Nevada Exploration Provides Update on Phase I Drilling at the Shine Claims

January 19, 2011

Nevada Exploration Inc. (“NGE”) (TSX-V:NGE) announces an update on Phase I Drilling at the Shine Claims located north of the Sleeper Gold Mine in Humboldt County, Nevada.  The 15 Shine Claims are part of NGE’s larger Awakening Project (432 claims), the rest of which is optioned to Northgate Minerals Corporation (“Northgate”).  The objectives of the drilling program are (1) to test for hydrothermally altered and geochemically anomalous bedrock similar to that associated with the mineralization at the adjacent Sleeper Gold Mine, and (2) to register the geophysical datasets with geological and geochemical drilling results.

Prior to drilling, NGE completed detailed geological mapping, hydrogeochemistry, soil geochemistry, gravity geophysics, and air magnetic geophysics over the entire Awakening project.  To further develop the project, Northgate has also recently completed an IP/resistivity geophysics survey.  The integrated data set suggests that the Shine Claims are located on a pronounced air magnetic low and a coincident gravity low that together, suggest an area of down dropped felsic volcanic rocks similar those hosting the Sleeper deposit.  The Shine Claims are located up-dip from anomalous concentrations of Au, As, Sb, Cu, Pb, Zn and Mo in groundwater, and soil samples across the Shine Claims show anomalous concentrations of Ag, As and Sb.

NGE has now completed 6 drill holes to depths of 103 to 201 meters (340ft to 660ft), totaling 1,000 meters (3,300ft).  NGE has submitted and received assay results from the first five holes and is pleased report that all five holes encountered shallow bedrock, ranging from 45 to 80 meters (150 - 260ft), and weak to moderate alteration of mafic and felsic volcanic units.  One drill hole bottomed in more than 70 meters (250ft) of alteration, and altered intervals were coincident with low-level gold values (up to 40ppb) and weakly anomalous trace element values.

Wade Hodges, President & CEO, explains: “The drilling results provide evidence that the migration of hydrothermal fluids on the Awakening Project was controlled by flat-lying, interflow, and contact breccia zones, and by high-angle fracture zones – the same geologic features of exploration significance that controlled the gold mineralization at Sleeper.  This new data suggests that the Shine Claims are located on the periphery of an extensive network of fault zones that controls hydrothermal alteration northward from Sleeper along the gravel-covered range-front.  Stronger geophysical and geochemical anomalies remain untested in these areas.  Drilling continues on the Shine claims, and we look forward to Northgate’s upcoming drilling program.”

Discussing their 2011 drilling plans, on January 10, 2011, Northgate announced: “The Awakening project has a budget of $0.8 million to drill test a number of coincident geological/geophysical/geochemical targets defined by the 2010 geophysical program and the compilation data provided by the partner Nevada Exploration Inc.  Subject to availability of drill rigs, a 4,000 m drill program is expected be initiated in the first quarter, with one to two drill rigs on the property”


Nevada Exploration Inc.

Nevada Exploration Inc. is an exploration company focused on gold in Nevada.  NGE has developed proprietary groundwater chemistry exploration technology to explore for gold in Nevada’s covered basins where traditional exploration techniques are challenged, and has completed the first ever comprehensive survey of Nevada’s groundwater focused on discovering new gold deposits.  NGE has demonstrated that Nevada’s gold deposits exhibit recognizable and measurable groundwater chemistry signatures, and NGE is using its proprietary technology to identify, acquire, and advance new exploration properties exhibiting groundwater chemistry similar to known gold mines.


For further information please contact:
James Buskard
Vice President Corporate Development
Nevada Exploration Inc.
Tel: (775) 359-7740

Wade A. Hodges, President & CEO, Nevada Exploration Inc., is the Qualified Person, as defined in National Instrument 43-101, and has prepared the technical and scientific information contained in this News Release.

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.

Cautionary Statement on Forward-Looking Information:

This release contains certain "forward-looking statements" including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release.  Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in mineral exploration, the need to obtain additional financing, environmental permits, the availability of needed personnel and equipment for exploration and development, fluctuations in the price of minerals, and general economic conditions.