Cloudbreak Resources Makes Submissions in Saskatchewan for an Additional 102,000 Acres

Cloudbreak Resources Makes Submissions in Saskatchewan for an Additional 102,000 Acres

July 15, 2008 Filed Under: Coal Mining  

CLOUDBREAK RESOURCES LTD. President Blair Naughty is pleased to report Cloudbreak Resources Ltd. has applied for a 100% interest in a further 108 Coal Dispositions located on the east side of the Pasquia Hills of East-Central Saskatchewan. This acquisition is in addition to the 246 Dispositions already pending in the system. These Coal Dispositions are in proximity to the recently announced coal discovery by Goldsource Mines Inc., approximately 50 Kilometers north of Hudson Bay, Sask.

This now brings Cloudbreak’s applications for land permitting in the area from 20.5 townships (approximately 466,000 acres) to 29.5 townships (approximately 668,000 acres). Applications were made in accordance with the Coal Disposition Act of Saskatchewan and granting of permits is dependent upon regulatory requirements to process the applications

On May 5, 2008 Goldsource announced the results from 47 coal samples submitted from the Saskatchewan coal intercepts on two core holes representing 26 meters and 32.5 meters respectively of coal seam, including 22.6 meters of continuous coal in each hole. The coal was reportedly intercepted starting 80 meters below the surface.

Historical data and reports suggest that coal is present to the north edge of the Cretaceous rock sequence, along the shores of Wapawekka Lake to the north of the Adamas discovery. These reports further suggest that the Wapawekka outcrop is likely associated with a larger deposit to the south. The Adamas intercept is reported to be sub bituminous A quality, and is directly south of Wapawekka Lake, along the low-lying basin adjacent to the southeast of the Narrow Hills uplands.

The discovery by Goldsource of coal in two drill holes 1,600 metres apart, and the Adamas discovery, suggest the potential for a much larger coal system. The coal in the discovery areas is reported to be bituminous to sub-bituminous and was encountered in the Mannville/Swan River group of Upper Cretaceous age. Coal structures of the Upper Cretaceous age are reported to be generally very large and can encompass several thousand square kilometers.

To date the Cloudbreak Resources has received comfort letters on 4 townships. The company expects to receive clarification over the coming weeks on the remaining townships. The government office has just hired more staff to deal with the backlog of permit applications, and the company expects that this should expedite the processing of the backlog.

This news release has been prepared on behalf of the Cloudbreak Resources Board of Directors, which accepts full responsibility for its contents. The contents of this release have been reviewed and approved by Marvin A. Mitchell, P.Eng, a qualified person as defined by National Instrument 43-101.


Blair Naughty, President & Director


Contacts: Cloudbreak Resources Ltd. Rich Macey (604) 669-0401

(604) 669-0414 (FAX)

Cloudbreak Resources Ltd. Blair Naughty President & Director (604) 669-0401

(604) 669-0414 (FAX)

Source: Cloudbreak Resources Ltd.

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