Salmon River Extends Payment Terms for Treppo Grande and Continues Steps to Advance Transaction

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 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 no later than 14 September 2012. 


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

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 discussions with these potential investors regarding financing to fund
the payments to the Vendor and the exploration program and working capital
requirements. 


Recent decline in iron ore prices has created uncertainty in the marketplace,
however 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.


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 kilometres northwest of Kalgoorlie, comprising three
tenements covering approximately 396.7 km2. Completion of the acquisition of the
tenements is subject to conditions. 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 the Treppo Grande Option, 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 option. 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.