Teuton Resources Corporation

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Tuesday July 31, 2007

Drilling Starts at Treaty Creek Property

Teuton Resources Corp. (“Teuton”) (“TUO”:TSX--V; “TFE”-Frankfurt) is pleased to announce that drilling has commenced at its Treaty Creek property, located 75 kilometers north of the deepwater port of Stewart, British Columbia. A 5,000 meter program is planned with the first target located in the Eureka zone near the center of the property.

The Treaty Creek property lies at the north end of the Sulphurets porphyry gold and gold-copper district. Drilling in 1996 by Seabridge Gold Inc. and Silver Standard Resources Inc. on their two properties within the district has led to a marked increase in gold and copper resources. Three porphyry deposits controlled by Seabridge Gold and one by Silver Standard currently boast a global resource (all categories) containing 19.5 million oz of gold and 5.0 billion lbs of copper. Each of these two companies is currently drilling an additional 9,000 meters aimed at determining the full limits of these deposits.

Small drill programs undertaken in 1994 and 1996 in the Eureka zone on the Treaty Creek property intersected Sulphurets-type mineralization in several holes. Intercepts included 0.46 g/t gold over 169.2 meters, 0.67 g/t gold over 72.3 meters, 0.649 g/t gold over 43.1 meters, and 0.757 g/t gold over 74.7 meters. Core recovery during these early programs was often poor, particularly in the most highly mineralized intervals. Special attention is being paid during the 2007 drill program to maximize core recovery and it is hoped that this precaution may lead to a significant increase in average gold grade. By way of comparison, the average grade of Seabridge Gold's 563.8 million tonne Mitchell deposit in the Sulphurets district is 0.72 g/t.

Several other higher-grade gold and gold-silver targets will also be tested at Treaty Creek during the 2007 program. These include the GR2 zone where trenching has identified shears mineralized with galena and other sulphides, and carrying good to outstanding silver values. Trenches A-1, A-2, B-1 and B-2 returned grades of 387 g/t (11.3 oz/ton) silver over 4.0 m, 2,230 g/t (67.0 oz/t) silver over 1.7 m, 2,470 g/t (72.2 oz/ton) silver over 3.8m and 504 g/t (14.7 oz/ton) silver over 4.6 metres, respectively. The late Dr. E.W. Grove, author of several government papers on the Stewart region, described the GR2 zone as containing at least six parallel sulphide zones in an altered area extending a minimum 1,100 m by 350 m.

American Creek Resources (TSX-V: “AMK”) currently holds the property under option from Teuton and is the operator of the 2007 work program. Under the terms of the agreement, American Creek may earn a 51% interest in the Treaty Creek property by issuing 100,000 shares and spending $5.0 million in exploration over three years. At least $1.0 million in exploration costs must be incurred on or before March 31, 2008; an aggregate of at least $2.5 million by March 31, 2009; and a total aggregate of $5.0 million by March 31, 2010. American Creek may earn a further 9% interest (such that its aggregate interest would be 60%) by completing a positive feasibility study on the property.

D. Cremonese, P.Eng. is the Qualified Person for Teuton in regard to technical information contained in this press release. Further information regarding the property can be found at the Company's website, www.teuton.com.

ON BEHALF OF THE BOARD OF DIRECTORS
TEUTON RESOURCES CORP.
SILVER GRAIL RESOURCES LTD.
"Dino Cremonese, P.Eng."
President

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Silver Grail Resource Ltd. And Teuton Resources Corp. do have an ongoing obligation to disclose material information, as it becomes available.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

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