Search Minerals Inc. and its wholly-owned subsidiary, Alterra Resources Inc. announced the results of the 1213 m NQ drilling program on the Pesky Hill Prospect, located 25 km southeast of Port Hope Simpson, Labrador, in the Port Hope Simpson REE District. The exploration drill program was designed to test the surface mineralization to shallow depth, intersected HREE-Zr-Y-Nb vein-hosted mineralization, similar to that observed on the surface. An additional drill program of 1,000m-3,000m is recommended to help determine if substantial quantities of high grade HREE mineralization occur in the Zr Showing at the Pesky Hill Prospect.

Highlights: A $250,000 Phase I exploration NQ drilling program comprised of 38 shallow vertical holes (1213m) ranging from 26 to 50 m in depth was completed; Significant results include: DDH PHD-12-16 intersected 0.66% Y (0.84% Y2O3), 1.04% Zr (1.40% ZrO2), 1.02% Nb (1.46% Nb2O5), 0.12% Dy (0.14% Dy2O3) comprised of 64% HREE + Y (42.5% HREE) over an interval of 2.56m. DDH PHD-12-33 intersected 0.70% Y (0.88% Y2O3), 1.27% Zr (1.71% ZrO2), 0.96% Nb (1.37% Nb2O5), 0.13% Dy (0.15% Dy2O3) comprised of 71.1% HREE + Y (48.5% HREE) over an interval of 2.25m; and, the Zr Showing contains some of the highest grade HREE vein mineralization (PHD-12-33) and is open at depth. Springdale Forest Resources (Diamond Drilling Division) carried out the drilling program.

A total of 38 holes (26 to 50 m depth) were drilled in three separate showings to trace and sample high-grade mafic-rich, amphibole-pyroxene-quartz-titanite mineralization, and related granitic pegmatites and granites. These vertical drill holes were drilled approximately 10 m apart. Values for Y range from 0.28% Y to 0.70% Y; for Zr from 0.68% Zr 1.42% Zr; Nb from 0.39% Nb to 1.02% Nb; Dy from 0.05% Dy to 0.13% Dy with HREE + Y for all holes from 59.8% HREE + Y (36.0% HREE) to 78.2% HREE + Y (58.5% HREE).

HREE mineralization was intersected in 18 drill holes. Mineralized veins appear to have a string-like geometry, with intersection thicknesses of the high-grade HREE zones ranging up to 2.56 m. The high-grade veins are associated with lower grade granitic pegmatites and anomalous REE-bearing granite. Small pegmatitic vein stockworks are observed near Showing 10.

Results from the Zr Showing indicate that the HREE vein at this showing is open at depth and suggest further drilling is required. Additional untested HREE showings, with similar geological settings, also occur in the Pesky Hill area.