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Yale Resources Ltd. (TSX-V: YLL)

(Frankfurt Stock Exchange: YAB) (US Trading: YRLLF)

       Yale Resources Ltd. is a development and exploration mining company listed on the TSX Venture Exchange (ticker symbol YLL). Yale has come to our attention due, in part, to the extraordinary opportunity afforded investors with its growing portfolio of highly prospective projects in Mexico. YLL now possesses well over 300 square kilometres of land in Mexico, including their multiple historic mines with current production within 10 km of each of these properties.

      Yale Resources is a highly talented and dynamic mining company that, with Mr. Ian Foreman, P.Geo, Yale's President, at the helm, over the last year has managed to accelerate exploration programs quickly and maximize shareholder value. They are now at a point where several of their projects appear to possess latent feral-like potential with numerous highly mineralized drill-ready targets part of an extensive program planned for 2008.

Yale's Urique Project Gold-Silver Targets - Drill Program Underway

The Urique Project has a 1,500m drill program currently underway and the corporate release [see May 1/08 release] confirms the completion of several holes and that Yale Resources has intersected target breccia on all holes - of which contents are visually similar to surface exposure, in each hole. With the drilled Cero Colorado target at Urique North being proved to have similar mineralization at depth as at surface, the potential to define a significant deposit becomes increasingly probable. Ian Foreman, P.Geo., President of Yale Resources, stated to Mining MarketWatch; "We’ve proven the size potential – now we’re waiting on assays".

The Cero Colorado and the San Pedro gold-silver targets located in Urique North are subjects of Yale's planned drilling. The Cero Colorado structural target is defined over 2.5 km, Yale has traced the structure over the entire 2.5 Km, and within that they have 3 target areas (El Vergel, Mina Guadalupe North and South) that show consistently anomalous and good grades over a strike length of 150 – 250 meters. The drilling at Cerro Colorado has intersected the target breccia over several metres width in each of nine holes, totalling 1,353 metres, over a strike length of more than two kilometres and to vertical depths ranging from 10 to approximately 150 metres.

Location and Size Matters

Yale's Urique Project is a monstrous property in an area of enviable mineral inventory
 
Significance of location: Mining MarketWatch believes the science of “nearology” resonates loudly on Yale’s Urique Project; The Urique Project is in close proximity to neighbouring large established resource laden gold and silver projects that share the same stratigraphy. It is not unreasonable to expect Yale to have a major gold-silver find in its future considering what they already know of the surface grades, history, neighbours, location and size of Urique.
 
       Yale's Urique Project, in the highly prolific Sierra Madre Gold Belt, boarders Goldcorp's El Sauzal Mine (2.1M oz Au) to the south and Kimber Resources' Monterde Mine (0.8M oz Au, 45M Ag) to the north. Yale has identified 10 quality targets at the Urique Project and taken several to drill-ready stage (drill campaign on now). Each of these targets is related to large mineralized hydrothermal systems that have the potential to host bulk mineable resources.
 
       Numerous plus-one million ounce gold deposits have been discovered in this 300 km long region of southwestern Chihuahua: including Mulatos (Alamos Gold), Dolores (Minefinders), Ocampo (Gammon Lake), as well as the El Sauzal mine (Glamis Gold, now part of Goldcorp Inc.).

Significance of size, historic activity, & mitigating risk:

       Yale has a monstrous 290 Sq km property with over 30 previously mined locations on the property. Historic workings are from the periods stretched over 400 years of mining history on the property (dating back from the Spanish to the early 1900’s, and 50’s, 60’s). The old timer’s technology dictated they could only take the highest grade material - from a mining standpoint to the recoveries, recoveries being key; they typically only dealt with the oxide portion of the deposit. Many times in Mexico old-timer mom & pop operations reach the water table and they’ve stopped mining because they didn’t have the technology to recover metals from the sulphide portion of the ores.
  

       On such a large land package in such a prime postal code there is immense potential for new discoveries over time, but the focus is to prove up technical successes on the current established targets; Yale has recognized 10 different target areas and from a company standpoint they always have to manage the properties such that they are mitigating the risk – they always want to have properties that are more advanced and they are always preparing to bring lesser advanced properties into the Company creating as they go a growing value added portfolio, back-up plans, and exit strategies. From that standpoint, that’s how Yale is also are treating exploration within the Urique property - "We are managing the target areas such that we always have one that’s drill-ready or almost drill-ready, becoming more interesting and needing more development and then grass roots exploration to identify and move the others to the next level."

       The Cero Colorado target area of Urique that Yale is currently looking at is only a 4 square kilometre area out of 290 Sq Kms. We’re dealing with a small portion of the whole property here – just the Cero Colorado would make for an interesting property for any Company exploring in the area.
 

Significance of the Geology & Geophysics: Geophysics corroborates the geology and the drill programs first hole has intersected structure exactly where Yale's geologists expected ... results could be very rewarding for shareholders

       You have to be very careful that you are not going to shoot first and ask questions later. Yale has been very prudent; being sure we ask all the right questions first before initiating the current drill program, increasing their level of confidence after each question. On their Cero Colorado target Yale is now drilling, they can now say they have a 2.5 km long structurally controlled breccias that they have mapped on surface – first they walked and sampled the length of it and said “yes – it exists”. Yale has gone and made transects and sampled across it at regular intervals along the length and they’ve determined there are three areas that are each greater than 200 meters in which at surface they get gold and silver values of interest. Locally they found anomalous gold values but we’re getting an ounce per tonne of silver – silver tends to be a much more of a strong path finder, it seems that silver is a lot more of a larger part in this system and is more consistently distributed. Ian Foreman, P.Geo., President of Yale Resources, stated, “Now that we’ve identified these three target areas within the larger target. We’ve got areas that have been previously mines and looking at the style of mining it was probably done in the 30’s, 40’s, or 50’s – it’s quite rudimentary; they went in and took the physically softer portions of the rock – we know then that although it is relatively modern from timing standpoint, it wasn’t done with any large inflection of capital – it was probably very much more a “mom & pop” operation and those tend to only take the extremely high grade, but they are dealing with the softer material and we know now from our standpoint that some of the harder material, i.e. the silicious alteration and just the silica materials are really quite high grade and so we can then see that they didn’t really advance very far. So we’ve got indication now that there was enough gold and silver in the ground to support small scale mom and pop mining (one for example in El Vergel - it is just a small pit). In Mina Guadalupe there are two workings, one on either side of the river.
 
       To take our confidence level to the next stage Yale needed to get an idea as to what was happening in the third dimension - a standard IP (inverse polarization survey - resitivity-chargability and magnetometer lines) was performed. This is a geophysics crew that worked as a consultant and does not know a geological interpretation of the property and is literally just interpreting electronic data – they have now given us profiles, cross sections so to speak that are 900 meters long and up to 150 meters in depth showing us in 2 dimensions now vertically the representation of that electronic data – and low and behold a lot of that data coincides with our geological interpretation – this is really significant – we have got the geology that is now corroborated by the geophysics."

High Grade Assays on both Urique North and South: Yale is now drilling in Urique North, under large highly mineralized surface zones with interesting gold-silver grades

       Yale has broken the Urique property into two sections; Urique North and Urique South. They have done that for two reasons 1) access, infrastructure, and the ability to advance targets rapidly. 2) is geology, there’s a very large change in geology from the north to the south part of the property and that is based solely on vertical exposure. Between the north part of the property and the south part of the property there is a vertical kilometre change in elevation. Yale is dealing with very different geological environments because of the host rocks.

       Yale has “high grade” material from Cero Colorado and a lot of the “bonanza grade” they are getting from the San Pedro area. For example at San Pedro they are getting grab samples of 27 g/t gold and 482 g/t silver, they have a vein that is 1.1 meters in thickness that graded 35.3 g/t gold and 400 g/t silver – there are some very high grades there. The target that has been in the media lately is the El Rosario target (unfortunately it is not at the drill stage yet, so some of the best is yet to come)…

 "Sampling on Yale's Urique Project has yielded significant values of as much as 10.6 g/t gold and 8,290.0 g/t (or 241.5 ounces per ton) silver from 10-40 centimetre wide veins. Sampling within the altered andesite has yielded gold and silver values of as much as 0.2 to 0.3 g/t gold and 5.0 to 41.0 g/t silver suggesting that the El Rosario area has the potential to host a bulk tonnage open pittable resource..." [See Feb 6/08 Release]

This most recently identified zone, El Rosario, is located east of the town of Urique and comprises multiple historic mines and prospects that exploited a system of high grade veins. Formal mining of this area ended in the late 1920's and consisted of several hundred metres of underground workings on three levels. These historic workings are all within a zone of strong silicification in the andesite host rocks that measures approximately 100 metres wide and over 400 metres long. The zone is open at depth and along strike.
 
Sampling has yielded significant values of as much as 10.6 g/t gold and 8,290.0 g/t (or 241.5 ounces per ton) silver from 10-40 centimetre wide veins. Sampling within the altered andesite has yielded gold and silver values of as much as 0.2 to 0.3 g/t gold and 5.0 to 41.0 g/t silver suggesting that the El Rosario area has the potential to host a bulk tonnage open pittable resource.

Two exploration crews worked on the project throughout 2007. One crew focused on the northern half of the land package while a second crew explored the southern half of the project in the Urique Canyon on concessions located immediately north of Goldcorp's El Sauzal project.
 
In the southern portion of the property first pass reconnaissance work included the sampling of sixty (60) historic workings, mines and prospects. A total of 271 rock samples have been collected (see table of values in press release of April, 24 2007 for earlier results). Several of these small mines have returned high grade gold and silver values with local values in excess of 1,500 g/t silver from dumps and veins. One of the new areas of mineralization that was discovered, named Guasimitas, returned two 80 cm samples from a vein assaying 16.35 and 8.38 g/t gold.
 
In the north, the Cerro Colorado target has been advanced to the drill-ready stage. This work included the collection of 585 rock samples, mainly in trenches that were completed over approximately 2.5 kilometres of strike length. At least four areas of mineralization have been identified: the El Vergel, Mina Guadalupe and Ampliacion Guadalupe zones occur along the main structure, and the Las Taunas zone is an interpreted splay off the main structure. Mapping has shown that the main structure is continuous between all of the zones. In preparation for the second year of exploration at Cerro Colorado, a surface access agreement with the local communities has been negotiated.
 
At the San Pedro target area, which surrounds the historic Sangre de Cristo gold-silver mine (owned by a third party), past work by EXMIN identified several small mines and prospects developed on quartz veins with assays ranging from 6.6 to 35.0 g/t gold and 61.0 to 401.0 g/t silver over 0.3 to 1.1 metre vein widths (see Press Release of May 17, 2006). 292 samples have been taken in surface exposures and trenches. Three principal set of gold-silver veins have been discovered with several of the narrow vein systems have yielded high-grade precious metals assays, ranging up to 137.50 g/t gold and 133.0 g/t silver over 0.25 metres.
 
In addition, sampling of widespread alteration coincident with the intersections of north-south and northeast vein sets suggest there may be potential for bulk mineable mineralization at San Pedro as trenching has uncovered mineralization grading 0.33 g/t gold and 7.6 g/t silver over 21.65 metres.

Yale may earn up to a 75 % interest in the Urique Project by spending US$ 4.5 million on exploration and property acquisitions and issuing 1.5 million shares to Exmin over a five year term.

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Yale's La Verde Project (Copper & Gold Prospects):

In Addition to Superior Silver & Gold Prospects, Yale Resources is Developing as a Strong Copper Junior

Yale has secured control & stewardship of the entire La Verde project; maximizing future upside of highly prospective Copper-Gold-Silver-Zinc mine potential

Yale now controls several historic deposits that have great values, all together - all in one contiguous area, never before achieved and making what was once a handful of separate excellent historic deposits held by three separate companies now all under the control and stewardship of Yale. Samples (non NI 43-101) from the various historic workings on the newly acquired region, throughout this area, ranged from 0.28 to 5.45 % copper, 0.15 to 8.60 % zinc, 3.90 to 578.00 g/t silver and 0.1 to 11.1 g/t gold. These recent moves by Yale make the viability and reality of a major operation at La Verde much closer. The Feb 28/08 geophysics news affirms the belief that the historic deposit is much larger.

Yale Resources' president, Ian Foreman, P.Geo., stated the following regarding the acquisition; "This ground is a very important addition to the La Verde Project as there are several geological and structural trends that have been identified that cross the La Cobriza property." "Yale now has control over all of the significant known mineralization in the vicinity of the La Verde Grande Mine and we will be able to fully take advantage of having unencumbered access to test the multi-million tonne potential of the property."

        Their 100% owned La Verde Project, located 1 hour drive from Hermosillo Mexico, contains the historic past producing La Verge Grande copper Mine where Yale's 2007 geological mapping and sampling program has shown the mines deposit is larger than historic data indicated. Yale acquired this project in 2007 at a cost of US $1.6M plus 2% NSR. The property has a historic resource estimate dating from 1989 (non NI 430101 compliant) of some 459,000 tonnes grading 2.59% copper, 98.54 grams per tonne silver and 0.38 grams per tonne of gold, all based on a deposit of 110 meters long, 34 meters deep and 18 meters wide. Yale's work program since acquiring La Verde has defined skarn mineralization over strike length of greater than 250 meters and has shown that mineralization is open in all directions. Yale's 2008 exploration program has a good probability of confirming what they already believe; that they are sitting on very large copper (with Ag-Zn-Au sweetener) mine. Yale's Feb 28/08 news that "Geophysics Identifies Possible Extentions to the La Verde Grande Deposit" [See Feb 28/08 Release] affirms the belief that the historic deposit is much larger. Yale has encountered exceptional grades in certain sections of skarn deposit; of particular note were 11 samples that averaged 3.04% copper and 190 g/t silver over 50 metre length of the working. La Verde Grande's historic production (see adjacent diagrammatic and picture below) resulted in numerous shafts and tunnels on three levels, these were mined centuries ago and also later again in the early 1900's (from Hermosillo Copper Company). However, this was mined at a time when they lacked the knowledge and technology to extract gold and silver from sulphides and much of the ore they would have encountered at the time would have been skipped over as too difficult to extract (a historic report from December 1919 describes evidence of sulphides in the bottom 125 feet of a shaft and such occurrences). The La Verde Grande Mine and surrounding land will provide Yale investors with plenty upside investment potential in 2008 with a planed drill program and continued exploration.

The aforementioned La Verde Grande is the largest of eight known historical deposits that have seen limited production within Yale's La Verde Project. Yale has duplicated old assay results in various areas, currently has geologists in the field conducting ongoing geological mapping and sampling, and believes the potential exists for a multi-million tonne open-pit mine. The La Verde project has good infrastructure with paved roads and power grid practically at the doorstep. The entire project covers 2,640 hectares, among which contains La Sierrita copper-zinc-molybdenum porphyry which had seen limited drilling in 2000 by Freeport McMoran and yielded good anomalous values. On January 9, 2008 Yale announced positive results from three additional known deposits at La Verde (El Picacho, La Tescalama, and La Verdecita) [see results here], the good results affirm the highly mineralized La Verde's intrinsic value.

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Yale's Carol Project (Copper & Gold Prospects): Yale Resources 100% owned project is the 291 square km Carol Project, also located in Sonora state, Mexico, and is approximately 4 km NE of Frontera Copper Corp.'s famed Piedras Verdes mine.  Excellent neighbours to have considering Piedras Verdas has a reported proven and probable reserve of excess of 200 million tonnes averaging .36% Cu with recent news announcing that increased ore reserves will add approximately two additional years to the mine life. Due to the proximity to Piedras Verdes, the Carol property has excellent infrastructure.

Yale's 2007 results on Carol showed two skarn zones, Blade South (~1,100m long & 400m wide) and 800m away Blade North (~300m X 800m). Yale has initiated in Jan 2008 a phase II exploration program that has follow up on the results of the 2007 phase 1 program (See comment below on March 2008 Carol Property Update). Within the Balde South skarn mapping and sampling has identified two key zones with visible copper oxide mineralization. The first is approximately 30 by 30 metres and contains several small exploratory workings. Sampling in this area returned a weighted average of 1.73 % Cu, 3.13 % Zn, 11.99 g/t Ag, and 0.21 g/t Au over an average width of 5.33 metres. The second area, located 500 metres to the south -- still within the Balde South skarn, measures approximately 300 metres by 200 metres. Six samples collected with average widths of 2.9 metres returned a weighted average of 1.54 % Cu, 0.55 % Zn, 10.39 g/t Ag, and 0.35 g/t Au. The upside potential for the Balde South skarn is demonstrated by sample 33, located some 300 to the east, which graded of 1.73 % Cu, 13.65 % Zn, 0.77 g/t Au, and 7.47 g/t Ag over 4.0 metres. Irregularly spaced chip channel sampling within the centre of the Balde North skarn, over an area approximately 50 metres by 25 metres, returned a weighted average of 0.84 % Cu, 2.38 % Zn, 0.10 g/t Au and 4.57 g/t Ag with an average sample widths of 2.3 metres. Within the Balde North skarn is the Escondida shear zone from which a sample averaged 2.13 % Cu, 0.74 % Zn, 2.26 g/t Au, and 51.6 g/t Ag over 6.0 metres. It is suffice to say Blade South and North may well be putting their neighbours infrastructure to use after ongoing widespread trenching through mineralized areas define drill targets that yield what is suspected.

March 2008 Carol Property Update [See Mar 6/08 Release]: Yale has completed a trenching program at the Carol Property Seventeen trenches, for a total of 1,325 m, were dug by hand. The goal of this program is to determine if the previously sampled mineralized zones with average grades greater than 1% copper and 1% zinc have the potential to host oxide copper-zinc +/- gold-silver skarn mineralization over greater widths.
 
The Carol property hosts two skarn zones: Balde South and Balde North. The Balde South measures approximately 1,100 metres long and 400 metres wide, while the Balde North, located 800 metres away, measures approximately 300 metres by 800 metres. 12 trenches were dug within three areas of the Carol South skarn target and 5 trenches were dug in the Carol North skarn target, which includes the La Escondida structure. All trenches were dug in an east to west direction. A total of 230 samples were taken covering approximately 460 metres of mineralization and alteration. Mapping of the trenches indicates that copper oxides occur in each trench over widths between 6 and 22 metres. In many instances deeper than expected overburden did not allow for the sampling of the underlying bedrock, hence several of the zones remain open. All samples have now been sent to ALS Chemex in Hermosillo and results will be reported when received.
 
As a result of this trenching program, management has accelerated and renegotiated the purchase agreement for the Carol property. The original deal required Yale to pay US $150,000 over three years (of which the Company had paid only $10,000). In order to accelerate the agreement, Yale has paid the owner US $70,000 and upon acceptance of the TSX Venture Exchange will issue 280,000 shares. These renegotiated terms will result in the transfer of 100% title of the Carol property to Yale's Mexican subsidiary Minera Alta Vista in the coming weeks.

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A review of recent project news release updates by YLL reveal a dynamic company rapidly moving forward:

Yale Resources Reports on Drill Program at Cerro Colorado, Urique North [see May 1/08 release]

Yale and EXMIN Start Drilling at Urique North [see Apr 1/08 release]

 Yale Announces the Geophysics Confirms Depth Potential for Drill Targets at Urique North [see Mar 27/08 release]

 Yale Completes Preliminary Metallurgical Studies at La Verde Grande [see Mar 13/08 release]

Yale Finishes Trenching Program at Carol Property and Accelerates Property Pmts [See Mar 6/08 Release]

Geophysics Identifies Possible Extentions to the La Verde Grande Deposit [See Feb 28/08 Release]

Yale Adds Significant Piece of Land to the La Verde Project [See Feb 20/08 Release]

Yale samples 10.6 g/t Au, 453 g/t Ag at Urique - Significant New Gold-Silver Mineralization [See Feb 6/08 Release]

Phase II Trenching Program at Carol Property [See Jan 17/08 Release]

 Positive Results from Three Additional Deposits at La Verde [See Jan 0/08 Release]

 Yale Releases All Assays from La Verde Grande Mine [See Nov 29/07 Release]

 Yale Reports Follow Up Sampling from Carol Project [See Nov 27/07 Release]

Yale Resources' modus operandi is to acquire or option projects that meet the Company's criterion and advance them to drill ready status as rapidly as possible. Generally, YLL looks for prospective projects that have 1) significant 'blue sky' potential, 2) previous production, 3) proximity to active mines or major projects and 4) good access and infrastructure. With a young, experienced, and qualified P. Geo heading the Company on such highly prospective claims and executing upon short term goals, YLL's long-term goals (of identifying significant resources such that they can ultimately have a production decision) will fall into place for the benefit of all stakeholders.

See below for a review of the above projects & others of Yale Resources Ltd.

Yale’s properties are all located in stable mining friendly Mexico: Focusing in stable mining friendly Mexico provides YLL and its investors many advantages; Exploring in Mexico brings with it immense discovery potential, a stable political climate, a 500+ year mining history, sound environmental policies, excellent infrastructure, and a firm government commitment to natural resources development
 
Mexico is considered to be a low cost jurisdiction for mining operations with average labour costs ranking far lower than most other countries. However, due to the lack of employment opportunities in other sectors, mine employees earn much higher wages than the average per capita income. As a result, mining jobs are sought after by a motivated and well-trained local work force and local communities are generally supportive to mine development. In addition, environmental regulations are comparable to the rest of North America and there is only limited tolerance for obstructionism, ensuring that permitting for exploration and development is accelerated.

• Ian Foreman, P.Geo. - President and Director
  Mr. Foreman graduated with honors from Queen's University in 1992 and has worked in a wide spectrum of geological environments involving both base and precious metals. He has worked for various junior mining and exploration companies in North and South America. Throughout the mid 1990's Mr. Foreman worked on a series of large multi-million dollar exploration programs in British Columbia, Yukon and Mexico. From 1998 through 2002 Mr. Foreman worked on various projects exclusively in Peru. As Chief Geologist, he was a key figure in putting the 1,000 tonne-per-day Santa Rosa open pit gold-silver mine into production.
   

• Mr. Edmundo Urbie - Director
  Mr. Edmundo (Mundo) Uribe Quintana (also know as Edmundo Sanchez Aldana Quintana) is a Mexican born entrepreneur that has founded a number of successful businesses in Mexico, Canada, and the United States. Mr. Uribe is the founder of Golden Anvil, S.A. de C.V., a Mexican mining company with one project in operation. During the first twenty years of his career, Mr Uribe participated in the introduction of innovative explosive technologies for the mining and construction industries, thus creating a wide network of business associates connected to the Mexican mining and exploration industry.
   

• Dr. Luca Riccio, P.Geo. - Director
  Luca Riccio, PhD, P.Geo. is president of Riccio Geoconsulting Ltd. and former V.P. Exploration of Crystallex International. Dr. Riccio has been involved in the evaluation and/or supervision of gold, base metal, chromite, nickel-copper and PGMs projects in the Americas, Europe and Asia. He was responsible for the underground exploration and development at the New Britannia Mine in 1987-88 and the initial evaluation of the Andacollo gold project in Chile in 1989. In the early 1990's Dr. Riccio pioneered a regional exploration program in southeastern Venezuela, which led to the discovery of several gold deposits and one producing mine. Under his supervision, the reserves at Las Cristinas gold deposit in Venezuela increased from 10.0 to 12.6 million ounces. Dr. Riccio is fluent in four languages.
    

• David Hall - Director
  Mr. Hall is President and Chief Executive officer of Aurizon Mines and has been a Director of Aurizon since its inception in 1988. Mr. Hall is a Chartered Accountant who has been involved in the management of mineral exploration, development and operating companies since 1981 and has been instrumental in securing significant project and equity financing.
  Lindsay Bottomer, P.Geo. - Director
   

• Mr. Bottomer is a professional geologist with more than 33 years of experience in global mineral exploration and development with major and junior mining companies---the last 16 years based in Vancouver, B.C. Currently, he is vice-president, corporate development, with Entree Gold Inc., a public company focused on mineral exploration in Mongolia and Central Asia. He was formerly director of Canadian exploration with Echo Bay Mines, and vice-president, new projects, with Prime Equities (Pezim Group). He is also a past president of the B.C. and Yukon Chamber of Mines, and currently an elected councillor on the Association of Professional Engineers and Geoscientists of B.C.