Shoreham enters revised agreement with Mulgravian

Shoreham Resources Ltd (C:SMH)
Shares Issued 71,434,798
Last Close 6/7/2010 $0.195
Tuesday June 08 2010 - News Release

SARDINE HILL GOLD PROSPECT: STATUS AND SUMMARY OF HISTORICAL DRILLING RESULTS

Shoreham Resources Ltd. (the "Company" or "Shoreham") (TSX-V: "SMH"), a Canadian exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in Guyana and Canada, is pleased to announce that the Company has received and commenced evaluation of exploration data from previous work on its 10,427 acre Sardine Hill - Mariwa Prospecting License area in Guyana (the "Property"). The Company has also entered into a definitve property option and joint venture agreement (the "Mulgravian Agreement") with Mulgravian Ventures Corp. ("Mulgravian"), which replaces and supersedes the letter agreement between Mulgravian and the Company announced in the Company's news release of December 30, 2009. As provided for in the underlying property option agreement (the"Underlying Agreement") pursuant to which the Company has the right to acquire an indirect 100% interest in the Property, and the Mulgravian Agreement, the Company has completed the acquisition of certain historical exploration data in respect of the Property, as summarized below, in consideration for three cash payments which total US$250,000.

SARDINE HILL HISTORICAL EXPLORATION RESULTS

Since February 11, 2010 Shoreham's exploration team has been receiving, reviewing and interpreting the results of historical exploration work dating back to 1994, including but not limited to geological mapping, systematic soil and deep auger sampling, artisanal production records, mechanized trenching and drilling. The date of formal commencement of additional exploration work on the Property will be determined by Mulgravian Ventures Corp., the funding partner under the terms of the Mulgravian Agreement.

International Roraima Gold Corporation
 
Commencing in 1994 and continuing to 2002, International Roraima Gold Corporation ("Roraima") managed line cutting, geological mapping, soil and auger sampling, seven trenches with a total length of 407 meters, 16 mechanized auger holes with an aggregate depth of 214 meters, and nine diamond drill holes totaling 917.8 meters on the Property.  The results from the exploration work predate National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and are therefore provided for historical context only.  Although the quality of the documentation suggests standards which approximate those dictated by NI - 43-101, results must be validated by additional work that is fully compliant with prevailing standards. The Company has received field worksheets, assays, geological maps and sections and some detailed drilling logs. Very limited historical assay certificates were included with the data received by the Company. The core storage facility at the Mariwa camp has deteriorated since the most recent work in 2002 and systematic audit sampling of the core is not possible.
 
Roraima's work concentrated on a 2.5 km long, 250 meter wide north - south corridor of exposure within the Property, a window in an area generally covered by transported sands which mask soil geochemical responses.   The soil and auger geochemical work delineated a north - south trending gold anomaly (based on the threshold of 100 parts gold per billion) about 250 to 400 meters wide (east - west) and 2.2 km long (north - south) with some local fault offsets   This window enabled Roraima to define gold geochemical responses which coincided with the western fringe of a swarm of bedrock electromagnetic conductors delineated by 'Turam' surveys by Cominco Ltd. during the 1960's.  These geophysical targets defined by this electromagnetic survey work were generally untested by drilling or geochemical surveys, although the known gold targets were associated with the most westerly of these electromagnetic responses.  The soil and hand auger holes mapped the Mariwa river anomaly which has been the focus of most of the work completed on the Sardine Hill - Mariwa Property.  The mineralized zones are weathered to saprolite to about 80 meters.
 
TRENCH RESULTS
 
The trenches completed in the mid 1990's total 407 meters but the results from the sampling are not completely documented in the files available to the company at this time.  Trench 1 had a sampled width of 65 meters (approximate true width 50 meters) including 41 meters (35 meters true) with an average grade of 1.63 grams gold per tonne.  Results from trenches 2 to 4c (five trenches) are not available.  Results from Trench 5, 750 meters north of Trench 1, showed values of 1.08 g/t across 82 meters including 28 meters grading 1.16 g/t (approximate true widths).
 
DRILL RESULTS
 
Section 8350 North includes META drill holes (completed with a portable drill using a 10 cm rod capable of sampling to about thirty meters in saprolite) numbered 1 to 8 at ten meter spacing across 80 meters in section 8350 North, along with Roraima diamond drill holes 1, 2, 3 and 3a.  The significantly mineralized sections in the META drill holes were distributed across a surface distance of 61 meters, which is the approximate true width of the sampled interval.  The values are summarized in Table 1 below.
 
Section 8350 North - Meta Drill Hole Summary                                                                  
Hole #                                         Bearing   Dip   Depth M   Au g/t Avg   Comment                 
Hole 1                                         270       60    20        2.97                                 
Hole 2                                         270       60    20        1.60                                 
Hole 3                                         270       60    20        2.28                                 
Hole 4                                         270       60    20        2.96                                 
Hole 5                                         270       60    20        0.89         west margin of target   
Hole 6                                         270       60    20        2.79         east margin of target   
Hole 7                                         270       60    19        0.40         west of target          
Hole 8                                         270       60    20        0.21         west of target          
 
Table 1: META Drill Holes in Section 8350 North.
 
Roraima Diamond Drill Hole Summary                                                                                                                                         
Hole #                               Sect.   East   Az/Dip   TD m        From m   To m     Interval m   Au g/t Avg   Comment                                               
DDH - 1                              8350    1950   270/45   102.00                                     NSV          east of target                                        
DDH - 2                              8350    1900   270/45   123.40      15.92    121.94   106.02       1.52         partial traverse, bottom in minz. transition zone     
DDH - 3A                             8350    1740   090/45   85.38       20.98    85.38    64.40        1.04         west margin, bottom in minz. saprolite                
                                                             including   39.18    85.38    46.20        1.18         (add to hole 2 for apparent target width)             
DDH - 3B                             8339    1730   090/60   200.00      0.00     191.34   191.34       0.54         west margin, intercept in saprolite, bedrock          
                                                             including   60.00    93.00    33.00        0.74                                                               
                                                             including   121.05   183.72   62.67        0.74         bedrock along west fringe of  target, term. in zone   
DDH - 4                              8450    1925   270/45   103.00      10.82    103.00   92.18        0.96         west margin of target                                 
DDH - 5                              8612    1823   090/60   136.00      12.00    37.00    25.00        0.25         in structural offset zone, missed target              
DDH - 6                              8600    1880   090/60   24.00       22.50    24.00    1.50         5.46         in structural offset zone, missed target              
DDH - 7                              8450    1845   270/55   90.00       0.00     61.00    61.00        1.36         west margin of target                                 
DDH - 8                              8100    1720   090/52   54.00       36.00    37.50    1.50         1.07         incomplete test                                       
                                                                         48.00    51.00    3.00         2.70                                                               
 
Table 2: Roraima Diamond Drill Hole Summary.
 
The META drill holes provided systematic sampling of oxide saprolite from the surface to about 20 meters in depth.  Historical Roraima drill hole results summarized in Table 1 and 2 are partially derived (all META drill holes, and DDH 5 through 8) from cross sectional and other summary data that are considered to be less reliable than compilations based on original assay certificates.  Roraima DDH 1 through 4 are summarized from original assay certificates.
 
Newmont Overseas Exploration Company
 
In fall, 1999 Newmont Overseas Exploration Ltd. ("Newmont") evaluated - the Property and completed additional work including 11 diamond drill holes totaling 869 meters.  Newmont drill holes were more widely distributed and were evidently placed to test exploration concepts rather than simple extensions to the gold mineralized zone.  The results predate NI 43-101 and are therefore provided for historical context only.  However, the quality of the documentation suggests standards that approximate those dictated by NI - 43-101, but results must be validated by additional work which is fully compliant with prevailing standards.  None of the drill holes tested the swarm of bedrock conductors east of the Mariwa River window and none of the Newmont drill holes tested the priority area which was the focus of the Roraima work.
 
Newmont Diamond Drill Hole Summary 1999 (including anomalous intercepts)                                                                                                            
Hole #                                                                     Section   East   Az / Dip   Depth m     From m              To m   Interval m   Au g/t Avg   Comment     
MSDH 1                                                                     7700      1700   090/65     65          48                  54     6            1.49                     
                                                                                                       also        0                   2      2            0.56                     
                                                                                                       and         12                  26     14           0.72                     
MSDH 2                                                                     7900      1650   090/65     62.5        32                  36     4            2.94                     
                                                                                                       or          26                  36     10           1.43                     
MSDH 3                                                                     8100      1755   090/65     100         20                  30     10           2.00                     
                                                                                                       or          14                  76     64           0.71                     
MSDH 4                                                                     8807      1675   090/65     74          14                  38     24           0.15         anomalous   
MSDH 5                                                                     9150      1860   090/65     100.5       40                  48     8            0.47         anomalous   
                                                                                                                   78                  84     6            0.55                     
MSDH 6                                                                     9500      1920   090/65     71.5                                                NSV                      
MSDH 7                                                                     9500      1800   090/65     50.5                                                NSV                      
MSDH 8                                                                     9148      1545   090/65     95.5                                                NSV                      
MSDH 9                                                                     9300      1845   090/65     83.5                                                NSV                      
Whitewater Creek target                                                                                                                                                             
MWDH 10                                                                    6598      4786   090/65     97          76                  80     4            1.46                     
                                                                                                       including   72                  80     8            0.83                     
                                                                           96        97     1          3.10        bottom 3.1 g Au/t   
MWDH 11                                                                    6800      4868   090/65     68.5                                                NSV                      
 
Table 3. Newmont Diamond Drill Hole summary.
 
Newmont diamond drill hole results summarized in Table 3 were derived from drill hole logs and were verified by cross checking with assay certificates.  The Whitewater Creek target tested by MDH 10 and MDH 11 is a discrete zone located about three kms southeast of the principal target at Sardine Hill-Mariwa.
 
Verification by QP This Evaluation
 
On November 15, 2009 Robert A. Lunceford, MSc., CPG, a technical advisor to Mulgravian and a Qualified Person as defined in NI 43-101 conducted a site examination of the Sardine Hill - Mariwa Property. To corroborate the presence of gold in the range of concentrations indicated in previous work programs on the Sardine Hill - Mariwa Property, seven saprolite, remnant core, and rock samples were collected. Results are summarized in Table 4.
 
Sample #   UTM E    UTM N    Description                                                     Au g/t   
RLSH-1     292029   729305   0.75 m vertical: weathered schist directly below Fe pisolites   0.291    
RLSH-2     292002   729305   Grab: from trench, weathered clay, schist                       1.966    
RLSH-3     291876   729081   0.5 m vertical cut: saprolite to weathered schist               0.171    
RLSH-4     291881   729084   Grab select: late 2 cm east-west strong FeOx, quartz vein       0.520    
RLSH-5     291901   728934   Grab: quartz breccia, strong hematite matrix                    1.079    
RLSH-6     N/A      N/A      Grab core : strongly foliated qtz sericite schist               0.029    
RLSH-7     N/A      N/A      Grab core : strongly foliated qtz sericite schist               0.431    
 
Table 4. Summary results of samples collected by R. A. Lunceford November 15, 2009.
 

Definitive Agreement

Pursuant to the terms of the Mulgravian Agreement, Mulgravian has the option to acquire a 51% working interest in the Property by making aggregate exploration expenditures and property acquisition payments on the Property of US$3,000,000 over three years and by investing C$1,500,000 in the purchase of common shares in the capital stock of the Company by way of a private placement (the "Mulgravian Private Placement"). The Mulgravian Agreement replaces and supersedes a prior letter agreement between Mulgravian and the Company concerning the Property which was originally announced in the Company's news release dated December 30, 2009. The Mulgravian Private Placement was closed on February 2, 2010 and received TSX-V approval on February 9, 2010. Shoreham will operate the exploration programs on behalf of Mulgravian and be entitled to a 10% management fee on all property exploration expenditures. The Underlying Agreement granted Shoreham Resources Ltd. the option (the "Underlying Option") to acquire all of the issued and outstanding shares of Mariwa Mining Company Inc. ("Mariwa"), which holds a 100% interest in the Property, as originally announced in the Company's news release dated December 30, 2009. Shareholders are referred to the Company's news release dated April 6, 2010 for additional details of the Underlying Option, Mulgravian Option, and the Private Placement.

David Bending, M.Sc., P.Geo., President and CEO of Shoreham Resources Ltd. is a Qualified Person as defined in NI 43-101, and is responsible for all technical information contained in this news release. 

Mr. Bending reports that: 

"The review and presentation of the exploration data which form the foundation of our evaluation of this major gold target are important for evaluation of the Property.  

We have long recognized the Sardine Hill - Mariwa property as an important gold development opportunity and these results will help to educate the public about the basis for our dedication to this program. 

The execution of a definitive agreement with Mulgravian Ventures Corp. is a formality but is another key milestone in Shoreham's program of growth in Guyana."
 
On behalf of Mulgravian, Robert A. Lunceford, M.Sc., CPG, a Qualified Person as defined in National Policy 43-101 ("NI 43-101") has also reviewed and approved all technical information contained within this news release.
 
For further information please visit our website or contact our President and CEO Mr. David A. Bending at 604-533-9288