Starfield advances Ferguson Lake (November 16, 2006)

Vancouver – In wrapping up its 2006 drilling at the Ferguson Lake copper-nickel-PGM project located 240 km west of Rankin Inlet in southern Nunavut, Starfield Resources (SRU-V, SRFDF-O) focused the program on delineating a potential open pit area on the West zone.

Drilling along a 4.2-km section of the West zone has now identified an indicated resource of 8.7 million tonnes grading 0.93% copper, 0.67% nickel, 0.08% cobalt, 1.47 grams palladium per tonne and 0.21 gram platinum per tonne, using a 1% copper plus nickel cutoff grade. The recently updated resource estimate also reviewed an additional 66.1 million inferred tonnes of 1.02% copper, 0.6% nickel, 0.069% cobalt, 1.43 grams palladium and 0.25 gram platinum using the same cutoff grade.

Having closed a $16.5-million financing this spring, Starfield has completed 110 drill holes on Ferguson Lake in 2006, with a further 6 remaining, totaling about 24,000 metres. Results will be incorporated into a project-wide resource update in 2007. Starfield president and CEO Glen Indra described the latest program as, “an important transition point.”

“Our focus has been to upgrade the current inferred resources to indicated and measured resources. The next stage will be to increase the global resources of the project as a basis for economic assessment studies. Major magmatic nickel-copper platinum group metal deposits the size of Ferguson Lake are rare and difficult to find globally,” continued Indra.

Hydrometallurgical testing on three separate areas of the West zone sulphide mineralization is also underway to ascertain grindability, flotation-concentrate production and a PLATSOL process evaluation of ‘hydrometallurgically-produced’ concentrate. Anticipated recovery data, for base and precious metals, will be utilized in an economic assessment.

PLATSOL is a proprietary, high temperature and pressure oxidation process, initially developed for PolyMet Mining (POM-V, PLM-X), which allows a one-step dissolution of base and precious metals from a sulphide concentrate.

Mineralization at Ferguson Lake was first discovered in 1950 by Inco (N-T), now part of Companhia Vale do Rio Doce (RIO-N). Starfield acquired the project in 1999 and has drilled about 132,000 metres of core on the deposit.

Base and precious metal mineralization occurs within in a layered igneous complex. The main host is a fine- to coarse-grained gabbro unit. Advanced geophysical surveys by Starfield has delineated the sulphide-bearing target over 19 km of strike and confirmed mineralization over a 4.4-km portion.

In addition to the exploration push, the company has also advanced on its planned development front, building a new, all-season base camp and surveying a proposed airstrip. Baseline socio-environmental studies have also been conducted on the project in preparation for a mining lease application.

Starfield has 164.5-million shares outstanding, giving the issue a $39-million market capitalization at its recent trading level of 24 per share. The stock has a 52-week price range of 21-to-64.