FDN Birch Hill Gold Corporation

Foundation Resources Inc. (TSX VENTURE: FDN)(FRANKFURT: 52F) ("Foundation") is pleased to announce that it has completed due diligence and formally signed an Option Agreement with Minera Aurum SA de CV and Francisco Javier Perez Gavilan to acquire a 70% interest in the San Rafael Project in Mexico. To earn a 70% interest, Foundation has agreed to make payments totaling US$400,000, issue 2,500,000 common shares, and incur an aggregate of US$2,000,000 in exploration expenditures on the property over a four-year period. The Vendor will retain a 1.5% royalty of which the Company has the right to purchase the entire Royalty by paying the Vendor US$1,500,000.

The San Rafael Property

The Property hosts a past producer, the San Rafael Mine (gold-silver), which consists of four levels, totaling about 400 metres of development, plus other short adits in other parts of the property. Recent sampling undertaken during due diligence of the Property returned very encouraging precious metal values. For example, a series of three continuous chip samples (#101012-101014), totaling 3.8 metres, taken across the back of the Esperanza adit, averaged 13.86 g/t gold and 175.88 g/t silver. Historical sampling from this area reportedly produced similar precious metal values (11.12 g/t gold and 234 g/t silver over an unspecified interval). Sample #101018 from the Esperanza dump returned 21 g/t gold and 6,600 g/t (or 6.6 kg/t) silver, exhibiting likely presence of polybasite with associated native gold or possibly electrum.

The 1,000-hectare San Rafael Property is located 154 kilometres west-northwest from the state capital city of Durango, Mexico, 30 kilometers to the northwest of the Tayoltita Mine and 34 kilometers to the southwest of the Bacis Mine. Year round access is by paved highway from Durango City to San Miguel de Cruces, 35 kilometers to the east of San Rafael, and continues on gravel and forestry grade roads to the Property. The hydro transmission line that services communities in the area and the Tayoltita Mine from the Las Truchas Hydro Dam lies 15 kilometers to the east of the Property.

Geologically, the Property is situated within the Sierra Madre Occidental, a northwest-striking, linear volcanic belt of Tertiary age. Approximately 4.5 km of a northwest-trending regional structure, the San Rafael Fault, is host to quartz veins, vein breccias and/or silicified zones on the Property. The San Rafael deposit is a structurally controlled, low sulphidation epithermal gold-silver vein deposit, similar to a number of epithermal deposits located along this northwest-trending structure throughout the Sierra Madre Occidental, from the San Dimas (Tayoltita) camp to the south to beyond the Topia Camp to the north. The San Rafael vein typically carries iron (hematite) and manganese oxides, native gold and silver in the form of sulfosalts (polybasite) and silver chloride (cerargyrite) with quartz, calcite and aragonite as gangue minerals.

Paul Chung, CEO of Foundation states, "We are very pleased with the recent acquisition of the Mitchell project in the Red Lake Mining District of Ontario and the San Rafael project in Durango State, Mexico, which is a very significant step towards building a precious and base metal portfolio to enhance share holder value. Further, our technical team has been able to identify and develop these assets, which gives shareholders an opportunity to participate in potential new discoveries as we develop the flagship East Coldstream Deposit."

Quality Assurance/Quality Control (QA/QC)

Assay samples were collected by Chris Basil under the supervision of Bernard Dewonk, P.Geo., who acted as the Qualified Person (QP) for Vancouver-based Coast Mountain Geological Ltd., the contractor for Foundation on the San Rafael Project. All samples, either chip channels or grabs, were placed in plastic bags, tagged and closed tight with twist ties and delivered by Chris Basil to the sample preparation facility of Inspectorate Laboratories in Durango, Mexico. The laboratory in Durango, using industry standard preparation methods crushed, split and pulverized samples and then shipped them to their laboratory in Sparks, Nevada, for analysis. Gold and silver were fire assayed with atomic absorption finish, and samples with values exceeding upper detection limits were subsequently re-assayed with a gravimetric finish.

Ike Osmani, M.Sc., P.Geo., the President of Foundation and the Qualified Person on the San Rafael Project, has reviewed and approved the technical content of this news release.

About Foundation Resources Inc.

Foundation is a mineral exploration company focused on exploration and development of gold and base metal properties in Canada and Mexico. Foundation's other properties, the Coldstream (gold) and Mitchell (base metal), are located in the Western Superior geological province of the Canadian Shield, which is noted for hosting prolific gold deposits in Ontario, Canada.

On behalf of the board,

Paul Chung, CEO

News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

CUSIP: # 350476107

ISIN CA3504761071

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Foundation Resources Inc. Paul Chung, MBA CEO & Director 604-681-0405 604-687-4670 (FAX) info@foundationres.com Foundation Resources Inc. Ike Osmani, M. Sc, P. Geo President & Director 604-681-0405 604-687-4670 (FAX) info@foundationres.com www.foundationres.com Rain Communications 1-877-614-6113 Nelson Da Silva 604-648-0523 (direct) Ralph Biggar 604-306-2525 (direct)