Salmon River Resources: Detailed Laboratory XRF Assays From Drilling on E77/1208 (Mt Manning South) Indicative of Potential f...

Salmon River Resources Ltd. (TSX VENTURE:SAL) - 

HIGHLIGHTS



--  Detailed laboratory XRF assays have been received from Genalysis-
    Intertek for the core samples obtained from the two-hole helicopter-
    assisted scout diamond drilling program completed at E77/1208 (Mt
    Manning South) on November 24, 2011. 
--  Results largely validate the preliminary handheld XRF results for the
    core samples from the above drill holes as reported in the Company's
    Press Release dated 3 January 2012. 
--  Results are consistent with regional mapping and geophysics which
    demonstrate the potential for high-grade and Direct Shipping Ore (DSO)-
    style hematite iron mineralization based on these more detailed and
    representative laboratory XRF results with iron grades as high as 61.57%
    Fe and 68.82% Fe being returned for diamond holes MMS001 and MMS002,
    respectively. 
--  Significant drill hole intersections include: 
    --  Drill Hole MMS001 - 40.4m @ 55.54% Fe 
    --  Drill Hole MMS001 - 4.7m @ 50.04% Fe 
    --  Drill Hole MMS002 - 17.5m @ 65.53% Fe 
    --  Drill Hole MMS002 - 8.85m @ 42.73% Fe 



Salmon River Resources Ltd. ("Salmon River" or the "Company") is pleased to
announced the detailed and more representative Laboratory XRF assay results (as
provided by Genalysis-Intertek Laboratory in Perth, Western Australia) for the
initial two-hole helicopter assisted drilling program at the "J-Hook Area"
within E77/1208 (Mt Manning South) portion of its Treppo Grande Iron Project.


E77/1208 is located in Western Australia approximately 220km west by road from
the township of Menzies or about 130km north by road from the township of
Koolyanobbing (Figure 1 and 2). This update should be read in conjunction with
the previous update of 11 October 2011, which describes the tenement, geology
and the drill hole programme, and with the initial press release dated January
3, 2012, which reported the particulars for this drilling program and the
preliminary hand held XRF assay results from the core samples.


The drill hole details are shown in Table 1 below. The locations of the diamond
drill holes are shown in Figure 3 and 4.


All core were initially logged and photographed on site before being transported
to Kalgoorlie in Western Australia where they were then subjected to more
detailed geological mapping, photography and sampled accordingly based on sample
intervals nominated by a Salmon River-contracted geologist. Blanks and standards
were inserted as per the company's existing QA/QC sampling protocols. All core
were then cut in half using an Almonte core saw, with one half kept for
geological records and the other half bagged in pre-numbered calico bags and
submitted to Genalysis-Intertek Laboratory in Perth for routine XRF Fluorescence
Spectrometry analysis covering an Extended Iron Ore Suite.


Prior to submission of the core samples to Genalysis-Intertek, the nominated
core sample intervals were subjected to a preliminary XRF testing of their
averaged iron content using a handheld Olympus InnovX Delta DP 6000C XRF tool
provided and operated by an independently-contracted geologist from BM
Geological Services in Kalgoorlie.


The significant drill hole intersections, based on the laboratory XRF results,
are shown in Table 2 and confirms the potential for high-grade and Direct
Shipping Ore (DSO)-style hematite iron ore mineralization. As shown in Tables 3
and 4, the detailed and more representative Laboratory XRF assay results (as
provided by Genalysis-Intertek Laboratory in Perth, Western Australia) have (a)
largely validated the preliminary handheld XRF results; (b) predominantly
confirms the main mineralized intercepts (i.e. greater than or equal to 40% Fe)
encountered from the completed diamond drill holes; and (c) are consistent and
within the logged geology for the major zones of hematite iron enrichment.


To view Figures 1-4 and Tables 1-4 click on:
http://media3.marketwire.com/docs/sal.pdf


Laboratory XRF results with iron grades as high as 61.57% Fe and 68.82% Fe were
returned for diamond holes MMS001 and MMS002, respectively.


Doug Betts, Salmon River Chair, commented:

"We are pleased with the results to date from this initial scout diamond
drilling programme. The detailed and more representative laboratory XRF results
validates the potential for high-grade and DSO-style hematite iron ore
mineralization and further supports the company's understanding of the current
geological model that shows the on strike and down dip continuity on the
potential for a high-grade DSO hematite deposit in the "J Hook" area in the
southern portion of our Treppo Grande Iron Project (E77/1208). These updated
laboratory XRF assays for the core samples will enable us to plan appropriate
follow-up sampling, exploration and drilling strategies."


Salmon River will provide additional exploration updates as results become
available.


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.


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


About Salmon River Resources Limited (TSX VENTURE:SAL)

Salmon River Resources Limited 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 two tenements
covering Mt Manning (298 km2) and the Barlee tenement (98.7 km2). Completion of
the acquisition of the tenements is subject to certain conditions, including
payment of A$100 million to the optionor. Salmon River believes the Treppo
Grande project has the potential to be a world-class iron ore deposit with early
development potential. Salmon River has recently announced the signing of a
Memorandum of Understanding with General Steel Holdings Inc. ("General Steel")
providing for substantial future financing, off-take arrangements and the
provision of management oversight (see press release dated 4 November 2011). The
shares of Salmon River are listed on the TSX Venture Exchange under the symbol
"SAL".


For further information see our website at www.salmonriverresources.com.

On behalf of the Board of Directors of SALMON RIVER RESOURCES LTD.

J.G. Stewart, President

Cautionary Language and 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
exploration programmes of Salmon River. All statements in this discussion, other
than statements of historical facts, that address future exploration drilling,
exploration activities and events or developments that the Company expects, are
forward looking statements. Although the Company believes the expectations
expressed in such forward looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual
results, performance or developments may differ materially from those in
forward-looking statements. 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. Factors that could cause actual results to differ
materially from those in forward looking statements include the fact that the
Company must complete the acquisition of the tenements (which requires
regulatory and shareholder approval, execution of a definitive agreement with
GSH, completion of a minimum of $110 million in financing, all prior to April
30, 2012), the risks that mineral resources are not as estimated, the actual
results of exploration activities not being as anticipated, fluctuations in
commodity prices in general and iron ore prices in particular, and the
availability of capital and financing, and general economic, market or business
conditions. 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, readers
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.