Cedar Identifies New Gold Targets at Kelly Creek Project

Vancouver, British Columbia - Cedar Mountain Exploration Inc. (CED: TSX-V) (“Cedar Mountain” or the "Company") today announced drill results from the South Fox prospect at its Kelly Creek Project on the Seward Peninsula, Alaska. Drilling of gold-in-soil targets at South Fox have returned broad zones of gold mineralization associated with quartz veined graphitic quartz schist. Two additional gold-in-soil targets, Moose and Jaeger, have been delineated through soil sampling during 2011.

“With the conclusion of Cedar’s 2011 program at the Kelly Creek Project, we have now identified seven exposures of gold-bearing graphitic schists of similar character over a 16 kilometre area which are interpreted to be part of a very large scale gold-mineralizing event in the Kelly Creek area” stated Charles Chebry, President and CEO.  “Our limited drill testing this year at five of these prospects has confirmed that extensive epigenetic mineralization is present within bedrock over the area and that the potential to identify a significant gold resource remains good. The structural setting of the area and the close association of the mineralization to the graphitic schist units would suggest that we have only sampled a fraction of the total prospective stratigraphy” added Mr. Chebry.

South Fox

The South Fox prospect is located 4.5 kilometres northwest of the Kelly Creek prospect.  At South Fox, gold-in-soil anomalies associated with graphite and mica quartz schist were identified during 2010. During August 2011, ten diamond drill holes totaling 1,102 metres tested these anomalies. Holes 11SF03 to 11SF06 drilled in the northern portion of the anomaly returned broad zones of gold mineralization over a strike length of approximately 250 metres with highlights of 0.45 g/t over 28.40 metres in 11SF04 and 0.76 g/t Au over 24.00 metres in 11SF06 (Table 1 for complete results). Mineralization in these holes is hosted within faulted and sheared quartz-veined and stock-worked mica quartz schists and partly calcareous graphite quartz schists. Drill results suggest that the bedrock source for the gold-in-soil anomalies at South Fox have only been partially identified and that post-mineral faulting may have offset the mineralized zone in the southern portion of the target where drilling returned no significant results.

Table 1 - Significant Intersections South Fox Target

Drill Hole From (metres) To (metres) Length (metres) Au(g/t)
11SF03 66.50 81.80 15.30 0.42
11SF04 17.00
39.60
20.10
68.00
3.10
28.40
1.16
0.46
including 55.20 57.90 2.70 1.54
11SF05
including
47.90
53.90
114.30
57.70
56.50
116.80
9.80
2.60
2.50
0.50
1.21
0.84
11SF06

including
and
62.70
74.10
75.60
93.80
64.40
98.10
83.10
96.00
1.70
24.00
7.50
2.20
0.69
0.76
1.25
2.07

No significant intersections for holes 11SF01, 11SF02 and 11SF07 - 11SF10

Moose and Jaeger Prospects

The Moose prospect is located 8.5 kilometres east of the Kelly Creek prospect. Reconnaissance soil samples collected in 2007 contained some anomalous gold and follow-up in 2010 collected nine soil samples in this area that contained up to 377 ppb gold.

The prospect is within black, fine-grained carbonaceous schist and mica quartz schist in contact with micaceous marble. It appears to be in a similar structural and stratigraphic setting as the Wolverine prospect 3 kilometres to the northeast.

A soil survey grid was established in the prospect area in 2011. The 53 samples collected in 2011 contain up to 1,105 ppb gold. Together with the 2010 samples, they define a surface soil anomaly 800 metres long and is open in three directions.

Additional sampling is needed to determine the limits of the gold-in-soil anomaly and more detailed sampling is needed to completely define drill targets.

The Jaeger prospect is located a further 3 kilometres to the southeast of the Moose Prospect. Soil sampling in 2011 has defined a new gold in soil anomaly with peak values of 129 ppb gold, over a 600 metre by 200 metre area. The structural and stratigraphic setting is similar to that at Moose Prospect.

2011 Exploration Program Summary

During 2011, Cedar Mountain completed an exploration drilling program at the Kelly Creek Project focused on drill testing extensive gold-in-soil anomalies identified in 2010. In total, 4,816.30 metres of diamond drilling in 45 holes was completed at the Kelly Creek, Wolf, Wolverine, North Fox and South Fox prospects. The results of the drilling have confirmed the presence of bedrock gold primarily hosted within graphitic schists as local sources of the soil anomalies; however, it is apparent that gold mineralization is structurally controlled within the host lithologies as evidenced by extensive brecciation, shearing, and fracturing within the auriferous intercepts.

Additional soil sampling during 2011 has expanded upon existing and located new gold in soil anomalies over the Kelly Creek project area to bring the known dimensions of the mineralizing system to over 16 kilometres, supporting the presence of a large wide-spread gold mineralizing event in the area.

Further exploration will require detailed study of the structural geology of the area and identification of stratigraphic and structural controls on mineralization which could potentially yield high priority targets in structurally preferable settings.

The Property

The Kelly Creek Property is located on the Seward Peninsula, Alaska, 145 kilometres 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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