Cedar Mountain Confirms District Scale Gold Potential At Kelly Creek, Alaska

Vancouver, British Columbia - Cedar Mountain Exploration Inc. (CED: TSXV) (“Cedar Mountain” or the "Company") is pleased to announce that ongoing mapping, soil sampling and diamond core drilling have confirmed a new gold district characterized by disseminated mineralization with strong stratigraphic controls at the Kelly Creek Project on the Seward Peninsula, Alaska.  There are now at least six drillable prospects with kilometre-plus long gold-in-soil anomalies and several additional occurrences awaiting assay results within a 10 by 20 km area. 

“We are pleased with the progress of the 2011 program which continues to advance the project’s signature as a new district with the potential to host multiple bulk tonnage gold deposits” stated Charles Chebry, President and CEO. “Initial drilling has been completed at three prospects and recent soil assays have upgraded and expanded three additional prospects to drillable status. Although assays are pending, preliminary XRF data have identified highly anomalous pathfinder elements in both soils and core.  We are very encouraged by the scale and character of mineralization in this new district.”

2011 Soil Surveys: Upgraded Prospects

Analytical data for soil surveys completed in late June and early July have upgraded the South Fox, North Fox, and Jaeger prospects to drillable status.

South Fox

The South Fox prospect is located 4.4 km west-northwest of Kelly Creek.  The new analytical data define two zones with highly anomalous gold values in soils.

Zone 1 is 1200 meters long and 50 to 150 m wide.  It is open in two directions along strike and gold values within the anomaly are up to 284 ppb. The host rocks are graphitic mica quartz schist in contact with micaceous marble. 

Zone 2 is 300 m long and 200 m wide.  It is open along strike in one direction and gold values within the anomaly are up to 132 ppb. Host rocks include carbonaceous and calcareous schist interlayered in calc-schist and micaceous marble. 

North Fox

The North Fox prospect is 3.3 km northwest of Kelly Creek.  The gold-in-soil anomaly is 500 m long and up to 300 m wide.  It is open in two directions along strike and gold values are up to 468 ppb within the anomaly.  There is a strong stratigraphic control as the host interval (which includes carbonaceous and calcareous schist and carbonaceous marble) is interlayered with micaceous marble. The host rock interval has been mapped eastward for an additional kilometre and the soil grid is being expanded to cover this possible extension of the prospect. Preliminary XRF data for soil and rocks indicate that the host rock interval is mineralized for at least another 500 m east of the initial 2011 soil grid.

Jaeger

The Jaeger prospect is located 11 km east-southeast of Kelly Creek. The gold-in-soil anomaly is 450 m long and 125 m wide.  It is open in two directions along strike and gold values are up to 125 ppb within the anomaly.  The host rocks include carbonaceous and calcareous schist in contact with schistose and micaceous marble.  The soil grid at Jaeger has been expanded to over 1 km of strike length to cover possible extensions of the prospect.

2011 Drilling Program: Status Update

As of August 13, initial drilling at Kelly Creek Zone 1 (12 holes totaling 1204 m), Kelly Creek Zone 2 (6 holes totaling 616 m), Wolf (4 holes totaling 473 m), and Wolverine (7 holes totaling 748 m) prospects has been completed.  The completed holes total over 3000 meters.  One rig is now drilling Zone 1 of the South Fox prospect and the other has moved to the North Fox prospect.

The initial drilling confirms that very carbonaceous and calcareous fine-grained schist and interlayered dark carbonaceous marble are important host rocks at Kelly Creek.  These lithologies also characterize parts of the Wolf and Wolverine prospects but other interlayered lithologies, including varieties of graphitic mica quartz schist and micaceous marble, can also be mineralized.  In places evidence of mineralization includes open vugs (some lined with quartz, pyrite, or calcite) or zones of strong quartz veining including stockworks.  But XRF scans of drill core show that many intervals carry highly anomalous arsenic (and in places antimony) contents that otherwise do not appear mineralized.  The XRF data are taken to confirm the disseminated character of the mineralization first encountered and recognized in Anaconda’s 1984 drill holes at the Kelly Creek prospect. There is a general correlation between arsenic and gold in the Anaconda drill holes as well as in the many soil surveys that have been completed in the district.  However, in all of the drilling to date, the only sulfide mineral identified is pyrite.  In addition to some pyrite along veins, fracture coatings, and in vugs, disseminated pyrite is ubiquitous in host rocks and reaches several percent in places.

Although favorable host rocks are very important to controlling mineralization in the district, another common characteristic found in drill core are several types and scales of brittle deformation.  Gouge zones and sheared and brecciated rocks are common.  In places sharply cross-cutting quartz veins are offset along minute shears, some en enchelon quartz veinlets are present, and a few broken stockworks are rehealed by silicification. It appears the host rocks were under stress at the time of mineralization.

New Prospective Areas

Reconnaissance geologic mapping and soil sampling have identified three new areas of potential gold-bearing rocks.  Two of the areas are about 4 km southeast of Kelly Creek and the other is about 6 km northwest of Kelly Creek.  The potentially mineralized rocks in all three areas include carbonaceous and calcareous schist and carbonaceous marble cut by quartz and calcite veins.  Preliminary XRF data show soils in these areas to have anomalous arsenic contents.

The Property

The Kelly Creek Property is located on the Seward Peninsula, Alaska, 145 km north of Nome. Kelly Creek is a drill-permitted early-stage gold exploration property comprising 105,280 acres (42,605 hectares) that cover an entirely new gold district. Historic results indicate the presence of disseminated gold deposits in metasedimentary rocks. These deposits have similarities to disseminated gold deposits in Nevada and are a new type for the region.

The Company’s disclosure of a technical or scientific nature in this press release has been prepared by Dr. Travis Hudson, registered geologist, who serves as a Qualified Person under the definition of national Instrument 43-101. The Kelly Creek project represents an early stage property and does not contain any mineral resources as defined by national Instrument 43-101.

About Cedar Mountain Exploration Inc.

Cedar Mountain Exploration Inc. is a mineral exploration company with a clear and distinct business strategy to identify, acquire, and explore high potential projects ready for rapid advancement. The flagship Kelly Creek Property on the Seward Peninsula of Alaska fits with the Cedar Mountain business strategy and demonstrates substantial potential for major gold discoveries.

Cedar Mountain is a member of the Discovery Group of Companies: www.discoveryexp.com

ON BEHALF OF THE BOARD
Charles Chebry
Chief Executive Officer
Tel: (403) 283-0001
Email: charles@chebry.com

For more information on Cedar Mountain Exploration Inc., please visit the Company’s website:
www.cedarmountainexp.com or contact:
Anthony Huston
VP Business Development & Director
Tel: 604-697-2862
Email: anthonyh@cedarmountainexp.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the company expects are forward looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com

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