Melkior to acquire East and West Rim nickel properties

Melkior Resources Inc (C:MKR)
Shares Issued 76,729,958
Last Close 5/5/2008 $0.20
Tuesday May 06 2008 - News Release

Mr. Jens Hansen reports

MELKIOR ACQUIRES MORE NICKEL CLAIMS ON GRAVITY ANOMALIES

Melkior Resources Inc. has recently increased its landholdings and commenced exploration activity in the James Bay Lowlands where Noront Resources has made a significant nickel-copper-PGE (platinum group element) discovery. On March 27, 2008, Melkior announced its initial acquisition of a 50-per-cent interest in a group of claims located 33 kilometres northeast of the Noront Eagle One discovery. This property, East Rim nickel, covers a strong regional gravity anomaly.

Subject to regulatory approval, Melkior will acquire additional properties as follows:

East Rim nickel

The East Rim nickel property consists of 1,356 unpatented claim units totalling 21,696 hectares. Melkior has previously announced the acquisition of a 50-per-cent interest (see news issued March 27, 2008). Following the present acquisition, Melkior will acquire the remaining 50 per cent, subject to a 2-per-cent net smelter return royalty, 1 per cent of which can be purchased by Melkior for $2-million. These claims are on the east bank of the Attawapiskat River and adjoin the "Ring of Fire" (ROF).

West Rim nickel

The West Rim nickel property consists of 909 claim units totalling 14,544 hectares. Melkior will acquire all of the vendors' rights in an agreement entered into by Geotest Corporation, Geovector Management Inc. and a third party on March 12, 2008, in connection with the West Rim nickel property, subject to a 1-per-cent net smelter return royalty, 0.5 per cent of which can be purchased by Melkior for $1-million. The West Rim Nickel property is 20 kilometres due north of the Noront Double Eagle discovery and covers most of a second significant gravity anomaly within the "Ring of Fire."

The acquisition of the properties is made in consideration for a payment of $350,000 in cash and the issuance of 2.5 million common shares of Melkior.

Two of the six vendors are related parties of Melkior, namely Geotest Corp., whose president and director is Jens E. Hansen, who is also president of Melkior, and Norman Farrell, who is also a director of Melkior. The transaction will therefore constitute a related-party transaction within the meaning of Regulation 61-101 respecting protection of minority securityholders in special transactions, which will be exempted from the formal evaluation and from the minority approval with regards to the acquisition of the properties, as neither the fair market value of the securities being issued nor the consideration paid exceeds 25 per cent of Melkior's market capitalization.

Norman Farrell and Mr. Hansen will not receive any common shares of Melkior and have abstained from voting on the acquisition of the properties.

Following these acquisitions, Melkior will become a significant landholder in the Ring of Fire exploration area. Melkior will own an interest in 2,265 claim units or 36,240 hectares.

The East Rim nickel and the West Rim nickel claim blocks cover the majority of two significant gravity anomalies that straddle and partly coincide with the "Ring of Fire" magnetic trend.

The two gravity anomalies are of sufficiently large size and amplitude to suggest that they are caused by mafic/ultramafic bodies that could be the central intrusive source for the massive nickel-copper mineralization in the area. The major nickel camps of the world such as Sudbury, Thompson, Raglan, Norilsk and others have coincident or are adjacent to regional gravity anomalies and have magnetic signatures. The presence of widespread high-grade mineralization in the region, of mafic/ultramafic rocks and of gravity anomalies present a very promising exploration environment.

The ideal way to locate massive sulphide targets that are typically the hosts of nickel-copper mineralization within the "Ring of Fire" and the gravity anomaly environments is to employ deep searching geophysical techniques such as MegaTEM to be followed by ground surveys and drilling. Melkior has completed a MegaTEM airborne magnetic electromagnetic survey by Fugro Airborne Surveys and expects to receive the results within three weeks. Potential massive sulphide targets will be followed up by precise ground geophysics and by drilling.

Melkior is well financed to undertake this and other work with more than $4-million in its treasury.

For map showing the location of Melkior's properties with respect to Noront's discovery, the gravity anomalies and the magnetic, please refer to Melkior's website.

This news release was prepared by Mr. Hansen, PEng, president Melkior Resources, a qualified person under National Instrument 43-101.

© 2008 Canjex Publishing Ltd.