Kirrin Resources Inc. announced today that it has entered into an option agreement with Michel Proulx ("MP") allowing Kirrin to earn a 100% interest in the Grevet rare earth elements ("REE") property, which is located in north-western Quebec, Canada.

Commenting on the acquisition, Kirrin President and CEO Derek Moran said: "The Grevet property fits Kirrin's expansion mode very well. We anticipate early exploration results with a limited budget on an attractive REE prospect".

The geological data for the Grevet REE property has been reviewed by Dr. David Lentz of the University of New Brunswick, who is a consultant to Kirrin. Dr. Lentz suggested that, because of the ferroan carbonatite association with magnetite, the Grevet REE property may have some geological similarities to the large Bayan Obo REE-bearing carbonatitic body in inner Mongolia, China. Bayan Obo is the world's largest REE deposit, containing about 70% of the world's known REE reserves.

Rare earths are used extensively in high-tech industries, predominantly in the manufacture of permanent magnets, metal alloys, batteries catalysts, and glass. Growth in demand over the past four years has exceeded 10% per year and growth is expected to remain strong in the future.

Interest in the REE potential of the Grevet area began in 1988 when the Ministry of Energy and Resources of Quebec identified carbonatite occurrences. Subsequently, Soquem obtained rock samples in trenches that assayed up to 4.0% lanthanum plus cerium (La+Ce), which occurred in magnetite veinlets with associated haematitic alteration (Proulx and Daigenault, 1990). Further work and sampling by MP led to the identification of anomalous REE in hematitic magnetite veinlets and carbonate veins with or without magnetite, in syenite and carbonatite dykes (Proulx, 2000, 2001, 2002). The chemical analysis of the samples revealed the attractive REE chemistry, with results for the rock samples ranging from 0.30% up to 5.89% light rare earth oxides (LREO) and results from the MMI survey producing niobium (Nb), yttrium (Y), cobalt (Co), nickel (Ni) and rubidium (Rb) anomalies. From 2003 to the present, there was little further exploration for REE at the Grevet property, but renewed interest in the property's REE potential was re-kindled as a result of heightened international concern for a world shortfall of REE if China, which currently produces approx. 95% of REE, reduces exports as it has recently indicated.

The Grevet property comprises a group of 14 contiguous mineral claims with a combined total of 662.52 ha (1,636.42 acres) located in Grevet Canton (Township), 30 km north-east of the town of Lebel-sur-Quevillon and approx. 200 km north-east of Val d'Or in north-western Quebec. There is excellent access via provincial road 113 as well as logging roads. A CN railway line bisects the property. The closest airport is at Lebel-sur-Quevillon. Kirrin may earn a 100% interest in the Grevet property by spending $1,850,000 on exploration, including a minimum first year commitment of $200,000, and making payments to MP of $20,000, over four years. In addition, Kirrin will pay $150,000 to MP on the receipt of a positive Feasibility Study and MP will retain a 1.0% Net Smelter Returns ("NSR") royalty on all minerals produced from the property, Kirrin having the right to acquire half of this NSR for payment of $500,000.