Grayd Announces Completion of PEA on La India Gold Project; 51% IRR and US$187 Million NPV 5%

   Grayd Resource Corporation (TSX VENTURE: GYD) today reported positive results from a Canadian National Instrument (NI) 43-101 compliant Preliminary Economic Assessment (PEA) for the Company's wholly owned La India Gold Project located in the State of Sonora, Mexico. Highlights include a 51% internal rate of return (IRR), a US$187 million net present value (NPV) (pre-tax, 5% discount rate), a nine-year mine life and nearly 850,000 ounces of gold produced.

Grayd President and Chief Executive Officer Marc A. Prefontaine stated, "The preliminary assessment is very good news and indicates the La India project is economically robust even at gold prices used in this study, which are well below what we're seeing today. We plan on moving forward rapidly with the next steps toward developing this project. In addition, we intend to continue drilling on Tarachi and other new targets we have identified that could add significantly to the project."

Assuming 100% equity financing, the PEA base case at US$950 per ounce gold indicates an IRR of 51% and a pre-tax NPV of US$187 million at a 5% discount rate based on one year of construction, nine years of mining and an additional one year of residual gold recovery and heap decommissioning. At the ten-day average gold price of US$1,355 per ounce, this increases to a 103% IRR and a US$441 million NPV (pre-tax, 5% discount).

The Preliminary Economic Assessment was conducted on an owner-operated scenario incorporating an open-pit mine and a 16,000 tonne per day heap-leach processing facility. The study was based on indicated and inferred resources using the resource estimate prepared by G. Giroux, P.Eng., that is detailed in a report titled, "May 2010 Measured, Indicated, and Inferred Mineral Resource Estimate, La India Gold Project, Municipio of Sahuaripa, Sonora, Mexico", dated June 15, 2010. Economic pit optimization was run using a US $900/oz gold price. Only oxide material was considered in the assessment. Mining and processing the sulphide mineralization that exists at La India represents an additional opportunity for Grayd and will be the subject of further studies.

Highlights of the Preliminary Assessment, using a base case price of US$950 per ounce gold in the cash flow model, include:

--  Base case pit containing 996,000 ounces of gold (49.4 million tonnes
    grading 0.63 g/t Au in situ) with a low strip ratio of 0.72 to 1 and
    overall metallurgical recovery of 84%. Mining loss and dilution is
    applied in the production schedule.

--  Average annual production of 92,000 ounces of gold over a nine-year mine
    life at a total cash cost of US$507 per ounce of gold.

--  Pre-production (year -1) capital costs estimated at US$72 million plus
    an additional US$32 million of sustaining capital over the life of the
    mine.

--  Project payback of less than three years after the start of production.

Based on the favourable results of the PEA, Grayd intends to initiate more detailed engineering studies on the project. Drilling is also planned on some areas adjacent to the existing resource aimed at providing incremental increases to the resource base for the project.

The PEA was conducted by a group of experienced internal and independent consultants under the auspices of Independent Qualified Persons, Jim Gray, P.Eng., of Moose Mountain Technical Services, Calgary, AB, Mark Smith, P.E., G.E., of RRD International Corp., Reno, Nevada and Matthew Gray, Ph.D., C.P.G., of Resource Geosciences de Mexico, Hermosillo, Mexico.

  Table 1: La India Preliminary Assessment - Financial Analysis - Pre-Tax
       Pre-Production (year -1) through final gold recovery (year 10)
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                               Undiscounted    NPV at 5%
                                  Cash Flow     Discount
                          Gold    (millions    (millions            Payback
Price Scenario         (US$/oz)          US)          US) IRR (%)     Years
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                          $850         $184         $124     38%        3.4
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Base Case                 $950         $267         $187     51%        2.6
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2 Week average (i)       $1355         $603         $441    103%        1.4
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(i) Source: www.kitco.com
    10 trading day average London PM Fix from Oct. 6, 2010 - Oct. 19, 2010


Table 2: La India Preliminary Assessment Summary (i)(ii)(iii)(iv)
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Production Summary
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Processed Tonnes (iv)                                  49.4 million
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Average Gold Grade (iv)                                    0.63 g/t
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Contained Gold                                           996,000 oz
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Weighted Average Gold Recovery                                  84%
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Recovered Gold                                           832,000 oz
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Processing Rate (Tonnes Per Day)                             16,000
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Mine Life (Years)                                                 9
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Average Annual Gold Production                        92,000 Ounces
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Estimated Costs
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Waste to Ore Ratio                                           0.72:1
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Mining Cost - Life of Mine ($/t ore)                          $3.52
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Processing Cost - Life of Mine ($/t ore)                      $3.45
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G&A Cost - Life of Mine ($/t ore)                             $1.42
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Total Operating Costs - Life of Mine ($/t ore)                $8.39
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Pre-Production (year -1) Capital Cost Estimate        $72.4 million
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Sustaining Capital Cost Estimate                      $32.0 million
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Total Capital Cost Estimate                          $104.4 million
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(i)   All monetary values in U.S. dollars.
(ii)  The PEA is preliminary in nature and there is no certainty that the
      PEA will be realized. Mineral resources that are not mineral reserves
      do not have demonstrated economic viability.
(iii) Base case metal prices of US$950 per ounce gold.
(iv)  Resources do not meet NI 43-101 requirements for Ore (reserve).

The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative, geologically, to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.

A technical report entitled "Preliminary Economic Assessment, "La India Gold Project, Municipio of Sahuaripa, Sonora, Mexico", will be completed within 45 days and will be filed on SEDAR. It will also be posted on the Grayd website at www.grayd.com.

Independent Qualified Persons under NI 43-101 and principal authors of the Preliminary Economic Assessment, Jim Gray, P.Eng., Mark Smith, P.E., G.E., and Matthew Gray, Ph.D., C.P.G., have verified the data disclosed in this news release.

The information in this news release may contain forward-looking statements. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expressions are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objectives, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date the statements were made. The Company does not update forward-looking statements continually as conditions change.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contacts: Grayd Resource Corporation Marc A. Prefontaine President and CEO 604-681-7446 604-684-9877 (FAX) www.grayd.com