Vancouver B.C.: TNR Gold Corp. (the “Company”). The Company is pleased to provide our shareholders with an update on TNR Gold Corps’s activities over the past year and an outlook of its objectives for 2011 and beyond.

TNR has recently completed a major endeavour, the successful completion of a plan of arrangement entailing the spin-out of TNR’s lithium and rare metals subsidiary, International Lithium Corp (ILC:TSXV). As a testament to the merits of the projects, ILC was able to solicit and secure a strategic investor in Jiangxi Ganfeng Lithium Co. Ltd., a prominent lithium product manufacturer. TNR retains 29% ownership in ILC and will continue to benefit from the future potential of lithium and rare metals.

Following the successful listing of ILC, TNR can now fully focus on the gold and rare earth element (“REE”) projects that it has been readying for this juncture. One prime example to the strengthening of TNR’s core project portfolio is in the recent consolidation of 100% ownership of the Company’s Shotgun gold project in Alaska, from NovaGold. The Shotgun Project is situated in a prolific world class gold region with previous operators estimating a non NI43-101 compliant historical resource of 980,000 ounces grading 0.93 gram per tonne at a cut-off of 0.5g/t Au. TNR’s goal for the coming year is dedicated to proving and expanding the mineralization at Shotgun and seeking a major partner to assist in the development of this large gold project.

In Argentina, in addition to the work that our joint venture partners such as La Mancha and NGEX Resources are performing on our properties, TNR will focus on its El Tapau project, which has experienced limited drill coverage consisting of 7 holes with one reporting a significant intersection of 82 metres grading 0.49% Cu that has not been followed up on. The company has also recently discovered five historic drill holes drilled on or near the property boundaries internal to our large claim concession, which had returned significant grades of gold, silver and copper. This year, the Company will attempt to validate these remarkable historic results as well as drill the untested geophysical anomalies proximal to this zone to demonstrate the significant potential of the property.

In addition, TNR has bolstered its project portfolio and expanded its commodity exposure with the addition of two new properties, the Big Beaver House and Seabrook REE projects. The Big Beaver House boasts one of the largest carbonatite complexes in Ontario at 5 by 5 kms in scale, has experienced limited historic drilling with only a partial suite of REE elements analyzed for and when reanalyzed relatively recently by the Ontario Geological Survey reported Nd+La+Ce grades up to 3,200 ppm indicating significant total REE potential. These early stage REE projects will be explored throughout the summer with the resulting advancement providing the basis to entice a strategic partner to help finance continued development of these assets.

Throughout the last three years, TNR has also been seeking resolution on its ownership status of the Los Azules, an advanced-staged exploration project in San Juan, Argentina which hosts one of the largest undeveloped copper resources in the world.

In May 2011, following a two-day hearing before the British Columbia Supreme Court, TNR and its subsidiary, Solitario Argentina S.A., have been granted leave to amend their pleadings to add a new claim to the litigation (the “New Claim”) over the Los Azules project in Argentina. The litigation involves TNR, Minera Andes Inc., MIM Argentina Exploraciones S.A. (“Xstrata”) and related entities. The Los Azules project is an advanced exploration project currently reporting a National Instrument 43-101 compliant Inferred Resource.

The New Claim alleges that Xstrata and Minera Andes did not complete the required exploration expenditures required for Xstrata’s exercise of its option on April 23, 2007 to acquire certain properties constituting the northern half of the Los Azules project (the “Properties”). On that basis, TNR and Solitario advance a claim of breach of contract and intentional interference with economic relations, and seek the return of the Properties, or alternatively, damages as against the defendants or any of them.

As a result of the New Claim being added to the litigation, the trial scheduled to commence on June 20, 2011 in Vancouver, BC has been adjourned so that documents relating to the New Claim can be produced. A new date for the trial will be set in due course.

In the original Notice of Civil Claim, among other claims, TNR and Solitario seek rectification of a 2004 Exploration and Option Agreement with Xstrata (later assigned to Minera Andes) to restore a right on the part of Solitario to back-in to up to 25% of the Properties any time within 120 days of the production of a feasibility study. Minera Andes and Xstrata oppose rectification and the other relief sought by TNR and Solitario.

TNR will be vigorously defending its legal position and invite all shareholders to learn more about the case proceedings via the publicly available documents. The original Notice of Civil Claim, Application with amended claim, and the Reasons for Judgment on the amendment application are available from the BC Supreme Court registry and database (BC Online) and are hosted on TNR’s webpage.

Over the past twenty-one years TNR, through its lead generator business model, has been successful in generating high quality exploration projects in North and South America and Europe. With the Company’s expertise, resources and industry network, it is well positioned to aggressively identify, source, explore, partner and continue to expand its current project portfolio. TNR remains committed to following this business model and the ability it provides to continue to unlock value for ourselves and its shareholders.

Exploration success begins with having the right people, patience, perseverance and timing. TNR believes it has these key ingredients in place for a successful 2011 and beyond.


TNR is a diversified international mineral exploration company focusing on the advancement of existing properties and identifying and acquiring new prospective projects. TNR has a portfolio of 18 active projects, of which 9 rare metals projects, including Mariana, is now held by TNR’s now-listed subsidiary, ILC. TNR remains a large shareholder in ILC at 29% of outstanding shares.

The recent acquisition of lithium, other rare metals and rare-earth elements projects in Argentina, Canada, USA and Ireland confirms the TNR and ILC’s commitments to generating projects, diversifying its markets, and building shareholder value.

On behalf of the board,

Gary Schellenberg
President — TNR Gold Corp.