FIRESTEEL ANNOUNCES RESULTS OF ROK COYOTE EXPLORATION PROJECT

Trading Symbol: FTR- TSX: V

VANCOUVER, Jan. 20 /CNW/ - Firesteel Resources Inc. (TSXV:FTR) ("Firesteel" or the "Company") is pleased to announce the results of the exploration program carried out on its ROK - Coyote mineral property (the "Property") during 2009 (the "Exploration Program"). The technical assessment report for this Exploration Program has only recently been released to the Company as part of the settlement of a law suit which has now been dismissed by mutual consent of both parties (News release of October 25, 2010). Firesteel recently granted an option to Lions Gate Metals Inc. (news release of January 12, 2011) to earn an interest in the Property and thereafter intends to form a joint venture to further explore it.

The 6,891 hectare Property is located approximately 195 kilometres north of Stewart and 75 kilometres south of Dease Lake, immediately east of Hwy. 37 and northwest of Imperial Metals Corp., Red Chris copper-gold porphyry deposit. The Property hosts copper-gold ± molybdenum porphyry style mineralization within a hydrothermal sulphide system measuring at least 18 square kilometers, covering the top, south and eastern slopes of Ehahcezetle Mountain in the Stikine Arch region of north-western British Columbia. Previous exploration work has been concentrated in the northern part of the Property (the "Main Zone") which has returned 36 meters grading  0.53% copper ("Cu") and 0.62 grams per tonne gold ("g/t Au") in Trench 2a and 38.4 meters grading 1.32% Cu and 1.54 g/t Au in diamond drill hole 90-3

The Exploration Program was designed to carry out initial ground testing including induced polarization ("lP") and ground magnetic geophysical surveying along with soil and rock sampling over previously cut grid lines covering a relatively unexplored, airborne magnetic high - Th/k low anomaly located in the south eastern quadrant of the Property called the Coyote showing (the "Coyote Grid or "Coyote Showing").The Coyote Grid is located about 6,000 meters southwest of the Main Zone.

Geophysical Surveying

In October  2009, 23.5 line kilometers (on eight grid lines) of IP and ground magnetic surveys were completed over the Coyote Grid. The geophysical survey was conducted along lines orientated at 30°, roughly perpendicular to an airborne magnetic anomaly identified in 2005. The ground survey confirmed a strong, northwest-southeast trending magnetic high in the lower half of the Coyote Grid area that remains open along strike to the west and east. In the northeast portion of the Coyote Grid a significant magnetic low strikes to the east.

The IP survey was carried out using a pole dipole array with "a" (dipole) spacing of 50 meters and "n" separations of 1 to 6. Two strong, northwest-southeast trending chargeability anomalies with coincident resistivity highs were identified within the Coyote Grid. They remain open along strike and to depth. The southern chargeability anomaly correlates well with a magnetic high while the more northern chargeability anomaly corresponds to the transition between the magnetic low in the northeast and moderate magnetic values flanking the high to the south.

Soil and Rock Sampling and Geochemistry

A total of 378 soil samples were collected from eight cut grid lines and 3500 meters of existing roads in and around the Coyote Grid including a portion of the access road to the Red Chris project.

The sampling identified a coincident gold and molybdenum soil anomaly over a significant portion of the northern half of the Coyote Grid, over and around the Coyote Showing and along most of the Red Chris access road. Copper values within the same area are elevated but more erratic, although they show a strong correlation with elevated gold values along the Red Chris road. Within the Coyote Grid the gold-molybdenum soil anomaly is underlain by a strong chargeability - resistivity high coincident with a moderate magnetic response. The geophysical anomalies remain open to the east and south of the Coyote Showing. In the southwest corner of the Coyote Grid, elevated but only weakly coincident gold and molybdenum values correlate with chargeability, resistivity and ground magnetic highs.

A total of 136 rock samples were taken from iron-oxide stained outcrops along the Ealue Lake and Red Chris camp access road. Aside from a single grab, all were chip samples varying from 2 to 10 meters in length. Individual sample results range up to 1585 ppb gold, 2024 ppm copper and 812.6 ppm molybdenum.

More detailed rock chip sampling near the Coyote Showing, where underlying chargeability, resistivity and magnetic response are all low, returned weighted sample average grades up to 317 ppb gold and 254.6 ppm molybdenum over 12 meters and 469 ppm copper over 9 meters (shown in the following Table 1).

Table 1: Weighted Average Au, Cu and Mo Grades From Rock Chip

Sampling of Outcrops on and Near the Coyote Grid

Sample Numbers Interval Weighted Average Grade
from to Length (m) Au
(ppb)
Cu (ppm) Mo (ppm)
868127 868130 12 317 58 254.6
868152 868155 12 279 89 25.1
868054 868062 27 269 25 15.0
868068 868073 18 241 100 1.4
868075 868081 21 111 96 4.8
868139 868141 9 33 469 2.6

Interpretation and Conclusions

The 2009 ground geophysical surveys carried out over the Coyote Grid located and more accurately defined the eastern portion of the magnetic anomaly first identified in the 2005 airborne survey. They also demonstrated the airborne, Th/K low - magnetic high is coincident with an open-ended, similar orientated chargeability and resistivity high and gold-molybdenum soil anomaly. The coincident association of magnetic, chargeability and resistivity highs is typical of many copper-gold porphyry prospects occurring in intrusive rocks throughout BC and is reminiscent of the Main Zone located in the northern part of the Property, 6,000 meters northeast of the Coyote Grid.

In order to establish the size of the newly identified Coyote Showing target and determine if it is a separate zone or a continuation of the Main Zone, significant expansion of the Coyote Grid and soil and geophysical surveys is recommended. Follow-up drill testing of favourable coincident anomalies within the expanded grid should follow. Diamond drill holes should test at least 150 meters below surface.

In announcing these results Walter Wakula, Chairman of Firesteel stated: "This program demonstrates the discovery of a new zone with anomalies that are similar to what one finds below porphyry copper-gold deposits and similar to what is known elsewhere on the Property at the Main Zone. We are encouraged that there are now at least two separate areas on the Property separated by 6,000 meters that are target areas to explore for copper-gold mineralization and that the Coyote Grid and the Main Zone may connect into one very large target area."

David T. Mehner, MSc., P. Geo. is a Qualified Person under National Instrument 43-101, was the author of the technical assessment report for the exploration program described in this news release and has reviewed and approved the technical content in this news release. He is a consulting geologist for and is independent of Firesteel and currently holds rights to a portion of a net smelter returns royalty over a portion of the Property.

Firesteel is a junior minerals exploration company which explores for and develops quality precious and base metal prospects in the resource rich Stikine Arch area of British Columbia, and in the NWT and Mexico.  The Company has been exploring its Copper Creek and ROK - Coyote discovery properties in northern British Columbia with strong showings of copper and gold mineralization. Firesteel maintains its interests in the oil and gas business through its 15 percent shareholding in Blacksteel Energy Inc. (TSXV:BEY).

ON BEHALF OF THE BOARD OF DIRECTORS OF
FIRESTEEL RESOURCES INC.

"Walter Wakula"
_________________________
Walter Wakula, MBA
Chairman of the Board

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.

Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements which include, but are not limited to: statements regarding the Company's expectations for exploration prospects, follow-up drill testing of favourable coincident anomalies, that the Coyote Grid and the Main Zone may connect into one very large target area, as well as operations plans, outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact.  Although Firesteel believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct.  Results of the Company may be affected by a variety of variables and risks associated with mineral exploration such as imprecision of resource and reserve estimates, environmental risks, competition, ability to access sufficient debt and equity capital from internal and external sources and ability to generate sufficient cash flow from operations to meet its current and future obligations; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements.

The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release.  Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

For further information:

For additional information, please contact us at  1-604-669-5768
  1-888-669-5768

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