Toronto, Ontario (January 31, 2011) – Mr. George A. Brown, President of Cache Exploration Inc. (TSX-V: CAY) is pleased to announce that the Phase 1 drill program on the 262 claim Welsford REE (rare earth element) Properties in New Brunswick has been completed. Vic Progressive Drilling Inc. of Sussex, New Brunswick commenced drilling at the Welsford REE Properties in mid-December 2010 yielding a total of 934 metres of core. The last of seven holes was completed on January 26, 2011.

The Welsford claims cover an alkalic granitic intrusive complex that has REE-Y-Nb concentrations in late phase aplitic dykes. This is the first drilling by Cache on the Welsford Properties and was focused near two previously discovered surface REE-Y-Nb occurrences in the McKeel Lake aplite dyke swarm that had been tested by two historical drill holes. These occurrences are referred to by Cache as the Main Zone and the Road Zone and they lie within a group of 6 claims known as the Inner Claims. Possible REE-Y-Nb target deposit types here include a mineralized dyke swarm of high density, extent and grade and/or a REE-enriched source body from which these REE-enriched dykes originated.
The board of directors approved the first phase diamond drill program to test the Main Zone and Road Zone aplite dykes of the McKeel Lake dyke swarm. Surface geological mapping in 2010 indicated that the majority of the known aplite dykes strike north-northwesterly (Main Zone) and northwesterly (Road Zone), and both sets dip steeply (~70°) northeasterly. Drilling was carried out along three parallel ENE-trending sections spaced 100 metres apart. Holes 1 to 6, ranging from 43 to 160 metres hole depth, were designed to test the density, REE-Y-Nb grade and overall width of the mineralized dyke swarm, at and along strike to north and south of the surface occurrences and historical drill intersections. This type of target, if found relatively near surface, would have potential to be amenable to open pitting. These holes were also expected to provide additional data as to the probable direction of a potential source or cupola. The near vertical Hole 7 drilled to 323 metres was added to test for the Main Zone at depth and assess if the dyke intercept in Hole 1 widens or changes in character (e.g., wider, differing mineralogy or texture, etc), that could indicate if a potential cupola zone exists at depth.

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. The Phase 1 program is expected to provide critical data to guide Cache in a future drill program to test for such a cupola and for other dyke swarms elsewhere in the Inner Claims or in the extensive Outer Claims.

The cores are presently being sampled for assay, including aplite dykes and variously altered wallrock granite phases. These assays will assess the potential grade of REEs and rare metals in the aplites and will help determine if the various associated alteration types in the host granites have potential themselves for REE-enrichment. The sampled aplitic and porphyritic dykes and associated hydrothermally altered host rocks will be prepared and analysed at Activation Laboratories Ltd. (Ancaster, Ontario), using their Assay Xray Fluorescence Spectrometry package with the Instrumental Neutron Activation Analysis Option (Code 8) designed to assess REE-Y-Nb-Ta-Sn grades. Appropriate CANMET Certified Reference Materials will also be run with the samples for QA/QC analysis.
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 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 and the Cross Hills Northern IOCG Properties in Newfoundland (adjacent to the Rockbridge Resources REE Property and the Ucore Rare Metals property), and the Louil Hills REE Property in Newfoundland (adjacent to the KAT Exploration Inc. REE project). All Cache REE properties have proximity to available infrastructure and are considered to have excellent potential for rare earth mineralization. Dr. David Lentz, P.Geo., and Dr. Sheila Watters, P.Geo., are Qualified Persons as described in National Instrument 43-101 and are responsible for the technical information contained in this news release.

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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