Module Resources Incorporated (TSX - V: MLE) is pleased to announce that the Company has received positive results from its testwork program on materials in the tailings impoundment at its Ladner Gold Property near Hope in southeast British Columbia (see previous press release dated February 9, 2010).

Intensive whole ore leach on a master composite sample returned a successful 87.2% overall average recovery of gold (based on tailings analysis) denoting that this material responds positively to cyanide leaching.

The objectives of this testwork program were to determine basic information about the tailings material in order to guide future activities and to provide a preliminary assessment of the composition and the metallurgical response of the material.

A program to re-process the tailings material is being reviewed for the following reasons:

• Provide early cash flow to the Company,
• Reduce any potential environmental liability associated with the tailings material, and
• Produce a benign tailings residue that could be used as a paste backfill in the Carolin Mine.

The tailings are the waste product from previous operation of the Carolin Mine from 1982 to 1984. During this period of operation of the Carolin Mine, the average overall gold recovery was 50.2%. This indicates that a significant amount of gold-bearing material was sent to the tailings impoundment. Previous work of vibracore drilling, sampling, metallurgical examination and resource calculation by Athabaska Gold Resources Ltd. (Report to Shareholders, April 18, 2000) estimated a ‘defined diluted mineable reserve in all categories’ of 660,000 tons grading 0.051 oz/ton gold (33,660 oz gold) contained within the tailings. Note that this is an historical estimate only and was not prepared in compliance with the CIM categories as referenced by NI 43-101 and as such cannot be relied on. It is, however, indicative of the potential gold in the tailings material. The tailings impoundment has been monitored and inspected by independent consulting engineers and is in excellent condition.

All testwork from the tailings program was conducted at the mineral and processing laboratory at the University of British Columbia, Vancouver. BC, where it was processed under the supervision of Professor Marcello Viega. Processing included the following stages:

• Head sample taken for each of nine drill holes for assay and metallurgical study,
• Composite head samples made from the nine drill holes,
• Size distribution analyses of head sample (duplicate samples) for the +48, 65, 100, 150, 200, 400 and -400 mesh sizes
• Knelson gravity concentration of two head samples, seven passes for each head sample, and
• Cyanide leaching of whole ore head sample (duplicate samples).

Samples from the preliminary metallurgical program as described above, were submitted to Acme Analytical Laboratories, an ISO 9001:2000 certified analytical laboratory, located in Vancouver, BC. All samples subsequently underwent testing by various analytical techniques including standard fire assay for gold, ICP-MS for multi-elements and organic carbon and sulphide sulphur by Leco analysis.

METALLURGICAL TESTWORK RESULTS

Assay Head Grades
The assays of the head grades for nine holes were presented in a press release dated February 9, 2010.

Size Fraction Results
A composite sample of the nine holes was processed by sieving to determine the gold grades with different size fractions. Results indicate that gold resides in all sizes but is highest in the fine fraction, which is important for leaching testwork as the finer the size, the less grinding is needed. Calculated averages of gold head grades of sample duplicates are presented in the following table.

Knelson Gravity Concentration
Gravity concentration with a Knelson concentrator provided gold recovery of approximately 40 to 45% in seven passes. These results showed that an increase in gold grade is heavily correlated with an increase in arsenopyrite, total sulphur and sulphide/sulphur concentration. These results also show that coarse gold is not present, which supports the presence of gold as finely disseminated material within a gangue host (arsenopyrite).

Leaching
Leaching was conducted on a 1kg sample from the master head composite. No upgrading of the gold grade was conducted on this material and this represents a whole ore leach (WOL). It was determined that an intensive leach with 20g/l cyanide be used in conjunction with a 2-hr rod grind prior to leaching. This method was employed to try to obtain the highest possible overall gold recovery from the whole ore. The intensive WOL obtained a measured overall gold recovery of 87.2%, as calculated from the tailings. The leach results displayed a lower overall recovery value that averaged approximately 75% (+/- 3%), but the kinetics were very good in that gold-cyanide saturation was obtained between the 4 and 8-hr timeframe. The difference can be inferred that as the gold was removed by the carbon addition at the end of 48 hrs of leaching, the cyanide became free to further leach the remaining gold. Although the conditions used in this WOL are likely not feasible on non-upgraded material, it gives a good indication of the maximum recovery that may be obtained using other metallurgical methods.

ADDITIONAL WORK PLANNED
From the results of this preliminary program, flotation with and without grinding followed by the leaching of each step will be pursued as well as bottle roll testwork. Traditionally, arsenopyrite and sulphides in general responsive to this method of concentration. It should be noted from previous work conducted by SGS for Athabaska Gold Resources Ltd. in 1996 that a single stage flotation lock-cycle test on the existing tailings composite with a calculated head grade of 1.97 g Au/tonne (0.058 oz Au/ton) yielded a 60.6% gold recovery into a third cleaner concentrate assaying 136g Au/tonne (3.94 oz Au/ton) and 7.45% arsenic. It should be noted that this work was done assuming that the tailings would be processed in the existing mill at that time. This mill was dismantled and removed in 2006.

In addition, preliminary discussions with appropriate provincial government agencies have begun with respect to permitting the re-processing of the tailings. It should be noted that the Company has retained the original mine permit that was issued in 1981.

The Company is in the process of reviewing the preliminary metallurgical testwork with various consultants. This will include a resource review, a tailings mine/recovery development process and feasibility study. The proposed tailings processing system would be portable. There are new technologies available that are being reviewed with respect to being commercialized. The Company believes that there is potential to process the tailings economically assuming a positive feasibility study is obtained given a favorable gold price. Depending upon a positive study, Module could realize some potential cash flow from treatment of the tailings to recover contained gold in the near term.

About Module Resources
The Ladner Gold property includes 229 claims (11,175 hectares) covering 18 kilometres of the Coquihalla Gold Belt, and contains several historic gold producers including the Carolin Mine, a former underground gold producer from 1982 – 84, Emancipation Mine (intermittent gold producer from 1916 – 41), Pipestem Mine (intermittent gold producer from 1935 - 37), and numerous gold prospects situated along the under-explored Coquihalla Gold Belt. Based on historical exploration and development work in 1995 - 1996 and historical production records of the Carolin Mine, the Company believes that there is potential to reopen the mine at some time in the future if the exploration and development programs are successful and a positive feasibility study is obtained given a favorable gold market. The Company also believes that there may exist the potential for a bulk tonnage gold deposit situated at the McMaster Zone, where additional work is required in order to delineate such potential. This zone is approximately 1,200 metres from the Carolin Mine.

For additional further information, please visit the Company’s website at www.moduleresources.com .

The technical information contained in this release has been prepared by Bruce Downing, a qualified person who is the president and CEO of the Company.

ON BEHALF OF THE BOARD OF DIRECTORS

“Bruce W. Downing”

Bruce W. Downing, M.Sc., PGeo.
President & Chief Executive Officer
Office 778 – 294 - 3211
Website www.moduleresources.com


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Caution concerning forward-looking information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Module in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Module’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Module disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.