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VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2010) - Foundation Resources Inc. (TSX VENTURE:FDN) is pleased to announce that it has closed its previously announced brokered equity financing. The Company closed a brokered private placement through a syndicate of agents led by Canaccord Genuity Corp. and including Fraser Mackenzie Limited (collectively, the "Agents") to sell 4,765,000 flow through units (the "FT Units") at a price of $0.42 per FT Unit and 510,000 non-flow-through units (the "Units") at a price of $0.35 per Unit for combined gross proceeds of $2,179,800.

The FT Units consist of one flow-through common share of the Company and one-half of one common share purchase warrant. The Units consist of one common share of the Company and one purchase warrant. Each whole warrant is exercisable for one common share of the Company at a price of $0.50 per share for a period of 18 months.

The Agents received a cash fee equal to 7% of the gross proceeds from the brokered private placement and broker warrants entitling the Agents to subscribe for 369,250 Units. Each broker warrant is exercisable for one Unit, for 18 months from closing, at an exercise price of $0.35 per Unit. The Agent also received a corporate finance fee of $25,000 payable through the issuance of 71,249 Units.

All securities issued pursuant to the financing will be subject to a four month hold period expiring on October 5, 2010.

The funds raised from the issuance of the FT Units will be used for expenditures which will qualify as Canadian exploration expenses and flow-through mining expenditures (as defined in the Income Tax Act) and will be renounced in favour of purchasers for 2010. Funds raised from the issuance of the Units will be used to develop the Company's assets and for general working capital purposes.

About Foundation Resources Inc.:

Foundation is a mineral exploration company focused on exploration and development of high potential gold properties in Canada and Mexico. Its Coldstream Property is located in the Western Superior geological province of the Canadian Shield, which is noted for hosting prolific gold deposits in Ontario, Canada. The San Rafael property is located approximately 150km northwest of Durango in the Durango State, Mexico.

On behalf of the board,

Paul Chung, President

This 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

ISIN CA3504761071

Neither the 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.