Vancouver B.C. March 5, 2010: Foundation Resources Inc. (FDN: TSX-V)(the "Company") announces the first tranche close of 972,000 units of its non-brokered private placement announced January 12, 2010, for gross proceeds of $145,800. The private placement will consist of up to 3,000,000 units at a price of $0.15 per unit for gross proceeds of up to $450,000. Each unit comprises of one common share and one whole non-transferable warrant, with each warrant exercisable into a common share for a period of two years at an exercise price of $0.20 in the first year and at a price of $0.25 per share thereafter.
All securities issued pursuant to this first tranche are subject to a 4-month hold period from February 18, 2010.
10% cash commissions of $13,080 were paid on $130,800 of the gross proceeds raised. In addition, 87,200 non-transferable finder's warrants were issued. Each finder's warrant entitles the holder to acquire one common share for a period of 2 years at an exercise price of $0.20 per share until February 18, 2011 and at an exercise price of $0.25 per share until February 18, 2012.
The proceeds will be used to conduct the first years work program on the San Rafael property and general corporate development purposes.
About Foundation Resources Inc.:
Foundation is a mineral exploration company focused on exploration and development of high potential gold properties in Canada and Mexico. Its Coldstream Property is located in the Western Superior geological province of the Canadian Shield, which is noted for hosting prolific gold deposits in Ontario, Canada. The San Rafael property is located approximately 150km north-west of Durango in the Durango State, Mexico
On behalf of the board,
John E. Hiner
Chief Executive Officer
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." News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
