Niblack Joint Venture Drilling Intersects High Grade While Expanding Lookout Zone at Niblack 14.7 Feet of 7.01% Copper, 10.59 g/t Gold, 20.48% Zinc, and 192 g/t Silver

Niblack Mineral Development Inc. and joint venture partner Heatherdale Resources Ltd. announce results for 20 new underground holes completed in the 2010 drill program at the Niblack volcanogenic massive sulphide (VMS) project in southeast Alaska.

Highlights from the new results include:

U090 with 44.1 feet of 1.51% Cu; 1.71 g/t Au; 4.73% Zn; and 26 g/t Ag

U095 with 15.1 feet of 2.44% Cu; 2.78 g/t Au; 1.65% Zn; and 64 g/t Ag

U103 with 38.3 feet of 3.76% Cu; 5.36 g/t Au; 14.33% Zn; and 111 g/t Ag

including 14.7 feet of 7.01% Cu; 10.59 g/t Au; 20.48% Zn; and 191.93 g/t Ag

Two underground drill rigs were deployed throughout 2010, and are currently working to expand the precious metals enriched mineralized body located adjacent to the Lookout Zone. The Lookout Zone is one of six known volcanogenic massive sulphide (VMS) deposits within the 10 square mile Niblack property.

“We are rapidly advancing our knowledge of the geology and mineralization on the Niblack Project with the ongoing two rig underground drill program. I am very impressed that the aggressive 2010 drill program has not only extended and expanded upon the Lookout Zone mineralization but has also encountered significant high grade intervals as exemplified drill hole U103. I am also very encouraged by the excellent thicknesses returning very good copper grades, plus significant gold, zinc and silver by-products that continue to be represented in the drill hole intercepts from the Lookout Zone,” said Niblack President & CEO John Williamson. “Another key result is evidence that the mineralization occurs as stacked sequences of replacement and massive sulphide zones. This combination adds both grade and tonnage to the deposit.”

The successful 2010 drill program focused on expanding resources in the Lookout Zone. The 2011 drill program will continue with this effort but will also involve testing other compelling exploration targets identified by the geological team based on their growing understanding of the geology and mineralization on the property.

“Many of the new target areas can also be drilled from underground by staging in the existing exploration drift, enabling the geologic team to test the new geological model during the next few months” stated Williamson.

The 91,800 feet of drilling in 76 drill holes that the Joint Venture has completed at Niblack since October 2009 was achieved from underground drill stations spaced along the adit. Holes were laid out in a fan pattern at each station, and were designed to cross-cut the mineralized target horizon at a number of elevations in areas southwest and south of the Lookout deposit. To date, the true widths of the intersections have not been accurately established; however, a new resource model is being developed that will corroborate the dimensions of the deposit outlined by drilling so far. Several holes in the table without significant results missed the prospective felsic package that hosts the mineralization. This knowledge has been incorporated into the deposit model and has resulted in new targets for drilling.

Important intersections from these 20 new holes are presented in the Niblack Assay Table below. Assays from the first 56 holes drilled (released previously) and a drill hole location section are available on the Niblack website at http://niblack.com/_resources/htr_nr_nibmineral_jan2011.pdf

Niblack’s location at tidewater on Prince of Wales Island in southeast Alaska presents a number of project benefits, including year-round marine access, a well-trained labour force, a mature supply and service sector, proximity to Asian markets, and the support of community and Alaska Native corporation partners. The project is located 27 miles (44 kilometres) from Ketchikan, a community of 8,000 people with important services to support project development, including a deep water port and international airport. The State’s burgeoning minerals industry also enjoys a competitive tax regime and stable, predictable permitting and regulatory oversight coordinated by the Alaska Department of Natural Resources’, ‘Large Mine Permitting Team’. For reference, Hecla’s Greens Creek, a 2,100-ton per day underground massive sulphide mine, operates 225 miles (370 kilometres) to the northwest of Niblack on Admiralty Island.

Peter Kleespies, P.Geol., a Qualified Person as defined under National Instrument 43-101, is supervising the exploration and quality assurance and quality control programs on behalf of Niblack and has reviewed the content of this release.