and grab sampling; and, geological mapping. Access to the property has been greatly improved by the recent upgrade of 7 kilometres of an existing mining road. The property itself is covered by placer mining roads, which provide excellent access to the numerous mineralized zones within the licensed area.
The second phase of exploration at the Butarni property will focus on further delineation and expansion of targets identified in the first phase of exploration activities. The Company plans an additional 3,500 metres of trenching across geochemical and geophysical anomalies. Upon receipt of positive results of the trenching program, the Company plans to complete approximately, 2,500 metres of diamond drilling to test the mineralization at depth.
The 2007 exploration program will build upon work conducted by Russian geologists in previous years. Work consisted of: trenching; channel sampling; detailed geological mapping; soil sampling; geophysical surveys; and, limited drilling. A number of coincident geophysical and geochemical anomalies have not been tested by trenching or drilling.
Approximately 1,500 metres of trenching has been completed to date. The trenches cross-cut the entire property, and are intended to test the geophysical and geochemical anomalies, which trend in a north-easterly direction. Mineralization exposed in the trenches will assist in the definition of drill targets. These trenches have been systematically channel sampled in one metre intervals across their entire lengths. Results are pending and will be released as they become available.
Previously, only the northern and western parts of the Butarni property have been explored. A sizable portion of the licensed area, approximately 40%, remains unexplored. A program of detailed mapping plus geochemical surveys are planned to test this unexplored area.
Other than prospecting, limited work was aimed at testing gold mineralization within the sedimentary rocks. Gold mineralization located within quartz veinlets distributed within the sedimentary rocks indicates the potential for a sediment hosted bulk tonnage gold deposit. Grab samples from these quartz veins returned values of up to 50 g/t Au and gold mineralization has been reported as far away as 300 metres from the intrusion. The presence of gold mineralization within the sediments demonstrates that gold deposition is not restricted to the granite stock as previously assumed. The combination of a large tonnage of mineralized rock and the gold grades from historical sampling suggest potential for discovery of an open-pittable gold deposit.
A National Instrument 43-101 technical report for Butarni property has been filed on SEDAR (www.sedar.com) and is also available for viewing on the Company's website at www.goldenreign.com.
Qualified Person
John M. Kowalchuk, P.Geo, an independent geologist and qualified person (as defined under National Instrument 43-101) has reviewed the technical information contained in this news release.
About Magadan
The Magadan Region is considered one of the world's richest mining areas, with gold being the main resource of the region. There are approximately 2,000 placer gold deposits, 100 gold ore deposits and 48 silver deposits. Total probable gold reserves in the Magadan Oblast are estimated at 4,000 tons (128,000,000 ounces) (source: Kommersant).
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX-V: GRR) mineral exploration company engaged in the business of exploring and developing a portfolio of precious metals and mineral assets in Far East Russia and Canada.
On August 23, 2007, the TSX Venture Exchange accepted for filing the formal agreement dated June 8, 2007 between the Company and Status LLC ("Status"), the mining division of CentroCredit Bank of Moscow, pursuant to which the Golden Reign has a right to acquire up to a 50% equity interest in Gold Mining Corporation LLC ("GMC") by incurring aggregate exploration expenditures totalling US$6,000,000 over a three-year period. GMC is a private Russian company jointly formed by Status and the Company to hold the 20-year comprehensive exploration-mining licences for the Butarni and Dorozhni mineral properties, both of which are located in the Magadan Region of Far East Russia.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.
On behalf of the Board,
"Kim Evans"
Kim Evans, CGA
Director & CFO
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of mineral properties interests in Russia, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management's best judgment as of the date hereof, based on information currently available.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
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