May 26, 2009

Trading Symbol: HUD NR2009-5


Vancouver, BC – HUDSON RESOURCES INC. (“Hudson” – TSX Venture Exchange “HUD”) is pleased to announce plans for the 2009 exploration field season on the Company’s exploration licenses in Greenland. Hudson is focused on two advanced projects, the Garnet Lake Diamond Project, and the Sarfartoq Carbonatite Project, which hosts Rare Earth Elements (“REE”), and specialty metals niobium, uranium, and tantalum. Both projects are controlled 100% by Hudson.

In June, Hudson will commence its’ field season with a focus on defining REE drill targets on the Sarfartoq Carbonatite Project. The carbonatite has demonstrated the potential to host economic occurrences of REE, niobium, uranium and tantalum. Hudson’s initial field program will comprise radiometric surveying, stream sediment and rock sampling, mapping and trenching to further delineate a number of REE anomalies coincident with radiometric surveys and high REE assays in surface samples.

Hudson has now received five years of historical data on the Sarfartoq Carbonatite Project that was completed by New Millennium Resources NL and Hecla Mining Company. The reports are extensive and demonstrate the advanced nature of the project with prefeasibility level studies completed between 1999-2002. Past work focused on the high-grade niobium bearing lens and no follow-up was done on some highly anomalous REE results in a number of areas within radiometric anomalies in the ring structures of the carbonatite.

Hudson has compiled a total of 169 reconnaissance samples from these reports. Fifty-four of these samples were collected on the north side of the Sarfartoq Carbonatite and outlined several exceptional REE targets. The north area has seen little advanced exploration even though the average combined lanthanum, cerium and neodymium oxides of these samples averaged 1.1% with a number of samples exceeding 4.0%. Neodymium, one of the more valuable rare earths, is particularly prevalent in this area averaging over 50% of the Total Rare Earth Oxides (“TREO”) in a number of locations. Thirteen samples from within a 1,000m X 250m radiometric anomaly averaged 1.6% TREO distributed as follows: 4% La2O3, 27% CeO2, 8% Pr6O11, 51% Nd2O3, 8% Sm2O3, 1% Eu2O3, 1% Gd2O3. In comparison to the benchmark Baotou deposit in China, the high neodymium, praseodymium and europium concentrations are expected to double rare earth concentrate values. Assuming current pricing assumptions, this would increase the value from US$8/kg to US$16/kg TREO.

“We are very excited about the economic potential of the Sarfartoq Carbonatite Project”, stated James Tuer, Hudson’s president. “Having recently acquired and reviewed the historical data on the project, which included extensive field work, metallurgical studies, environmental baseline activity and engineering studies through to prefeasibility, it is evident that there is substantial upside potential to this project. Importantly, past fieldwork identified a number of areas of highly anomalous REE occurrences which were never followed-up on due to lacklustre metal prices at the time. The quality of these targets, combined with our belief that the demand for rare earth elements and specialty metals will improve substantially in the near future, bodes well for Hudson to add significant value to the project in 2009.”

“In addition to this, I am very proud to announce that in March, Hudson was awarded the inaugural Prospector and Developer of the Year award by the Bureau of Minerals and Petroleum, Government of Greenland.”

Sarfartoq Carbonatite Project

The Sarfartoq Carbonatite Complex has historically been viewed as unique in terms of the high niobium, uranium and tantalum concentrations. These are unusually high in comparison to any other such deposits throughout the world. It is one of the larger carbonatite complexes with approximate dimensions of 13 X 8 km. It is located near tidewater and adjacent to excellent potential hydroelectric sites. Alcoa is currently evaluating a hydroelectric site

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within 15 km of the Sarfartoq project to support an aluminum smelter to be built on the coast. The hydroelectric facility would have an installed capacity of 600 to 750 megawatts. Civil infrastructure, including harbors, camps, roads and heliports would be developed to support construction of the project. The project cost is currently estimated at US$1.5 billion. Hudson has had preliminary discussions with the Greenland government and Alcoa to ensure access to this clean, cost effective power source should it be constructed.

The niobium and tantalum pentoxides, together with the uranium and rare earth elements, are associated with the mineral pyrochlore. Average grades are four to five times higher than current mines. Historical results (non NI43- 101 compliant) include a trench grading 14.4% Nb2O5 over 200m and a diamond drill hole averaging 12.13% Nb2O5 over 20m starting near surface. Uranium is directly associated with the niobium in the pyrochlore and is an effective prospecting tool used to identify other occurrences on the project area.

The high-grade rare earth oxides are associated with thorium together with low to non-existent uranium levels. As a result, the thorium radiometric signature is an effective prospecting tool for identifying additional REE occurrences. The minerals associated with these potentially economic grades have yet to be properly identified.

There are over 30 radiometric targets identified on the Sarfartoq Project and a significant portion of the area has a thin cover of unconsolidated sediments, which could be masking additional radiometric anomalies.

Sarfartoq Project Historical Work

Hudson has acquired all of the previous work on the project carried out by the previous owner, New Millennium Resources NL (“New Millennium”). New Millennium spent in excess of US$5 million evaluating the project and was advancing the niobium deposit to feasibility. Previous work, which only focused on the recovery of niobium from a single pod of pyrochlore mineralization, included:

  • Stage 1 Feasibility Report – Greenland Niobium Project. Completed by Van Der Meer Consulting, Perth Australia (August 2000). – Study base case was a seasonally operated, 15,000 tpy high-grade ore mine with an estimated capital cost of US$29 million.
  • Feasibility Study – Phase 1, Greenland Niobium Project. Completed by Worley Chemical & Minerals Pty Ltd., Perth Australia (April 12, 2002). – Study base case was a 12,000 tpy mine utilizing oxalic acid for processing of ore with an estimated capital cost of US$23.8 million. The study demonstrated a positive IRR of 19% based on a ferro niobium price of US$7/lb (currently $10-14) and discount rate of 5%.
  • Extraction and Beneficiation of Niobium, Tantalum, Zirconium and Rare Earth Elements From Greenland Pyrochlore and Eudialyte. Completed by Curtin University of Technology, Perth, Australia (2002-2003). – Bench-scale metallurgical test work demonstrated that recoveries of over 95% for niobium and uranium are achievable utilizing solvent extraction.

    Garnet Lake Diamond Project

    Hudson will be conducting a scaled down diamond program in 2009. The program will include field reconnaissance with the focus on discovering kimberlite pipes. Additionally, further evaluation of diamond liberation methodologies to enhance recoveries will utilize High Pressure Grinding Rolls (HPGR). Hudson plans to extract approximately 1 tonne of Garnet Lake kimberlite for HPGR testing for late summer/early fall 2009. Hudson expects to be back on target to continue with the evaluation of the Garnet Lake dike in 2010, including the potential extraction of a 2-3,000 tonne bulk sample to allow the project to advance to the prefeasibility stage.

    There are some encouraging signs that the diamond market is improving. As noted in a TD Securities Inc. (“TD”) report dated April 15, 2009, TD is seeing signs of recovery and renewed interest in the diamond sector with the Kinross Gold Corporation investment in Harry Winston Diamond Corporation, De Beers Group restarting of their Botswana operations and dealer restocking of inventories depleted during the credit crunch resulting in better pricing.

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The Garnet Lake kimberlite dike has produced numerous high quality, large diamonds from a series of bulk samples conducted between 2006-2008. The dike, which averages 2.5m in thickness, has been delineated over a strike length of 1.2 km and down-dip to 2.0 km.

Dr. John Ferguson reviewed this press release and is a qualified person under National Instrument 43-101. The reliability of the historic data cannot be verified by the Company, however, it appears to have been collected using acceptable practices at the time. A significant number of the assays were processed by Ultra Trace Geoanalytical Laboratories, an ISO 17025 accredited laboratory located in Western Australia. Several check assays processed by Hudson using the services of the GeoAnalytical Laboratories at the Saskatchewan Research Council (“SRC”), Saskatoon, Saskatchewan confirmed their results. Original assay data has been obtained directly from Ultra Trace and these results match the reported results from the historic reports. Additional assays from the reports were processed by Analabs Pty. Ltd., now a subsidiary of SGS Australia Pty. Ltd. Copies of original assay reports were included as appendices in the historic government reports.


“James Tuer”

James Tuer, President

About Neodymium and Niobium:

Neodymium is one of the more sought after elements of the REE group. One of the main uses of neodymium is in the production of neodymium-iron-boron super magnets, which are used in electric motors. Demand for neodymium has risen sharply with the growth in hybrid car production and power generation including wind turbines. Hybrid cars such as the Prius require 20 kilograms of REE. China recently announced a target of 100 gigawatts (100,000 megawatts) of wind power capacity by 2020. The most efficient turbines require approximately 1,000 kg of neodymium for each megawatt. China currently has about 12 gigawatt of capacity. This suggests substantial neodymium supplies will be required to meet China’s targets, let alone the rest of the world. As a result, Hudson expects neodymium to trade significantly higher than the current price of US$14/kg. Prior to the economic meltdown, neodymium was trading at US$31/kg.

Currently, over 95% of the global supply of REEs currently comes from China where exports are decreasing due to internal demand. As a result, end users are looking for alternative sources outside of China of which there are few.

Niobium, which is corrosion resistant and has superconducting properties, is primarily used in the production of high-grade structural steel. Adding four dollars worth of niobium (less than half a kilogram) to a car frame will reduce the overall weight by 100 Kg due to its strengthening properties.

For further information:

James Tuer, President
Ph: 604-628-5002 or 604-688-3415 [email protected]

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.