SPHERE RESOURCES INC. NEX: SPH.H Contact: Malcolm Stevens, President and Executive Chairman Canadian Office: 204 Black Street Ste. 300 Whitehorse, Yukon Canada Y1A 2M9 Phone: 647-986-8940 E-Mail: info@sphereresources.com Web Site: www.sphereresources.com Shares Outstanding: 136 million 52 Week Trading Range: Hi: C$0.12 Low: C$0.01

       Quite simply, Red Lake hosts the world’s richest gold camp. The area in northwestern Ontario is home to the highest grade gold mine in the world, the world’s lowest cost gold producer, historic gold production of more than 25 million ounces, remaining proven gold resources of more than 30 million ounces, the probability that yet another 30 million ounces of gold remains to be discovered, and current annual production of more than 600,000 ounces of gold.
       Gold was first discovered in Red Lake in the 1920s with production beginning a decade later. Two of the original mines – the Campbell and Red Lake, both now owned by Goldcorp – are still in operation today. The Red Lake mine is among the highest-grade deposits in the world.
       Red Lake geology is similar to that in Canada’s other major gold camps, Timmins and Kirkland Lake. Red Lake lies within an Archaean greenstone belt characterized by a series of metavolcanic and metasedimentary rocks where gold is found mostly in structurally controlled vein-type gold deposits.
       Perhaps most significant from Sphere’s viewpoint is that new gold deposits are still being discovered in Red Lake, including three major discoveries just since 2004. Existing mines continue to expand known zones of mineralization. Premier Gold Mines’ Bonanza Project, operated by Goldcorp, is believed to host a major gold deposit. Rubicon Minerals has identified a 2 million ounce mineable gold resource that is scheduled to go into production by 2013.
       “We are right in the middle of the action,” says Stevens. “Red Lake is our primary focus to prove up a substantial gold deposit.”

       Sphere Resources’ summer drilling campaign uncovered a substantial mineralization system (McManus-Chukuni Sulphide Zone) that is more than 300 meters wide and 1 km long. Results from 56 samples from the McManus property contained gold quantities above an arbitrary 0.1 g/t gold. The sample with the highest grade was 23.526 g/t gold over a 0.7 m interval. The system runs west from the McManus patented mining into Red Lake and is open in all directions.
       Drilling on the Dome property focused on five geophysical anomalies identified by last winter’s geophysics program. Out of 587 core samples, 84 were submitted for analysis with three samples containing gold quantities above an arbitrary 0.1 g/t gold with a maximum value of 0.232 g/t gold over a 1.0 meter sample interval.
       Sphere’s 835 hectare Dome Gold Project is only 4 km from Goldcorp’s massive Red Lake Mine and 1.8 km south of Premier Gold’s Bonanza deposit. The property is aligned with Goldcorp’s southwesterly trending High Grade Gold Zone where 2010 drilling yielded assays ranging to 34.7 meters of 136.3 g/t gold and 1.7 meters of 1,826.3 g/t gold.
       “These grades are staggering and it appears the high grade zone is trending in a southwestern direction which could potentially trend onto Sphere Resources property,” says Stevens.
       The Dome property is half on dry land and half covered by water. Much of the property overlies a large quartz diorite intrusion that hosts numerous gold occurrences and nearby several past-producing gold mines.
       A winter drilling program on both the Dome and McManus properties is now in the planning stages. This program includes drilling easterly land-based claims on the McManus property, and, when ice conditions on Red Lake permit, a comprehensive program on the westerly lake-based claims of both properties.
       Historical data shows Sphere Resources’ 83-hectare Alcourt property, located about 12 km northwest of Red Lake, hosts high grade gold mineralization in quartz veins. A cross section of the deposit also indicates the presence of additional gold mineralization separate from the vein structure.
       “This suggests the possibility for the occurrence of multiple veins that are as yet undiscovered,” said Stevens.
       Sphere Resources has budgeted $763,800 to explore Alcourt this year. Phase 1 of the proposed exploration program would establish a survey grid and complete both MAG and IP/RES surveys to identify prospective targets.
       “The object of this work will be to identify the geological controls of the gold mineralization and to help in targeting other areas for follow-up work,” says Stevens.
       The exploration program also includes a MMI geochemical survey to help in the discovery of blind mineralization in the overburden covered areas associated with the magnetic corridor. A limited amount of diamond drilling, about 2,000 meters, would confirm the gold zone at depth and along strike, as well as verify the historical assays.

       Sphere Resources’ second area of exploration focus is Nevada’s Pequop Gold Trend where Newmont recently paid $2.33 billion to acquire Fronteer Gold’s Long Canyon Project. Newmont predicted the Pequop area would become the next Carlin Trend, which produced over 70 million ounces of gold, worth around $90 billion at 2010 prices placing it among the world’s richest gold mining districts.
       Sphere Resources holds an option to acquire a 75% interest in the Gold Jackpot gold-silver-tellurium-copper project located on the Pequop Gold Trend. Under its agreement with Mexivada Mining Corp., Sphere will finance exploration and complete a prefeasibility study upon successful completion of the exploration program.
       “Gold Jackpot enables Sphere Resources to explore and potentially mine a concession situated near both lucrative producing mines and industry leaders,” says Stevens.
       Last fall, Sphere invested $375,000 in Spartan Gold to gain control of that company’s Poker Flats and Ziggurat properties on the Carlin Trend – an investment that now has an impressive market value of about $30 million. Poker Flats is within 1.4 miles of Newmont’s Emigrant 1.6 million ounce gold deposit, while Ziggurat is 20 km north of Kinross-Barrick’s giant 15+ million ounce Round Mountain open pit, heap leach gold mine, and borders Fronteer Gold’s +3 million oz Northumberland Mine gold property (recently acquired by Newmont). Gold Standard Ventures is currently drilling just 300 meters from the Poker Flats property line. Sphere recently updated a NI 43-101 Technical Report on the two properties and can be viewed on the company’s website.

       Sphere Resources is led by a management team with 120 years of combined experience and a lengthy record of success in the international mining sector. The company is well financed for its planned Canadian and Nevada exploration programs, recently winning a $4.5 million settlement for property that was part of a 2006 joint venture on mining and gold projects in Zimbabwe.
       “This settlement will allow Sphere to accomplish budgeted exploration programs at Red Lake and in Nevada, and allow us to move toward our goal of applying for Tier 2 status on the TSX.V,” says Stevens.
       Sphere’s 100% funding partner of the Dome property in Red Lake is Duncan Park Holdings Corporation, which is financing the whole project for an earn-in stake that Sphere can later clawback to maintain 76% ownership. Sphere’s joint venture partner in the Poker Flats and Ziggurat properties in Nevada is Spartan Gold Ltd., which recently announced a fund raising of $10 million.
       “Our goal as explorers is to be as risk-free and as low cost as possible,” says Stevens. “Sphere Resources has a track record of being in the right place, at the right time, with the right geological advisors. That is the case again in Red Lake and Nevada.”