THIS IS HUGE. Far step out hole 500m away from the current drill program hits even higher grade...!!

Good luck all longs we'll see how this does today

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Foundation drills 35.65 m of 2.1 g/t Au in Ontario

2010-10-05 07:57 ET - News Release

Mr. Paul Chung reports

35.65 M ZONE AVERAGING 2.10 G/T GOLD INTERSECTED AT COLDSTREAM'S NEWLY DEVELOPED SANDERS ZONE, ONTARIO

Foundation Resources Inc. has provided assay results obtained at the newly developed Sanders Zone from three recently completed drill holes of its 8,000 metre summer drill program on the East Coldstream Deposit (the "Deposit") located within its Coldstream Property in Ontario. Foundation, the operator of the program, has an option to earn up to a 70% interest in the Coldstream Property from Alto Ventures Ltd. ("Alto").

Key Point Summary:

35.65 metre-wide zone averaging 2.10 g/t gold including 4.42 g/t gold over 9.00 m and 4.72 g/t gold over 4.50 m

27.35 metre-wide zone averaging 1.06 g/t gold including 9.23 g/t gold over 2.20 m

The Sanders Zone is located approximately 500m northeast of the Main Zone and was not included in the historical resource (5.1 million tonnes averaging 1.4 g/t gold Non 43-101 compliant resource*) calculated by Noranda in 1990

Table of Significant Gold Assays

From To Width Gold
Drill Hole (metres) (metres) (metres) (grams /tonne)
C-10-37 43.90 53.60 9.70 1.06
(Sanders Zone)

C-10-38 64.65 92.00 27.35 1.06
(Sanders Zone)
including 80.05 92.00 11.95 1.82
including 89.80 92.00 2.20 9.23

C-10-39 96.60 132.25 35.65 2.10
(Sanders Zone)
including 106.55 130.95 24.40 2.97
including 108.00 117.00 9.00 4.42
including 126.45 130.95 4.50 4.72


All intervals are represented as down-hole core lengths. True widths are estimated at 70-75 percent of core length.

Drill hole C-10-37 intersected near surface gold mineralization. Holes C-10-38 and C-10-39 tested the interpreted northeast-trending plunge line below C-10-37 and both intersected significant gold. Hole C-10-39 intersected multiple higher-grade gold intercepts (4.42 g/t gold over 9.0 m and 4.72 g/t gold over 4.50 m) within a 35.65 metre-wide mineralized zone averaging 2.10 g/t gold. Results from C-10-39 verify that gold mineralization extends down plunge and is open at depth. Foundation also tested the Sanders Zone with one drill hole (C-10-22) as part of the 2010 winter drill program, intersecting a 27.46 metre-wide mineralized zone averaging 1.16 g/t gold.

The Sanders Zone is one of the four mineralized zones that make up the northeast-striking East Coldstream Deposit, which is approximately 1.5 km long. The Sanders Zone, located approximately 500 m northeast of the main zone and 125 m south of the East Zone, was drill-tested by Lacana Mining Corp. ("Lacana") and Alto in 1986 and 2006, respectively. The Sander Zone drilling results from Foundations 2010 winter and current programs are particularly significant because they are not included as part of the historic resources (5.1 million tonnes averaging 1.4 g/t gold Non 43-101 compliant resource*) calculated in 1990 by Noranda for three of the zones (North, Main and East zones).

Drilling continues to return positive results as the majority of holes drilled to date contain gold and have intersected wide mineralized zones with multiple intersections of high-grade gold mineralization in variable core lengths. Gold is associated with disseminated pyrite and occurs within strongly sheared and hydrothermally altered (silica, albite, sericite, magnetite and hematite) mafic to intermediate metavolcanic and intrusive quartz-feldspar porphyry rocks.

Additional results will be released as they become available. Please refer to Foundations July 20, 2010 news release for Quality Assurance and Quality Control procedures.

For more details regarding the Coldstream Property, please visit our website at www.foundationres.com.

*(Not a NI43-101 compliant resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon).

Ike Osmani, M.Sc., P. Geo., the President and the Qualified Person for Foundation supervised the drill program, has reviewed and approved this news release.

We seek Safe Harbor.