Hathor Exploration Updates on Exploration at Russell Lake Property

Hathor Exploration Limited (TSX VENTURE:HAT) has provided an update on its Russell Lake property in the southeastern part of the Athabasca Basin in northern Saskatchewan.

Details are provided below for ground geophysics and first-pass diamond drilling recently completed during the Fall 2010 surface exploration program.

Aggressive follow-up diamond drilling is planned for this winter at Russell Lake. Ground geophysics will also be done this winter on other high priority targets on the Property, namely the Key Lake Trend on the southern part of the property. Work is expected to begin in early January. An outline of planned drilling and geophysics will be released at the commencement of the program.

2010 Program Summary

• Five (5) diamond drill holes were completed for 2,687 m. All drilling was done on the Christie Lake grid.  Depth to unconformity is around 300 m.
• Hole CL-10-03 is prospective and warrants follow-up. Visible pitchblende mineralization manifests as disseminations and fracture linings occur within an intensely hematite-altered and brecciated pegmatite. The interval is strongly radioactive, and returned geochemical values of 0.17 wt% U3O8 over 0.4 m. The mineralization is associated with high concentrations of calcium (up to 15 wt%) and phosphorous (up to 10 wt%), and elevated rare earth elements (?REEs+Y = 670 ppm). This occurrence is located some 60 m below the unconformity. Intense bleaching is common in Athabasca Group sandstone, including local sandstone desilicification.
• Transient magnetotelluric surveys (AMT) were completed over two grids: 24.2 line-km on 12 lines at Fox Lake, and; 26.8 line-km on 12 lines at M Zone Extension. A third grid is planned for this winter, located farther to the northeast at Christie Lake. Final results are anticipated by Christmas, and will be incorporated into final drill targets for the upcoming winter drill program.
• A fully provisioned and operational exploration camp has been established in the west-central part of the property with road access via the McArthur River - Key Lake haul road. The camp will be effective for future exploration across the entire property.

Regional Context

The Russell Lake property is within the Wollaston-Mudjatic magnetic low transition zone, commonly referred to as eastern corridor of the Athabasca Basin. This corridor accounts for 100% of current uranium production in Canada, and it has consistently contributed between 20 and 30% of global primary uranium supply for the past 30 years. Looking forward, the greatest endowment of proven resources for future production within the Athabasca is within the eastern corridor, in the region immediately surrounding Russell Lake. The south end of the property is 15 km northeast of the Key Lake mine/mill complex. The northern end is 12 km southeast of the McArthur River mine. The Phoenix deposit now estimated at 39 M lbs by Dennison Mines is immediately west of the central part of the Russell Lake property.

Drill targets at Russell Lake are based on the integration of recent geophysical surveys, updated regional geological surveys, and synthesis of historical work. The Property is vastly underexplored and has seen little previous drilling relative to surrounding areas. Targets generated during data compilation in 2010 are for the most part untested, enhancing the overall exploration potential of Russell Lake.

Property Description

The Russell Lake Project covers both of the properties historically referred to as Russell Lake and South Russell. Combined, the properties cover approximately 71,670 ha in one contiguous block of 23 claims. Hathor controls 100% of the Russell Lake property (45,742 ha), following the successful acquisition of Northern Continental Resources (see News Release dated November 23, 2009). The South Russell property is owned 90% by Hathor, with a cumulative 10% interest held by two parties, and carried to completion of a feasibility study.

Russell Lake has excellent infrastructure. The McArthur River - Key Lake haul road and associated power line run along the western margin of the property. The exploration camp is road-accessible all year round.

Alistair McCready, Ph.D., P.Geo., Hathor's Exploration Manager with responsibility for all of Hathor's exploration in Saskatchewan, and Michael Gunning, Ph.D., P.Geo, Hathor's Chief Operating Officer, are Qualified Persons as defined by National Instrument 43-101 and have reviewed and approved the technical disclosure contained in this news release.