Toronto, Ontario (January 4, 2011) – Mr. George A. Brown, President of Cache Exploration Inc. (TSX-V: CAY) is pleased to announce that 5,072,000 of the 5,079,500 warrants issued December 29, 2009 exercisable at $0.10 until December 29, 2010 were exercised for gross proceeds of $507,200. The remaining 7,500 warrants exercisable at $0.10 expired unexercised on December 29, 2010. These funds are not restricted for flow through expenditures and are in addition to the $1,200,000 flow through financings completed in November 2010 to fund the company’s 2011 exploration programs. Cache intends to use these non restricted funds to acquire additional rare earth element properties and for general working capital requirements.

Cache Exploration Inc. is also pleased to provide an update on the exploration program at the 262 claim Welsford REE (rare earth element) Properties in New Brunswick. Dr. David Lentz, P.Geo., is a Qualified Person as described in National Instrument 43-101 and is responsible for the technical information contained in this news release.

The Company signed a contract in December 2010 with Vic Progressive Drilling Inc. of Sussex, New Brunswick to commence drilling at the Welsford REE Properties. Hole 1 has been completed to 99 metres. Hole 2 has been completed to 160 metres. Hole 3 has been completed to 113 metres. Hole 4 and Hole 5 are currently underway with two drills. The six hole Phase 1 program is expected to be completed by mid January.

The board of directors has approved a Phase 1 diamond drill program of six holes for a minimum of 1,000 metres. The six holes will test the Main Zone and Road Zone aplite dykes of the McKeel Lake dyke swarm on three parallel sections spaced at intervals of 100 metres perpendicular to their apparent dominant strike direction. Aplite dykes have been found at several locations within the Inner and Outer Welsford claims. Based on rock sample analytical results received to date, many of the aplite dykes are known to be REE-bearing. Surface exposures of the dykes are extensively covered with overburden, and the two historical drill holes were drilled obliquely to both the strike and dip of these two dyke sets. This program is designed to drill test whether these represent a possible target type where there is a potential locale or zone where the dyke swarms are extensive (both along strike and across the width of the swarm) and the individual dykes or dykelets are highly REE-enriched. This type of target, if found relatively near surface, has the potential to be amenable to open pitting. Based on the limited surface data, it is possible the Main and Road Zone dykes may coalesce towards the northwest. The 2010 surface geological mapping indicates that the majority of the known aplite dykes strike north-northwesterly and, in a few places northwesterly, and both sets dip steeply (~70°) northeasterly. The drill program is designed to test the abundance and orientation of the Main Zone and Road Zone dykes, as well as confirm the high REE-Y-Nb grades noted at surface and in historical drilling off the sections now being targeted.

The Cache technical team speculates that the dykes originate from a source at depth, or perhaps laterally along strike, from a 'roof zone', which is a cupola or several cupolas (defined in the AGI Glossary of Geology as "a large upward projection of the roof of an igneous intrusion in the country rock above"). Such a target has the potential to be a sizeable zone of REE-bearing rock. Although the Phase 1 program has not been designed to drill test for a source cupola, the program is expected to provide critical data to guide Cache in a future drill program to test for such a cupola.
Cache has received a New Brunswick Junior Mining Assistance Program (NBJMAP) grant of $40,000 or 50% of eligible costs up to $80,000 for one of the Welsford REE Properties. The NBJMAP program is a financial assistance program for junior companies, and provides up to 50% of eligible costs for mineral exploration programs to a maximum of $50,000. The NBJMAP provides valuable assistance that increases the probability of finding economically viable mineral resources in New Brunswick.

Cache Exploration completed a four diamond drill hole program at the Long Lake Polymetallic Property in New Brunswick in late 2010 (December 7, 2010 news release) and expects to release the results of this program later this month.

Cache Exploration is a well funded company with a focus on exploring for REE deposits. Cache is exploring the Welsford REE Properties in New Brunswick, the Cross Hills REE Property in Newfoundland which is adjacent to the Rockbridge Resources REE Property and the Louil Hills REE Property in Newfoundland which is adjacent to the KAT Exploration Inc. REE project. All four Cache REE properties have proximity to available infrastructure and are considered to have excellent potential for rare earth mineralization.

Additional information concerning Cache Exploration is available at www.sedar.com and on the Cache website at www.cacheexploration.com. For additional information please contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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