Search Minerals Inc. announced channel sample assay results from the Deepwater Fox REE (Rare Earth Element) Prospect located in the Port Hope Simpson (PHS) REE District in SE Labrador. Both assay results and the channel length exceed those of the nearby Foxtrot Deposit. Deepwater Fox Prospect (34m channel) is wider than the surface expression of the Foxtrot Deposit (10-14m) and may be as large as 500m long and 34m wide; Located on infrastructure near (2 km) the deep-water, ice-free, port of St.

Lewis and the Labrador road network; 12 km from the Foxtrot Deposit; Deepwater Fox represents the second major discovery in Search's wholly owned Port Hope Simpson REE District; Assays include 5.96m containing the following Critical REE: 1,433 ppm Y (1,820 ppm Y2O3), 2,156 ppm Nd (2,515 ppm Nd2O3), 48 ppm Tb (56 ppm Tb4O7) and 286 ppm Dy (328 ppm Dy2O3). The accompanying table outlines assay results for REE and some other elements from the discovery channel. A total of 33.7m of channel was cut and assayed of which 30.42m is classified as mineralized felsic volcanic rocks and 3.28m is classified as un-mineralized felsic and mafic volcanic rocks.

Geological mapping and prospecting at the Deepwater Fox Prospect in 2014 outlined mineralized pantelleritic peralkaline felsic volcanic rocks over a strike length of at least 500m and with apparent widths up to 34m. The mineralized rocks occur within a stratigraphic unit of the Fox Harbour Volcanic belt, which dips steeply towards the north. This REE mineralization has an airborne magnetic and ground magnetic signature as well as a ground radiometric signature similar to those at Foxtrot.

REE-bearing minerals are believed to be similar to those at Foxtrot (mainly allanite and fergusonite). The High Grade Core at Foxtrot has a surface width of up to 14m and a strike length of approximately 400m. Deepwater Fox is located about 2 km from the port of St.

Lewis on the SE Labrador coast and within 12 km of the Foxtrot Deposit. This gives the prospect access to a deep-water ice-free port on the world-wide ocean-going network and access to the North American road network via the Trans-Labrador Highway. Including St.

Lewis, three communities are within 50km of the prospect. Many inhabitants of these communities are of aboriginal origin and Search has an Exploration Activities Agreement with their representative organization. The Deepwater Fox Prospect is the second major discovery, Foxtrot being the other, that occurs in the Fox Harbour Volcanic Belt (part of the PHS REE District); an additional 22 other prospects/targets have been discovered/outlined in this 62 km-long belt.

Search plans to continue exploration at Deepwater Fox in 2015; commencing with additional channelling to define the surface expression of the mineralization and hopefully an exploration drilling program to explore the mineralization at depth; experience gained at Foxtrot will be applied to Deepwater Fox to expedite the development program in a very cost effective manner. Plans also include channelling at several other prospects in the belt in 2015. The aim is to discover and outline several REE resources in the belt to support a centralized processing plant in SE Labrador.

On-going metallurgical studies of the Foxtrot mineralization will be expanded to include the Deepwater Fox mineralization.