FDN Birch Hill Gold Corporation

Foundation Resources Inc. (TSX VENTURE:FDN)(FRANKFURT:S52) ("Foundation" or
"Company") and Alto Ventures Ltd. ("Alto") have entered into a binding Letter of
Intent pursuant to which Foundation will acquire Alto's 40% interest in the
Coldstream Gold Project. The Coldstream Project is host to a number of
significant gold targets including the East Coldstream deposit which has a NI
43-101 resource estimate of 763,276 ounces gold (30.5 million tonnes at 0.78 g/t
gold) in the Inferred and 96,400 ounces gold (3.5 million tonnes at 0.85 g/t
gold) in the Indicated categories (see Figure 1). This consolidation in
ownership gives Foundation a 100% interest in the property.


"We are very pleased to acquire the remaining 40% interest in the Coldstream
Property which is a substantial step forward in the development of the Company,"
states Foundation's President Ike Osmani. "Further, this consolidation of
ownership enhances Alto as a strategic shareholder and creates additional value
for our existing shareholders." 


In consideration of the acquisition of Alto's 40% interest, the Company will pay
aggregate consideration of $2,500,000 payable through the issuance of 10,000,000
common shares at a price of $0.12 per share and $1,300,000 in cash over a six
month period. On the Closing Date, Foundation will pay to Alto $350,000 in cash
and issue Alto such number of common shares, up to 10 million shares, as will
not result in Alto becoming a control person of Foundation. Within six months of
the closing date, Foundation will pay to Alto $950,000 in cash, subject to a
potential three month extension period, and issue the balance of any common
shares due to Alto. As part of the agreement Alto will vote in support of
management for a period of three years and will not tender its shares to any
take-over bid not recommended by Foundation's Board of Directors. 


About the Coldstream Project

There are currently five (5) known significant gold mineralization areas
occurring within the claim boundaries of the Coldstream Property that are
currently subject to aggressive exploration and development campaigns by the
Company (Figure 1). The exploration targets include: East Coldstream Deposit,
Iris Zone, Goldie Zone, Span Lake deposit and the Burchell West prospect. Of
these, the East Coldstream Deposit is the most advanced of all other targets for
which a NI 43-101 resource estimate of 763,276 ounces gold in the Inferred and
96,400 ounces gold in the Indicated categories has been calculated and reported
on September 20, 2011. The 6,410-hectare Property, located along the Trans
Canada Highway 115 km west of Thunder Bay in northwestern Ontario, occurs within
the western Shebandowan Greenstone Belt (SGB) of the Wawa Subprovince which is
host to some of the richest gold mines in Canada (e.g., Hemlo gold camp). 


Gold on the Coldstream Property occurs along 16 kilometres of the 25 kilometre
long, northeast-southwest trending North Coldstream-Moss Lake deformation zone
and its subsidiary structures.


To view Figure one, please click on the following link:
http://www.foundationres.com/i/maps/Nov-08-2011-map.jpg


Ike Osmani, M.Sc., P.Geo., the President of Foundation and the Qualified Person
for the Coldstream Project and has reviewed and approved the technical content
of this news release.


About Foundation Resources Inc.

Foundation is a mineral exploration company focused on exploration and
development of gold and base metal properties in Canada and Mexico. Its flagship
Coldstream gold project in the Shebandowan greenstone belt and Mitchell base
metal property in the Birch-Uchi greenstone belt east of Red Lake occur within
the Western Superior geological province of the Canadian Shield, noted for
hosting prolific gold and base metal deposits in Ontario, Canada. The San Rafael
gold-silver property is located approximately 150 km northwest of Durango in the
Durango State, Mexico.


On behalf of the board,

Ike Osmani, M.Sc., P.Geo., President & Director

News release contains certain "Forward-Looking Statements" within the meaning of
Section 21E of the United States Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on numerous assumptions and are subject to
all of the risks and uncertainties inherent in the Company's business, including
risks inherent in resource exploration and development. As a result, actual
results may vary materially from those described in the forward-looking
statements.


CUSIP: # 350476107

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