Melkior Reports Results of December Drilling on Carscallen Gold Project

Ottawa, Ontario – Melkior Resources Inc. (“Melkior”) (TSX VENTURE: MKR) reports the results from three additional holes of its winter drilling program on its 100% owned Carscallen Project west of Timmins.   Melkior has approximately $4,100,000 in cash, which permits the company to continue and expand the exploration program in West Timmins. The Carscallen Project shares approximately nine kilometres of common boundary with Lake Shore Gold Corp.

Part of the November/December 2010 drilling program on the Carscallen project involved initial testing of targets generated by a downhole Induced Polarization (IP) survey conducted in the summer of 2010 (see news release of October 29, 2010). The main area of interest was a large, diffuse chargeability anomaly with its center at a vertical depth of approximately 575 m. To initially test the IP, two previously drilled Melkior holes were extended by about 200 m each, and another hole was drilled from surface. These holes have improved access for more geophysics in the region hosting the anomaly. A second round of borehole IP surveying has recently been completed; this survey will produce a better understanding of the location and characteristics of the chargeable zone. Results from the three drill holes include:

• 10.45 m @ 2.1 g/t Au in CAR-38X-2010  (approximate vertical depth: 560 m)
• 11.95 m @ 1.04 g/t Au in CAR-42X-2010  (approximate vertical depth: 540 m)
• 4.25 m @ 3.5 g/t Au in CAR-62-2010  (approximate vertical depth: 70 m)

CAR-38X-2010: Hole CAR-38X-2010 was extended from 638 m to 929 m at an azimuth of 240º and a dip of -50º.  The projection of the IP anomaly corresponds to a depth of 700 m to 750 m along the hole. It intersected a 10.45 m thick zone between 730.80 m and 741.25 m grading 2.1 g/t Au (Table 1). The mineralized zone consists of several pyrite stringers and quartz-pyrite veins hosted within a mafic volcanic rock.

Table 1:  Significant Results from Hole CAR-38X-2010

CAR-42X-2010: Hole CAR-42X-2010 was extended from 701 m to 899 m at an azimuth of 240º and a dip of -50º. The projection of the IP anomaly corresponds to a depth of 700 m to 750 m along the hole. The hole intersected a 11.95 m thick mineralized zone between 704.80 m and 716.75 m grading 1.04 g/t Au (Table 2). The mineralization consists of several quartz and pyrite veins and stringers hosted in mafic volcanic rocks.

Table 2: Significant Results from Hole CAR-42X-2010

CAR-62-2010: Hole CAR-62-2010 was drilled at an azimuth of 240º and a dip of -75º with a final depth of 656 m (corresponding to a vertical depth of 633 m). Mineralization was encountered near the surface, which corresponds to the ZamZam-Shenkman gold mineralized system. The 4.25 metre intersection is the shallowest intersection drilled on ZamZam. This indicates near surface continuity of the zone. A short zone of gold mineralization was found at the expected depth which corresponds to the downhole IP anomaly (i.e. between 555 m and 605 m vertical depth). A 0.6 m long interval grading 3.57 g/t Au was intersected between 582.7 and 583.3 m (Table 3). This mineralization consists of disseminated pyrrhotite (5%) and disseminated chalcopyrite (1%) which could explain the chargeable target. However, the mineralization style differs from the gold zones found in the two extended holes (CAR-38X-2010 and CAR-42X-2010) which consists mostly of pyrite.

Table 3: Significant Results from Hole CAR-62-2010

Significance

CAR-42X-2010 and CAR-38X-2010 encountered mineralization zones that were deeper than the 500 m depth level (vertical), thus opening the potential for more mineralization at depth along the approximate 1200 metre strike of the ZamZam Shenkman system. The gold occurrences in these two extended holes correspond well to the projection of the downhole IP target. However, the mineralization style between the two extended holes and hole CAR-62-2010 differs. CAR-62-2010 is the only hole encountered to date in which gold is associated with pyrrhotite rather than pyrite. Gold-bearing pyrite may also be present deeper as the surrounded holes suggested, but further work is required and these three deep holes will provide access to the area with the IP anomaly. A downhole IP survey at depth will provide the information to define more precisely the IP anomaly size and shape. The field portion of the IP survey was completed in January 2011. When the interpretation is available and all geological data from the seven holes of this program have been inserted into the model and interpreted, Melkior will resume drilling.

This Press Release was prepared by Dr. Eric Hebert, P.Geo and Dr. Tom Setterfield, P.Geo, both of Geovector Management Inc, and Qualified Persons under National Instrument 43-101.

About Melkior:

Melkior is a junior exploration company with active exploration projects in West Timmins and the Mc Faulds “Ring of Fire” areas of Ontario.  Melkior also holds a 49% interest in the Delta Kenty nickel-copper-platinum-palladium deposit in Ungava and has several other gold properties in Ontario and Quebec.

For more information:

Melkior Resources Inc.

Tel: 613.721.2919

Fax: 613.680.1091

E-mail: [email protected]

Web: www.melkior.com 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Melkior’s periodic reports including the annual report or in the filings made by Melkior from time to time with securities regulatory authorities.