Trading Symbol: GOR -TSX-Venture VANCOUVER, Dec. 21 /CNW/ - Drilling continues on Goldrea Resources Corp.'s (GOR-TSX.V), Rushan Gold Project in Shandong Province in China. To date 5,817.5 meters (19,081 feet) have been completed in 26 holes. Goldrea has an agreement to explore the lateral extensions and the downward extensions below the -150 meter elevation of the Daye Mine. A series of 8 short holes were drilled between lines 17W and 23W, just west of the open pit completed by the Daye Mining Co. On completing this series of short holes, the drill rig was moved to the Shijia Zone, 600 meters to the southeast of the open pit, and where Hole GZK 801 and GZK 810 returned good results in earlier drilling. A series of 6 to 8 holes will be drilled between GZK 801 and GZK810 and bracketing GZK 810. To date Holes GZK 816 and GZK 817 located 100 meters north and east of Hole GZK 810 intersected 5.83 meters and 23.22 meters of sulphide rich structural sericite breccia respectively. Assays are pending. An update report, meeting NI 43-101 standards, is in its final stages and will be filed within a few days. The next phase of the exploration work at Daye will include a bulk sampling program designed to mine 150,000 tonnes of sericitic sulphide breccia and process it through the Daye Mill. The purpose of this sample is to determine the percentage of sericite in the sericite sulphide breccia and provide a correlative comparison of the recoverable gold in the typical sericite sulphide breccia. The material appears similar to the material being processed by the Daye Mine which reportedly averages 23% sericite. The bulk sample will be taken from a section of this sericite sulphide breccia material indicated to carry 1.5 gpt to 2.0 gpt gold and treated at the existing Daye Mine Mill and Sericite Recovery Plant. The results of this batch bulk sample will provide recovery and cost parameters which will be applied in the feasibility study for a mining operation on the remainder of the deposit. Drill and trench assay results in the open pit worked by the Daye Mine generally indicated gold grades in the sericite sulphide breccia of from 1.5 to 2.0 gpt. However, the Daye Mine reports recoveries from these same areas yielded 3.5 to 4.0 gpt. Such variances are often noted in deposits containing free gold. This phenomenon is often referred to as the nugget effect. The bulk sample will provide further information on the effects of this nugget effect in the lateral extensions from the Daye ore body which make up the Goldrea Resources Corp. Joint Venture ground. Goldrea Resources Corp. marketing people are working to promote and acquire a larger share of the sericite market for the sericite portion of deposits. Norm Tribe, P.Eng., is currently completing a report on the continuing drilling and trenching program as well as a proposal on developing declines to assist in exploration and development. The Company will be issuing a press release on these new developments in the near future. Norm Tribe is the qualified person under NI 43-101 and is the engineer supervising the ongoing exploration and development in China. ON BEHALF OF MANAGEMENT "Larry W. Reaugh" ----------------- Larry W. Reaugh - President and C.E.O. The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.