AUGUST 25, 2011 – MONTREAL, QUEBEC – Critical Elements Corporation (TSX.V: CRE) (US OTCQX: CRECF) (FSE: F12) (“Critical”) and Blue Note Mining Inc. (TSX.V: BNT) (“Blue Note”) are pleased to announce results of the recent Croinor diamond drill program which clearly demonstrate that Croinor’s gold mineralization extends substantially to the west and at a depth of at least 654m while still open in all directions.
“We are very excited with these results as they indicate that Croinor’s current reserve which is within 250m from surface may very well extend significantly both along strike and at depth”, stated Leon Methot, President and CEO.
Six of the seven holes from the 2,765 meters drill program were drilled between sections 650W and 810W to test the continuity of significant intersections from the winter drill program that included 21.70 g/t gold over 1.0 meter and 28.15 g/t gold over 1.0 meter in CR-11-395 on Section 750W (see press release dated May 18, 2011). Several intersections at a vertical depth varying from 200 to 285 meters, are interpreted as west extensions of mineralized zones in the current ore reserve.
New deeper gold mineralized zones were also identified and it is anticipated that additional resource will be developed to the west of the current ore reserves based on the positive results of the 2010-2011 diamond drill programs (Figure 1).
Significant gold mineralized intersections from holes CR-11-402 to CR-11-407 are shown in Table 1.
*Based on the current interpretation, holes CR-11-402 to CR-11-407 were drilled approximately perpendicular to the mineralized zones, and core length intervals in these holes are considered to closely approximate true widths. However, more detailed drilling is required to accurately determine true widths.
Mineralization at Depth – Hole CR-11-408
At Croinor, diamond drill holes are typically drilled from north to south and oriented to cut the mineralized zones at a high to perpendicular angle. However, hole CR-11-408 was drilled from south to north to follow the diorite sill at depth to investigate new potential mineralized zones. The hole was drilled to 751 meters (660 meters vertical). Numerous mineralized zones were encountered throughout the hole from a vertical depth of 51 meters through 654 meters.
Results from hole CR-11-408 clearly demonstrate that Croinor’s type and density of mineralization extend to 654m at depth and is still open in all directions.
Significant gold mineralized intersections from hole CR-11-408 are shown in Table 2.
*True widths of the mineralized zones in CR-11-408 could not be determined due to insufficient information.
A follow-up drill program is planned based on these latest results.
The drill program was carried out by Forages La Virole and was supervised by InnovExplo personnel under Carl Pelletier P.Geo., a qualified and independent person as defined under NI 43-101 guidelines. Gold values were determined by fire assay and AAS, or fire assay and gravimetric analyses if over 3 g/t, at the ALS Laboratory Group, Minerals Division laboratory in Val d’Or.
Arthur Hamilton, P.Geo., Exploration Manager for Blue Note Mining Inc. is a Qualified Person as defined under NI 43-101 guidelines and has reviewed the technical information contained in this release.
ABOUT CRITICAL ELEMENTS CORPORATION
Critical Elements is actively developing its 100%-owned Rose lithium-Tantalum flagship project located in Quebec. The project hosts a current new NI 43-101 compliant Indicated resource of 26.5 million tonnes of 1.30% LI2O Eq. or 0.98% LI2O and 163 ppm Ta2O5 and Inferred resource of 10.7 million tonnes of 1.14% LI2O Eq. or 0.86% LI2O and 145 ppm Ta2O5.
Critical Elements has commissioned a prefeasibility study for the project from Genivar, one of the largest independent engineering firms in Canada. Genivar is also doing an environmental study, and Acme Metallurgical Ltd. of Vancouver is carrying out project metallurgy.
Critical Elements’ portfolio also includes rare-earth and Tantalum-Niobium projects in the Rocky Mountains of British Columbia and in Quebec, as well as a 50% interest in the Croinor project, which is located in Quebec and hosts a current NI 43-101 compliant measured and indicated resource of 814,228 tonnes at 9.11 g/t Au, for 238,414 ounces of gold at a 5 g/t cut-off.
ABOUT BLUE NOTE MINING
Blue Note Mining is a mineral exploration and mining company headquartered in Montreal with properties located in known gold regions of Canada, including the prolific Val-d’Or region of Quebec and northern New Brunswick.
Critical Elements shareholders, please contact:
Jean-Sébastien Lavallée, P.Geo
President and CEO
Relations publiques Paradox
Blue Note shareholders, please contact:
Executive Vice President
(800) 937-3095 x 236
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company’s products, technical uncertainties associated with operating an underground mine and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.