Hole #21 Cuts 7.93 Metres of 30.37 G/T at Clone

Oct. 5, 2009, Vancouver, BC: Teuton Resources Corp. (“Teuton”) (“TUO”) and Silver Grail Resources Ltd. (“Silver Grail”) (“SVG”) are pleased to announce that the second phase of drilling on the Clone gold property, situated 18km southeast of Stewart, BC, is now complete and wish to report the first set of drill results to date returned from Pioneer Laboratories. The remaining set of drill results are expected within the next 10-14 days.

Holes #15 to 21 are from the Trench 4 and 14 area. The major lithology is observed to be light grey to green andesitic pyroclastics intercalated with fine grained to aphanitic andesite. Clasts are subangular to angular, matrix supported, and range in size from 1-3cm. Quartz-calcite stockwork pervades the unit in moderate abundance. The mineralization is localized within highly silicified semi-massive to massive hematite-specularite and gold occurs as fine disseminations and is associated with the oxide mineralization. A diabase dyke has been observed in many of the holes, acting to minimize and in some cases deplete the mineralized zone.

Most of these holes cut high-grade intersections as follows:

Hole # From (m) To (m) Interval (m) Au (g/t)
15 14.63 17.07 2.44 14.05
16 13.72 21.64 7.92 20.22
18 22.56 31.09 8.53 3.61
46.33 50.60 4.27 26.23
19 6.10 12.19 6.09 2.09
20 4.57 24.69 20.12 7.11
16.76 24.69 7.93 15.28
34.44 46.94 12.50 7.39
21 11.89 19.81 7.92 30.37
11.89 13.72 1.83 115.80


Holes #16, #20 and #21 were particularly impressive. Hole #16 graded 20.22 g/t over 7.92 m. Hole #20 intersected two zones, the first grading 7.11 g/t over 20.12m and the second 7.39 g/t over 12.5m. Hole #21, the first hole of the second phase, returned bonanza values of 30.37 g/t over 7.93m. Because snow cover obscured the surface trace of the zone, true widths could not be calculated at this time.

Holes #6 to #12 were drilled in the vicinity of Trench 81, approximately 160m to the southeast of Holes 15-21. They were successful in intersecting sheared mineralized sections displaying local auto-brecciation, intense hematite alteration, chlorite stringers, and the cobalt containing mineral, erythrite.

Results are as follows:

Hole #        From (m)             To (m)   Interval(m)                   TW          Au (g/t) Coefficient
6               17.98               22.25                 4.27               0.940                 2.00
7               19.51               24.38                 4.87               0.867                 3.00
8               14.94               24.69                 9.75               0.745                 2.05
9               14.63               22.86                 8.23               0.985                 8.07
11               35.36               42.37                 7.01               0.500                 3.82

These holes returned lesser gold values over widths varying from 4.27 to 9.75m. True width coefficients are given in the table.

Holes #1 to #5 were drilled northwest of Trench #4 and did not return appreciable gold values. These holes were probably erroneously sited due to deep snow conditions.

Canasia Industries Corporation is funding the program and can earn a 50% interest in the property from joint owners Silver Grail and Teuton by expending $1.8 million over five years.

E.R. Kruchkowski, P. Geol., is the Qualified Person for the Clone project and has read and authorized this news release. Pioneer Laboratories of Richmond, BC, an accredited facility, is performing the analyses. A quality control program with blanks, standards and duplicates has been instituted.

“Dino Cremonese, P.Eng.”


Silver Grail Resources Ltd.

Teuton Resources Corp.

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