Chesbar Resources Inc. - Nickel Resource Update.

Business Editors

Measured, Indicated and Inferred Laterite Resource Estimates are

Up-Graded in Eastern Guatemala

Chesbar Resources Inc. ("Chesbar") (TSX:CBI) is pleased to announce the results of the recently completed resource estimate for their Sechol Nickel-Magnesium Laterite deposit. The Sechol property is located on the north shore of Lake Izabal, in Eastern Guatemala, adjacent to Inco's EXMIBAL nickel project. The resource estimate included a complete reassessment of all of the available geological data generated from historical and the most recent exploration programs using a nickel grade cut-off of l% and reports the resource categories following the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum adopted in August 2000.

                     Summary of Mineral Resources
SECHOL
------
Category  Million   % Nickel  % Magnesium    % Cobalt  % Chromium
          Tonnes                 Oxide                    Oxide

Measured    14.0      1.46       13.85         0.08       1.12
Indicated   23.0      1.34       11.79         0.08       1.34

TOTAL       37.0      1.39       12.57         0.08       1.26
-----------------------------------------------------------------

ADJACENT PROPERTIES:

Apart from the Sechol property, Chesbar's adjacent properties historically report nickel laterite mineralization that are estimated as undiluted, in situ, inferred mineral resources totaling 133 million tonnes, grading 1.51% nickel, using a 1% nickel cut-off and a dry density of 1.0 g/cm3.

These mineral resource estimates were prepared in accordance with the "CIM Standards on Mineral Resources and Mineral Reserves. Definitions and Guidelines" adopted by CIM council on August 20, 2000, using classical and geostatistical methods. There are no known environmental, permitting, legal, taxation, political, or other relevant issue that would materially affect these estimates. Mineral Resources which are not mineral reserves do not have demonstrated economic viability.

The Mineral Resources were prepared by Ricardo Valls, an independent consultant for Chesbar. Mr. Valls is a qualified mining engineer and geologist with 19 years of experience in laterite, gold, PGM and base metal exploration and is a member of the Order des Geologues de Quebec, the Canadian Institute of Mining, Metallurgy and Petroleum, the Geological Association of Canada, the Association of Professional Geoscientists of Ontario and several other professional associations in North America. Mr. Valls is the independent Qualified Person for this press release.

A starter open pit area of 0.5 km 2 was also identified within the Main Zone. This enriched area was identified using a Ni cut-off of 2%, a dry density of 1 g/cm3, and a minimum thickness of 1.5 metres, representing 5 million tonnes in the measured category grading 2.1% nickel, 18.4% magnesium oxide, and 0.08% Co. This enriched area was named El Inicio (The Beginning) by Chesbar personnel.

An independent technical report required by the Canadian Securities administration for compliance with Canadian National Instrument 43-101 has been completed by Mr. Valls, P. Geo. of Valls Geoconsultant. Mr. Valls satisfies the requirements of a Qualified Person as defined by the NI 43-101.

The technical report was independently reviewed by Watts, Griffis and McOuat who concluded that "the methods and assumptions described (in the report) are acceptable for a resource estimate. This opinion is based on Watts, Griffis & McOuat's knowledge and experience with this type of deposit." They also recognized that the report followed the guidelines of the National Instrument 43-101 and it is their belief that "the report is adequate and complete, and should be submitted to the appropriate regulatory authorities for review." The complete text of their letter of endorsement can be found on SEDAR.

The Mineral Resources have been estimated using a cut-off of 1% nickel, a minimum thickness of 1.5 metres, and a dry density of 1.0 g/cm3. The inferred mineral resources reflect historical estimates within Chesbar's adjacent properties that included only estimations for nickel. To put the scale of the project into prospective, the inferred resources characterize less than 20% of Chesbar's current land position in Guatemala. Mineral Resources are reported as in-situ Mineral Resources with no allowance for mining dilution or mining loss.

The volume for each category of Mineral Resources was estimated manually by multiplying the average thickness of the pits by the area of the zone calculated using AutoCAD, and using SURFER (v.8.0) which estimates the volume using the Trapezoidal Rule, the Simpson's Rule, and the Simpson's 3/8 Rule. All the volumes obtained by these different methods were within the same range of values, when rounded up to the most significant number. Grade estimations did not include statistical outliers and were normalized to the sample length (weighted average). This Mineral Resource Statement incorporates work that was undertaken by Transmetales Limitada (1974), Cominco Resources International Limited (1997) and Minera Mayamerica, S.A. representing the interests of Intrepid Minerals Resources Corp and Chesbar Resources Inc. (1997 - 2002). This work has been reviewed by Mr. Valls, including a site visit and a QA/QC of the assay and sampling techniques.

Chesbar has recently completed a CDN$1.4 million dollar private placement and is well financed to undertake the exploration program recommended by Mr. Valls. A copy of the technical report entitled "Summary Report of the Geology and Mineral Resources of the Sechol Nickel-Magnesium Laterite Deposit" as well as the letter of endorsement by Watts, Griffis and McOuat has been filed with each appropriate regulatory authority.

                   Trading symbol on the TSE: "CBI"
    For additional information on Chesbar Resources Inc., contact:
            Tel: [phone] E-mail: [e-mail]