Mr. Michael Sweatman reports

TESLIN SIGNS LETTER AGREEMENT TO ACQUIRE QUEENSGATE AND ANNOUNCES FINANCING

Teslin River Resources Corp. has signed a letter agreement with Queensgate Resources Corporation proposing to purchase all the outstanding shares of Queensgate. The letter agreement proposes Teslin issuing one share for each outstanding share of Queensgate.

Queensgate is a private company registered in Quebec. Through its 100-per-cent-owned subsidiary in Nevada, Queensgate owns 100 per cent of the Mustang property and the Morning Star property in the Walker Lane mineral trend in Nevada.

About Mustang

The Mustang property comprises 66 claims that are 100 per cent owned by Queensgate. Surface sampling on the Mustang property in 2008 included 11.92 grams per tonne gold and 74.1 g/t silver collected on an adjacent claim within 60 metres of the boundary. An eight-hole, 1,800-metre reverse circulation drilling program is planned for the property.

About Morning Star

The Morning Star property comprises 97 claims with Queensgate having 100-per-cent mineral rights with a 3-per cent NSR (net smelter royalty). A 40-line-kilometre IP survey identified two significant drill targets for which an eight-hole, 1,500-metre reverse circulation drilling program has been planned.

"We are very pleased to be in the final stages of acquiring these excellent gold/silver targets," said Michael Sweatman, president and chief executive officer of Teslin. "We look forward to moving ahead quickly on the drill programs and further exploration as warranted."

The company also announces that it is proceeding with a non-brokered private placement to raise up to $1.25-million. The funds from this financing will be used to start exploration on the new properties and continue work at the Tagai property and as general working capital.

The financing will consist of 12.5 million units at a price of 10 cents per unit. Each unit will consist of one common share and one-half share purchase warrant. Each whole warrant will allow the holder to acquire an additional common share of the company at a price of 15 cents per share for a period of two years following the date of issuance of the unit. In the event the common shares of the company close for 20 consecutive trading days at an average price of 30 cents or above, the company shall have the right to accelerate the conversion of the warrants at the exercise price. Any warrants that remain unexercised will expire 30 days after issuance of notice of forced conversion by the company, which may be completed by way of news release.

Finders' fees may be paid on all or any portion of the private placement. The private placement is subject to regulatory approval and the securities will be subject to a four-month resale restriction.

About Queensgate Resources Corporation

Queensgate Resources Corporation is a private company, founded in 2008. Its principal interest has been exploring and developing epithermal precious metal resource potential in Nevada. Queensgate is currently developing two properties, both having sufficient work to develop drilling programs for the 2011 drilling season. The acquisitions and work programs have been led by John Kerr, whose has 40 years of expertise and experience in Nevada precious metal deposits, and Mr. Kerr will continue to provide similar opportunities to the management team of Teslin.