CORRECTION: Salmon River Extends Payment Terms for Treppo Grande and Continues Steps to Advance Transaction, Significant Fina...

The following corrects and replaces the release issued at 12:00 pm ET on July
26, 2012, for Salmon River Resources Ltd. The subtitle has been incorporated
into the main title, and each Figure has been linked separately. The complete,
corrected release follows.


Salmon River Resources Ltd. (TSX VENTURE:SAL) (together with its subsidiaries
individually and jointly referred to as "Salmon River" or the "Company") is
pleased to provide an update to its Press Release of June 25 and the final
results of its geologic mapping programme at Treppo Grande South (E77/1208).


Extension of Treppo Grande Option

Salmon River is pleased to announce that it has further extended the previously
announced payment terms on its agreement to acquire a 100% interest in the
shares of Treppo Grande Iron Pty Ltd. (the "Acquisition"), a private Australian
company which holds five granted tenements in the Yilgarn Craton of southwestern
Australia, including the highly prospective Treppo Grande iron ore prospects.
Under the terms of the extension agreement for the Acquisition (the "Extension
Agreement"), the Vendor has agreed to extend the date for the next payment of
A$4,000,000 to 3 August 2012.


A copy of the Extension Agreement will be posted on Sedar.

Advisory Agreement

To enable Salmon River to manage the negotiations and to settle outstanding
documentation in connection with various negotiations (any negotiations with
strategic investors in relation to a financing, off-take arrangement, marketing
rights and merger and/or acquisition and matters relating to both financings and
similar matters), Salmon River has, subject to the approval of the TSX Venture
Exchange, retained the services of KIH (HK) Limited ("KIH"), a subsidiary of
Sunwah International Limited, an affiliate of Excel Day Limited, a shareholder
of the Company holding approximately 26% of the outstanding shares, to provide
transaction management and advisory services. Douglas Betts, who is Chairman of
the Company, is also the President and CEO of Sunwah. The proposal from Sunwah
has been negotiated on behalf of Salmon River by Garry Stein, an independent
Director of the Company and Chair of its Audit Committee, and has been approved
by the Board with Mr. Betts abstaining from the vote. The compensation under the
contract is based upon fair market value for comparable services in Hong Kong,
where it is anticipated that most of the services will be provided. The contract
provides for payment of US$33,000 per month commencing 1 April 2012 and
continuing to and payable on completion of the Transaction and all related
matters, estimated to be prior to 30 September 2012, or termination and is to
include reimbursement for reasonable direct costs. Additionally, KIH will be
paid a success fee equal to one quarter of one percent (0.25%) of the aggregate
value of the Transaction and the related financing, contingent upon and payable
on closing of the Transaction.


Exploration Update

As previously announced (see our Press Release of 26 June 2012), the Company
engaged Digirock Pty Ltd ("Digirock") to carry out a program of 1:5,000 scale
geologic mapping over the southern part of their E77/1208 tenement covering the
Mount Manning Range, WA, which has potential for banded iron formation (BIF)
related iron ore deposits. The mapping program has particularly focused on
identifying and delineating the surface extents of hematite enrichment in BIF,
and down-slope detrital iron deposits derived from BIF, which may contain high
iron grades suitable for direct shipping ore, in the vicinities of the Hook,
Shank and Western anomalies that were previously defined by interpretation of
aero-magnetic survey data (See Figure 1).


To view Figure 1, please click the following link:
http://media3.marketwire.com/docs/sal0726Figure1.pdf.


On 25 June 2012, the Company previously summarized the results of a preliminary
report, based on eleven days of surface mapping between 11-21 May 2012 at a
1:20,000 scale and provided an account of the geology observed. During that time
Digirock mapped the Hook and Shank anomaly zones, over a combined strike length
of about 7 1/2 kilometre ("km") at the southern end of Treppo Grande South.
Salmon River has now received the final report on the surface mapping, which is
consistent with the preliminary report and continues to indicate the significant
potential of Treppo Grande South. Digirock geologists mapped and sampled the 60
square kilometre (km2) project area in 27 days of field-work, from 11th May to
6th June, 2012. The mapping program was principally focused on:




--  Identifying and delineating the surface extents of hematite-enriched
    zones in banded iron formation, and down-slope indurated detrital
    ironstone deposits. 
--  Mapping lithofacies variations and structure in the exposed banded iron
    formations. 
--  Rock chip sampling of banded iron formations and indurated detrital
    ironstones to obtain representative geochemical data. 
--  Reconnaissance of airborne magnetic anomalies that were considered to
    have potential for direct shipping ores.



The geologic mapping has indicated that the Mount Manning Range comprising of
the Treppo Grande tenements is composed of a 200-m-thick unit of banded iron
formation that crops out over about 13 km outlining a broad north-northwest
plunging synform. An iron rich facies of the banded iron formation composed of
greater than 40% magnetite + martite extends for 4 1/2 km along the southwestern
limb of the synform in the J-Hook area (See Figures 2 - 4). Three stratiform
lenses of apparently high grade hematite-goethite ironstone up to 700 metres
long are closely associated with the central section of that iron rich facies.
The most extensive zone of indurated detrital ironstone is likewise spatially
related to the iron rich facies of banded iron formation.


To view Figure 2, please click the following link:
http://media3.marketwire.com/docs/sal0726Figure2.pdf.


To view Figure 3, please click the following link:
http://media3.marketwire.com/docs/sal0726Figure3.pdf.


To view Figure 4, please click the following link:
http://media3.marketwire.com/docs/sal0726Figure4.pdf.


Previously, these iron-rich BIF units were classified in the preliminary mapping
report of 23 May as BIF with greater than 50% iron oxides and BIF with less than
50% iron oxides. The new iron-rich BIF facies classification in the final report
(i.e. BIF with greater than 40% iron oxides and BIF with less than 40% iron
oxides) is a reflection of the predominant and widespread classic banded BIF
composed of layers of very fine grained quartz with 40-70% iron oxides that were
geologically-mapped within the designated mapping polygon in the tenement. The
iron oxides are primarily magnetite, variably altered to martite and locally
oxidized to goethite in weathered outcrops. The strike length and thickness of
the iron-rich BIF unit is still generally the same at surface exposure.
Additionally, more massive hematitic ironstone units have been mapped where the
two previous diamond drill holes were collared/positioned. This is further
elaborated in the cross-sections provided in the report.


The results of this Mount Manning South mapping project, and reconnaissance of
some magnetic anomalies, indicate that the prime iron exploration targets are in
the J-Hook area. The known hematite-goethite ironstone bodies may have formed by
supergene processes related to weathering and accumulation of the detrital
deposit or, alternatively, by hydrothermal metasomatism focussed on inferred
northeast trending faults. The down dip extension is not yet determined but
preliminary drilling suggests a high probability of greater than 50m in depth
and geophysical interpretations suggest the potential for extensions to at least
250m. Determination of the depth extents, grades and continuities of those
hematite-goethite ironstone bodies and the down slope detrital ironstone
deposits, will require a systematic drilling campaign.


These results support the potential for substantial DSO hematite mineralization.

A copy of the Digirock report will be available shortly on the Company's website.

Indurated detrital ironstone (DID), formed by weathering, erosion, down slope
transport and cementation of hematiticgoethitic ironstone and BIFs, is fairly
widespread on the mid to lower slopes of the Mount Manning Range. It is
typically composed of centimetre to metre-scale angular clasts of BIF and
hematite-altered BIF in a matrix of compact earthy to botryoidal-vuggy
goethite-limonite (See Figure 5).


To view Figure 5, please click the following link:
http://media3.marketwire.com/docs/sal0726Figure5.pdf.


Detrital ironstone extends semi-continuously, for about 2 1/2 km strike length,
in a 50 to 200 metres wide zone on the mid to lower slopes along most of the
north side of the J-Hook anomaly zone. However, it is markedly diminished to a
discontinuous 10 to 50 metres wide belt along the western side of the Shank
Anomaly zone, apparently in accord with the strike extent and thickness of iron
rich BIF unit that peters out near 6679500N. Texturally similar indurated
detrital ironstone also exists in significant patches around the southern and
eastern sides of the Treppo Grande South, notably near the major synform hinge
and northwards, discontinuously to about 6681500N, and in small areas on the
north-eastern and southern flanks of the Western Anomaly hill. However, our
subjective visual estimates indicate that these outlying detrital deposits may
be of lower iron-grade, because they appear to be largely derived from
non-iron-enriched BIF facies.


The thicknesses of the indurated detrital ironstone zones are uncertain but
possibly in the order of about five metres thick, judging by the heights of the
small breakaway scarps that frequently mark their lower edges (See Figures 6 and
7). Elsewhere, the lower boundary of indurated detrital ironstone is poorly
defined by a cover of, or transition to, non-indurated talus of angular BIF
fragments and soil that extends for up to hundreds of metres outward on the
lowermost slopes.


To view Figure 6, please click the following link:
http://media3.marketwire.com/docs/sal0726Figure6.pdf.


To view Figure 7, please click the following link:
http://media3.marketwire.com/docs/sal0726Figure7.pdf.


The next phase of exploration work during the period to the end of 2012 will
initially focus on completing an updated Conservation Management Plan and a new
Programme of Work. This will allow for more intensive drilling at Treppo Grande
South and an extensive rock chip sampling programme to target outcropping BIF
and DID units. A small resource delineation drill programme is expected to be
completed during this period.


Financing and Other Negotiations

As noted previously, during the last several months, Salmon River has also been
involved in extensive negotiations with a number of strategic and financial
investors regarding funding for payments under the terms of the Acquisition
Agreement and for the furthering of the Treppo Grande Project. The Company
continues in discussions with a number of potential investors regarding an
approximately C$10 million financing to fund the payments to the Vendor and the
exploration program and working capital requirements. More details are expected
to be released shortly.


These discussions are at an advanced stage and the Company remains confident of
the ultimate success of these discussions, especially given the potential of the
Treppo Grande Iron Project. Any financing proposals will be subject to approval
by the TSX Venture Exchange and may require shareholder approvals. There can be
no assurance that these discussions will be successfully completed or required
approvals obtained.


Qualified Person

Mr. Hector Galam, B.App.Sc. (Hons) (App. Geology), M.Sc. (Geology), is a Member
of both the AIG and the AusIMM; and the Exploration Manager responsible for the
geological programmes on all the EL's referenced in this document. He is a full
time employee of the Company. Mr. Galam is a Qualified Person as defined in
National Instrument 43-101 and has assisted in the preparation of and approved
this news release in relation to the exploration update.


Salmon River has established and maintains a comprehensive quality
assurance-quality control (QA/QC) program.


ABOUT SALMON RIVER RESOURCES LTD.

Salmon River Resources Limited (TSX VENTURE:SAL) is a mineral exploration
company engaged in the exploration for and development of commercial deposits of
iron ore in Western Australia. It exercised its option to acquire five tenements
in the Yilgarn region of Western Australia including the Treppo Grande iron ore
project, approximately 210 km northwest of Kalgoorlie, comprising three
tenements covering approximately 396.7 km2. Completion of the acquisition of the
tenements is subject to certain conditions, including payment of approximately
A$100 million to the vendor. For further information see our website at
www.salmonriver.com.au.


Forward-Looking Statements:

This press release contains forward-looking statements that are based on the
beliefs of management and reflect Salmon River's current expectations. This
press release relates to the extension of terms for the Treppo Grande Iron
acquisition, further exploration and future financing requirements. The
forward-looking statements are based on certain assumptions, which could change
materially in the future, including the assumption that the current negotiations
will lead to definitive agreements, that the transactions and financings
contemplated herein will be completed, that Salmon River will be able to
complete on its exercise of the Treppo Grande option and that the Treppo Grande
property will ever be developed. By their nature, forward-looking information
involves known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking information. Such factors include the risk that the definitive
agreements contemplated may not be completed, that Salmon River may not complete
the financings in the amounts contemplated and that the Company may not complete
on its exercise of the Treppo Grande acquisition. There can be no assurance that
forward-looking information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements.
Accordingly, investors should not place undue reliance on forward-looking
information. Forward-looking information is provided as of the date of this
press release, and the Company assumes no obligation to update or revise them to
reflect new events or circumstances, except as required in accordance with
applicable laws. 


Statements in this release that are forward-looking statements are subject to
various risks and uncertainties concerning the specific factors disclosed under
the heading "Risk Factors" and elsewhere in the Company's periodic filings with
Canadian securities regulatory authorities. Such information contained herein
represents management's best judgment as of the date hereof based on information
currently available. The Company does not assume the obligation to update any
forward-looking statement.