Navasota Acquires Hemlo Area Property

Navasota Resources Ltd (NAV:TSX-V) is pleased to announce that it has entered into an Option and Joint Venture Agreement with Teck Cominco Limited, to acquire a 100% interest in the Stenlund Gold Property, 25 kilometres west of the prolific Hemlo Gold Camp in northern Ontario. The Stenlund Property consists of 37 contiguous claim units totalling 592 hectares, 10 kilometres southeast of Marathon, Ontario.

The Stenlund Property lies within the Hemlo-Heron Bay Shear Zone, a regional-scale deformation zone which also hosts the Hemlo deposit. The David Bell and Williams Mines, 50% owned by Teck Cominco and 50% by Homestake Canada Inc. (a subsidiary of Barrick Gold Corporation), produced a total of 536,000 ounces of gold in 2003.

The Stenlund Property hosts two significant gold zones: the Porphyry Zone and the 109 Zone. The Porphyry Zone has been aggressively explored resulting in several high-grade but erratic intersections. Zone 109 was discovered in 1998, returning one interval of 9.3 g/t gold over 7.3 metres across a series of K-feldspar-altered quartz-carbonate veins hosted in felsic fragmental rocks and quartz-feldspar porphyry within a zone of intense deformation (see Table 1).

Table 1: Significant Previous Intersections
Zone 109

Hole No.

Length (m)

Au-g/t

Ag-g/t

ST98-09

4.4

4.6

146.0

and

3.0

12.6

365.0

ST98-11

3.9

13.6

247.0

4.2

5.3

154.0

7.3

9.3

184.0

ST98-13

1.0

7.7

110.0

3.4

5.9

87.0

ST98-14

1.2

6.2

140.0

ST99-16

4.4

2.7

44.0

ST99-17

1.3

5.2

106.0

3.0

2.0

28.0

Previous work included 67 diamond drill holes totalling 15,675 metres completed between 1983-86, mostly in and around the Porphyry Zone. Between 1997 and 2002, Teck Cominco completed 34 diamond drill holes totalling 15,119 metres, including 20 drill holes in the 109 Zone area.

At present the zone is defined by drill holes on sections spaced at 100 metres. Diamond drilling planned for this fall will attempt to extend the zone by determining the structural controls on the mineralization and to further define grade and continuity within the zone.

Principal Terms of the Stenlund Option and Joint Venture Agreement

Navasota may earn a 100% interest in the property by completing staged exploration expenditures of $2,000,000 by December 2007 and issuing 150,000 common shares to Teck Cominco on signing and a further 150,000 shares on March 1, 2005. A total of $300,000 must be spent on exploration on or before December 2004, a further $400,000 on or before December 2005, a further $600,000 on or before December 2006, and a further $700,000 on or before December 2007. Once Navasota has exercised the option, Teck Cominco may elect to earn back 55% by incurring $3,000,000 of expenditures over 3 years or retain a 2% Net Smelter Returns royalty. Upon completion of the earn-back, Teck Cominco may elect to increase its interest to 65% by completing a Feasibility Study. The property is subject to an underlying 50% Net Profits Interest in favour of a third party. Teck Cominco will be the operator.

Christopher J. Wild, P.Eng., President of Navasota Resources Ltd. is the Qualified Person for this release.

Neither the TSX Venture Exchange nor any other regulatory body has approved or disapproved of the information contained herein.