Mr. Paul Sobie reports

CHURCHILL RESOURCES STARTS DRILL PROGRAM AND ENTERS INTO OPTION AGREEMENT TO ACQUIRE PROPERTIES AT TAYLOR BROOK, NEWFOUNDLAND

Churchill Resources Inc. has entered into an option agreement on properties that cover a portion of the TB magmatic trend at the Taylor Brook nickel property in Newfoundland. This option agreement consolidates 100 per cent of the prospective magmatic trend for the company.

Churchill is also pleased to announce that drilling operations are commencing today, as previously announced, with the first holes targeting compelling IP (induced polarization) high-chargeability targets on the TBSL-1 grid.

Terms of option agreement

Under the terms of the option agreement with the optionor, Churchill optioned four contiguous claims covering a one-square-kilometre area under one mineral licence. On execution of the agreement, Churchill paid $15,000 and agreed to issue 50,000 common shares within five days of receipt of regulatory approval. Subsequent option payments over the next 24 months include: (a) on or before the 12-month anniversary of the effective date of the option agreement: (i) payment of $25,000; and (ii) the issuance of 100,000 Churchill shares; and (b) on or before the 24-month anniversary of the effective date of the option agreement: (i) payment of $50,000; and (ii) the issuance of 200,000 Churchill shares.

Churchill also granted to the optionee a 2.0-per-cent net smelter return royalty on the properties, of which 1 per cent may be purchased by the company for $1-million.

Churchill may also satisfy $10,000 and $20,000 of the portions of the remaining cash payments under the term of the option agreement by issuing Churchill shares in lieu of such partial cash payment. The issue price for the Churchill shares, if and when they are issued, shall be the greater of: (i) the closing price of the Churchill shares on the TSX Venture Exchange on the date immediately preceding the date of announcement of the option agreement; and (ii) the closing price of the Churchill shares on the TSX-V (or on such other recognized stock exchange in Canada on which the Churchill shares are then listed) on the date immediately preceding the delivery of the notice to the optionee electing to issue Churchill shares in lieu of cash.

The option agreement, including the Churchill shares issuable thereunder, is subject to the approval of the TSX-V.

About Churchill Resources Inc.

Churchill Resources is a Canadian exploration company focused on high-grade, magmatic nickel sulphides in Canada, principally at its prospective Taylor Brook and Florence Lake properties in Newfoundland and Labrador. The Churchill management team, board and its advisers have decades of combined management experience in mineral exploration and in the establishment of successful publicly listed mining companies, both in Canada and around the world. Churchill's Taylor Brook and Florence Lake projects have the potential to benefit from the province's large and diversified minerals industry (which includes world-class nickel mines and processing facilities) and a well-developed mineral exploration sector with locally based drilling and geological expertise.

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