SAL Salmon River Resources Ltd.

Salmon River Resources Ltd. (TSX VENTURE:SAL) ("Salmon River" or the "Company")
is pleased to announce that it has signed a non-binding Memorandum of
Understanding (the "MOU") with General Steel Holdings Inc. (NYSE:GSI) ("General
Steel"), a company listed on the New York Stock Exchange, for itself and on
behalf of certain subsidiaries and affiliates (together, the "GS Group")
regarding rights to purchase part of any future iron ore production from
properties currently under option to and/or to be acquired by Salmon River (the
"Off-Take") and to provide assistance to Salmon River in raising up to C$110
million in private placement financings as well as committing to fund future
capital expenditures and other development costs. The MOU is intended to lay the
groundwork for Salmon River to fund the exercise of its exclusive option to
acquire 100% of Treppo Grande Iron Pty Ltd. ("Treppo Grande") and to fund future
development costs of the Treppo Grande iron ore project (the "Treppo Grande
Project"). Under the MOU terms, the GS Group has also committed to fund future
capital requirements as well as provide project management and co-ordination
services to the Company in return for compensation equal to up to a 51% profit
interest in the Treppo Grande Project, on terms to be mutually agreed in the
final definitive agreements.


Salmon River has previously reported on its exploration programme on the Treppo
Grande properties, comprising 100% ownership of five tenements in the highly
prospective Yilgarn Craton in South-Western Australia. For further information,
readers should review Salmon River's SEDAR filings at www.sedar.com, including
the Form 43-101 Technical Report prepared by A.J. Maynard and N.R. Archer  and
filed on SEDAR on November 9, 2010.


To view the photo "Outcropping at Treppo Grande Mt Manning South" please click
on: http://media3.marketwire.com/docs/sal114.jpg


Off-Take

In return for providing financing and management assistance outlined herein, the
GS Group will be granted a right to acquire (i) up to two million tonnes per
annum of Hematite ore production from the properties acquired by Salmon River
under the Treppo Grande Option or other properties acquired by Salmon River in
the future, at 95% of prevailing market prices once production has commenced;
plus (ii) marketing rights to 40% of the Hematite ore production above two
million tonnes per annum generated from such properties. It should be noted that
the Treppo Grande Project is not currently in production nor has a mineral
resource been estimated for the Project. There is no assurance that a
commercially viable mineral resource will be found or that the Treppo Grande
Project will attain commercial production.


Financing Commitment

Under the terms of the MOU, Salmon River proposes to:



--  issue, by way of private placement, a minimum of 60 million common
    shares at a price of C$0.50 per share, for gross proceeds of a minimum
    of C$30 million; and 
--  issue up to C$80 million of Convertible Debentures on terms to be agreed
    by the parties.



Under the terms of the MOU, GS Group has agreed to:



--  purchase a minimum of 60 million common shares offered by Salmon River
    as part of the private placement (the "Equity Financing"); 
--  purchase a minimum of C$30 million of the Convertible Debentures offered
    by Salmon River; and 
--  assist Salmon River in completing the placement of any common shares
    and/or Convertible Debentures not placed with the GS Group.



The GS Group has also agreed to 100% of all future capital costs for the
development of the Treppo Grande Project and up to C$50 million for other
strategic initiatives being explored by Salmon River. The GS Group will also
provide all future project development, management and co-ordination services
for the development and operation of selected mining tenements of the Treppo
Grande Project and in return will receive compensation equal to up to 51% of the
future profits earned from the Treppo Grande Project.


Assuming completion of these arrangements, Salmon River will have raised gross
proceeds of C$110 million for exercise of the Treppo Grande Option and for
working capital and funding development of the Treppo Grande Project and will
have also secured funding for all of its future capital expenditure requirements
in connection with the Treppo Grande Property. Upon completion of these
arrangements, it is possible that General Steel or members of the GS Group could
become Control Persons as that term is defined by policies of the TSX Venture
Exchange and have an entitlement or interest in more than 50% of the Company's
outstanding common shares, on a fully-diluted basis.


The GS Group shall be entitled to representation on the Board of Directors of
Salmon River in proportion to their equity ownership level. In accordance with
good governance standards, an appropriate number of independent directors shall
be appointed from Salmon River's current Board.


For assistance in respect of the financings described above, independent,
arms-length intermediaries may be paid finder's fees not exceeding 8% of any
amounts raised, payable at their option up to half in common shares on the same
terms and conditions as the Equity Financing.


The Parties propose to negotiate and complete a binding investment framework
agreement (the "Investment Framework Agreement") by 30th November 2011 (or such
later date as may be mutually agreed). The Investment Framework Agreement will
be subject to approval of the TSX Venture Exchange and may be subject to
approval by the shareholders of the Company and various governmental agencies
and regulatory authorities.


In addition to the financings described above, Salmon River has agreed to
undertake a non-brokered private placement to issue up to 5,000,000 common
shares at $0.30 per common share. The net proceeds of the non-brokered private
placement will be used primarily for legal and other expenses expected to be
incurred in connection with the Investment Framework Agreement and the Treppo
Grande Option. In connection with the Private Placement, Salmon River may pay
cash commissions and finders' fees to certain finders in an amount equal to 8%
of the proceeds from the sale of the common shares to subscribers introduced to
the Company.


The common shares issued in the private placement will be subject to a
four-month hold period in accordance with the policies of the TSX Venture
Exchange and applicable securities legislation.


The Private Placement remains subject to the approval of the TSX Venture Exchange.

"The signing of the MOU with GS Group is a significant step in the development
of Salmon River and the Treppo Grande iron ore project," commented Doug Betts,
Salmon River Chair. "With these arrangements with the GS Group, Salmon River is
developing significant mutual beneficial relationships with major Chinese
stakeholders, which provides for the Company's current and future funding
requirements and also delivers security of supply to our new Chinese partners
from the highly prospective Australian Yilgarn Craton iron ore formations. We
intend to move quickly to exercise the Treppo Grande Option and to develop this
significant asset and its potential value with our Chinese partners."


Yu Zuo Sheng, Chairman and CEO of General Steel noted, "We are delighted to
become involved with Salmon River and in its exciting Treppo Grande Project.
This arrangement, we believe, has potential to generate significant benefits to
our mutual public shareholders. This partnership with Salmon River is in-line
with General Steel's on-going efforts to expand profit margins by securing a
steady supply of raw materials at competitive price. General Steel's long-term
strategy seeks to establish close relationships with overseas iron ore miners
that will grant us high quality iron ore resources and place us in an
advantageous position as we strive to meet the robust demand for steel
production in China's western regions."


Salmon River will provide additional updates as the MOU is implemented. The full
contents of the MOU remains subject to current commercial confidentiality.


About General Steel Holdings Inc. (NYSE:GSI)

General Steel Holdings Inc. (NYSE:GSI), headquartered in Beijing, China,
operates a diverse portfolio of Chinese steel companies. With 7 million metric
tons of crude steel production capacity, its companies serve various industries
and produce a variety of steel products including rebar, high-speed wire and
spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi
and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin
municipality. For more information, please visit www.gshi-steel.com. To be added
to General Steel's email list to receive Company news, please send your request
to generalsteel@tpg-ir.com.


About Salmon River Resources Limited (TSX VENTURE:SAL)

Salmon River Resources Limited is a mineral exploration company engaged in the
exploration for and development of commercial deposits of iron ore in Western
Australia. It holds an exclusive option to acquire the Mt. Manning project
located in the Yilgarn region of Western Australia, approximately 210 kilometres
northwest of Kalgoorlie. Salmon River believes the project has the potential to
be a world-class iron ore deposit with early development potential. The shares
of Salmon River are listed on the TSX Venture Exchange under the symbol "SAL".
For further information see our website at www.salmonriverresources.com.


On behalf of the Board of Directors of SALMON RIVER RESOURCES LTD.

J.G. Stewart, President

Forward-Looking Statements: This press release contains forward-looking
statements that are based on the beliefs of management and reflect Salmon
River's current expectations. This press release relates to the execution of the
GS Group MOU only, and is not intended to create legally binding relationships.
The forward-looking statements in this press release also includes information
relating to the intended commitments by GS Group, the Company's intention to
fund certain development expense and to fund development of the Treppo Grande
Project. The forward-looking statements are based on certain assumptions, which
could change materially in the future, including the assumption that the
non-binding MOU will lead to definitive agreements, that the transactions
contemplated in the MOU will be completed, and that Salmon River will exercise
its rights under the Treppo Grande Option. By their nature, forward-looking
information involves known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking information. Such factors include the risk that
the MOU may be terminated, that the transaction contemplated in the MOU may not
result in a binding agreement and any agreement may have terms and conditions
different from those contemplated in the MOU, that any agreement may not be
completed, that GS Group may not invest, a portion of such amount, or any
amount, and that the Company may not exercise its rights under the Treppo Grande
Option. There can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, investors should not place
undue reliance on forward-looking information. Forward-looking information is
provided as of the date of this press release, and the Company assumes no
obligation to update or revise them to reflect new events or circumstances,
except as required in accordance with applicable laws.

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