Armistice Resources Announces Mill Zone Drilling on McGarry Mine Property
Finds High-Grade Gold Values; Confirms Structure and Expands Exploration
Potential

    
    -   Drilling produces assay results of up to 0.41 oz/t over 5.3 feet
        (3.0 feet true width) on property in Kirkland Lake camp
    -   Two vertical, sub-parallel gold zones provide company with exciting
        exploration target extending over 2 miles of strike
    -   Strike area extends into former Kerr-Addison Mine property for which
        Armistice Resources recently signed Letter of Intent to purchase
    

TORONTO , Jan. 20 /CNW/ - Armistice Resources Corp. (TSX: AZ), which is moving toward beginning gold production at its McGarry Mine in the Kirkland Lake area of Northeastern Ontario, today announced further results from its recently completed 2009 surface drilling program on the McGarry Mine property.

Drilling on the property's South Mill Zone area, about 2,800 feet due south of the McGarry Mine shaft, produced assay results of up to 0.41 ounces of gold per ton over 5.3 feet (3.0 feet true width).

In late October 2009 , Armistice Resources began a significant exploration drilling program at its McGarry gold mine project. The drilling program is designed to test the extension of the existing mineralized package as well as to test for possible new parallel structures.

"Two vertical, sub-parallel gold zones interpreted within the Mill Zone provide Armistice Resources with an exciting exploration target extending over 2 miles of strike with historical intersections of gold zones at multiple locations along the strike (see attached diagrams for a location map and a drill cross section at 1100 West )," said Todd J. Morgan, the company's President and Chief Executive Officer.

    
    To view the location map and the drill cross section at 1100 West,
    please click:
    http://files.newswire.ca/670/ArmisticeRC2.pdf
    

The two miles of strike extends on to the former Kerr-Addison Mine property, which adjoins the McGarry Mine gold project. On January 8, 2010 , Armistice Resources announced that it signed a Letter of Intent with a group of private investors providing the company one year to complete due diligence and sign a definitive option agreement to purchase up to 100 percent ownership of the Kerr Mine workings and related mineral properties totalling more than 2,000 acres.

The Mill Zone of the McGarry Mine property has been explored intermittently since the 1930s. Historical records in Armistice Resources' files show this work, but in some cases only maps or drill sections are available. From these maps and sections, assay values and measured intercepts along the drill holes have been extracted. Although the extracted data is believed to be reliable, this cannot be verified and therefore the extracted results cannot be used in any future resource estimate. Historical drill holes were drilled with a variety of directions which may indicate the continuity of intersected gold zones was not easily determined at the time.

Confirmation of Historical Drill Data on McGarry Mine Property

One of the objectives of Armistice Resources' 2009 drill program was to evaluate the reliability of the available historical data. Diamond drill hole (DDH) MZ09-05 was drilled to twin the 1940s DDH S38. The results of the two twinned holes are not identical, but the gold zones located in DDH S38 are clearly identified in DDH MZ09-05. From this test, Armistice Resources concludes that the results in the historical record can be used as a guide to exploration. The hole-to-hole comparison is tabulated below. There is about a 10-foot difference in the down hole distances due to the relative positions of the hole collars. The final intersection in the 2009 hole does not appear to have a corresponding value in the 1940s hole. It is not possible to determine if this section of the 1940s hole was sampled or not since only significant assays are shown on the section plan in Armistice Resources' files.

    
             DDH AZ09-05 (2009)                      DDH S38 (1940s)
    From   To    Interval  Assay          From   To    Interval  Assay
    -------------------------------------------------------------------------
     72.0   73.0   1.0 ft  0.12 oz/t Au -  65.0   67.5   2.5 ft  0.15 oz/t Au
     83.2   85.4   2.2 ft  0.36 oz/t Au -  70.0   72.5   2.5 ft  0.68 oz/t Au
    177.1  180.0   2.9 ft  0.13 oz/t Au - 155.5  160.5   5.0 ft  0.07 oz/t Au
    204.5  210.0   5.5 ft  0.15 oz/t Au - no corresponding assays shown on
                                          section map
    

New Interpretation Opens Major Exploration Potential

The second conclusion from the current drilling is that there is strong support to interpret the gold zones to be nearly vertical and continuous over distances of at least 500 feet. Previous interpretation of the Mill Zone was complex. The results of the current drilling provide a simpler interpretation opening the Mill Zone to systematic exploration drilling from surface along strike to the west and to the Kerr Mill Zone, 2 miles to the east.

The table below summarizes results from the 2009 Mill Zone drilling on section 1100 W.

    
    DDH      From   To     Interval  Interpreted  Assay          Zone
                                     True Width
            (feet) (feet) (feet)    (feet)       (oz/ton gold)
    -------------------------------------------------------------------------
                                                                 Mill Zone
    MZ09-05   72.0   73.0       1.0          0.8           0.12   South
                                                                 Mill Zone
              83.2   85.4       2.2          1.7           0.36   South
                                                                 Mill Zone
             177.1  180.0       2.9          2.3           0.13   North
                                                                 Mill Zone
             204.5  210.0       5.5          4.3           0.15   North
                                                                 Mill Zone
    MZ09-06  115.5  120.8       5.3          3.0           0.41   South
                                                                 Mill Zone
             267.6  272.9       5.3          3.0           0.12   North
                                                                 Mill Zone
    MZ09-07  331.0  334.0       3.0          1.0           0.19   South
    

Quality Control and Quality Assurance Process

Armistice Resources maintains procedures for Quality Control and Quality Assurance. These procedures including sawing the core in half and retaining half for archive reference. The other half is assayed using standard fire assay techniques with AA finish. For every 20 samples submitted for assay, one sample is quarter sawn and each quarter is submitted to separate labs for independent analysis. All samples assaying over 0.10 oz/t are re-assayed and average is used. For each 20 samples submitted, one blank is also submitted for control. All samples are sent to a recognized independent assay laboratory.

Qualified Person

The exploration program reported on here is supervised and managed by Erik Andersen , P.Eng., Vice-President and Chief Operating Officer of Armistice Resources and a Qualified Person as defined by National Instrument 43-101. Mr. Andersen has reviewed and approved this news release.

About Armistice Resources Corp.

Armistice Resources, a Canadian-based exploration and development company, is moving rapidly toward beginning gold production at its McGarry Mine in the Kirkland Lake area of Northeastern Ontario. The McGarry Mine is located in Virginiatown on the prolific Larder Lake-Cadillac Break that extends 200 km east-west straddling the Ontario and Quebec border and that has produced 95 million ounces of gold. The McGarry Mine is adjacent to the Kerr-Addison Gold Mine that has produced more than 11 million ounces of gold. The McGarry Mine consists of 33 contiguous patented mining claims, including three licenses of occupation, totalling 484 hectares. The McGarry Mine is fully permitted and all equipment and systems at the site have been brought up to standards, including its installed mining plant. Armistice Resources intends to commence gold production at the McGarry Mine within about the next year, subject to obtaining the necessary additional capital required to finance the mine's operations. Armistice Resources is listed on the Toronto Stock Exchange (Symbol: AZ) and currently has approximately 76,648,852 million common shares issued and outstanding. To find out more about Armistice Resources, please visit the company's website at www.armistice.ca.

Forward-Looking Statements

This news release may contain forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which a pre-feasibility study gives sufficient grounds for classifying the indicated mineral resources as probable reserves; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Armistice Resources' business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these. Armistice Resources assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements.

For further information: Investor and Media Relations: Richard W. Wertheim, Wertheim + Company Inc., Email: [email protected], [phone] ext. 223, [phone] (cell)