🕐17.05.11 - 09:27 Uhr

LONCOR RESOURCES: MAJOR NEW GOLD DISCOVERY IN CENTRAL AFRICA



Loncor Resources Inc.
(NYSE-AMEX: LON; TSX-V: LN)
May 17, 2011

Major New Gold Discovery
in Central Africa!

Early Drill Results Yield 64 Grams/Tonne Gold Over 7.19 Meters, and 17.64 G/T over 6.28 Meters � All Near-Surface � At Loncors Ngayu Project. Newmont Takes Early 16.8% Position in Company.

New Gold Explorer Controls Entire Newly Discovered Gold Field Spanning 80 km. by 40 km. With Strong Potential for Multiple Multi-Million-ounce Deposits.

These strong initial results are just the start of a major diamond drilling program of 25,000 meters, with additional results to be released in the near-term, and Phase II drilling to commence shortly thereafter.

Expanding swiftly, Loncor just started its first drilling program in September 2010 and is already listed and trading on the NYSE-AMEX exchange. The company is well cashed up, having completed a Cdn$24 million financing on February 1, 2011 and a Cdn$6.8 million financing with Newmont in December 2010.

Loncors secret weapon in addressing the huge Ngayu Gold Project in northeastern DRC is the companys CEO, Peter Cowley. As CEO of Banro Corporation, Cowley led the discovery of the first 11 mil. oz. gold on the nearby Twangiza-Namoya gold belt.

As Managing Director of Ashanti Exploration, Cowley oversaw the discovery of the Geita gold deposit � which is geologically similar to Ngayu � and its 17 mil. oz. of gold nearby in Tanzania.

Newmont Mining paid Cdn$5 million for an early 9.3% interest in Loncor � then paid another Cdn$6.8 million in December 2010 and finally the latest payment of Cdn$4 million in February 2011 to increase its position to 16.8% at present. Newmont also is providing gold exploration technology to the company. Loncor management controls 38%, ensuring a sharp focus on shareholder interests.

Ngayu holds the same clear-cut indications of a major new elephant discovery as did the 17-mil. oz. Geita Mine � but in a far larger setting � and the process of revealing its riches has now started. Dear Investor,

Few of lifes pleasures can match the excitement of a major new gold discovery. And this is exactly what Loncor Resources Inc. (NYSE-AMEX: LON; TSXV: LN) is delivering for its shareholders today.

The company embarked on the first drilling program at Ngayu in northeastern DRC (the Democratic Republic of Congo) in mid-September, and is drilling two separate and very large areas with anomalous gold values: Makapela and Yindi. Already, drilling at Makapela has returned the following near-surface values:

7.19 meters grading 64 g/t Au (more than 2 oz./tonne) starting at 84 meters depth
6.28 meters grading 17.64 g/t starting at 108 meters depth

This first core drilling campaign consists of two rigs drilling 25,000 meters. So, the news has just started and, if the prior trenching and channel sampling results are any indication, Loncor has made at least one and very likely two major discoveries, and early shareholders could be very substantially rewarded. For the thrill of major gold discovery, get this company on your radar screen now.

The DRC

The Democratic Republic of the Congo is three times the size of Texas and occupies the center of Africa. The eastern regions are known to contain very large gold deposits including Banro Corporations Twangiza/Namoya Project � more than 11 mil. oz. gold thus far with production scheduled to start this year � and the Kibali Project with 22 mil. oz. gold controlled by Randgold (45%) and AngloGold Ashanti (45%), where construction starts in mid-2011. Note that Randgold and AngloGold Ashanti paid Cdn$546-million to acquire Kibali from junior miner Moto Goldmines.

The management of Loncor has been active in the DRC since 1996, when Banro, with many of the same directors and geological staff, initiated exploration on the Twangiza-Namoya gold belt. Relations are excellent with the local and national governments.

Loncors two main projects are far removed from any areas of trouble in the DRC, and the company has experienced no incidents and anticipates none. Loncor is already a major employer in the region and is anticipated to become a far larger employer.

Loncors Ngayu Gold Project

The Ngayu project covers an area of 4,550 square kilometers and includes most of the DRCs last remaining unexplored Archaean gold-rich greenstone belt.

The Ngayu Greenstone Belt has a length of approximately 80 kilometers and a width of 40 kilometers and bears geological similarities to the Geita Archaean greenstone belt of Tanzania. In terms of size, the Ngayu belt is approximately three to four times the size of Geita, where the gold deposits which currently total 17 million ounces are found within banded ironstone formations ("BIF") or in close proximity to the BIF in other host lithologies. Similarly, the Ngayu project has well-developed BIFs with a total potential prospective strike length of 130 km.

A number of gold-rich zones are found within the Ngayu greenstone belt, including Makapela, the site of one of the areas most developed artisanal mining camps, and Yindi, which was the site of historical hard-rock gold production from 1931�43. An exploration camp was established at Ngayu in February 2010 and field work commenced in early March. A total of nine geologists are active at the project site.

To view key maps and images of Ngayu, please link through here:

Exploration at Makapela is focusing on a quartz vein system being exploited by artisanal miners in three large pits � the Main, North and Sele Sele pits � which are each between 170 and 290 meters in length, located along a strike of 2.2 kilometers. Soil geochemical results indicate that the mineralization continues between these three artisanal workings under a thick soil cover. The smaller Bamako pit is located on a separate soil anomaly to the south with a strike of 1.5 kilometers. The company believes that the Bamako pit is probably exploiting the same vein system which has been displaced by faulting.

The principal, mostly vertical, quartz vein is three to six meters in true thickness. Twenty-two drill holes were completed by the end of March and the company has reported results from the first 11 at Makapela. All holes have intersected the quartz vein at vertical depths of between 26 meters and 160 meters below surface.

Initial drilling results indicate a truly major gold-mineralizing event has occurred here. Highlights from the first 11 holes include:

Hole Location From To Width (m) g/t Au NMDD001 Main Pit 105.70 109.8 4.08 15.2 NMDD003 Sele Sele Pit 30.37 41.23 10.86 5.14 NMDD004 Sele Sele Pit 58.67 81.10 22.43 2.88 NMDD005 North Pit 84.25 91.44 7.19 64.0 NMDD010 Between
Main & North Pit 107.74 114.02 6.28 17.64 NMDD012 North Pit 163 171.22 8.22 8.1

The Yindi Main Zone is also being drilled. It is underlain by units of banded ironstone formations (BIF), individually up to 15 meters in width. Gold mineralization is associated with parallel quartz veins, irregular crosscutting quartz veins and stockworks, and as disseminated mineralization in the BIF. Soil, rock chip and channel sampling results from old pits, adits, trenches and the near vicinity indicate a large gold-mineralized system at Yindi with one highlighted channel sample of 14.79 meters @5.22 g/t gold, with mineralization open in both directions.

The best drilling result at Yindi thus far has been 18.98 meters grading 3.66 g/t from a starting depth of 108 meters, and further results are anticipated in the near-term.

2011 Exploration Program at Ngayu

A two-rig diamond drilling program consisting of 25,000 meters commenced along the Makapela and Yindi Zones in late 2010, and is ongoing with results being released as received. Loncor has a strong financial position having raised +Cdn$30 million in the last five months, so it is positioned to advance Makapela smartly this year.

The main objective of the drilling at Makapela is to confirm strike continuity of the vein systems between the pits, as indicated by the soil geochemistry and augering, and to test the vein system at depth, intersecting the vein at 80, 160, 240 and 320 meters below surface. Approx. 80 to 100 core holes will be required to complete the program so that a mineral resource estimate may be prepared by year end. Two core rigs are active and a third is being mobilized in order to complete the program this year.

Additional Phase I drill results from Yindi will dictate the plan there.

The company has also recently begun a major BLEG (Bulk Leach Extractable Gold) geochemical survey using a proprietary adaptation owned by Newmont, which will greatly aid in the assessment of further prospects in Ngayu by highlighting the most prospective areas for gold on the large 4,550 square km. project area. Newmont has agreed to apply its sophisticated geochemical and geophysical techniques to assist in developing the next key targets. New prospective zones will get initial drilling when ready.

North Kivu Project

Loncor also owns or controls a contiguous area of approximately 17,760 square kilometers known as the North Kivu Project, located to the northwest of Lake Edward in North Kivu province. This is an area that has never been explored using modern exploration techniques.

The project is located within the Kibaran Orogenic Belt, consisting of Archaean greenstones and Proterozoic meta-sediments which have experienced a protracted history of tectonism, volcanism and metamorphism. The Kibaran Orogenic belt is primarily prospective for gold and platinum minerals, and also has the potential to host economic tin, niobium, tantalum, tungsten, beryllium, copper and cobalt.

The Belgian company Miniere des Grands Lacs (MGL) mined alluvial gold and platinum on Loncors North Kivu permits between the 1920s and 1960s. In the Manguredipa area alone, over 300,000 oz. of alluvial gold and platinum were extracted.

In addition to gold, there are a number of alluvial platinum occurrences in the project area; however, to date no primary source has been found for the platinum mineralization.

The priority is clearly gold and platinum; however, Loncor intends to also follow up on the number of niobium, rare earth, tantalum, copper, and iron occurrences in the project area.

Exploration Program at North Kivu

The 2011 program is focused on the most advanced gold prospect within the North Kivu project area, Manguredjipa. In addition, regional exploration is being undertaken on the additional nine identified gold prospects found elsewhere within the project area. Follow-up is also underway on the alluvial platinum occurrences in the Lubero area to find the source.

North Kivu Maps

To view regional and local maps of Loncors North Kivu project area, please click through here.

Management

The directors and management of Loncor are ideally suited for the exploration and discovery work at Ngayu and North Kivu.

Peter Cowley, President, CEO and Director, is a geologist with 40 years international experience in the minerals industry, mainly in Africa. Peter was President and CEO of Banro Corporation from June 2004 to 2008, where he led the exploration program that delineated 11 million ounces of gold along the Twangiza-Namoya gold belt. Prior to joining Banro, Peter was Managing Director of Ashanti Exploration, where he oversaw the exploration of the Geita mine in Tanzania which resulted in 17 million ounces being delineated. He holds M.Sc and M.B.A. degrees and is a Fellow of I.M.M.M. Peter is also a director of Cluff Gold plc and Banro Corporation.

Arnold T. Kondrat, EVP and Director, is the founder of both Loncor and Banro, having first entered the DRC in 1996. He has been involved in corporate finance activities for over 20 years. He is also president and managing director of Sterling Portfolio Securities Inc., a private venture capital firm based in Toronto.

Kevin R. Baker, Q.C., Director, is also president and managing director of Baycor Capital Inc., a private merchant bank based in Calgary, Alberta. Mr. Baker has over 37 years experience in the corporate securities industry and was a founder and director of a number of oil and gas, oilfield service, technology and real estate companies. Baycor has or has had a number of investments in Canada and the United States in the oil and gas, oilfield service, technology and real estate businesses. Mr. Baker is or has been a director of a number of private and public companies in Canada and the United States. He holds a B.Arts Economics and a Bachelor of Laws from the University of Alberta. Mr. Baker is a member of the Law Society of Alberta, past President of the Calgary Bar Association and was appointed Queens Counsel in 1993.

Simon Village, Director, is also chairman of Banro Corporation. He was formerly a Managing Director, World Gold Council, and principal of Exchange Traded Gold, a company responsible for developing and managing a series of direct physical gold investment products that have revolutionized the dynamics of the gold industry. Previous to this he was a Managing Director with HSBC responsible for Global Mining based out of London, and also Head of HSBCs South African Securities business. Simon holds a B.Eng (Hons) degree from Camborne School of Mines, and brings 16 years of gold industry and investment experience to the Company.

Maurice Colson, Director, has worked in the investment industry for more than 35 years and was for many years managing director of a major Canadian investment dealer in the United Kingdom. He is actively involved in providing strategic counsel and assistance with financing to emerging private and public companies in Canada and to Canadian companies operating in China, Africa and South America. He sits on the board of directors of several TSX and TSX Venture listed companies and is the former President and CEO of Lithium One Resources. Mr. Colson holds a Masters of Business Administration degree from McGill University of Montreal.

Outlook

The outlook for Loncor, and for investors




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