Trelawney completes resource estimate at Dorset zone

2007-10-31 08:43 ET - News Release

Mr. Wayne O'Connor reports

TRELAWNEY RESOURCES INC.: NEW GOLD RESOURCE ESTIMATE ON DORSET

Trelawney Resources Inc.'s first NI 43-101-compliant resource estimate has now been completed for the Dorset zone, Mishi project, located near Wawa, Ont. The initial estimate (using a cut-off of 0.50 gram per tonne Au) consists of an indicated resource of 40,000 ounces of gold (780,000 tonnes grading 1.42 g/t Au), and an inferred resource of 180,000 ounces of gold (4.76 million tonnes grading 1.19 g/t Au). Further details of this resource estimate, using cut-off grades ranging from 0.5 to 1.5 g/t Au, are summarized in the tables.

 Dorset - indicated resource    Dorset - inferred resource
         Tonnes     Grade                      Tonnes      Grade
 Au    greater     greater          Au      greater       greater
 cut-  than          than              cut-     than            than
 off    cut-off       cut-off            off      cut-off         cut-off

                           Au      Ounces                                 Au      Ounces
(g/t)  (tonnes)   (g/t)    gold       (g/t)     (tonnes)    (g/t)    gold

0.50   780,000  1.42   40,000  0.50  4,760,000  1.19   180,000
1.00   540,000  1.71   30,000  1.00  2,580,000  1.58   130,000
1.50   290,000  2.12   20,000  1.50  1,180,000  2.00     80,000

The independent mineral resources for the Dorset zone were estimated by Giroux Consultants Ltd. Gary Giroux, PEng, is the qualified person under National Instrument 43-101 responsible for the estimate. A technical report is being prepared by OreQuest Consultants Ltd. and will be filed within 45 days on SEDAR.

Wayne O'Connor, president and chief executive officer of Trelawney, states that:

"We are very pleased with the results of the resource estimate. This is the first time ever that a resource has been estimated on the Dorset zone, and we were able to accomplish this in a very quick time frame. We only commenced drilling in August of 2006, and to date, Trelawney has only drilled 92 holes. In mineral exploration, it is rare for exploration companies to convert mineralized occurrences into a resource or deposit with actual contained ounces of gold. For a junior exploration company, a resource calculation is always a significant step forward, providing a fundamental asset base for the company. And this is just the beginning. With the price of gold testing new all-time highs, our aim is to expand on this resource estimate, and to explore other areas of our vast landholdings in the Wawa area. Trelawney continues to be one of the most active exploration companies searching for gold in the Wawa area."

Trelawney is the largest landholder in the entire Wawa/Hemlo mining camp with approximately 21,000 acres now under its control. The company's neighbour, gold producer Wesdome Gold Mines Ltd., holds approximately 16,000 acres. Trelawney has assembled the largest land package in this area since the Hemlo staking rush in the 1980s. The consolidated property contains over 48 known gold occurrences attesting to the potential of the Mishibishu greenstone belt.

Trelawney is earning 50-per-cent interest in the Dorset property from MetalCORP Limited by spending $2-million on exploration; making cash and stock payments totalling $220,000 and issuing 900,000 shares over five years. Trelawney can earn a further 20-per-cent interest by completing a feasibility study and paying $100,000 cash and issuing 500,000 shares. On completion of Trelawney's option, a joint venture will be formed on either a 50-50 or 70-30 basis respectively.

Robert Duess, PGeo, is a qualified person as defined in National Instrument 43-101 and is responsible for the technical information presented in this news release.

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