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Nirek Visits Gold Producing Property in Peru Prior to Completing Joint Venture Agreement

Posted on: Wednesday, 20 August 2008, 03:00 CDT

Nirek Resources Inc. ("Nirek") (Frankfurt:3N6)(Gold Warrant:CA6546411175) is pleased to announce a delegation has visited the gold property in Peru.

Accompanied by the management of AMR Project Peru S.A.C. ("AMR"), the group flew from Lima to Cuzco; then 200 kilometres inland in a SUV to the town of San Gaban, in the district of Ayapta. Then they went by motorboat up the Inambari River to the property.

AMR commenced two years ago setting-up a mining facility adjacent to the banks of the river.

The Nirek team, viewed first-hand the entire operation organized to output a minimum of 1 kilogram (35 ounces) of gold a day. Excavation equipment digs up the alluvial deposits and puts them in a large washplant that can process up to 50 cubic metres an hour. Sediment with the gold is collected in a centrifugal concentrator before final separation.

Under the terms of the joint venture, Nirek would contribute funds to build an infrastructure for housing workers and more equipment. Nirek management is confident that production can be doubled or tripled. With production projected at 75 ounces a day, using 315 working days at $800 U.S. an ounce, would mean a potential gross of over $18,900,000 U.S. annually.

The 500 hectare property has gold-bearing gravel deposits that originate in the eastern mountain range. Dr. Estanislao de la Cruz C., an engineer, calculated the mineral reserves of selected blocks (areas) on the property to be 781,000 square metres which at a depth of 3 metres gives 2,343,000 cubic metres based on the historic data in his report. The report pegged the average grade of gold at 2.1 grams per cubic metre, which converts to a potential 174,000 ounces of gold.

On the visit Nirek collected samples of the concentrate containing gold flakes to be analyzed. Based on historic metallurgical laboratory testing by Grupo Orandino S.A.C., Lima, the gold's purity should be at least 91.36% (22 carat) or higher.

Another impressive aspect is that the potential resource base, subject to confirmation, could be significantly higher than in the engineer's report which only referenced 16% of the property's total 1,235 acres (4,997,867 square metres).

After seeing the AMR operation and their method of mining of fine gold and coarse gold nuggets, Nirek is in the process of completing negotiations to acquire a 45% interest in the property.

About Nirek Resources Inc.

Nirek Resources Inc. ("Nirek") is a Canadian exploration company specializing on exploring for precious and base metals. The company is focused on acquiring gold and precious metal properties with proven reserves through a series of joint ventures, mine and property acquisitions.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings.

Outstanding Shares: 15,952,220

 Contacts: Nirek Resources Inc. Dave Coutts (416) 603-1555  Nirek Resources Inc. Investor Relations (416) 603-1555 Email: info@nirekresources.com Website: www.nirekresources.com

SOURCE: Nirek Resources Inc.

Source: MARKET WIRE

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