Compliance Energy Reports NIC Project Exploration Results

TSX-V TRADING SYMBOL:  CEC

VANCOUVER, Jan. 19, 2012 /CNW/ - Compliance Energy Corporation ("Compliance" or the "Company) is pleased to report the assay results of 17 diamond drill holes from the Company's drilling program at NIC project, approximately 10 kilometres southwest of Port Alice, British Columbia. Highlights of the 2011 drilling program include hole NICS-04 which returned an intercept of 0.747 % Cu (copper) and 0.213 g/t Au (gold) over 18.4 metres including 2.532% Cu and 0.666 g/t Au over 4.4 metres.

NIC 2011 Exploration Program

During 2011, Compliance completed 17 holes totaling 3,121 metres of diamond drilling in two areas:  8 holes totaling 1,056 metres at NIC South and 9 holes totaling 2,065 metres at NIC North.  Compliance also completed prospecting and rock geochemistry on the NIC property both within the Klaskish Pluton and near the Lois Pluton; rock geochemistry and geological mapping at NIC North; and prospecting and stream, soil and rock geochemistry and geological mapping at NIC South. Prospecting work and rock geochemistry within the Klaskish Pluton and near the Lois Pluton failed to yield any significantly elevated values in target or indicator elements for porphyry copper-molybdenum and related mineral deposits.  Much of the NIC Property remains unexplored; including areas surrounding many recently built and planned logging roads.

Assay Results - NIC South

Significant intersections are noted above and in the following table along with UTM collar locations:

Hole Number Easting Northing Elev. From
(m)
To
(m)
Interval (1)
(m)
Au
g/t
Ag
g/t
Cu
ppm
Mo
ppm
Sb
ppm
11-NICS-01 599046 5569794 365 3.7 4.3 0.6 0.049 0.56 1736.3 0.82 2.04
and       85.8 87.5 1.7 <0.005 2.69 10.8 1.57 9.37
                       
11-NICS-02 599047 5569793 365 5.3 7.5 2.1 0.019 0.09 697.3 3.91 4.21
                       
11-NICS-03 599037 5569791 364 13.6 17.5 4.0 0.022 0.14 737.8 64.39 6.77
                       
11-NICS-04 599036 5569790 364 0 2.4 2.4 0.038 0.17 1111.5 12.11 1.4
and       29.3 33.8 4.6 0.010 0.20 669.1 2.24 0.93
and       45.1 63.6 18.4 0.213 0.87 7469.8 29.29 9.37
including       50.2 54.6 4.4 0.666 2.37 25320.7 64.82 4.39
                       
11-NICS-05 599039 5569790 364 29.0 34.6 5.6 0.046 0.17 1753.6 16.09 0.79
and       14.6 17.1 2.4 0.008 0.11 532.6 0.94 1.2
and       19.8 23.5 3.7 0.009 0.07 631.3 1.87 0.89
                       
11-NICS-07 598796 5569800 359 181.3 182.2 0.9 0.016 0.34 617.4 0.54 0.48
and       203.0 205.8 2.7 0.359 0.46 155.7 1.37 1.73
and       258.2 260.5 2.3 1.101 0.40 182.3 1.12 0.92
and       275.9 277.9 1.7 0.075 0.13 34.9 0.7 4.28
and       300.5 303.0 2.6 0.041 0.37 1186 6.47 0.90
and       305.8 306.4 0.6 0.93 0.16 26.4 0.82 0.57
and       391.0 393.6 2.6 <0.005 0.37 636 0.64 0.46
and       415.2 416.5 1.2 0.005 0.34 546.8 1 1.48
and       418.3 419.4 1.1 <0.005 0.12 22.6 19.19 2.23
                       
11-NICS-08 599131 5569783 384 87.5 89.0 1.5 0.009 18.98 127.2 2.22 1.66
and       119.8 121.3 1.5 <0.005 0.11 544.7 0.86 0.77
and       124.4 125.8 1.4 0.01 0.11 638.2 0.52 0.55
and       187.2 195.4 8.2 0.030 0.78 624.9 0.88 2.66
and       206.1 207.6 1.5 0.012 0.38 129.3 6.94 0.52
and       221.6 223.2 1.5 0.024 0.57 628.6 5.85 0.95
and       240.2 241.5 1.2 0.008 1.43 128.5 0.74 0.86
and       246.8 248.3 1.5 0.008 3.68 96 1.21 1.88
and       258.5 260.1 1.5 0.009 0.79 183 7.81 22.26
and       266.5 283.2 16.8 0.007 1.42 124.7 1.19 0.98

(1)     -True widths have not been calculated at this time.

One of the eight holes (11-NICS-06) not included in the above table was abandoned in overburden.

Prospecting and geochemistry work completed at NIC South in 2011 included 2 stream moss mat samples, 116 GPS-grid based soil samples and 29 rock samples from an area approximately 500 metres by 500 metres surrounding the NIC South showing.  In addition, an orientation ground geophysical survey consisting of I.P. and magnetics was conducted in the area of the NIC South showing.   Nineteen of the rock samples yielded elevated values, including 10 with elevated multi-element values in target (gold, silver, or copper) or possible indicator elements (arsenic, bismuth, cadmium, chromium, lead, nickel, rhenium, selenium, tellurium, tungsten, or zinc).

Assay Results - NIC North

Significant intersections are noted in the following table along with UTM collar locations:

Hole Number Easting Northing Elev. From
(m)
To
(m)
Interval
(m)
Au
g/t
Ag
g/t
Cu
ppm
Mo
ppm
Re
ppm
11-NICN-02 600391 5575324 447 4.9 215.2 210.4 0.029 0.83 826 26.8 0.006
and       215.2 273.2 57.9 0.010 0.77 229 125.5 0.025
                       
11-NICN-03 600197 5575120 378 4.3 185.4 181.1 0.019 0.54 458 88.9 0.035
including       16.5 71.3 54.9 0.027 0.64 639 150.6 0.063
and       117.1 153.7 36.6 0.015 0.64 580 79.4 0.031
                       
11-NICN-04 600247 5575417 546 2.4 32.9 30.5 0.015 0.43 227 61.0 0.029
and       69.5 127.4 57.9 0.019 0.59 815 110.3 0.063
and       142.7 330.8 188.1 0.026 0.77 1013 74.4 0.031
                       
11-NICN-07 600193 5575537 565 9.8 43.3 33.5 0.026 0.42 613 9.6 0.003
and       73.8 101.2 27.4 0.009 0.43 848 7.5 0.003
and       119.5 147 27.4 0.024 0.80 1396 11.9 0.006
                       
11-NICN-08 600026 5575300 397 3.7 90.2 86.6 0.007 0.71 279 107.0 0.048
and       148.5 160.7 12.2 <0.005 1.25 513 4.0 0.003
and       179 200.3 21.3 0.010 0.71 220 61.5 0.022
                       
11-NICN-09 600037 5575469 427 7.6 70.1 62.5 0.024 0.67 617 26.0 0.007
and       118.3 148.8 30.5 0.009 0.35 286 69.3 0.030
and       187 230.5 43.4 0.006 0.36 314 124.9 0.043

(1)     -True widths have not been calculated at this time.

Three of the nine holes (11-NIC-01, 11-NIC-05 and 11-NICN-06) not included in the above table did not contain significant intervals with anomalous values of gold, silver, copper, molybdenum and/or rhenium.

Project Mineralization

The 2010 NIC exploration program confirmed the existence of a previously indicated Cu/Mo porphyry system in the NIC North area. The copper-molybdenum mineralization at NIC North is hosted by three different pre-mineral phases of the Klaskish Pluton. Two different post-mineral phases of the Klaskish Pluton occur as dikes.  The mineralization is open in four directions:  to the northwest and southeast along strike, to the southwest and to depth.  Mineralization in drill core is typically described as felsic-intermediate porphyritic intrusive with fine grained matrix, 25% 1 to 3 mm. feldspar phenocrysts, chlorite-silica-biotite alteration, 0.5% sulphides mainly chalcopyrite with molybdenum both as fine grained clusters in chlorite-biotite aggregates and as fine-medium grained clusters within 10% quartz-biotite-sulphide stockwork stringers surrounded by halos of clay-altered phenocrysts in the intrusive.

Quality Assurance/Quality Control

All core samples, along with geochemical blanks and standards, as well as all rock, soil and stream moss mat samples taken in 2011 from the NIC Property were transported in batches by bonded transport carriers from Campbell River, BC or Nanaimo, BC to Inspectorate Mining and Exploration Service Ltd.'s facility in Richmond, BC where they were received, prepared, and analyzed generally using their 50-4A-UT ICP and Au-1AT-AA methods.

Jacques Houle, P.Eng. is the independent, qualified person pursuant to the requirements of NI43-101 for the NIC Property acting on behalf of Compliance Energy Corporation, and has reviewed the contents of this news release.

On behalf of the Board of Directors,

COMPLIANCE ENERGY CORPORATION

John Tapics
Chief Executive Officer

About Compliance Energy Corporation

Compliance Energy Corporation is a mining exploration and development company. Our primary holding is our interest in over 31,000 hectares of coal rights on Vancouver Island, British Columbia, where we are focused on developing the Raven Underground Coal Project of which we hold a 60% interest. The remaining 40% is owned by I-Comox Coal Inc. (a subsidiary of Itochu Corporation of Japan) and by LG International Investments (Canada) Limited (a subsidiary of LG International Corp. of Korea).

The Company also holds a number of mineral exploration properties totaling over 22,000 hectares on Vancouver Island, BC which are 100% owned by the Company, some subject to certain royalty requirements. Our shares trade on the TSX Venture Exchange under the symbol CEC and investor information is available on our web site at www.complianceenergy.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING STATEMENTS

This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation.  Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, future mineral exploration activities, future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.  Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on a number of material factors and assumptions, including the receipt of necessary regulatory approvals, that counterparties to material agreements will duly perform their obligations there under, the results of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted.  Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of minerals; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. 

SOURCE Compliance Energy Corporation

For further information:

Contact Greg Werbowski, Investor Relations at 604-689-0489 for further information.

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