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Goldrea Resources Corp updates NI 43-101 report for Rushan/Goldrea JV.

M2 EQUITYBITES-31 May 2010-Goldrea Resources Corp updates NI 43-101 report for Rushan/Goldrea JV(C)2010 M2 COMMUNICATIONS

Mineral exploration and development company Goldrea Resources Corp (TorontoVE:GOR) (Pink Sheets:GORAF) (Frankfurt:GOJ) reported on Friday that it has filed a revised Rushan Goldrea Gold JV Property NI 43-101 report, dated 6 May 2010.

This report revises the company's initial NI 43-101 report dated 1 May 2008 for the Rushan Goldrea Gold Inc and Goldrea Resources Corp joint venture.

The resource estimate used as input to the Rushan/Goldrea JV Report has been revised from 2.57 million tonnes at 2.11 grams per tonne to 2.67 million tonnes at 2.03 grams per tonne in the revised report. This reportedly reflects the application of a dilution factor and a refinement of the recovery estimates, which when applied to the cut-off grade precipitates these minor changes in the resource estimate with respect to tonnages and grade.

Also, a reference to a probable reserve in the company's 28 August 2008 news release is retracted and should be disregarded, as Goldrea has not done a pre-feasibility study to qualify same as a mineral reserve.

In addition, the 2008 news release quoted the net present value as USD6.77m and the internal rate of return of 35.6%. These calculations were done without the dilution factor applied. The revised report includes a 10% dilution at 0.31 grams per tonne gold and reflects the change to a net present value of USD3.27m and an internal rate of return of 24.5% based on a grade of 2.03 grams per tonne gold and the resource of 2.66 million tonnes.

Further, the revised report also includes sensitivity analysis for a range of gold prices up to USD1,100 per ounce, where net present value for the Golden Rose rises to 20.5 million dollars and an internal rate of return of 65%.

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Publication:M2 EquityBites (EQB)
Date:May 31, 2010
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