MEK AND GDR have reached a Joint Venture Agreement

METALS CREEK RESOURCES CORP. Completes Farm-Out Option on the Gabbro Lake Iron Project

Toronto, 17 May 2012, Metals Creek Resources Corp. (TSX.V- MEK) is pleased to announce that it has reached an agreement, subject to Venture Exchange approval, with Joint Venture partner Golden Dory Resources Corp. ("Golden Dory") whereby Golden Dory can increase its ownership from 50% to 70% interest in the Gabbro Lake Iron Ore property in the prolific Labrador Trough. Currently the project is operated under a 50/50 joint venture between Golden Dory and Metals Creek with Metals Creek as project operator.
Under the terms of the agreement, subject to TSX Venture approval, Golden Dory will become operator and can increase its property interest from its current 50% to 60% interest by issuing 1.5 million shares of Golden Dory to Metals Creek and by funding a $500,000 Exploration Program in 2012, which will include a minimum of 1,200 m of diamond drilling. Golden Dory can earn an additional 10% (70% aggregate interest) by issuing an additional 2.5 million shares to Metals Creek and by providing a NI 43-101 compliant resource report by the fourth anniversary of the agreement.

The Gabbro Lake project is strategically located in the eastern portion of the Labrador Trough, 50 km east of the rail line servicing the Schefferville and Labrador City mining camps and 8 km from an all-weather access road. The project is host to at least four discreet airborne magnetic targets up to 3.8 km in length and locally 500 m in width.  Within the Gabbro Lake property, the magnetic data defines the targets as a structurally folded and faulted iron formation and shows a number of areas that may be thickened by the structural complexity. Prior to this joint venture, no one is known to have carried out any previous exploration on these iron formation prospects.

Work carried out by the joint venture included airborne geophysics which outlined four discreet “magnetic high” target areas, Anomalies A to D. Follow-up prospecting was carried out in 2011 and a total of 34 grab samples were collected from outcrop and angular float material proximal to the magnetic anomalies.  Assay results ranged from 11.42% Fe2O3 to 75.38% Fe2O3 with 79% of the samples assaying greater than 25% Fe2O3 and 62% of the samples over 40% Fe2O3. The samples represented massive to semi-massive medium grained magnetite and banded cherty magnetite iron formation (see previous MEK press release dated July 21, 2011). The iron formation samples were analyzed for Fe2O3 and other major oxides by XRF Fusion at Activation Laboratories in Ancaster, Ontario.
 
A proposed 1,200m Phase 1 diamond drilling program is planned for late June.

Alexander Stares, President and CEO of Metals Creek states; “We are very pleased to have Golden Dory increase its stake in the Gabbro Lake project by funding the future exploration programs. Metals Creek will still maintain a substantial interest in this excellent iron ore prospect which is located in one of the leading Iron Ore districts of the world.  Metals Creek will continue to focus its resources on the Ogden gold project in the Timmins Mining Camp as well as MEK’s other gold projects”

Michael MacIsaac, P.Geo and VP Exploration for the Corporation and a qualified person as defined in National Instrument 43-101, is responsible for this release, and supervised the preparation of the information forming the basis for this release.

About Metals Creek Resources Corp.

Metals Creek Resources Corp. is incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol “MEK”.  Metals Creek can earn a 50 % interest in the Ogden Gold Property, including the former Naybob Gold mine,  located 6 km south of Timmins, Ontario and has a 8 km strike length of the prolific Porcupine-Destor Fault (PDF) that stretches between Timmins, Ontario and Val d’Or, Quebec. The Corporation is also engaged in the identification, acquisition, exploration and development of other mineral resource properties, and presently has mining interests in Ontario and Newfoundland and Labrador. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under the company’s profile at www.sedar.com.
For further information, please contact:
Alexander (Sandy) Stares, President and CEO
Metals Creek Resources Corp
telephone: (709)-256-6060
fax: (709)-256-6061
email: astares@metalscreek.com