TORONTO, CANADA – May 8, 2012 – Mr. George A. Brown, President and CEO of Cache Exploration Inc. (TSX-V: CAY), is pleased to announce positive results from the 2012 exploration program on the Welsford Rare Earth Element (REE) Properties in New Brunswick (see attached diagram 1). Dr. David Lentz, P.Geo., is a Qualified Person as described in National Instrument 43-101 and is responsible for the technical information contained in this news release.

Cache began its 2012 exploration season in April after the analysis of results from the Welsford 2011 soil sample programs and the 2011 Welsford trenching (March 7, 2012 news release). The initial April work was completed on the Welsford REE Extension Property (claims outlined in purple on attached diagram 1). The work was focused on following up on two areas with positive results from the soil sampling and radiometric prospecting program conducted in 2011.

The first area explored surrounds a Heavy Rare Earth Element (HREE) anomalous soil sample from 2011 that yielded 154.3 ppm HREE (including only Tb, Yb, and Lu results from Instrumental Neutron Activation Analysis (INAA)). The work included radiometric prospecting and rock sampling. A total of three rock samples were collected from areas that showed anomalous radioactivity of approximately 1,200 counts per second (CPS). The average background radioactivity is approximately 400 CPS. One sample was collected from a dykelet discovered underlying a thin layer of moss. The dyke is steeply dipping and varies between 2.5 and 3.0 cm wide. It contains a greater amount of amphiboles than the granitoid host in which it is in sharp contact. One sample was taken of the dyke and one was taken of the host granite. Another sample was taken as a channel cut over 1 metre, in an area that locally displayed anomalous radioactivity of approximately 1,200 CPS. This channel cut sample is of interest as there were no apparent physical features observed in the field to differentiate between the anomalous and non-anomalous radioactive zones.

The samples were analysed by Activation Laboratories Inc. (Actlabs) Code 8 – REE Assay Package (ICP and ICP/MS) at their facility in Ancaster, Ontario. A Certified Standard Reference Material was submitted with the samples for quality control purposes, and its results are considered satisfactory for reporting.

The dykelet sample returned values of 0.137% Y2O3, 3.045% ZrO2, 0.268% Nb2O5, and 0.371% Total Rare Earth Oxides (TREO) of which 780.8 ppm representing 25% of the TREO are Heavy Rare Earth Oxides (HREO). TREO includes La2O3, Ce2O3, Pr2O3, Nd2O3, and Sm2O3 as Light Rare Earth Oxides (LREO) and Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Tb2O3, and Lu2O3 as Heavy Rare Earth Oxides (HREO).

The second area explored is an outcrop that was found in 2011 to yield anomalous radioactivity up to 1,900 CPS where the average background radioactivity in the region is approximately 400 CPS. The outcrop is a fully exposed cliff-face that ranges up to about 10 metres high and extends about 130 metres in length (see Diagram 2). A total of 6 samples were collected in this area, all of which varied between 1,000 and 2,500 CPS. The follow-up exploration successfully identified multiple sets of pegmatite and aplite dykes within the outcrop showing anomalous radioactivity up to 2,500 CPS, some of which were sampled.

Two of the six samples returned significant Y+Zr+Nb+REE concentrations. These two samples were collected from a set of pegmatite dykes that showed anomalous radioactivity varying between 1,800 and 2,500 CPS. This anomalous outcrop is located approximately 200 metres to the East-Northeast of the dykelet described above from the first area explored. One of the grab samples returned values of 0.158% Y2O3, 3.250% ZrO2, 0.262% Nb2O5, and 0.310% TREO and a second grab sample contained 0.136% Y2O3, 3.566% ZrO2, 0.176% Nb2O5, and 0.206% TREO, of which 0.115% (37% of TREO) and 0.089% (43% of the TREO) respectively are HREO.

These results are considered quite significant and will warrant additional work. Cache is planning detailed mapping and sampling of the outcrop exposure. The results will be used to determine an optimal trenching and/or drilling program in order to assess the potential of these dykes.

Cache has also begun its 2012 exploration program on the Welsford REE Outer Property, where the highest priority zone yielded values up to 38,800 CPS in the 2011 exploration program. The work program thus far in 2012 has involved additional radiometric prospecting, preliminary hand trenching, and rock sampling. An area approximately 1.5 metre by 1 metre was hand trenched, revealing relatively shallow outcrop (0.3 to 0.5 metre depth) that reported an increased anomalous radioactivity of up to 46,000 CPS. The radioactive zone was traced between 1.0 metre to 1.5 metre width over a length of 6 metres. In contrast, the known dykes located within the Inner claims and the pegmatite dykes located on the Extension claims have only displayed up to 2,500 CPS, making this site of considerable potential for significant Y+Zr+Nb+REE mineralization. After the Company receives confirmation of the expected positive Y+Zr+Nb+REE results, a trenching program is anticipated to uncover the outcrop to expose the full of extent of the anomaly for detailed mapping and sampling.

All samples have been submitted to Activation Laboratories Inc. (Actlabs) in Fredericton, New Brunswick for analysis preparation by crushing, splitting, and pulverizing the samples using a mild steel for low contamination (up to 0.2% Fe), followed by Code 8 – REE Assay Package (ICP and ICP/MS) at their facility in Ancaster, Ontario.

The overall purpose of the 2012 Welsford Exploration programs will be to actively explore the various Welsford Properties in search of the source of the known Zr-Nb-Y-REE enriched aplitic dykes or other dyke swarms or a potential cupola within the host Welsford Peralkalic Intrusive Complex.

Cache Exploration is a well funded exploration company with a focus on exploring for REE deposits. Cache is exploring the Welsford REE Properties in New Brunswick, the Cross Hills REE Property and Cross Hills Northern IOCG Property in Newfoundland, and the Nunavut REE Properties. The Company acquired a 100% interest in Cache Minerals Inc. (“CMI”) (formerly Rockbridge Minerals Inc.) through which it now controls the CMI Cross Hill REE Properties adjacent to Cache’s Cross Hills Properties, the 3,360 acre Stewart South Property in BC, the 4,349 acre Quinn Eskay Property in BC, the 719 acre GSM Property in BC, and the 4,680 acre White Gold Properties in the Yukon. All of the Cache REE properties are considered to have excellent potential for rare earth element mineralization. The BC and Yukon properties provide a diversity of exposure to exploration potential for copper, silver, and gold.

Additional information is available under the company’s profile at www.sedar.com and on the Cache website at www.cacheexploration.com For additional information please contact info@cacheexploration.com or phone (416) 867-1101.

Neither The TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Table 1 – Summary of the reported results from samples collected from the Welsford REE Extension Target

Diagram 1 – The Welsford REE Properties

Diagram 2 – Photo of Welsford REE Extension Property outcrop

Diagram 3 – Photo of the Welsford REE Outer Property Target
Figures: (Top) Image of radioactivity site on Welsford REE Outer claims with anomalous zone outlined (dashed lines); (bottom left) Image of granitoid phase that appears to be the main source of the anomalous radioactivity; (bottom right) Image of the alkali granite host that also yields elevated radioactivity.