10,000 metres of Drilling Recommended for Treaty Creek Property

Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) (“TFE”-Frankfurt) announces that it has recently received a copy of a summary report on the Treaty Creek property, dated May 31, 2010, from American Creek Resources. The report is written by Raul Sanabria Orellana, P. Geo., previously Vice-President of Exploration for American Creek, who notes that both the GR2 and Copper Belle mineralized zones remain open in several directions. Excerpts from the report are reproduced below in which Mr. Orellana recommends 9,000 to 11,000 metres of additional drilling work for these zones:

“The GR2 zone hosts the potential of a volcanogenic massive sulphide (VMS) deposit with high gold and silver grades. The identified feeder (sulphide-rich stringer zone) in a strongly phyllic altered rock and the bedded sulphides in turbiditic carbonaceous mudstone, along with coarse grained sulphides in a massive sulphide lens, appears to be either the proximal zone of the sulphide vent, or a deep low-sulphidation epithermal system, and indicates the great potential of this newly geologically interpreted area. The sulphide lens interpreted from 4 subparallel drill sections perpendicular to the strike of the mineralized zone, and 3 additional offset drillholes, appears to thicken towards the southwest. The same thickening occurs in the turbiditic sequence hosting the bedded sulphides. Gold values apparently increase towards the north, opposite to the sulphide rich zones, where sulphide content is increasing towards the south. Drilling the GR2 target along strike, stepping back from the known mineralization towards the northeast around hole GR2-09-07 and southwest following up with the sulphide rich zones found around hole GR2-09-11, will test the potential for the mineralization found at depth and along strike. A 4,000-5,000 metre drill program with less than 50 metre spacing between holes stepping back from the initial 2007 drillholes is recommended to test the continuity of the precious and base metal mineralization while continuing defining the ore bodies.

Drilling the Copper Belle target is recommended towards the west where the volcanic breccias are found. Copper Belle hosts the potential of a low-grade, bulk-tonnage gold-(copper-molybdenum) porphyry style of mineralization. Correlation between drillholes and surface is possible with a high grade of confidence and gold and base metal grades combined are in the range for a bulk tonnage deposit according to the current market conditions. A drill program of 5,000-6,000 metres, stepping back towards the west from the 2009 drill pads and with 75-100 metre spacing can be done in the higher grade zones for the purpose of better confidence in correlation between holes.

The various mineral zones explored during the 2009 program are described in the report as follows:

GR2 Zone

“The GR2 target is located in the vicinity of the Copper Belle, at higher topographic and stratigraphic level. Marked structural and lithological control, textures in sulphide mineralization as well as very elevated concentration of pathfinder elements such as arsenic, antimony and manganese values indicates an epithermal system with features of the feeder zone of a Volcanogenic Massive Sulphides (VMS) style of mineralization. Three styles of mineralization have been interpreted in core. Stringers and veins composed chiefly of quartz and pink manganoan dolomite/rhodocrosite, and minor galena, sphalerite and chalcopyrite. These veins show breccia and crustiform textures, typical of deep, low-sulphidation epithermal mineralization, or a combination of both. The second style of mineralization is found as well bedded sulphides (pyrite) in black mudstones of turbiditic origin, which indicates the presence of exhalative sulphides and a reduced basin where deposition and preservation of sulphides exist. The third style of mineralization is found as a zone of coarse grained sulphides, locally up to 20m thick, showing intensive silicification. The stratabound character of the zone indicates a possible lens of massive sulphide proximal to the venting zone, and not sinter as is typical of other epithermal systems. Elevated grades of gold and silver correlate with zinc and lead (sphalerite, galena and lead sulphosalts) in these zones, whereas gold is more commonly found in the fossilferous black mudstones-siltstones of turbiditic origin. Sulphide rich zones are characterized by the presence of massive galena and sphalerite, generally very corase grained, with variable amounts of silver sulphosalts and finely disseminated chalcopyrite. Pyrite is conspicuous within the phyllic (sericite-carbonate) altered host rock. The mineralized lenses and stringer-vein zones strike roughly northeast and dip steeply to the northwest.”

Hole GR2-09-07 intersected 14.5 metres @ 5.44g/t gold (including several high grade intervals within it: 1.50 metres @ 17.29 g/t Au that includes 0.40 metres @ 27.50 g/t Au).

Copper Belle Zone

“The Copper Belle target was drilled in 2007 and followed up during the 2009 season along strike toward the southwest, parallel to the surface alteration (gossanous) zone. The Goat Trail zone was drilled between the 2007 drill pad and the historic 1989 drillholes. The sulphide and gold rich areas are found on surface and at depth and trend roughly NE, dipping steeply to the NW. Several NE-SW fault zones offset the mineralized zones. The best and more consistent gold values are found in chlorite-sericite-pyrite altered volcanic breccias. Lower and more discontinuous gold values are found in feldspathic sandstones interbedded with pink and green chlorite and K-Feldspar altered andesitic ash tuffs, similar to the surface outcrops in the Goat Trail gossan. The volcanic breccias are found to the west of a regional NE-SW fault zone, and are hosting the bulk of the gold mineralization in the Copper Belle zone. Copper values are also elevated in this host rock.

During the 2009 season, hole CB-09-14, the most northwesterly hole drilled on this zone to date, returned 241 metres of 0.80 g/t gold and ended in mineralization.”

Eureka Zone

“A large AeroTEM airborne anomaly shows evidence of a porphyry style mineralization with epithermal overprinting. The AeroTEM airborne survey indicates that the anomaly is located just beneath the main gossan in the Treaty Nunatak. Sulphide enrichment at depth and towards the center of the anomaly found in drill core and the lack of base metals in soils may indicate surface leaching and presence of the sulphide mineralization at depth (porphyry style with high grade Au-Ag epithermal overprinting). “

Treaty Ridge Zone

“The Treaty Ridge zone is a new target located in the eastern part of the property. It is characterized by the presence of a strong EM conductor in a mudstone formation on top of a bimodal volcanic sequence comprised of basalts and dacite-rhyolite (Mount Dilworth Formation) rocks of submarine origin. Drainages from this unit reported strong values of zinc and silver in silt samples. The age of the unit is coincident with the age of the nearby Eskay Creek deposit.

The holes were collared stratigraphically above the mentioned mudstone formation and stopped in the rhyolite-dacite formation. Although no significant gold or silver intersections were encountered in the 2009 drilling, all three holes intersected several tens of metres of pyritic mudstones, appearing as thin beds of detrital pyrite, presumably of turbiditic origin. In the lower part of the holes, the beds also included very fine tuffaceous sandstone beds (pyjama beds) grading from cherty-pebble conglomerates immediately below. The Treaty Ridge will continue to be an area of focus in future exploration.”

The Qualified Person for the purposes of this news release is D. Cremonese, P.Eng. Mr. Cremonese has not independently verified the American Creek/Raul Orellana data.


D. Cremonese, P.Eng.

Teuton Resources Corp.

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