Teslin River Resources Corp. and Eureka Resources Inc. Agree on Amendment to the Frasergold Project Option Agreement

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Teslin River Resources Corp. (TSX VENTURE:TLR) ("Teslin" or the "Company") is
pleased to announce that it has completed an agreement with Eureka Resources
Inc. ("Eureka") to amend the Frasergold project Option Agreement originally
executed on November 21, 2011 and subsequently amended on April 25, 2012.


The Option Agreement, as revised on April 25, 2012, required property
expenditures of CDN $1,206,678.31 be incurred by Teslin by December 31, 2012
with a further CDN $1,100,000 incurred by December 31, 2013 and a further CDN
$1,100,000 by December 31, 2014.


As a result of reduced investor confidence in the natural resource sector, which
has made financing junior resource companies challenging throughout 2012, Teslin
has had to recalibrate its exploration plans in line with the realities dictated
by the adverse current market conditions.


As part of this realignment of expectations Teslin entered into discussions with
Eureka, the owner of the Frasergold property, to advise them of the uncertain
market conditions and specifically the ability to fund ongoing exploration
activities. 


Following negotiations, the parties have agreed to amend the terms of the Option
Agreement. The property exploration program of CDN $1,206,678.31 scheduled to be
completed by December 31, 2012, has been 100% deferred to December 31, 2013. The
following two years of property expenditures of CDN $1,100,000 for each year has
also been deferred from December 31, 2013 and 2014 to December 31, 2014 and 2015
respectively.


As a consequence of rescheduling these property payments, Teslin has paid CDN
$25,000 of the CDN $50,000 payment scheduled by December 31, 2012 Eureka for
this accommodation.


Mr. John Icke, Chair and Interim President and Chief Executive Officer
commented, "Securing the Option Agreement amendment at Frasergold was very
important to the Company. Current market conditions are negatively impacting the
ability for many junior resource companies to maintain their exploration
momentum and the situation that Teslin has experienced is a prime example of
that anomaly. With this amendment in place, the Company has secured its option
position without penalty on an outstanding property which we believe has
significant upside potential. On behalf of the shareholders of Teslin, I would
like to thank the Eureka management team and Board of Directors for their
support in the realignment negotiations."


About Frasergold Project

The Frasergold Project, optioned from Eureka Resources Inc., is located in the
Cariboo Gold Camp, situated in the historic Quesnel Trough area of central
British Columbia and has a long history of continued exploration since the
1970s. A combination of quartz veins and knotted phyllites host gold
mineralization containing coarse free gold and finer grained sulphide bearing
gold. Previous operators identified a twelve-kilometre belt of gold
mineralization on the property through drilling, soil sampling, induced
polarization ("IP") geophysical surveys and surface exploration.


A prior NI 43-101 compliant resource was completed in November, 2009 -- "Report
on the 2007 and 2008 Drill Programs on the Frasergold Project" prepared by K.V.
Campbell and G.H. Giroux for Hawthorne Gold Corp. -- of 614,000 ounces of gold
Measured and Indicated and 1,225,000 ounces of gold Inferred at a cut-off of
0.30g/t gold. The prior resource is a historical estimate and a qualified person
for the Company has not done sufficient work to classify the historical estimate
as a current mineral resource. As a result the historical estimate is not being
treated as a current mineral resource and is not to be relied upon.


Teslin has the right to earn a 51% interest in the Frasergold Project by
spending $3,550,000 on the property and providing payments to Eureka totaling
$200,000 over a 4 year period ending December 31, 2015. An additional 24%
interest (totaling 75%) can be earned by completing a feasibility study. 


Dr. Michael Hitch, P. Eng, P. Geo. is a Qualified Person pursuant to NI 43-101
and has approved the contents of this release.


Cautionary Notes: Inferred mineral resources have insufficient confidence to
allow the meaningful application of technical and economic parameters or to
enable an evaluation of economic viability suitable for public disclosure.
Neither the Company nor readers can assume that all or any part of an inferred
mineral resource will be upgraded to indicated or measured mineral resource.
Most projects at the inferred mineral resource stage do not ever achieve
successful commercial production. Each stage of a project is contingent on the
positive results of the previous stage and that there is a significant risk that
the results may not support or justify moving to the next stage. Mineral
resources which are not mineral reserves, do not have demonstrated economic
viability.


About Teslin River Resources Corp.

Teslin River is an exploration company with interests in Nevada and British
Columbia. The Company focuses on precious metals exploration with properties
currently being explored in both Nevada and British Columbia. Existing
properties include the Frasergold Project and Rand properties in British
Columbia and the Mustang and Morningstar properties in Nevada.


ON BEHALF OF TESLIN RIVER RESOURCES CORP.

John Icke, Executive Chairman and Interim President and CEO

Forward-Looking Statements

Statements in this release that are forward-looking statements, are subject to
various risks and uncertainties concerning the specific factors identified in
the Company's periodic filings with Canadian Securities Regulators. These
factors include the inherent risks involved in the exploration and development
of mineral properties, the uncertainties involved in interpreting drill results
and other exploration data, the potential for delays in exploration or
development activities, the geology, grade and continuity of mineral deposits,
the possibility that future exploration, development or mining results will not
be consistent with the Company's expectations, accidents, equipment breakdowns,
title matters, labor disputes or other unanticipated difficulties with or
interruptions in production and operations, fluctuating metal prices, the
possibility of project cost overruns or unanticipated costs and expenses,
uncertainties relating to the availability and costs of financing needed in the
future, the inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price fluctuations,
currency fluctuations, regulatory restrictions, including environmental
regulatory restrictions and liability, competition, loss of key employees, and
other related risks and uncertainties. The Company undertakes no obligation to
update forward-looking information except as required by applicable law. Such
forward-looking information represents management's best judgment based on
information currently available. No forward-looking statement can be guaranteed
and actual future results may vary materially. Accordingly, readers are advised
not to place undue reliance on forward-looking statements or information.


The securities offered have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the United
States absent registration or applicable exemption from the registration
requirements. This news release does not constitute an offer to sell or the
solicitation of any offer to buy nor will there be any sale of these securities
in any province, state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such province, state or jurisdiction.