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Re: News Releases - Monday, January 07, 2008
Phoscan Announces Winter Drill Program for Martison Phosphate
Project
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PhosCan Chemical Corp. (TSXV: FOS) and Baltic Resources Inc. (TSXV:
BLR) (collectively, the "JV Parties") are pleased to announce the start
of the 2008 winter work program at their jointly owned Martison
Phosphate Project located approximately 70 km northeast of Hearst,
Ontario.

PhosCan, as operator of the joint venture, will conduct a major $6.5
million, 80 hole drilling program focused on moving the project towards
a bankable feasibility study. The JV Parties intend to immediately
commence the feasibility study upon completion of the pre-feasibility
study, which is expected by early March, 2008.

The Martison Phosphate Project

The Martison Phosphate Project is currently being examined for its
potential as the key supplier of phosphate concentrate for a vertically
integrated phosphoric acid plant to be developed near Hearst, Ontario.
The plant would utilize the Martison phosphate deposit as well as
sulphuric acid from nearby Ontario base-metal smelters. Phosphate
concentrate and sulphuric acid are the two primary inputs in the
production of phosphoric acid. The Martison project and the proposed
plant are strategically positioned in proximity to target markets with
ready access to infrastructure including rail, power, labour and an
abundant supply of sulphuric acid. The phosphoric acid produced, will
be used as feedstock for the production of higher-value products in the
fertilizer and industrial phosphate markets.

Current resource estimates for the Martison deposit are based on data
from 120 holes completed in six drilling campaigns. The Measured and
Indicated resources form the foundation for the pre-feasibility study
currently being conducted by Jacobs Engineering and Golder Associates.
The highlights include:
.. Measured and Indicated resource of 62.2 million tonnes averaging
23.55 % P2O5 and 0.34 % Nb2O5.
.. Inferred resources of 55.7 million tonnes averaging 21.87 % P2O5 and
0.34 % Nb2O5.
.. Significant areas of the residuum in the central portion of the
deposit remain open at depth.

The 2008 Winter Work Progam

The program will include three major components. The first component
is a geotechnical study which will focus on the proposed mine pit area
as well as proposed areas for infrastructure construction. The second
component of the program is dedicated to the collection of a 40-tonne
bulk sample of residuum (Litho Units 2A and 2B). The bulk sample will
provide the material for further bench-scale refinement of the selected
metallurgical process as well as pilot-plant scale confirmation testing
of the selected and refined process. Concentrate ("phosrock") from the
pilot plant testing will be used in phosphoric acid manufacturing and
fertilizer manufacturing testing and process refinement. The third
component of the program will focus on the definition of the bottom of
the residuum, which is currently undefined in the central area of the
proposed mine pit.

The three components of the planned 2008 winter field program will
involve drilling approximately 80 holes in 60 locations. As the drill
program advances, an independent survey crew will be responsible for
surveying all of the drill hole locations and other surface features to
tie these sites into the most recent airborne survey data. The total
cost of the 2008 winter program is estimated to be approximately $6.5
million, which forms part of the budgeted costs for the bankable
feasibility study.

James S Spalding completed the independent resource estimate according
to CIM resource categories in compliance with NI 43-101 guidelines and
a Technical Report for the Martison property is available on SEDAR.

First Nations Access Agreement

In connection with the planning and implementation of the 2008 winter
work program, the JV Parties are pleased to announce they have entered
into a pre-mining exploration agreement (the "Access Agreement") with
Constance Lake First Nation ("CLFN"), which claims traditional lands
rights on the property where the Martison Phosphate deposit is located.
The Access Agreement, among other things, provides full access to the
JV Parties to carry out the above-noted winter work program on the
property, funding for CLFN to negotiate a broader mining exploration
agreement in respect of the Martison Phosphate Project and commits the
JV Parties to enter an Impact Benefit Agreement (IBA) with the affected
First Nations.

Proposed Merger to Consolidate 100% Project Ownership

As jointly announced on October 29, 2007, PhosCan and Baltic have
agreed to merge to consolidate ownership of the Martison Phosphate
Project. Upon completion of the proposed merger, PhosCan would own a
100% interest in the Martison Phosphate Project. The former Baltic
shareholders will own common shares of PhosCan and common shares of a
newly-formed company, Canadian Orebodies Inc., which will own all
property interests of Baltic other than its interest in the Martison
Project. PhosCan and Baltic are proceeding with the merger, which has
been approved by both boards of directors and is subject to the
favourable vote of shareholders. The merger is now expected to be
completed in early March, 2008.


INFORMATION IN THIS NEWS RELEASE THAT IS NOT CURRENT OR HISTORICAL
FACTUAL INFORMATION MAY CONSTITUTE FORWARD-LOOKING INFORMATION OR
STATEMENTS WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND APPLICABLE CANADIAN SECURITIES
LEGISLATION. IMPLICIT IN THIS INFORMATION, PARTICULARLY IN RESPECT OF
STATEMENTS AS TO FUTURE OPERATING RESULTS AND ECONOMIC PERFORMANCE OF
THE COMPANY, AND RESOURCES AND RESERVES AT THE COMPANY'S MINERAL
PROJECTS, ARE ASSUMPTIONS REGARDING PROJECTED REVENUE AND EXPENSE,
COMMODITY PRICES, AND MINING COSTS. THESE ASSUMPTIONS, ALTHOUGH
CONSIDERED REASONABLE BY THE COMPANY AT THE TIME OF PREPARATION, MAY
PROVE TO BE INCORRECT. READERS ARE CAUTIONED THAT ACTUAL RESULTS ARE
SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES, INCLUDING RISKS
RELATING TO GENERAL ECONOMIC CONDITIONS AND MINING OPERATIONS, AND
COULD DIFFER MATERIALLY FROM WHAT IS CURRENTLY EXPECTED. THE COMPANY
DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION,
FUTURE EVENTS OR OTHERWISE.

PhosCan Chemical Corp.
Contact:

Stephen Case, President & CEO
(416)-972-9222

Baltic Resources Inc.

Contact:
Don McKinnon,President & CEO
(705)-268-9000


"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."

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Copyright (c) 2008 BALTIC RESOURCES INC. (BLR) All rights reserved.
For more information visit our website at
http://www.balticresources.ca/ or send mailto:info@balticresources.ca
Message sent on Mon Jan 7, 2008 at 10:52:20 AM Pacific Time
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