Dalradian Acquires Additional Concessions Assembling Largest Exploration Holding in Europe

TORONTO, Jan. 26, 2012 - Dalradian Resources Inc. (“Dalradian“ or the “Company“) (TSX: DNA) is pleased to announce that it has entered into a definitive agreement (the “Acquisition Agreement“) with a group of private vendors (the “Vendors“) to indirectly acquire approximately 1.7 million hectares of mineral rights (the “Properties“) over four greenstone belts and a historic silver mining camp in Norway (the “Acquisition“). The properties comprise more than five percent of the aggregate landmass of Norway, and include both the historic Kongsberg silver mining district and the Norwegian extension of the greenstone belt which hosts Agnico-Eagle Mines Limited's Kittila producing gold mine and Anglo American's recently announced Sakattilampi nickel-copper discovery, both in in Finland.

“It is a rare opportunity today to be able to assemble a dominant land position in a stable first world country, covering geological belts known to host major precious and base metals deposits. As explorers we simply couldn't pass on it. “, Patrick Anderson, Dalradian's President and CEO, commented. Meanwhile, in Northern Ireland, our drills continue to turn and we are testing both regional targets and continuing to advance our knowledge of the Curraghinalt gold deposit. Our engineering team remains on schedule to complete a Preliminary Economic Assessment by mid-year.


Transaction Highlights:

- Immediately positions Dalradian as the largest explorer in an underexplored region;

- Geographical and asset diversification;

- Adds significant landholding and mineral rights in a historical district of gold and silver mining to the Dalradian EU portfolio;

- Acquisition cost of approximately CAD$3.2 million and 4,500,000 common shares of Dalradian (“Common Shares“) with the potential for an issue of an additional 2,500,000 Common Shares in the event that any time prior to January 1, 2015, a NI 43-101 technical report discloses a minimum aggregate resource of 1 million ounces of gold equivalent on the properties.


About the Norwegian Exploration Concessions:

- The acquired properties include six areas covering more than 1.7 million hectares in both southern and northern Norway.

- The Northern Concessions cover extensive portions of four paleoproterozoic greenstone belts which host multiple gold showings. The largest of the belts extends across the border into Finland where it hosts Agnico Eagle's 6.8 million ounce Kittila gold mine.

- The Southern Concessions include virtually all of the historic Kongsberg Silver District which hosts several past-producing silver mines with historic production of approximately 40 million ounces of silver. These concessions have seen virtually no modern exploration since the mines closed in the 1950s.

- As part of a recent effort to encourage investment in the resource sector, the Norwegian geological survey has been funded to carry out extensive regional exploration studies over many of these concessions, including high-resolution airborne geophysics as well as geological mapping and sampling programs.

Pursuant to the terms of the Acquisition Agreement, Dalradian will acquire its indirect interest in the Properties by acquiring all of the issued and outstanding shares of Norwegian Minerals Group Inc. (“Ontco“), which will in turn hold all of the issued and outstanding shares of Norwegian Minerals Group AS (“NMG“). NMG holds a 100% interest in the Properties, subject to royalties of up to 0.75% payable to the government. Dalradian shall acquire its 100% interest in Ontco in consideration of the issuance of an aggregate of 4,500,000 Common Shares upon closing; and (ii) the issuance of an additional 2,500,000 Common Shares in the event that any time prior to January 1, 2015, a National Instrument 43-101 compliant technical report discloses a minimum aggregate Mineral Resource of 1 million ounces of gold equivalent on the Properties. All of the Common Shares issuable on closing will be subject to a 12 month escrow, to be released in tranches of 25% every four months with the first release on closing.

Dalradian has also funded an annual tax payment in January 2012 in respect of the Properties with an aggregate amount of approximately CAD$2,450,000 (the “Tax Payment“) and also agreed to reimburse certain indebtedness and expenses of NMG and Vendors in the aggregate amount of approximately US$800,000. The Acquisition remains subject to receipt of the applicable approvals of the Toronto Stock Exchange and the Norwegian Directorate of Mining.

In connection with the Acquisition, Dalradian has also made an interim loan of CAD$2,525,000 (the “Loan“) in order to fund (i) the Tax Payment; and (ii) certain third party indebtedness of NMG in the aggregate amount of approximately CAD$75,000. The Loan is secured by a pledge of the shares of NMG, and is non-interest bearing and will reduce the cash payments to be made on closing.


About Dalradian Resources Inc.:

Dalradian is a Canadian-based exploration company engaged in the acquisition, exploration and development of mineral properties. The Company's wholly-owned subsidiary, Dalradian Gold Limited, holds a 100% interest, subject to certain royalties, in mineral prospecting licences in counties Tyrone and Londonderry, Northern Ireland. Dalradian has been working to increase its gold resources at its approximately 84,000-hectare Tyrone Project, which encompasses its flagship Curraghinalt mesothermal gold deposit. Curraghinalt hosts an NI 43-101 compliant measured mineral resource of 0.02 MT grading 21.51 g/t gold for 10,000 contained ounces, indicated mineral resource of 1.11 MT grading 12.84 g/t gold for 460,000 contained ounces and inferred mineral resource of 5.45 MT grading 12.74 g/t for 2,230,000 contained ounces. Dalradian's NI 43-101 report, “An updated Mineral Resource Estimate for the Curraghinalt Gold Deposit, Tyrone Project, County Tyrone and County Londonderry, Northern Ireland“ is dated January 10, 2012 and effective November 30, 2011, prepared by Messrs. Hennessey and Mukhopadhyay of Micon International Limited and, and is available on SEDAR at www.sedar.com. Dalradian's Common Shares are listed on the Toronto Stock Exchange under the symbol “DNA“. For further information, please see www.dalradian.com.


FORWARD-LOOKING INFORMATION

This news release contains “forward-looking information“ which may include, but is not limited to, statements with respect to the estimation of mineral resources. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as “plans,“ “expects,“ “is expected,“ “budget,“ “scheduled,“ “estimates,“ “forecasts,“ “intends,“ “anticipates,“ or “believes“ or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may,“ “could,“ “would,“ “might“ or “will“ be taken, occur or be achieved.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled “Risk Factors“ in the Company's annual information form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

To view Figure 1: Location Map, please visit the following link: http://media3.marketwire.com/docs/dnamap1.pdf



Contact Information

Dalradian Resources Inc.
Shae-Lynn Mathers, Director, Investor Relations
+1.416.583.5622
investor@dalradian.com
www.dalradian.com