News Releases

Search Minerals Inc. Discovers Four New Heavy REE Showings in the Port Hope Simpson REE District, Labrador

November 2nd, 2010

VANCOUVER, BRITISH COLUMBIA—(Nov. 2, 2010) - Search Minerals Inc. (TSX VENTURE:SMY) (“Search” or the “Company”) and its wholly-owned subsidiary, Alterra Resources Inc., have discovered four new heavy REE (HREE) showings in the HighREE Hills, in the Port Hope Simpson REE district in SE Labrador. Grab samples from these showings reveal high concentrations of HREE, Nb, Zr and Y.

Highlights: (See Table 1 for details)

  • Geologist-prospector crews discover Piperstock Hill, Southern Shore, Toots Cove and Pesky Hill HREE showings along a 13 km trend in the HighREE Hills;
  • HREE/Total REE ranges from 13.4% to 73.87%, and HREE+Y/Total REE+Y ranges from 30.28% to 87.71% in grab samples;
  • Nb values range from 2,027 to 17,197 ppm and Y values range from 5,663 to 13,270 ppm; and
  • Total REE range from 6706.3 ppm to 54,816.1 ppm.

Geologist-prospector crews have discovered four new HREE-Nb-Y-Zr showings in the HighREE Hills on the southern shore of St. Lewis Inlet. These showings, Piperstock Hill, Southern Shore, Toots Cove and Pesky Hill, are found along a 13km trend. The mineralization occurs in magnetite-quartz-amphibole veins and associated magnetite-amphibole pegmatites similar to those found on HighREE Island, which, further to Search’s news release of October 16, 2010, is now the focus of Search’s 2000m NQ drilling program. Exploration continues in this portion of the Port Hope Simpson REE District and will include prospecting, additional sample collection, channel sampling and geological mapping.

Analytical results for rare metals indicate that Nb ranges from 2,027 to 17,197 ppm, Zr ranges from 314 to 40,460 ppm and Y ranges from 5,663 to 13,270 ppm. Summary statistics for the rare earth elements give Total REE values (no Y) of 6,706.3 to 54,816.1 ppm, HREE/Total REE (% heavy REE) of 13.40% to 73.87% and HREE+Y/Total REE+Y (% heavy REE+Y) of 30.28% to 87.71%.

Jim Clucas, President and CEO of Search, notes, “These results are very encouraging. The presence of high grade REE mineralization on both HighREE Island and over a 13 km trend on the mainland has greatly expanded our drill targets.”

The HighREE Hills are located on the southern shore of St. Lewis Inlet 25km southeast of Port Hope Simpson. All showings are within 3km of tidewater and within 5km of Highway 510, an all season gravel highway.

Table 1 outlines assay data for 6 grab samples from the four showings in the HighREE Hills. Analytical techniques and sample preparation procedures are outlined in Search’s July 27, 2010 news release.

TABLE 1:

HighREE Hills MH-250 MH-252 MH-285 MH-5006 MH-030 MH-152
Toots Cove Toots Cove Pesky Hill Southern Shore Southern Shore Piperstock Hill
Y 7,188 8,443 10,450 7,555 5,663 13,270
Zr 10,500 19,260 40,460 314 14,720 24,330
Nb N/A(*) N/A(*) 17,197 11,534 5,173 2,027
La 975 231 187 62 1,770 10,900
Ce 2,690 765 738 346 5,670 22,600
Pr 371 157 182 91 697 2,580
Nd 2,060 1,180 1,350 713 3,260 9,170
Sm 903 731 852 540 951 2,220
Eu 70.7 61.1 69.9 48.7 54.0 117
Gd 1,210 1,030 1,220 889 888 2,170
Tb 251 217.0 273 213 176 402
Dy 1,770 1,570 2,020 1,550 1,130 2,370
Ho 386 366.0 461 358 223 426
Er 1,120 1,070.0 1,300 1,030 605 1,070
Tm 136 132.0 169 139 80 122
Yb 595 595.0 777 658 435 599
Lu 65.7 65.1 82.2 68.2 51.4 70.1
TREE 12,603.4 8,170.2 9,681.1 6,706.3 15,990.8 54,816.1
TREE + Y 19,791.4 16,613.2 20,131.1 14,261.3 21,653.8 68,086.1
HREE 5,604.4 5,106.2 6,372.1 4,953.9 3,642.8 7,346.1
HREE + Y 12,792.4 13,549.2 16,822.1 12,508.9 9,305.8 20,616.1
%HREE 44.47% 62.50% 65.82% 73.87% 22.78% 13.40%
%HREE + Y 64.64% 81.56% 83.56% 87.71% 42.98% 30.28%

(*) – Not Available

Note: All amounts parts per million (ppm). 10,000 ppm = 1% = 10 kg/metric tonne
Grab samples are selective by nature and are unlikely to represent average grades on the property

REE Rare earth elements = La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu (the Lanthanide Series)
TREE Total rare earth elements = total (ppm) of the Lanthanide Series elements
LREE Light rare earth elements = La, Ce, Pr, Nd, Sm
HREE Heavy rare earth elements = Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu
Y Herein not included in HREE due to low market value compared to most Lanthanide series HREE.
%HREE+Y (HREE+Y)/(TREE+Y)
%HREE HREE/TREE

The PHS REE District contains seven HREE-enriched showings: HighREE Island Prospect, the HighREE Hills Showings (Piperstock Hill, Southern Shore, Toots Cove and Pesky Hill), Rattling Bog Showing and Rock Rolling Hill Showing. It also contains the 22 km long Fox Harbour zone, which is highly prospective for Zr-Nb-Y-LREE in peralkaline volcanics. The exploration program is continuing on these and other highly prospective areas in the PHS REE District.

TABLE 2:

Rare Earth Metal
“99% purity”
USD/kg
19/10/10
Y - Yttrium $73.00 - 83.00
La - Lanthanum $42.00 - 45.00
Ce - Cerium* $41.00 - 44.00
Pr - Praseodymium* $83.00 - 86.00
Nd - Neodymium* $92.00 - 95.00
Sm - Samarium* $50.00 - 53.00
Eu - Europium* $770.00 - 800.00
Gd - Gadolinium* $53.00 - 56.00
Tb - Terbium* $750.00 - 790.00
Dy - Dysprosium* $385.00 - 415.00

*Prices as of 19/10/2010 and are quoted in US$/kg on an FOB China basis. http://www.metal-pages.com/metalprices/rareearths/

Dr. Randy Miller, Ph.D, P.Geo, Vice President Exploration, is the Qualified Person responsible for the technical content of this press release.

About Search Minerals Inc.
Search Minerals Inc (TSX VENTURE:SMY) has a strong and dedicated management team with outstanding capabilities in separate but related mining activities, any of which has the potential to generate significant shareholder value. Search’s mineral exploration team is led by Vice President Exploration Dr. Randy Miller. Dr. Miller is responsible for directing the current exploration programs on Search’s large land position in Labrador. Search also has a technology arm headed up by Dr. David Dreisinger, Chair of Hydrometallurgy at the University of British Columbia in Vancouver, Canada, and a consultant to several major international mining companies. Search’s business strategy is to fund new ideas or concepts in the mineral exploration or metallurgical fields that have low initial costs and high potential.

Cautionary Statement:
This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in Search’s public documents filed on SEDAR at www.sedar.com. Although Search believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by law, Search disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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 of the adequacy or accuracy of this release.

Contact Information

Search Minerals Inc.
Jim Clucas
President and CEO
604-688-6180
604-682-7317 (FAX)
jimclucas@searchminerals.ca
www.searchminerals.ca

.