Grayd Resource Corporation Reports Expansion of Tarachi Mineralization

VANCOUVER, Feb. 8, 2011 - Grayd Resource Corporation (TSX VENTURE: GYD) is pleased to provide a drilling update for the Tarachi gold project, part of its 100% owned La India project in Sonora, Mexico.

Tarachi is a very large mineralized system that encompasses zones with significant gold content. Mineralization starts at surface. Holes recently completed expanded the known boundaries of the system and continued to outline areas of higher gold grades. Drilling in the Llano zone has outlined a 500 by 400 metre area with higher grades that is open along strike and to depth. New intersections include RC-10-584 with 74.7 m at 1.03 g/t Au with a high grade core of 22.9 m at 2.58 g/t Au, and RC-11-588 with 44.2 m at 0.93 g/t Au.

New results also include intercepts from RC-11-590, a similar mineralized zone 700 metres northwest of the Llano zone at Llano Grande. This entire 251 m hole intersected anomalous gold averaging 0.30 g/t Au, including a 16.8 m interval of 1.01 g/t Au. The hole bottomed in a 24 m interval averaging 0.64 g/t gold.

Marc Prefontaine, President and CEO of Grayd, stated: "Our exploration efforts continue to demonstrate that a very large mineral system underlies Tarachi. We have found similar looking quartz veins in sporadic outcrop over a 2 by 3 kilometre area. Every hole we have drilled to date on this target has intersected at least some +0.3 g/t Au material, and many holes are mineralized from top to bottom. Our team is working hard on a model to predict the location of higher grade zones within the larger system. Most of Tarachi has not yet been drill tested. It is a very exciting target and a focus of the Company's exploration efforts going forward."

Ten new reverse circulation (RC) drill holes drilled in late 2010 and January 2011 are reported herein. Nine of the holes were targeted on a concentration of sheeted and stockwork quartz veins exposed in the Llano zone. As in previous drilling, higher grade intersections occur within extensive zones of alteration with anomalous gold that usually encompass the entire hole. A summary of all drill results from Tarachi to date is given below.

Besides focusing on the exploration of Tarachi, Grayd will begin feasibility level studies on the existing resource area that was subject to a Preliminary Economic Assessment, reported on October 21, 2010. This assessment showed a 51% internal rate of return, a US$187 million net present value (pre-tax, 5% discount rate), a nine-year mine life and nearly 850,000 ounces of gold produced.


Tarachi Geology

Gold mineralization at Tarachi developed over a greater than 4 km2 area with multi-stage sheeted and stockwork quartz veins in dacitic volcanic rocks and subvolcanic dacitic intrusions. Exposures of veined rock are poor and old workings very sparse; therefore, the area has been separated into three zones with veined exposures known as Llano, Llano Grande and Las Huejas. Exposures of mineralized rock and drill core display a vein paragenesis characteristic of episodic or pulsed hydrothermal events. These events recorded an early stage black quartz breccia and veins with irregular vein walls and low gold grades (less than 0.1-0.5g/t Au) crosscut by white quartz veins with planar vein walls and molybdenite cores (less than 0.1-0.5g/t Au, greater than 100 ppm Mo). Later black banded and botryiodal sheeted quartz veins, associated with higher gold grades (greater than 0.5-5.0 g/t Au, up to 22.9 g/t Au), crosscut the earlier quartz. Latest banded and botryiodal tan quartz veins with planar vein walls carry trace gold (less than 0.1 g/t Au) and brassy pyrite. All quartz veins are less than 2 cm-in-width and lack distinct alteration halos. Alteration with illite – kaolinite ± dickite defines a central zone closely associated with the highest gold grades that is progressively enveloped by illite – smectite – pyrite, and a distal zone of smectite – hematite – carbonate – pyrite. Concentrations of quartz veins are associated with west, north-northwest, and northeast-trending fracture zones. These fracture zones also display slickenside striae that record strike-slip and dip-slip displacement interpreted as the result of the later Miocene extensional tectonics.


Table 1 Tarachi drill summary (new drilling)

Hole 	E 	N 	Depth (m) 	Az 	Dip 	From(m) 	To(m) 	Width(m) 	Au (g/t)
RC-11-593 	699888 	3184962 	160.0 	20 	-50 	117.3 	160.0 	42.7 	0.33
RC-11-592 	700053 	3184925 	251.5 	10 	-50 	0.0 	102.1 	102.1 	0.45
including 	71.6 	102.1 	30.5 	0.87
RC-11-591 	700399 	3185128 	227.1 	220 	-50 	18.3 	67.1 	48.8 	0.50
RC-11-590 	699801 	3185551 	251.5 	10 	-50 	0 	251.5 	251.5 	0.30
including 	167.6 	184.4 	16.8 	1.01
including 	227.1 	251.5 	24.4 	0.64
RC-11-589 	700198 	3184803 	251.5 	10 	-50 	51.8 	103.6 	51.8 	0.41
RC-10-588 	700278 	3185073 	166.1 	60 	-50 	4.6 	48.8 	44.2 	0.93
including 	38.1 	48.8 	10.7 	2.03
RC-10-587 	699995 	3185078 	251.5 	190 	-60 	19.8 	44.2 	24.4 	0.35
RC-10-586 	700002 	3184844 	251.5 	10 	-60 	99.1 	192.0 	93.0 	0.52
RC-10-585 	700129 	3184906 	205.7 	10 	-60 	6.1 	123.4 	117.3 	0.50
RC-10-584 	700221 	3184982 	275.4 	225 	-60 	65.5 	190.5 	125.0 	0.68
including 	115.8 	190.5 	74.7 	1.03
including 	153.9 	176.8 	22.9 	2.58

Table 2 Tarachi drill summary (previously released holes)

Hole 	Depth (m) 	From(m) 	To(m) 	Width(m) 	Au (g/t)
RC-10-583 	254.5 	64.0 	88.4 	24.4 	0.35
RC-10-582 	269.8 	13.7 	236.2 	222.5 	0.50
  	including 	160.0 	230.1 	70.1 	0.95
RC-10-581 	160.0 	7.6 	112.8 	105.2 	0.18
RC-10-580 	306.3 	77.7 	208.8 	131.1 	0.19
RC-10-579 	233.2 	13.7 	99.1 	85.3 	0.31
RC-10-578 	243.8 	42.7 	228.6 	185.9 	0.29
RC-10-577 	245.4 	132.6 	245.4 	112.8 	0.39
RC-10-576 	213.4 	99.1 	134.1 	35.1 	0.24
  	  	  	  	  	 
DDH-10-169 	226 	0.0 	9.0 	9.0 	0.55
DDH-10-168 	194 	9.0 	36.0 	27.0 	0.67
DDH-10-167 	250.0 	6 	250 	244.0 	0.85
  	  	108 	198 	90.0 	1.21
DDH-10-166 	324.8 	No significant intersection
DDH-10-165 	327.9 	No significant intersection
DDH-10-164 	207.4 	161.0 	166.0 	5.0 	0.70
DDH-10-163 	253.2 	No significant intersection
DDH-10-162 	349.2 	9.0 	46.0 	37.0 	0.38
DDH-10-161 	373.6 	136.0 	247.0 	111.0 	0.43
  	including 	144.0 	158.0 	14.0 	1.07
DDH-10-160 	205.9 	24.0 	142.0 	118.0 	0.38
  	including 	41.0 	75.0 	34.0 	0.62
DDH-10-159 	199.8 	9.0 	141.0 	132.0 	0.50
  	including 	68.0 	105.0 	37.0 	0.86
DDH-10-158 	410.7 	11.0 	253.0 	212.0 	0.31
  	including 	152.0 	184.0 	32.0 	0.69
DDH-10-157 	179.95 	0.0 	180.0 	180.0 	0.28
  	including 	101.0 	123.0 	22.0 	0.74
DDH-10-153 	157.1 	15.3 	157.1 	141.9 	0.23
  	including 	23.8 	55.8 	32.0 	0.43
DDH-10-152 	189.1 	146.0 	154.0 	8.0 	0.67
DDH-10-151 	138.8 	3.0 	16.0 	16.0 	0.41
DDH-10-150 	164.7 	55.0 	117.0 	62.0 	0.40
DDH-10-149 	221.2 	0.0 	191.0 	191.0 	0.85
  	including 	98.0 	186.0 	88.0 	1.54
  	including 	146.0 	180.0 	34.0 	2.23
DDH-10-148 	212.0 	8.0 	212.0 	204.0 	0.47
  	including 	22.0 	96.0 	74.0 	0.95
DDH-10-147 	151.0 	7.0 	110.0 	103.0 	0.18
DDH-10-129 	93 	0.0 	93.0 	93.0 	0.27
  	including 	0.0 	9.0 	9.0 	1.22
DDH-10-128 	100.65 	0.0 	100.6 	100.6 	0.27
  	including 	0.0 	36.0 	36.0 	0.51
DDH-10-127 	164.7 	0.0 	109.0 	109.0 	0.28
  	including 	0.0 	19.0 	19.0 	0.58
  	including 	87.0 	109.0 	22.0 	0.57
DDH-10-126 	303.3 	0.0 	94.0 	94.0 	0.43
DDH-10-125 	300.4 	0.0 	159.0 	159.0 	0.22
DDH-10-124 	301.95 	6.0 	302.0 	296.0 	0.21
DDH-10-123 	276.4 	2.2 	165.5 	163.3 	0.33
  	including 	2.2 	58.0 	55.8 	0.71

The La India property is a feasibility stage heap leach gold project located in the prolific Mulatos gold belt of Mexico's Sonora state. Tarachi is located 10 kilometers north of the resource area that was analyzed in a recently reported Preliminary Economic Assessment (PEA) and represents a separate gold-rich mineral system. Results of the PEA, reported on October 21, 2010, show a 51% internal rate of return, a US$187 million net present value (pre-tax, 5% discount rate), a nine-year mine life and nearly 850,000 ounces of gold produced.

Hans Smit, P.Geo., VP Exploration for Grayd, is the Qualified Person directing the exploration at La India. Samples are sent to the ALS Chemex facility in Hermosillo for sample preparation, and then to the ALS Chemex laboratory in Vancouver for gold assay and ICP. QA/QC procedures used include assay standards and blanks.


The information in this news release may contain forward-looking statements. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expression are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objects, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date the statements were made. The Company does not update forward-looking statements continually as conditions change.

Note: To view the map associated with this release, please click the following link:
http://media3.marketwire.com/docs/gyd0208.pdf

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Contact Information

Grayd Resource Corporation
Marc A. Prefontaine, President and CEO
604-681-7446

Grayd Resource Corporation
Daniel G. McIntyre, Manager Corporate Communications
604-681-7446
604-608-5372 (FAX)
www.grayd.com