Salazar Resources Ltd: President's Letter

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/27/10 -- Salazar Resources Ltd. (TSX VENTURE: SRL)(FRANKFURT: CCG)

Dear Shareholders and friends:

As President, CEO and Founder of Salazar Resources Ltd., I am pleased to provide an update on the Company's activities.

With the support of our shareholders, the Company's exploration activities over the past 3 years have resulted in the successful discovery of a major Cu-Zn-Au-Ag deposit and possibly a new VMS camp in Ecuador. The recently released National Instrument 43-101 Technical Report prepared by the world class consulting firm of Scott Wilson RPA reviews the results of our exploration efforts and presents a new Mineral Resource for the El Domo deposit. This report bolsters our confidence in the El Domo resource and lays out the challenges ahead to develop Curipamba into a world class mining district.

The past 18 months have seen major events in Ecuador that have had a significant impact on our exploration progress. A new Mining mandate introduced by the Ecuadorian Government in April 2008 resulted in a suspension of our exploration efforts for more than a year. While the Company was unable to conduct exploration activities during this time, it took the opportunity to strengthen its ties with its host communities, as well as to continue environmental related activities. The Company also compiled its current geological knowledge and in February 2008 filed a comphrehensive NI 43-101 Technical Report that used the intial limited drilling information to report the Company's first estimate of an Inferred Mineral Resource at El Domo.

In June 2010, permission to continue mineral exploration was granted by the Government of Ecuador and diamond drilling recommenced at El Domo. Shortly after however, at the end of June, the British Columbia Securities Commission (BCSC) conducted a review of the February 8, 2008 Technical Report and brought to our attention a number of flaws in the report. The Company was unable to resolve these issues to the satisfaction of the BCSC and on September 10, 2010, we were served a Cease Trade Order (CTO) that would remain in place until a new Mineral Resource Estimate and Technical Report had been submitted.

The Company took immediate action and a new Mineral Resource Estimate was completed and released on September 18, 2010. On October 12, the new Technical Report was submitted to the BCSC for review and was accepted immediately resulting in the CTO being lifted on October 18. The complete Technical Report is now available for viewing on SEDAR (www.sedar.com).

As the President of Salazar, I wish to convey my sincerest appreciation to our shareholders and friends for their unwavering support and maintaining their trust in our project, particularly during the difficult and regrettable circumstance over the past few weeks. I would especially like to thank our shareholders who participated in our most recent financing which closed on September 10th. Despite that we offered all participants in this financing the right of rescission, we still closed on the whole $5 million. It should be noted however, that our exploration activities have continued uninterrupted during the past 4 months and approximately 5,000 m of diamond drilling at El Domo has been completed this year.

Below are some of the prominent drill results from the Curipamba project in 2010:

Curi-56 are 15.95 metres at 11.32 g/t Au, 195.31 g/t Ag, 3.75 per cent Cu, 0.93 per cent Pb and 8.19 per cent Zn

Curi-60 intersected 32.36 metres at 3.75 grams per tonne gold, 39.18 grams per tonne silver, 3.67 per cent copper, 0.11 per cent lead and 1.44 per cent zinc,

Curi-10-64 intersected 8.85 metres at 5.83 grams per tonne gold, 179.62 g/t silver, 8.07 per cent copper, 0.85 per cent lead and 6.33 per cent zinc.

Curi-10-67 intersected 12.95 metres at 2.04 g/t gold, 69.50 g/t silver, 1.91 per cent copper and 6.81 per cent zinc;

Curi-10-68 intersected 14.37 metres at 5.94 g/t gold, 69.65 g/t silver, 2.74 per cent copper and 4 per cent zinc.

Also worth mentioning, is the solid support the Company has received from the local communities in the Curipamba project area and the Government of Ecuador, who have assisted us in overcoming any inconveniences generated by anti mining groups that operate in Ecuador and in general, in Latin America. This support has made it possible to continue our efforts, and we look forward to taking part in responsible mining in Ecuador with all stakeholders benefiting.

Now that we have a solid resource base at El Domo we will be expanding our exploration activities to include the testing of the numerous existing exploration targets adjacent to El Domo. Under the guidance of Mr. Jim Mayor, the Company will re-activate field exploration in areas outside of the Las Naves concession with the introduction of a second drill rig.

In closing, Salazar looks forward to an exciting 12 months ahead. Upgraded resource definition at El Domowill coincide with an intensified regional exploration effort, to discover several more deposits in the potential Curipamba mining district.

ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED

Fredy Salazar, President & CEO

Salazar Resources Limited

Salazar Resources Ltd. is a publicly-listed (TSX VENTURE: SRL)(FRANKFURT: CCG) mineral resource Company engaged in the exploration and development of new highly prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador. Being an Ecuadorian based Company gives the Company a strategic advantage enabling the Company to complete exploration at a rapid pace. With an excellent property portfolio (3 projects - 42,900 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America.

Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in the forward looking statements. Although we believe that the expectations in the forward-looking statements are reasonable, actual results may vary, and future results, levels of activity, performance or achievements cannot be guaranteed.

Neither 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.

Contacts:

First Canadian Capital

Daniel Boase or Eric Balog

1.866.580.8891
info@salazarresources.com
www.salazarresources.com