Armistice Resources Corp. - Project Update

    Issued and Outstanding common shares: 51,264,184

    TORONTO, Jan. 15 /CNW/ - Armistice Resources Corp. (TSX: AZ) ("Armistice"
or the "Corporation") is pleased to provide an update on the status and
progress of the work being undertaken at its McGarry Gold Project at
Virginiatown, Ontario.
    Based on the recommendations in the NI 43-101 report filed in June 2004,
Armistice has undertaken a three component evaluation programme of the gold
mineralization identified at the McGarry Project. The components are:

    1.  Bulk sampling of gold zones identified by previous diamond drilling
        on the 2250 and 2350 Levels.
    2.  Definition diamond drilling from the 2250 ft level to fill in gaps
        left from previous drill programmes in 1989 and 1996 to 1998.
    3.  Deep drilling to identify and confirm potential gold ore zones at
        about 3700 ft below surface.

    Bulk Sampling

    Considerable progress has been made in a number of key tasks required for
the bulk sampling programme:

        A cross-cut at 1050W on the 2250 Level, which will provide access to
        the mineralized zones planned for bulk sampling, has progressed
        295 feet.

        A cross-cut at 00W on the 2250 Level, which will provide a base for
        further evaluation of the eastern part of the drill tested zones, has
        progressed 292 feet.

        The decline to the 2350 Level has advanced 128 feet and the incline
        to 2150 Level has advanced 97 feet.

    Both sides of the cross-cut walls are being sampled in approximately
3ft x 3ft panels to provide between 10 and 18 chip samples per mining round
(one round provides 6 to 8 feet of mining advance).
    Preliminary results have returned 4 zones of economic interest in the 00W
cross-cut that will be mined for bulk sampling and several other zones that
require additional evaluation before being included in the bulk sampling
programme. Only two of these zones were noted in previous diamond drilling,
one of which was included in the 43-101 resource estimate.
    The 1050W cross-cut is still about 80 feet from reaching the first of the
zones initially planned for inclusion in the bulk sampling programme. One
additional gold zone, not noted in previous diamond drilling in this area, has
been identified for later inclusion in the bulk sampling programme.
    Gold zones for follow up have at least two panel samples over 0.1 oz/t
and individual panels range up to 0.67 oz/t within identifiable alteration
zones usually associated with quartz veining.
    (See accompanying plan map of the 2250 Level for location sketch:

    Underground Diamond Drilling

    Since the last update, one deep drill hole testing for mineralization at
about the 4400 ft depth on section 300W was completed to 2695 feet (which is
well beyond the nominal limit of the drill equipment). The final 30 feet of
the hole intersected silicified alteration typical of the gold-bearing zones
and includes elevated gold values, although all are below 0.1 oz/t. An attempt
will be made to take a second cut through this anomalous section by wedging
off the first hole. The second deep hole is now at 2200 feet and is expected
to be completed at about 2500 feet. No assay results from the second hole have
been received yet. A third deep hole from the same collar will be competed
before the second phase of deep drilling is planned.
    A second underground drill has just arrived on the property. This drill
will be assigned to the continuation of definition fan drilling from the
2250 main drift.

    Bulk Sample Processing

    A crusher has been placed at the headframe and a direct feed chute from
the hoisting plant to the crusher has been constructed. A custom built sampler
that will take a continuous cut from the crushed material dropping from the
crusher conveyor has been delivered to the site. This sampler will provide a
1% cut of the bulk sample for assaying at an independent lab on a
round-by-round basis. The remaining 99% of the bulk sample will be processed
at a custom mill in approximately 10,000 ton batches. Discussions with two
potential custom milling operations in the region are ongoing.

    Other Work

    The original skip for hoisting ore to surface was destroyed in an
accident in 1999. A spare skip owned by Armistice has been modified to fit the
shaft and has just arrived back on site. Structural modifications have been
completed to the headframe to allow maximum efficiency when skipping. Waste
rock mined from the access cross-cuts has been stored underground until now
and will be hoisted before any rock for bulk sample processing is hoisted.
Final commissioning of the skip is in progress.
    One of the two scooptrams owned by Armistice, but left underground when
the mine flooded, has been totally re-built on site and is now ready for
service. The second unit will be assembled over the next month.
    A permanent mine air heater has been installed and major improvements to
the ventilation system are underway.
    Erik Andersen, Vice President and COO, is pleased to announce the
appointment of Mr. James Thompson to the position of Chief Geologist. Mr.
Thompson has 20 years of experience with underground gold mining in Canada,
South Africa and Europe.
    The NI 43-101 Report of June 2004 can be downloaded via the Sedar link on
Armistice's Web Site (filed under "Other" June 17, 2004 (7.37 Mb) on the Sedar
    This news release has been reviewed by Armistice's Vice President and COO
and qualified person, Erik Andersen, P.Eng.


SOURCES CORP. "Todd J. Morgan" Todd J. Morgan President, CEO and Chairman of the Board

For further information:

For further information: Todd J. Morgan, (705) 567-4567,

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