Gulfside Minerals Ltd. - Onjuul drilling update

TSX.V - GMG

VANCOUVER , Dec. 7 /CNW/ - Robert L. Card, President of Gulfside Minerals Ltd. ("Gulfside" or the "Company"), is pleased to report that four holes of Gulfside's drilling program on the Onjuul coal project in Mongolia have been completed.

The first hole, TB001 was located as an offset to Hole No.12 of the 1973 Russian/Mongolian exploration program. Results from this hole were reported in a news release dated November 23, 2009 . The geophysical log revealed a 10 meter seam between 125 meters and 135 meters, originally reported as 6 meters.

The second hole, TB021, was drilled 500 meters to the northwest of the 1973 exploration Hole No.11. TB021 was cored to depth of 181.2 meters and encountered a 28.8 meter seam between 37.6 and 66.4 meters; other thinner, but significant seams were also encountered. A comparison of the drill holes follows:

    
               HISTORIC                     ONJUUL - 2009
    -------------------------------------------------------------------------
                          Coal Intercept Comparison
    -------------------------------------------------------------------------
         Historic Hole  No. 11       Gulfside Hole  No. TB021*
    -------------------------------------------------------------------------
                        Thickness                      Thickness
       Top       Base      (m)        Top       Base      (m)     Seam ID*
    -------------------------------------------------------------------------
       8.0       14.0      6.0                                        1
    -------------------------------------------------------------------------
                                     37.6       66.4     28.8         2
    -------------------------------------------------------------------------
                                     67.7       75.2      7.5
    -------------------------------------------------------------------------
                                     76.2       80.0      3.8         3
    -------------------------------------------------------------------------
                                     80.8       86.6      5.8
    -------------------------------------------------------------------------
                                    88.45       91.2      2.8
    -------------------------------------------------------------------------
            Total Depth 60m              Total Depth 181.2m
    -------------------------------------------------------------------------
    Total Coal  (Meters)   6.0                 (Meters)  48.7
    -------------------------------------------------------------------------
    * Seam intercepts and correlations are preliminary, pending geophysical
        log interpretation
    

The third hole, TB003, was drilled to a depth of 201.4 meters. TB003 is located approximately 130m north of the 1973 Hole No.16, and 500 meters to the northeast of hole TB001. The original Russian/Mongolian hole was only drilled to a depth of 82.2 meters, and encountered one coal seam. This new drilling encountered three significant seams, two which have not been previously documented. Drilling intercepts are as follows:

    
               HISTORIC                     ONJUUL - 2009
    -------------------------------------------------------------------------
                          Coal Intercept Comparison
    -------------------------------------------------------------------------
         Historic Hole  No. 16       Gulfside Hole  No. TB003*
    -------------------------------------------------------------------------
                        Thickness                      Thickness
       Top       Base      (m)        Top       Base      (m)     Seam ID*
    -------------------------------------------------------------------------
      63.6       73.5      9.9       26.8       38.9     12.1
    -------------------------------------------------------------     1
                                     48.1       49.1      1.0
    -------------------------------------------------------------------------
                                     95.9      104.4      8.5         2L
    -------------------------------------------------------------------------
                                    133.2      134.5      1.3
    -------------------------------------------------------------     3
                                    136.6      138.8      2.2
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                    182.7      192.0      9.3         4
    -------------------------------------------------------------------------
          Total Depth 82.2m              Total Depth 201.4m
    -------------------------------------------------------------------------
    Total Coal  (Meters)   9.9                 (Meters)  34.4
    -------------------------------------------------------------------------
    * Seam intercepts and correlations are preliminary, pending geophysical
        log interpretation
    

The fourth hole, TB003A, a rotary drilled hole, was completed to a depth of 280.0 meters. This hole was located approximately 100m northeast of the 1973 Hole No.17, which was only completed to a depth of 53 meters. The new drilling encountered a 10.4 meter seam between 85.8 meters and 96.2 meters and an 8.2 meter seam between 156.7 meters and 164.9 meters. Drilling intercepts are as follows:

    
               HISTORIC                     ONJUUL - 2009
    -------------------------------------------------------------------------
                          Coal Intercept Comparison
    -------------------------------------------------------------------------
         Historic Hole No.17          Gulfside Hole No.TB003A*
                        Thickness                      Thickness
       Top       Base      (m)        Top       Base      (m)     Seam ID*
    -------------------------------------------------------------------------
                            0        85.8       96.2     10.4
    -------------------------------------------------------------     1
                                     97.3       98.2      0.9
    -------------------------------------------------------------------------
                                    121.3      123.4      2.1         2U
    -------------------------------------------------------------------------
                                    156.7      164.9      8.2         2L
    -------------------------------------------------------------------------
                                    239.8      243.0      3.2         3
    -------------------------------------------------------------------------
                                    274.1      277.5      3.4         4
    -------------------------------------------------------------------------
           Total Depth 53m               Total Depth 280.0m
    -------------------------------------------------------------------------
    Total Coal  (Meters)     0                 (Meters)  28.2
    -------------------------------------------------------------------------
    * Seam intercepts and correlations are preliminary, pending geophysical
        log interpretation
    

Robert Card , President of Gulfside stated, "We are very pleased to report that the new drill hole data confirms much of the initial Russian/Mongolian exploration data. In addition, the new drilling appears to reveal coal seams that were not previously documented in the Russian/Mongolian exploration program. The deeper seams of significant thickness will allow the company to investigate opportunities to utilize ICG (In-situ Coal Gasification). This innovative process is being pursued more and more by coal companies at the forefront of coal technology" (http://en.wikipedia.org/wiki/Underground_coal_ gasification)

Once the drilling program has been completed, the Company will be in the position to further analyze the viability of the coal project for a coal liquefaction project. Independent geological and engineering studies will be required to determine if this potential use is technically and economically viable.

The core has been logged, split and boxed ready for testing at the Stewart Mongolia LLC laboratory in Ulaanbaatar and will be shipped once additional holes have been completed.

Kerry F. Griffin BSc., Diploma Eng Geol, MAIG, an independent consultant to the Company and the qualified person as defined by National Instrument 43-101, has reviewed and approved the technical content of this news release.

    
    On Behalf of the Board of Directors,
    Gulfside Minerals Ltd.

    "Robert L. Card"

    Robert L. Card
    President
    

"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 document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning GMG's planned exploration program in Mongolia and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although GMG believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian securities regulators.

%SEDAR: 00007921E

For further information: Investor Contact: Del Thachuk, Delmor Enterprises Ltd., [phone], [email protected], www.gulfsideminerals.com