Sego Fire Assays Return 5 metres of 7.88% Copper, 35 gm/t Silver, 3.04 gm/t Gold Under Gossan Cap

TSX-V: SGZ

VANCOUVER, Jan. 17 /CNW/ - Sego Resources is pleased to report fire assays from the first round of geochemical results from the recent Granby Zone Trenching program. The results are from Trench 96. As stated in the December 8th 2010 news release the trenching has located a large area of gossanous material with copper oxide mineralization. Trench 96 is located approximately 40 metres west of diamond drill hole MM-10-19, which intersected 60.4 metres averaging 0.24% copper,0.16 g/t gold and 0.72 g/t silver, and bottomed in mineralization (See May 26 2010 N.R.).

Due to the depth of the trench (more than 10 metres), chip samples of bedrock could not be taken, hence 1-metre representative grab samples were taken from the broken excavated rock along the trench.

The most significant continuously mineralized zone of what is considered a Supergene Enrichment Zone assayed as follows:

Trench 96 89m - 104m: 15 m of 3.14% Cu 1.18 g/t Au
Of which 99m - 103m: 5 m of 7.88% Cu 35 g/t Ag 3.04 g/t Au
  Including 1 m at 100m of 12.36% Cu 43 g/t Ag and 2.34 g/t Au

Also present on either side of the supergene enrichment zone were lower grade zones: 
Trench 96 70m - 76m : 7m of 0.239% Cu 0.207 g/t Au  with grades up to 0.48% Cu and 0.37 g/t Au
Trench 96 106m - 113m:  8m of 0.22% Cu 0.106 g/t Au with grades up to 0.63% Cu and 0.27 g/t Au
From 10m - 116m there are numerous 1 and 2m zones of oxide mineralization with grades up to 0.34% Cu and 0.46 g/t Au

The Supergene Enrichment Zone occurs in a section of oxidized volcanic rocks containing limonite and hematite with 2-3% pyrite and malachite/azurite mineralization.  The section is also heavily faulted with numerous zones of fault gouge and breccia.  The highest copper grades occur where Sego has trenched through the gossanous zone and into the underlying enriched blanket, and lower copper grades represent the upper edge of the enriched blanket or the bottom of the gossanous cap.

This gossanous zone has been identified across 600m on an east-west strike length and is at least 100 m wide. It is open in all directions.  Sego intends to start a percussion drill program to test continuity of the enriched supergene blanket and gossanous cap in February.

This News Release was reviewed and approved by V.A. Preto Ph.D., P. Eng.  A Qualified Person under NI 43 -101. Please see our website at www.segoresources.com

J. Paul Stevenson, CEO

Neither the 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.

No regulatory authority has approved or disapproved the information contained in this news release. This release includes certain statements that may be deemed "forward-looking statements".  All statements in this release, other than statement of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements.  Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements.  Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions.  Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

SOURCE Sego Resources Inc.

For further information:

John Geisler, Investor Relations,ir@segoresources.comor1-866-683-2933

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Sego Resources Inc.

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