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Phase 1 Drill Program At Tanoyan Gold Project Successfully Completed

January 18, 2012

  • Phase 1 drilling completed with a total of 44 drill holes 5041.8 meters
  • 88% of drillholes intersected reportable gold
  • Updated 43-101 resource estimate to be undertaken
  • 10,000 meter Phase 2 drilling program to commence
January 18, 2012 - Reliance Resources Limited (TSX: RI) (the company) is pleased to announce a summary of its recently completed Phase 1 drilling program on the Tanoyan Gold Project, North Sulawesi, Indonesia
The Tanoyan Gold Project consists of five principal vein systems, Sondana, Ramai, Talong, Modupola and Lingkobungon, which are predominantly orientated northeast to southwest and dip steeply to the northwest or southeast. Drilling to date has primarily focused on the Sondana and Modupola veins.

The Phase 1 drilling program is now complete and includes a total of 5,041.8 meters over 44 drillholes Details of all drillholes are located in Table 1 ( http://www.goldenpeaks.com/i/misc/Drillhole-meters.jpg) and location of drillholes is shown on Figure 1 (http://www.goldenpeaks.com/i/misc/Tanoyan-Drill-Plan-location-Golden-Peaks-Phase.jpg)

This drill program was designed to increase the size and improve the classification of the existing 43-101 Inferred Mineral Resource of 2.22 Mt at 1.3 g/t for 91,100 ounces of contained gold. The company is confident that this successful completion of the Phase 1 drilling program has resulted in a material increase in the size of the mineral resource at the Tanoyan Gold Project.

Preparations are currently underway for the Phase 2 drill program which will include 10,000 metres of diamond drilling and is designed to further explore the potential of the Tanoyan epithermal gold vein system and to form the basis of ongoing studies to ascertain the commercial viability of a large gold mine at Tanoyan.

Phase 1 systematic drilling has confirmed that gold mineralisation along the Sondana Vein occurs over a strike length of approximately 2.0 kilometres, extending from surface to a minimum of 100 metres vertical depth over much of its length. The vein is still open to the north and open down-dip over much of its length. The Sondana vein includes drill intercepts of auriferous zones of up to 40 metres true width.

From surface indications, the Sondana Vein system extends an additional 1.1 Km north from TND 079 (32.1m @ 2.1 g/t Au) giving an overall strike potential of at least 3.1 kilometres. This northern extension will be a priority target during the Phase 2 drill program. (Inset A) http://www.goldenpeaks.com/i/misc/Sondana-Vein-Phase-1-Drilling.jpg)

Experience from drilling the Sondana North zone during the Phase 1 program has shown that deeper drilling intersected mineralisation of higher grade and greater widths than encountered in historical drillholes; also updated detailed mapping and surface sampling of the vein system, from Phase 1, has advanced the company's understanding of structural controls of the mineralisation.


The other vein systems at Tanoyan include, the Modupola-Talong and Lingkobungon Vein systems,
(Inset B) http://www.goldenpeaks.com/i/misc/Modulopa-and-Talong-drill-map.jpg); They have also provided significant intersections (TND076: 17.65m @ 3.8 g/t Au and TND056: 16.45m @ 2.0 g/t Au). In addition to following up extensions along strike and down-dip to known mineralisation at Sondana and additional drilling at the Talong-Modupola and Lingkobungon vein systems, Phase 2 drilling will also target the Ramai Vein located 700 metres west of Sondana (Figure 1).

This 1.7Km long Ramai Vein has only been tested by 6 historical drillholes, several of which intersected significant gold mineralisation such as TND037: 7m @ 5.3 g/t Au and 2m @ 5.2 g/t Au and TND018: 16m @ 0.6 g/t Au. The continuous nature of the Ramai Vein as seen on surface suggests it has similarities with the Sondana Vein.

President Scott Emerson commented: "The Phase 1 drilling program has been a significant step in advancing the Tanoyan Gold Project and drilling has provided consistently strong results throughout the program. We are looking forward to having the same success during the next Phase 2, 10,000 meter drill program which is aimed at further gold discovery and the delineation of a mineral resource sufficient to form the basis of, eventually, a large mining and milling operation. "

The company has a portfolio of five mineral tenements covering 68,000 acres on the islands of Sulawesi and Halmahera in East Indonesia.

The company is active on three of its five Indonesian gold projects; currently preparing for Phase 2 drilling on the Tanoyan Gold Project and conducting surface exploration programs, in preparation for drilling, on the Kapa Kapa Gold Project and the Roko Gold Project. All of the projects have easy access via paved and/or gravel roads and the regional infrastructure is good

The projects offer both exploration potential and an existing resource base. All five projects are adjacent to or along strike from operating gold mines or identified gold resources with similar geology and structural feature. Importantly, all projects have been converted to IUP tenements as required under the new Indonesian Mining Act (2009).
All samples were assayed by Intertek Indonesia; a division of the global Intertek Group PLC.

Core is collected and initially logged at Tanoyan Base Camp at the project area. The core is then securely transported in closed core boxes to Golden Peaks' Exploration Office in Kotamobagu, North Sulawesi. Here the core is logged in detail, cut longitudinally into 2 equal halves and half-core is sampled at 1 meter intervals; except where the geology dictates a lesser sampling interval. Half core is permanently retained, as a reference, in the secure Kotamobagu core-storage facility. All QC samples are introduced before the bagged samples are trucked to PT Intertek Laboratory's sample preparation facility in Manado. Prepared samples are then couriered by PT Intertek to their analytical facility in Jakarta for analyses.

Gold is fire assayed using a 50.0 gram aliquot sample with an AA finish. Multi-element analysis is by Four Acid Digestion using an Induced Coupled Plasma (ICP) finish.

The Company's QA/QC program now includes the regular insertion of blanks, multiple certified assay standards into the sample shipments. Locally-sourced blank samples are inserted in every assay batch of 10 samples. Commercial standards are inserted in every assay batch of 25 samples. Sludge samples are also collected and assayed on a 1 metre interval from the drilling fluid circulation return. Regular monitoring of these QC samples is a critical part of Golden Peak's QA/QC protocols.

This press release has been reviewed and approved by Mr. John Levings, B.Sc., FAusIMM, director of Golden Peaks Resources Limited and a Qualified Person as defined by National Instrument 43-101, under whose direction the exploration programs are being carried out.

Media Information, contact:
Scott Emerson, President
se@relianceresources.com

Investor Information, contact:
Mike Kordysz
mk@relianceresources.com

The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.

Table 2: Phase 1 Drill Results

DH No.

Vein

From
(m)

To
(m)

Interval
(m)

Au
(g/t)

TND045

Sondana

0.00

16.10

16.10

0.8

incl

4.10

4.90

0.80

4.3

TND046

Sondana

77.00

78.00

1.00

0.7

TND047

Sondana

did not effectively test Sondana vein

TND048

Sondana

44.20

49.20

5.00

2.9

TND049

Sondana

10.93

30.70

19.77

1.6

Sondana

132.10

134.50

2.40

0.9

Sondana

144.50

145.40

0.90

0.9

TND050

Sondana

55.60

71.10

15.50

3.1

incl

63.00

63.90

0.90

12.4

and

69.10

70.10

1.00

23.2

TND051

Sondana

14.60

22.30

7.70

0.9

TND052

Modupola

44.10

45.10

1.00

1.7

TND053

Sondana

18.00

30.30

12.30

1.7

TND054-R

Sondana

49.30

50.50

1.20

1.5

TND055

Modupola

did not effectively test Sondana vein

TND056

Modupola

73.90

90.35

16.45

2.0

incl

73.90

83.30

9.40

3.1

incl

73.90

78.50

4.60

5.7

113.45

115.70

2.25

7.1

TND057

Sondana

126.10

131.55

5.45

2.3

TND058

Modupola

124.75

127.75

3.00

3.2

TND059

Sondana

137.80

144.15

6.35

1.0

TND060

Modupola

no significant intersections

TND061

Sondana

60.30

79.65

19.35

0.9

incl

60.30

65.70

5.40

1.4

incl

74.75

79.65

4.90

1.6

TND062

Modupola

40.90

44.90

4.00

0.8

TND063

Sondana

17.30

24.60

7.30

7.2

incl

22.30

23.60

1.30

38.2

27.60

28.60

1.00

0.9

TND064

Modupola

79.25

81.35

2.10

8.7

86.50

90.75

4.25

0.9

138.30

139.30

1.00

1.0

TND065

Sondana

did not effectively test Sondana vein

TND066

Modupola

29.70

43.55

13.85

1.0

incl

40.00

41.90

1.90

3.5

TND067

Sondana

10.55

11.55

1.00

0.4

TND068

Modupola

77.70

79.10

1.40

2.3

TND069

Sondana

11.20

13.50

2.30

0.5

TND070

Modupola

51.10

65.00

13.90

0.8

incl

51.10

55.95

4.85

1.0

incl

62.20

64.00

1.80

2.4

TND071

Sondana

14.65

15.90

1.25

0.4

TND072

Modupola

57.15

58.55

1.40

1.0

TND073

Sondana

149.00

159.70

10.70

1.6

171.20

172.20

1.00

0.6

178.00

183.30

5.30

0.5

TND074

Modupola

63.30

67.10

3.80

0.5

78.20

87.80

9.60

1.1

100.40

107.00

6.60

1.3

TND075

Sondana

4.50

8.50

4.00

1.8

79.30

81.30

2.00

1.5

96.20

115.05

18.85

4.4

incl

98.25

100.25

2.00

33.0

TND076

Modupola

69.85

87.50

17.65

3.8

incl

81.10

87.50

6.40

7.8

TND077

Sondana

63.50

64.50

1.00

1.9

72.00

144.00

72.00

1.0

incl

116.10

129.00

12.90

2.4

TND078

Talong

11.70

13.70

2.00

1.4

19.70

24.35

4.65

1.5

28.90

31.50

2.60

0.9

TND079

Sondana

80.50

112.60

32.10

2.1

incl

105.50

110.60

5.10

4.6

TND080

Talong

intersected artisanal mine opening

TND081

Sondana

46.60

48.10

1.50

0.3

TND082

Talong

no significant intersections

TND083

Sondana

21.30

24.10

2.80

2.1

TND084

Talong

no significant intersections

TND085

Sondana

31.40

35.40

4.00

1.4

TND086

Ling Atas

31.55

36.9

5.35

2.0

36.1

36.9

0.80

8.8

63.75

64.9

1.15

1.2

TND087

Sondana

37.45

52.40

14.95

0.8

55.40

58.40

3.00

0.5


Drill hole data for the holes reflect down hole core lengths. True widths cannot be reliably estimated at this time

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