Mr. Murray Nye reports

DEMESNE RESOURCES LTD. CONFIRMS UNDERGROUND ACCESS TO TUNGSTEN VEIN SYSTEM, IMA MINE PROJECT IN IDAHO, USA

Demesne Resources Ltd.'s contract staff have successfully accessed the IMA tungsten vein system through the upper level of the historical IMA mine.

"Direct access the vein system underground is a significant benefit to the project and really puts us ahead on the development timeline," said Murray Nye, chief executive officer of Demesne. "This will allow Demesne to confirm prior underground sampling and development work completed by past operators and collect bulk samples for gravity separation testwork."

The IMA mine is a past-producing underground tungsten mine situated on 22 patented claims located in east-central Idaho. Between 1945 and 1957, the property produced approximately 199,449 MTUs of WO3 and was subsequently explored for molybdenum and tungsten by various operators between 1960 to 2008.

Between 1978 and 1982, Inspiration Development Corp. focused exploration on development of the quartz-tungsten-vein system, rehabilitating upper levels of the mine to complete underground resource delineation drilling and conducting metallurgical work. Inspiration planned a 300-tonne-per-day underground operation using inclined slot methods targeting the vein systems in the upper levels of the IMA mine. Inspiration planned to direct ship ore to a mill in Phillipsburg, Mon., for processing. Development work ceased in 1982 prior to recommencement of mining associated with a decrease in tungsten prices.

On Dec. 10, Demesne staff entered the underground mine on the upper D level, in an approximately seven-by-seven-foot access drift which had been rehabilitated in the 1980s. Ground conditions were excellent with minimal ground support observed. There was good natural ventilation and no underground water inflows were seen. The principal veins (No. 5 and 7 veins) are well exposed and vary in width from three-feet- to over-10-feet-wide with strike length of at least 400 feet on the D level. The veins consist of quartz with variable assemblages including pyrite, fluorite, hubnerite, scheelite, tetrahedrite, galena, sphalerite and chalcopyrite. Limited areas of the vein system had been partially stoped both above and below the level, but veins are unmined over hundreds of feet along strike as observed within the drifts.

The company plans to continue work to digitize and verify historical information and records in support of developing a National Instrument 43-101-compliant mineral resource for the IMA mine, in conjunction with initiating project planning and tradeoff studies, and planning for sample collection activities for verification and metallurgical studies.

About Demesne Resources Ltd.

Demesne Resources is a British Columbia-based company involved in the acquisition and exploration of magnetite mineral properties. The company's Star project consists of five contiguous mineral titles covering an area of approximately 4,615.75 hectares located in the Skeena mining division, British Columbia, Canada. The company has entered into an option agreement pursuant to which it is entitled to earn an undivided 100-per-cent interest in the Star project. Demesne has also entered into an option agreement, pursuant to which it can acquire a 100-per-cent interest (subject to a 2-per-cent royalty) in and to the IMA mine project, a past-producing underground tungsten mine situated on 22 patented claims located in east-central, Idaho, United States.

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