Armistice Resources Announces Positive Drilling Results at McGarry Gold Mine
in Kirkland Lake Area

    
    -   Results meet or exceed company's expectations; identify high-grade
        intersections
    -   Preliminary drilling results indicate the 325 gold zone is
        considerably larger than company had expected
    

TORONTO , Jan. 5 /CNW/ - Armistice Resources Corp. (TSX: AZ), which is moving rapidly toward beginning gold production at its McGarry Mine in the Kirkland Lake area of Northeastern Ontario, today announced that the preliminary results of a recently completed drilling program on the property have met or exceeded the company's expectations.

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.

"We now have completed the first phase of this new drilling program and are very encouraged with the preliminary results, which have met or exceeded our expectations," said Todd J. Morgan, President and Chief Executive Officer. "Following the drilling regime that was recommended in the NI 43-101 Technical Report, dated April 8, 2009 (filed on SEDAR), we have been able to confirm good intersections and now have further increased our confidence level of the McGarry Mine project. In fact, the preliminary drilling results indicate that the 325 gold zone at the mine is considerably larger than we had expected.

"With this first drilling phase completed, we are going to take some weeks to complete the logging, assaying, and interpretation of the results. When we have completed this additional analysis, including for the Mill Zone and McGarry surface drilling, we will announce our findings.

"We will proceed early in 2010 with a second phase of the exploration drilling program towards helping us to determine the additional potential that we believe exists for our McGarry Mine project," Mr. Morgan continued. "Subject to our obtaining additional capital in 2010, amounting to about $15 million , we plan to proceed later in the year with pre-production development, leading to full production later in the year or in the first part of 2011."

    
    Results of Phase One of New Drilling Program
    --------------------------------------------
    

Armistice Resources has completed 16,584 feet of drilling in 36 holes at the McGarry Mine project. This drilling includes 4,099 feet in seven holes from surface in the Mill Zone, located approximately 3,000 feet south of the current mine workings; 10,242 feet in 15 holes from surface on the potential upwards extension of the identified Mineral Resources between sections 175W and 450W of the shaft; and 2,243 feet in 14 underground holes from the west end of the 325 Drift on the 2250 Level.

325 West Zone

Armistice Resources has not yet completed the logging and assaying of all the holes, however, results from three underground holes are available and tabulated below. The new holes, 325-01, 325-02, and 325-03 were all drilled from the western end of the 325 Drift with flat dips. These holes targeted a gold zone within 200 feet of the end of the 325 Drift that had been identified in the 2008 drilling from the 260 Drift and previously reported (shown on the attached plan map).

The holes testing the 325 Zone provide information for a preliminary interpretation of the geometry of the zone at the 2250 elevation and will guide future mining development and stope definition drilling layouts. Assay results are very encouraging and demonstrate the high grade potential of the deposit and the need for drill spacing at 25- to 50-foot intervals for gold zone definition.

The table below summarizes the significant assay intervals for the 325, 370, and 260 gold zones west of the 260 and 325 Drifts between 1250 and 1600 west on the mine grid at the 2250 elevation.

    
    -------------------------------------------------------------------------
    Drill                                       Core     Assay        Zone
    Hole                    From       To     Interval  (oz gold
    (Year)                  (ft)      (ft)      (ft)    per ton)
    -------------------------------------------------------------------------
    325-01
     (2009)
     new                    15.3      23.6       8.3      0.15      325 West
                           --------------------------------------------------
              Including     17.6      18.9       1.3      0.46      325 West
              ---------------------------------------------------------------
                           134.5     136.4       1.9      0.10      325 West
              ---------------------------------------------------------------
                           173.7     207.0      33.3      0.16      325 West
                           --------------------------------------------------
              Including    182.0     204.5      22.5      0.20      325 West
    -------------------------------------------------------------------------
    325-02
     (2009)
     new                    32.0      48.7      16.7      0.11      325 West
                           --------------------------------------------------
              Including     46.9      48.7       1.8      0.65      325 West
              ---------------------------------------------------------------
                           110.0     132.8      22.8      0.17      325 West
                           --------------------------------------------------
              Including    110.0     121.3      11.3      0.28      325 West
                           --------------------------------------------------
              Including    116.7     118.5       1.8      1.02      325 West
              ---------------------------------------------------------------
                           166.0     177.0      11.0      0.13      325 West
    -------------------------------------------------------------------------
    325-03
     (2009)
     new                    17.0      22.6       5.6      0.08      370 West
    -------------------------------------------------------------------------
    260-325-1
     (2008)                  0.6       8.8       8.2      0.09      260 West
    -------------------------------------------------------------------------
    260-325-2
     (2008)                  0.0       6.5       6.5      0.13      260 West
    -------------------------------------------------------------------------
    260-325-3
     (2008)                  2.5      10.1       7.6      0.17      260 West
    -------------------------------------------------------------------------
                           132.5     135.9       3.4      0.18      325 West
    -------------------------------------------------------------------------
    260-325-4
     (2008)                  3.6      14.4      10.8      0.21      260 West
              ---------------------------------------------------------------
                                                                         Not
                           136.6     140.1       3.5      0.38    determined
              ---------------------------------------------------------------
                           182.0     185.0       3.0      0.13      325 West
              ---------------------------------------------------------------
                           252.0     261.0       9.0      0.38      325 West
                                                                 (hole ended
                                                                          in
                                                              mineralization)
    -------------------------------------------------------------------------
    260-325-5
     (2008)                  6.5      24.2      17.7      0.13      260 West
              ---------------------------------------------------------------
                           235.0     239.8       4.8      0.37      325 West
    -------------------------------------------------------------------------
    22-25
     (1996)                362.0     367.9       5.9      0.16      260 West
    -------------------------------------------------------------------------
    22-29
     (1996)                432.0     437.6       5.6      0.22      325 West
    -------------------------------------------------------------------------
    22-35
     (1996)                446.8     453.0       6.2      0.16      325 West
    -------------------------------------------------------------------------
    22-148                                                               Not
     (1998)                452.2     455.0       2.8      0.15    determined
              ---------------------------------------------------------------
                           511.7     514.1       2.4      0.20      325 West
    -------------------------------------------------------------------------
    

All the assay intervals reported are drill core intervals. True widths have not been estimated since the final interpreted geometry of the zones is yet to be determined. The attached plan map provides a visual guide to the relevance of each assay interval to the gold zone definitions.

To view a map of McGarry Mine, please click: http://files.newswire.ca/219/McGarry_Mine.pdf.

    
    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], [phone] (cell)