Dana Resources (DANR)

[berbranon]

Dana Announces Letter of Intent to Acquire Silver Producer

LAS VEGAS, NV -- (Marketwire)
03/05/10
Dana Resources (OTCBB: DANR) (FRANKFURT: OD0), a US-based precious metals exploration and development company, is pleased to announce the signing of a Letter of Intent ("LOI") to acquire the Chota Silver Mine.

Dana Resources has entered into a letter of intent to acquire 100% interest in the Chota Silver Mine located in Peru. Under the terms of the LOI, Dana will be granted 100% ownership of the mine for an aggregate consideration of $425,000 in cash payments, a commitment to upgrade the infrastructure of the mine and a share allotment to be determined at closing. An initial cash payment of $25,000 upon signing the LOI secured the project for Dana Resources.

The property is currently producing silver, lead, zinc and gold. Average grades are 25oz/ton Ag, 7% Pb, 7% Zn and 2 grams/ton Au respectively. The company believes with moderate investment it could increase production to 50 tons a day. A 50-ton per day mill will yield significant cash flow at today's metal prices. Dana Resources expects a profit of over $300 per ton. Initial production at 50 tons per day will realize the Company approximately $6 million of profit in its first year. Dana Resources plans to implement a growth strategy to increase its current rate of 50 tons per day production up to a capacity of 1000 tons per day.