SUNWARD INTERSECTS SIGNIFICANT WIDTHS OF GOLD MINERALIZATION IN STEP-OUT HOLE AT CERRO VETAS

VANCOUVER, Dec. 6 /CNW/ - Sunward Resources (TSX-V: SWD) ("Sunward") (the "Company") is pleased to announce the intersection of significant widths of gold mineralization in drill hole CV022 at the Cerro Vetas zone of the Titiribi project, approximately 300 metres northwest along strike from Sunward's previously announced drill hole CV018.

CV022 was an angle hole, drilled -60° to the southwest, and intercepted four mineralized intervals, beginning at 116.5m down-hole depth (approximately 100 metres true depth). The broadest intercepts occurred within the porphyry, 40.5m apart, comprising 314.0m grading 0.42 g/t gold at a down-hole depth of between 526.0 metres and 840.0 metres and 85.5m grading 0.45 g/t gold at a down-hole depth between 880.5 metres and 966.0 metres. These intercepts contain higher-grade mineralization of 13.5m grading 0.66g/t gold between 526.0 and 539.5 metres; 37.5m grading 1.19g/t between 631.0 and 668.5 metres; 27.0m grading 1.03g/t gold between 813.0 and 840 metres; and 46.5m grading 0.70g/t between 919.5 and 966.0 metres. True depth below surface of these mineralized intercepts is approximately 450 metres to 850 metres.

Significantly, individual metre-and-a-half samples within CV022 returned gold assays of 18.5g/t and 14.3g/t at 665.5 metres and 838.5 metres respectively - some of the highest gold grades ever drilled at the Cerro Vetas zone.

Before entering the porphyry at 520m down-hole depth, CV022 intersected mineralization in the volcano-sedimentary sequence that flanks the northeast of the Cerro Vetas porphyry. Drilling within the volcano-sedimentary sequence also intersected mineralization, with an interval of 111.0m grading 0.42g/t gold between 230.5 and 341.5 metres and an interval of 39.0m grading 0.36g/t between 116.5 and 155.5 metres.

CV022 is the furthest hole drilled to the northwest on the Cerro Vetas zone, collared approximately 300 metres northwest along strike from drill hole CV018. A complete map of drill-hole locations can be found at: [ http://www.sunwardresources.com/links/titiribimaps.php ].

Based on these results, one of the four drill rigs operating at the Titiribi project has been relocated to the northwest of CV022 in order to test the further expansion of mineralization up-dip and along strike in this direction. This drilling will also test the extension of the mineralization identified in CV022 closer to surface.

"When we acquired the Titiribi project, we believed the Cerro Vetas mineralized zone to be open in all directions and at depth," Mr. O'Neill, CEO and Director of Sunward, said. "Hole CV022 confirms that gold mineralization extends at least 300m further northwest than was recognized as part of the last resource estimation at Cerro Vetas. This comes after the company's previously-announced drill hole, CV019, intercepted mineralization 200 metres deeper than previously recognized in the core of the Cerro Vetas zone. These are key findings in advancing our goal of growing the Cerro Vetas NI 43-101 compliant inferred resource beyond its current 3.7 million ounces of gold."

The gold mineralization in CV022 is associated with a pyrite-sphalerite-chalcopyrite, low-copper alteration assemblage distinct from the chalcopyrite-magnetite mineral assemblage observed in holes to the southeast at Cerro Vetas. Along with the high-grade gold values encountered in CV022, this suggests the northwest area of mineralization may be dominated by a primarily gold-rich mineralizing system, not previously recognized at the Titiribi project.

Discussion on mineralisation in the porphyry shoulders and high grade zones:

Drill hole CV020 was collared approximately 250m east of the main porphyry intrusive to test the geological relationship between the volcano-sedimentary sequence bordering the porphyry, the metabasalt that forms the basement in the Titiribi area; the breccia zone surrounding the porphyry; and the main porphyry intrusive. The hole intersected mineralization within all of these geological horizons, suggesting that mineralization in the Titiribi area is not restricted to the porphyry intrusive but extends hundreds of metres around its shoulders in all bordering geological units. The current geologic model suggests that porphyry-related alteration fluids and hydrothermal fluids have significantly penetrated and altered the surrounding rocks along permeable channels provided by faults, shears and fractures in the area.

Mineralization within the volcano-sedimentary sequence generally has similar gold grades as the main Cerro Vetas porphyry but occurs as gently dipping concordant horizons sub-parallel to bedding. Grade is often enriched along high-permeability zones like fractures, faults, and conglomerates. The intercepts in CV022 of 111.0m grading 0.42g/t gold between 230.5 and 341.5 metres and also 39.0m grading 0.36g/t between 116.5 and 155.5 metres test this style of mineralization, while an intercept of 2.0m grading 4.07g/t gold in CV020 represents hydrothermal enrichment-style mineralization within the volcano-sedimentary zone.

Late phase (or post-intrusive) hydrothermal veins have further enriched the Titiribi system along several permeable zones. These zones have been drill tested within the porphyry as well as in the surrounding metabasalt and volcano-sedimentary units. The hydrothermal fluids appear to be gold-copper rich in certain locations and gold dominant in other locations. The enrichment zones are interpreted to be structurally controlled and are present on both the eastern and western side of the porphyry. The current drill program has been successful in intersecting several such zones, and structural data from the drill cores are being analyzed to establish the structural controls and prepare a predictive model to locate these high-grade zones in 3D. The prominent examples of such enrichment zones are as follows:

High grade zones:

Drill Hole	From (m)	To (m)	Intercept (m)	Description	Au (g/t)	Cu (%)
CV017*	24.00	26.00	2.00	Volcano-sediments showing propylitic alteration	10.07	0.38
CV018	325.60	326.50	0.90	Quartz veins in sheared intrusive breccia	13.29	0.17
CV019	455.50	466.50	11.00	Fault zone with hydrothermal breccia and quartz veining within porphyry	2.20	0.70
	637.50	651.00	13.50	Foliated, sheared breccia with quartz veins within porphyry	2.82	1.01
CV020	222.30	223.30	1.00	Fractured conglomerate with quartz veining at the bottom of the volcano-sedimentary sequence	6.15	0.04
	269.35	269.75	0.40	Fractured and sheared metabasalt with quartz-sericite veins	7.41	13.10
	528.50	529.50	1.00	Fault zone with breccia and metabasalt fragments and veins rich in magnetite and feldspar	10.60	1.10
	602.50	603.00	0.50	Sheared and faulted metabasalt-porphyry contact with quartz-chlorite veins	1.86	2.03
CV021	700.00	705.00	5.00	Fractured and sheared zone in breccia on west side of the intrusive	1.65	0.22
CV022	665.50	667.00	1.50	Sheared breccia with overprinting K-feldspar alteration and quartz-biotite-magnetite veining on west side of the intrusive	18.515	0.05
	838.50	840.00	1.50	Sheared breccia with overprinting silica and K-feldspar alteration and quartz-sericite-feldspar-calcite veining on west side of the intrusive	14.297	0.02

*Drilled as a part of Windy Knob Resources program in 2008 and included in the existing NI 43-101 compliant inferred resource for the Cerro Vetas zone

In addition to further test the northwest zone of the Cerro Vetas porphyry, two rigs have been mobilized to the southern area of the zone in order to begin testing the extension of mineralization in a southerly direction, where it remains open. A drill rig is also currently testing the southeast extension of the Cerro Vetas mineralization, where the company has recently identified a contiguous 700m undrilled gold-in-soil anomaly.

"Recent drill holes such as CV022 demonstrate that mineralization at the Cerro Vetas zone is likely to extend to the northwest and to the south of the existing resource," said Mr. O'Neill. "In addition, our geological work now suggests strong potential for mineralization to extend southeast of the Cerro Vetas zone. We are testing the porphyry in all of these directions."

A complete table of assay results for holes completed by the company in 2010 at the Cerro Vetas zone is included below. Hole VR005 was drilled as part of a program testing the neighbouring Virgen anomaly, and passed into the Cerro Vetas porphyry at depth.

Drill hole ID	Orientation (Inclination / Azimuth)	Total Depth (m)	From (m)	To (m)	Length (m)	Lithology	Au (g/t) wt. avg	Cu % wt. avg
CV018**	-56/N232	1031.80	0.00	583.00	583.00	Porphyry and Intrusive Breccia	0.34	0.11
		Including	238.25	578.50	340.25	Intrusive Breccia	0.46	0.14
		Including	321.70	347.50	25.80	Intrusive Breccia	0.85	0.11
			551.50	571.00	19.50	Intrusive Breccia	1.14	0.29
			823.40	847.60	24.20	Intrusive Breccia and Granodiorite	0.49	0.04
CV019**	-58/N232	1047.35	0.00	756.50	756.50	Porphyry and Intrusive Breccia	0.47	0.19
			0.00	289.50	289.50	Porphyry and Intrusive Breccia	0.34	0.12
			412.00	675.10	263.10	Porphyry and Intrusive Breccia	0.86	0.33
			570.50	675.10	104.60	Porphyry and Intrusive Breccia	1.17	0.38
CV020	-58/N232	887.20	221.30	223.30	2.00	Volcano-sedimentary sequence	4.07	0.04
			268.50	289.00	20.50	Metabasalt with hydrothermal veins	0.33	0.32
			484.00	543.00	59.00	Intrusive Breccia	0.43	0.08
			565.50	635.00	69.50	Diorite Porphyry	0.44	0.20
CV021	-60/N232	1059.70	370.00	392.50	22.50	Intrusive Breccia - Granodiorite contact	0.41	0.01
			481.00	514.00	33.00	Intrusive Breccia - Granodiorite contact	0.37	0.13
			700.00	705.00	5.00	Intrusive Breccia	1.65	0.22
VR005	-60/N205	1325.69	360.50	378.50	18.00	Volcano-sedimentary	0.36	0.03
			473.00	492.50	19.50	Breccia	0.49	0.04
			577.00	666.50	89.50	Breccia and Porphyry	0.41	0.10
CV022	-60/N232	1073.50	116.50	155.50	39.00	Volcano-sedimentary	0.36	0.00
			230.50	341.50	111.00	Volcano-sedimentary	0.42	0.00
			526.00	840.00	314.00	Breccia	0.42	0.02
			880.50	966.00	85.50	Breccia	0.45	0.02
	Including		526.00	539.50	13.50	Breccia	0.66	0.10
	Also including		631.00	668.50	37.50	Intrusive Breccia - Granodiorite contact	1.19	0.02
	Also including		813.00	840.00	27.00	Breccia	1.03	0.02
	Also including		919.50	966.00	46.50	Breccia	0.70	0.02

**Previously detailed in Sunward Resources news releases dated July 14, 2010 and August 10, 2010, respectively

License Integration:

Sunward is also pleased to announce that the Secretary of Mines for the Department of Antioquia has signed the resolution approving the integration of Sunward's 9 concession contracts and exploration licenses into one single concession contract.

About the Titiribi Project:

The Cerro Vetas mineralized body at Sunward Resources' Titiribi project hosts an inferred resource of 230 million tonnes at an average grade of 0.5 grams per tonne gold and 0.2 percent copper using a 0.3-gram-per-tonne-gold cut-off (NI 43-101 technical report dated May 19, 2010).

The project is located approximately 70 kilometres southwest of the city of Medellin, Colombia, in Antioquia department, within the historical Titiribi mining district (estimated total gold production of three to five million ounces). Access is by paved highway from Medellin.

Mineralization at Titiribi is hosted within a number of porphyry stocks and porphyritic dikes and sills. The dominant mineral associated with mineralization is chalcopyrite, which occurs as disseminations and in veinlets. Plagioclase and secondary biotite are also significant within the mineralized assemblage. Mineralization appears to be related to extensive potassic alteration, with propylitic and argillic alteration also widespread, along with lesser phyllic alteration.

Over 36,000 metres of drilling has been completed at Titiribi to date, including approximately 14,600 metres completed historically by previous operators, including Gold Fields and Windy Knob Resources, along with more than 21,400 metres completed by Sunward Resources. The mineralized body at Cerro Vetas remains open in all directions and at depth. Sunward Resources currently has four drill rigs operating at the Titiribi project.

About The Company:

Sunward Resources is a well-capitalized Canadian-based company focussed on the exploration of gold/copper porphyry projects in Colombia. The Company has strong operational expertise in Colombia and is currently drilling its Titiribi Project southwest of Medellin with a goal of increasing the NI 43-101 inferred resource.

Sample Preparation, Assays, QA/QC:

In the case of the drilling results referred to herein, the samples are analyzed by the ISO 9001:2000 accredited laboratory of Inspectorate America at Reno, Nevada, USA and prepared by Inspectorate's sample preparation facility at Medellin, Colombia. All samples were crushed to over 80% passing -10 mesh using a terminator jaw crusher; split to 250g; pulverized using an LM2 ring pulverizer to over 90% passing -150 mesh; split to 125g and sent for assay. In all samples gold was assayed by fire assay with Inductive Coupled Plasma (ICP) finish with a lower detection limit of 2 ppb. Samples above 5 g/t were assayed by fire assay with gravimetric finish. In addition to gold, a suite of 30 other elements including silver and copper were assayed by ICP-AES. Blanks and standards were routinely inserted for quality assurance and quality control.

Jonathan Challis, FIMMM, is a qualified person under National Instrument 43-101, and has reviewed and is responsible for the contents of this news release.

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Sunward Resources Ltd. and its projects. Often, but not always, forward-looking statements can be identified by the use of words 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 involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Sunward Resources Ltd. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Sunward Resources Ltd. disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. 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, the reader is cautioned not to place undue reliance on forward-looking statements.

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.

Contributing Sources

Market Wire

N@N

SUNWARD INTERSECTS SIGNIFICANT WIDTHS OF GOLD MINERALIZATION IN STEP-OUT HOLE AT CERRO VETAS