Shoreham clarifies mineral resource estimate disclosure

Shoreham Resources Ltd (C:SMH)
Shares Issued 54,189,300
Last Close 10/23/2009 $0.185
Monday October 26 2009 - News Release

Mr. David Bending reports

SHOREHAM CLARIFIES DISCLOSURE OF MINERAL RESOURCE ESTIMATES

As a result of a review by the British Columbia Securities Commission (BCSC), Shoreham Resources Ltd. is issuing the following news item to clarify its disclosure. Shoreham wishes to clarify certain issues surrounding disclosure of mineral resource estimates on the company's website and in relation to material distributed through news releases and promotional materials. The company has previously disclosed mineral resource estimates associated with its mineral properties in Ontario, Canada, and Marudi Mountain, Guyana, without providing sufficient cautionary language and other information required by NI 43-101. This news release also updates plans to file a technical report for the Marudi project that is compliant with National Instrument 43-101 reporting requirements.

Marudi Mountain (Gold)

The Company has, in the past, disclosed historic mineral resource estimates with respect to the Mazoa Hill deposit on the Marudi Mountain Project and its intention to prepare a technical report and resource estimate compliant with the standards of NI 43-101. Sutton Resources Ltd. and Vannessa Ventures Ltd. both issued News Releases regarding resources at Marudi and Mazoa.

On May 23, 1995, Sutton Resources Ltd. disclosed geological resources of 430,000 ounces for Mazoa and 82,000 ounces for Marudi. Sutton's June 28, 1995 news release disclosed a "total resource base" of 8,151,582 million tons grading 0.053 oz/ton (1.82 g/t) gold for 435,102 ounces of gold.

During 2002, 2003, 2004, and on April 25, 2005, Vannessa Ventures Ltd. disclosed a 1995 Sutton historical resource estimate including Mazoa Hill and Marudi, with a base-case 1 g/t gold cut-off. The measured and indicated class was 3,381,100 tonnes at a grade of 2.94 grams gold per tonne (g/t) for 319,595 ounces, and the inferred class is 860,900 tonnes at 2.45 g/t for 67,815 ounces. Vannessa's news releases indicate Kilborn did the estimate in 1995 as part of a negative "feasibility study".

Subsequently, on October 8, 2008, Shoreham disclosed a new inferred resource estimate citing "a non-complaint NI 43-101 pre-feasibility study of December 2004". The 1995 Kilborn resource estimate was updated in December 2004 and submitted to the Guyana Geology and Mines Commission (GGMC) in a "Feasibility Study" (as accepted by the GGMC) as part of the supporting documentation required for the application of a Mining License. The report submitted to the GGMC does NOT meet the definition in NI 43-101 of a feasibility or prefeasibility study. The Company therefore retracts references in its October 8, 2008 press release to a non-compliant NI 43-101 pre-feasibility study in December 2004, and on its prior website that Kilborn produced a pre-feasibility report in 2002.

The Company is not treating the results of the economic analysis in the GGMC report as material or as a preliminary economic assessment, and the resource base used is too speculative to have economic considerations applied.

The December 2004 study submitted to the GGMC contained a new inferred resource estimate of 11,500,000 tonnes grading 2.28 g/t (850,000 ounces of gold) based on a 0.50 g/t gold cut-off which was disclosed by the company in its October 8, 2008 news release. The Company retracts this statement from its October 8, 2008 news release. Shoreham has undertaken a review of the literature available which reveals that in 1995 Kilborn Engineering Pacific Ltd. prepared the "Feasibility Study" and Sutton supplied the geology and resource estimate section of the study. The resources provided in the Sutton and Vannessa news releases refer to "In-Pit" material defined by

Whittle 4D treatment of Kilborn's Datamine resource model and do not differ materially from data presented in Vannessa's December 10, 2004 GGMC Report". This quotes an "In-Pit" Geological Inventory at 1.0 g/t cut-off in the measured and indicated classes as 3,381,081 tonnes grading 2.94 g/t Au for a total of 319,590 ounces and an inferred class with 860,293 tonnes grading 2.45 g/t Au for 67,814 ounces using on the original 1995 Kilborn Resource model. This resource is based on mining the near surface portion of the Mazoa Hill deposit only and does not include mineralization identified in drill holes BELOW the pit, to the southeast of the pit and elsewhere on the property at Peace Creek and Marudi Mountain itself. No resources have been estimated for these targets.

Readers are cautioned that the references to resource estimates above are historical resource estimates. While the resource estimates and analysis were undertaken by competent professionals, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, Shoreham is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.

Subsequent comments in the Company's website cite economic parameters in support of proposed further exploration and evaluation for the Marudi Project, which should not be relied upon and have been removed from the Company's website. The Company specifically retracts comments on the website about operating cost estimates, recoverable value per tonne, and suggestions of positive economics. The economic projections cited are not supported by a current material economic analysis and should not be relied upon.

Upon review of the Company's technical disclosures and the comments of the BCSC, the Company has triggered the requirements to file a technical report under Section 4.2 of NI 43-101 to support the resource disclosure and economic analysis of the Marudi Mountain Project. In recognition of the need for timely and current disclosure, the Company has commenced preparation of an Independent NI 43-101 Report documenting the Marudi Mountain Project and all of its mineralized zones which we anticipate will be filed by November 15, 2009. An independent Qualified Person performed a site visit to the property on September 28 and 29, 2009. The updated report will include all historic data and also the results of Shoreham's work since 2007. Pending completion and publication of that report, it is important to advise the investing public that the historic estimates and projections cited in these previous disclosures should not be relied upon.

Canadian Prospects

The Company has included it its previous public statements references to historic resources concerning the Bearhead Lake, Setting Net Lake, Borland Lake and Berens River prospects located in the Province of Ontario, based on published sources including reports from the Ontario Geological Survey and geological technical Journals such as Economic Geology. The BCSC has indicated that more specific disclosure of the nature and uncertainty of these historic resources are necessary. In every case, investors are reminded that these are estimates of an historic nature for reference only and individual prospect descriptions vary among different publications and deposit/prospect descriptions vary significantly between sources. Shoreham has not completed sufficient drilling to confirm or modify these estimates but our field team considers the targets to be of sufficient interest to warrant the recommended work programs for their evaluation. The properties have been examined in the field by Qualified Persons and the Company's quoted historic reserves and resources gleaned from the published and reports vary significantly between sources over time, metal prices and the amount of drilling undertaken. The historical resource estimates have not been validated and must be regarded with caution. In the interest of proper disclosure compliance, references to these historic resources have been removed from the Company's website and corporate materials, while consideration will be given to re-insertion with appropriate cautionary language and supporting documentation in the near future.

Bear Head Lake (Uranium)

The Company's September 28, 2009 website discloses a "reported (but not NI 43-101 complaint) resource of 950,000 tonnes grading 0.08% U308." The Company retracts this estimate.

In our June 19, 2007 news release we provided details about a "historic indicated reserve estimate" of 889,829 tonnes at 0.06% U3O8 estimate by Kerr Addison Mines Ltd. and Delores Branch Resources Ltd in 1977. At that time we cautioned that the Company did not do sufficient work to classify the estimate as a current mineral resource, is not treating it as a current resource, and that it should not be relied upon. As described below, there is no reliable resource estimate for this property.

Shoreham notes that several Ontario Government publications reference Kerr Addison Mines Limited and Dolores Branch Resources as having drilled 29,871 feet in 66 holes during 1977 on the Bear Head Lake and adjoining properties. These publications are the basis for the Company's disclosure of a historic resource estimate of 978,810 tons (887,971 tonnes) averaging 0.06% U308 to a depth of approximately 500 feet at the Bearhead Lake Deposit. No public assessment files or private files have been located to support this estimate. Due to the lack of available corroborating information, the historical resources are at best comparable to a CIM inferred resource and are relevant as a target for further exploration. The few drill intersections available from 4 Holes drilled by Sigcasco in 1956 reported grades of (0.05% to 0.07% U308) over 20 to 38 feet. Some of the available drill logs report MoS2 assays as well which range from 0.06% MoS2 to 0.93% MoS2. There are at least 10 zones of mineralization extending over a strike length of about 8.4 km. that have historically been trench and subjected to varying degrees of diamond drilling.

Setting Net Lake (Molybdenum)

The website discloses a "reported (but not NI 43-101 compliant) resource of 100 million tonnes grading 0.09% MoS2 that we think will grade around 0.06% Mo metal". It also reports a "pre - NI 43-101 resources - the 100+million tonne Setting Net Lake Porphyry Molybdenum prospect". This non-compliant disclosure has been removed from the website.

Shoreham notes that various unclassified historic resources have been quoted for this project. The Ontario Mineral Deposits Inventory quotes 100 million tons of 0.09% Mo to a depth of 180 m (non-43-101 compliant - Minorex). However in the OGS 1990 Report of Activities for the area, a figure of 100,000,000 tons at 0.09% MoS2 is quoted which is 0.054 wt% Mo. According to Ayres et al. (1989) the grade of the eastern mineralized zone is 0.06% MoS2 which is 0.036 wt% Mo. The resources are not classified and there is significant discrepancy between the various reported grades. These variances appear to be the result of not clearly identifying whether the grades as reported (or compiled) were as %Mo or %MoS2 which were subsequently misconstrued or inappropriately converted or labeled. This resource is at best classified as a CIM inferred resource. It is relevant to justify further drill testing and exploration expenditures.

While the quoted resources are from within a zone of about 450 by 500 meters, the mapped outline of the veinlet hosted mineralized quartz monzonite extends for over 2,000 metres in a roughly east-west direction and about 400 meters in the north-south direction and is open to depth which strongly argues that the deposit is much larger than presently defined.

Borland Lake (Silver)

The Power Point presentation on the Company's website discloses a "historic probable reserve" but omits the quantity and grade required by NI 43-101. The historical "reserve" class is contrary to the website and technical report, which cite a "resource". This non-compliant disclosure has been removed from the website.

The September 28, 2009 website disclosed "about 500,000 tonnes of reported (but not NI 43-101 compliant) resources grading 277 g/t Ag (8.1 oz Ag/ton) and 1-2% Pb-Zn". It did not indicate its historical nature, and omitted information required by NI 43-101. The metals, quantities and grades are contrary to the technical report dated February 27, 2007 which gives a historical resource of 431,967 tons (391,880 tonnes) at 8.43 opt Ag and 0.02 opt gold. This non-compliant disclosure has been removed from the website.

Shoreham notes that the Favourable Lake (Borland Lake Deposit) was subjected to systematic programs of airborne and ground geophysics and drilling by Noranda, Massive Energy, and Astrabrun Mines during the period 1965 and 1986. The technical report dated February 27, 2007 gives historical resources of 431,967 tons (391,880 tonnes) at 8.43 opt Ag and 0.02 opt gold are based on Johnson (1986). A measured and indicated resource estimate of 502,412 tons (455,809 tonnes) with average grades of 8.09 opt Ag and 0.02 opt Au appeared in the Massive Resources Ltd. Preliminary Prospectus of August 6, 1987.

Readers are cautioned that the references to resource estimates above are historical resource estimates. While the resource estimates and analysis were undertaken by competent professionals, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, Shoreham is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon. This resource is at best classified as a CIM inferred resource. It is relevant to justify further drill testing and exploration expenditures.

Berens River (Gold)

The Sept 14, 2009 Agoracom Interview with Mr. Bending discloses that the Berens River Mine has "another A one-half million ounce resource". This statement supersedes the Company's news release of June 23, 2009, which confirms "several historical resource/reserve estimates" exist without disclosing any quantity or grade.

The Company wishes to clarify this previous disclosure regarding the quantity of gold in the historical mineral resource estimate as follows. The Berens River Mine property was recently acquired and historic data is available. Whether there is enough to be able to estimate resources remains to be seen. It should be noted that the historic resources and reserves quoted below were estimated on the basis of about $400 oz/Au and $5.50 /oz. Ag. Historical resources prepared by well known and competent consultants are available as follows:

No. 1 Shaft (No.1 Vein): Newmont Mining Corporation acquired Favourable Lake Mining and Exploration in 1926 and established a subsidiary, Berens River Mines. The mine was in production from 1939 to 1948 at a rate of 250 tons per day. A total of 560,607 tons of ore was processed with an average mill grade of 0.28 ounces per ton gold, 10.34 ounces per ton silver, 0.54% lead and 0.16% zinc (508,574 tonnes grading 9.59 g/t Au, 353.1 g/t Ag, 0.54% Pb and 0.16% Zn). Recorded recoveries of gold were 96.4% and silver 80%. During this period, the No.1 shaft reached a depth of 518 metres (1,700 ft) and a winze was installed at that level. A final depth of 990 metres (3,250 ft) was reached. However, no production has been recorded below the 518 metre level. The mine ceased operation in 1948 due to lower grade and metal prices and higher operating costs. A total of 75,000 tons of "drill indicated reserves" with an average grade of 0.21 ounces per ton gold and 10.20 ounces per ton silver was calculated by MPH Consulting for Getty Metals Limited in 1981. These "reserves" reportedly lie between the 762 metre (2,500') level and the 990 metre (3,250') level. The Company considers the No. 1 Vein "historic reserves" to be at best comparable to a CIM inferred resource and are not to be relied upon. The Company believes that these resources were based on limited widely spaced drill holes and a broad brushed approach with the aim of attempting to show that the No. 1 Vein continues to depth at grades similar to historical production.

No. 2 Shaft (No. 3 Vein): The primary exploration target is believed by previous workers to be the No. 3 Vein which lies 600 metres north of the Berens River mine and has been subjected to several historic mineral resource/reserve estimates in the 1980's. P.A. Bevan (1983) prepared a resource estimate of the No. 3 Vein as part of a feasibility study being conducted by Wright Engineering. His estimate can be found in the Ontario Assessment files. It is not known if the Feasibility Study was ever completed. Bevan's resource estimate was undertaken using Plans, Cross-Sections and Vertical Longitudinal Projections. Bevan estimated the following resources down to the 750 metre elevation based on a cut-off grade of 0.12 oz.Au/ton equivalent.

Class                      Tons                 oz. Au               oz. Ag           Au Equiv              % Pb    % Zn
 
Indicated                 861,312 0.218                4.43                  0.316                0.67      1.02
 
Inferred                   296,349 0.267                4.51                  0.407                1.02      1.33
 

Bevan remarks that there is potential to increase resources as in-fill drilling adds tonnage to untested portions of the resource model and that these resources only extend to the 750 metre level.

In our September 14, 2009 Agoracom Interview Mr. Bending stated that the Berens River mine has "another A one-half million ounce resource". The Company hereby retracts this statement and has removed the interview from our website.

The Company will be preparing NI 4-101 compliant Technical Reports on all of the above properties as soon as is practical and consequently will be issuing more specific News Releases clarifying the resource status on all of our properties citing the source documentation and providing complete disclosure and the appropriate cautionary language regarding the reliability of the source data.

The result of these changes will be a more conservative approach that follows correct reporting and disclosure policy which is in the best interests of all parties, particularly the shareholders and investing public. David Bending, President and CEO of Shoreham Resources Ltd. is a Qualified Person as defined in National Policy 43-101 ("NI 43-101"), and is responsible for all technical information cited in this news release. Mr. Bending states that: "We thank the BCSC for its guidance and input as we continue our work toward demonstrating the full value of our exploration projects in Canada and Guyana. We are pleased to make the required changes to our disclosures and will apply them carefully as the projects evolve."

For further information please visit our website at www.shoreham.ca or contact our President and CEO Mr. David A. Bending at 604-533-9288. Additional details concerning the company's projects and plans are accessible at www.agoracom.com.

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