Darnley Bay Discovers Two New Magneto-Telluric Anomalies

Darnley Bay Resources Ltd (TSX VENTURE:DBL) 

Darnley Bay Resources Limited ("Darnley Bay" or the "Company") is pleased to
announce the discovery of two new large magneto-telluric (MT) anomalies at its
100% owned Darnley Bay Property, located near Paulatuk, Northwest Territories.
Like the first MT anomaly - reported (see October 13, 2013 press release), the
new anomalies are spatially coincident with previously-discovered gravity
anomalies, are considered good to moderate conductive zones and appear to be
hosted by prospective Proterozoic rocks. They are located respectively two and
twelve kilometres east of the first MT anomaly. 


Darnley Bay received the latest 3D inversion results from EMpulse Geophysics
Ltd, the geophysical contractor. The new inversions not only used the magnetic
field tipper data, but also included static shift analysis to minimise near
surface geologic noise and to better image the apparent resistivity distribution
at depth (see EMpulse web site for more details http://www.empulse.ca/). 


The MT survey was performed in August 2013 and consisted of a total of 73
line-kilometres, with stations every 500 metres, over three different lines
(North, South and East). See http://www.darnleybay.com/news/Figure_1 and
http://www.darnleybay.com/news/Figure_2, 1:250,000-scale plan views, showing the
location of the surveyed lines and of the MT anomalies over gravity and magnetic
models backgrounds. http://www.darnleybay.com/news/Figure_3 is a stack of three
vertical profiles along the North Line; the two upper profiles show the MT
anomalies over a gravity and a magnetic models background; the lower profile
show the MT anomalies over a 2D geological model that honours the gravity, the
magnetic and the seismic data of this sector. The new 3D-inversion model
revealed:




1.  On the North Line, 12 kilometers east of the first anomaly, a 1.5x3.5
    kilometres anomaly with a maximum thickness of 800 metres, its center
    being at elevation -2,000 metres (below sea level), It is considered to
    be a moderate to good conductive zone with apparent resistivity values
    ranging from 32 to 8.9 Ohm-m 
2.  On the North Line, two kilometres east of the first anomaly, a 1.0 x 2.0
    kilometres anomaly with maximum thickness of 600 metres, centered at
    elevation -1,300 metres with apparent resistivity between 32 Ohm-m and
    15.1 Ohm-m 
3.  On the South and East Lines, three weaker anomalies (80 to 45 Ohm-m),
    with dimensions of 1.0x1.0-3.0 kilometres between elevations -1,000 to
    -2,400 metres. 



The extent, depth, conductivity and the geological setting of the three MT
anomalies on the North line fit the metallogenic exploration models Darnley Bay
is exploring for: either a copper-nickel magmatic model (example: Sudbury in
Ontario or Noril'sk in Russia) or an Iron Oxide Copper Gold model (example:
Olympic Dam in Australia).


"I am pleased by these latest results," says Jamie Levy, President of Darnley
Bay. "We now see two new conductive magneto-telluric (MT) anomalies, along with
our previously announced anomaly, on the North line. In addition, three less
conductive MT anomalies have been interpreted on the East and South lines. We
believe the north line has identified priority drill targets with favourable
geological and geophysical settings."


The Darnley Bay Property covers a total of 456,000 hectares with a series of
mineral concessions and prospecting permits obtained from the Inuvialuit
Regional Corporation and the Canadian Government. The Property encompasses what
is considered one of the largest and strongest coincident regional gravity and
magnetic anomalies in the world with dimensions of 80 x 100 kilometers. The
regional gravity anomaly has absolute amplitude of 132 mGal (milli-gals), while
the magnetism reaches 1,350 nT (nano-teslas). Darnley Bay staff believes the
source of this anomaly is a large and deep mafic-ultramafic intrusion, the type
underlying other base metal mining camps, with the potential for mineralization
being at shallower depth than the main intrusion itself. It is thought that it
was formed during the regional Franklin or the Mackenzie magmatic events, both
Proterozoic in age (720 million years and 1,270 million years respectively). 


Magneto-tellurics is a geophysical method of imaging the Earth's subsurface by
measuring natural variations of electrical and magnetic fields at the Earth's
surface. In the 1990's, MT was successfully used to locate mineral deposits as
deep at 1,750 metres in the Sudbury nickel mining camp. In the last 10 years,
the technique has seen many improvements, particularly with the development of
modern 3D inversion. In the oil industry, it is now routinely used, in
conjunction with seismic, to better define deep drilling targets. 


At the Voisey's Bay nickel mine, magneto-telluric survey data detected the
nickel-copper mineralization at depth, with apparent resistivities between 10
and 25 Ohm-m (http://www.cemi.utah.edu/appls/mt/) similar to the range of values
of the three MT anomalies detected on the North line last August on Darnley Bay
Property. Resistivity from the Darnley Bay MT anomalous zones may decrease once
the final processing of additional low frequency data is completed. Readers are
cautioned that the similarity of the survey results is not necessarily
indicative of mineralization on the Property. The magneto-telluric method only
measures variations in resistivity in the earth and MT anomalies can also be
caused by variations in resistivity due to large scale variations in lithology,
structure, and/or conductivity of disseminated minerals or pore fluids as in
sedimentary rocks. However, the fact that all the anomalies detected so far are
closely related to gravity anomalies (http://www.darnleybay.com/news/Figure -1-
http://www.darnleybay.com/news/Figure -2 ) suggests that the MT anomalies could
be produced by denser material than the surrounding rocks; metal-rich
lithologies and/or alteration zones being possible sources. 


Darnley Bay is waiting for more results from EMpulse; particularly the
processing and inversion of the extended bandwidth time series (to 1Hz) that
should provide information to depth of 3 to 5 kilometres. Darnley Bay is
planning to do more detailed MT surveying on each side of the North line, in
order to better define the attitude and orientation of the anomalies for an
eventual drilling program. Darnley Bay is also planning more MT surveying over
other selected areas on the Property. 


The 2013 MT survey on the Darnley Bay Property was performed by EMpulse
Geophysics Ltd, from Dalmeny, Saskatchewan (http://www.empulse.ca/). The
technique used for this survey is Transient Audio-Magneto-Telluric, with
proprietary SFERIC II instrumentation and Adaptive Polarization Stacking
algorithm. David Goldak, M.Sc. (Physics), President of EMpulse Geophysics, was
in charge of the survey in the field and responsible for the 3D-inversion and
the data processing. The technical information of this Press Release has been
prepared, reviewed and approved by Mr. J. Gauthier, P. Eng., P. Geo., the
Qualified Person as defined by National Instrument 43-101. 


The Company is very pleased to announce the hiring of Alan King as a senior
technical adviser. Mr. King is a geophysicist who most recently served as the
Chief Geophysicist for Vale's global exploration operations. Alan holds a B.Sc.
in geology from the University of Toronto and a M.Sc. in geophysics from
Macquarie University. Mr. King has worked as a geophysicist in exploration and
resource development globally, including in Canada, Australia, and Brazil, since
1976. Mr. King has been involved in the application of geophysics in mining, oil
sands development and environmental applications for a variety of commodities.
Mr. King currently acts as a geophysical consultant through Geoscience North. 


Forward-Looking Information

This release includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements of historical
facts, that address future production, reserve potential, exploration drilling,
exploitation activities and events or developments that Darnley Bay expects are
forward-looking statements. Although Darnley Bay believes the expectations
expressed in such statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those in the statements. There are
certain factors that could cause actual results to differ materially from those
in forward-looking statements. These include market prices, exploitation and
exploration successes, continued availability of capital and financing, and
general economic, market or business conditions. Investors are cautioned that
any such statements are not guarantees of future performance and actual results
or developments may differ materially from those projected in the
forward-looking statements. For more information on Darnley Bay, investors
should review registered filings at www.sedar.com. 


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Darnley Bay Resources Limited
Jamie Levy
President and CEO
[phone]
[phone] (FAX)
[e-mail]


Darnley Bay Resources Limited
Greg O'Halloran
Investor Relations
[phone]
[e-mail]
www.darnleybay.com