Hudson Resources Identifies High Grade Rare Earth Mineralization at ST19 Zone in Sarfartoq Project

HUDSON RESOURCES INC. (TSX VENTURE:HUD)(OTCQX:HUDRF) has announced the discovery of a new zone of high-grade rare earth mineralization at the ST19 Zone, located nine kilometers south of the flagship ST1 Zone on the Company's Sarfartoq Rare Earth Element Project in Western Greenland.

James Tuer, Hudson's President, stated, "We are very pleased with these drill results from the ST19 area as they reinforce our belief that the Sarfartoq Carbonatite Complex has the potential to host multiple REE bodies. These drill results are consistent with the five surface samples collected over the zone in the spring that averaged 4.6% total rare earth oxides (previously reported September 22, 2010). This zone appears to be analogous to the light rare earth deposits found at Molycorp's Mountain Pass and Rare Earth Element's Bear Lodge projects with regard to the distribution of the various rare earth elements. There are numerous drill ready targets along the four kilometer ST19 radiometric anomaly which we will test when we re-commence drilling in the early spring. In the meantime, we are focusing on completing the initial 43-101 compliant resource model on the ST1 Zone and initiating metallurgical testing of the zone."

The ST19 area is located on the southern extension of the outer ring structure approximately 9 km south of the ST1 Zone. It lies within a large radiometric anomaly approximately 4000m by 500m along a valley with excellent rock exposure. The fall drill program tested five targets located within this anomaly.

Drill hole SAR10-25, located in the centre of the ST19 area, intercepted 12m of 2.3%, including 6m of 3.5% TREO. The other five holes, located 500 meters to the west of SAR10-25, intercepted varying amounts of mineralization up to 5.4% TREO over narrower intervals. The same was true for two holes drilled into the ST24 zone where surface samples generated multiple occurrences over 10% TREO. Although the ST24 results are inconclusive at this point, the area remains a high priority target for us given the large surface anomaly that is present.

Drill core is logged and sampled in the field and split core is shipped to Vancouver for processing at ALS Chemex. A strict QA/QC program is followed, which includes the use of elemental standards, duplicates and blanks. In cases where the entire hole has not been sampled, only significant drill intersections of carbonate mineralization were sampled. Core was split in the field with half of the core being sent to ALS Chemex and the remaining half left on-site for future reference. All samples are analyzed using lithium borate fusion, acid dissolution and ICP-MS analysis (ALS method ME-MS81h). According to ALS Chemex, this procedure solubilizes most minerals, including refractory species, and provides the most quantitative analysis for many elements, including the rare earth elements.

The Sarfartoq REE project is located within 20 km of tidewater and only 60 km from Greenland's international airport. The project is owned 100% by Hudson. The Company is well financed with current working capital of approximately $3.5 million and sufficient funds to cover all exploration and G&A obligations into 2011.

Dr. Michael Druecker is a qualified person as defined by National Instrument 43-101 and reviewed the preparation of the scientific and technical information in this press release in respect of the Sarfartoq REE Project.


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