UPDATE ON PROPERTY ACQUISITION TRANSACTION BETWEEN JIULIAN AND GUNPOINT
Jiulian Resources Inc. (“Jiulian”) (TSXV: JLR) and Gunpoint Exploration Ltd. (“Gunpoint”) (TSXV: GUN) are providing an update on the property acquisition transaction which was previously announced by way of a joint news release dated February 1, 2011.
About the Property Acquisition Transaction
Gunpoint and Jiulian entered into an agreement dated effective January 25, 2011 (the “Agreement”) pursuant to which Jiulian will acquire certain mineral exploration properties from Gunpoint in the Kamloops and Nicola Mining Districts in British Columbia. The parties have since agreed to amend the Agreement. Pursuant to the amended Agreement, Jiulian will purchase a 100% interest in Gunpoint’s Big Kidd and Little Fort claims groups (the “Acquisition”). The purchase price for these two groups of claims is a cash payment to Gunpoint of $100,000 and the issuance 1,875,000 common shares of Jiulian. Under the amended Agreement, there is no longer an option for Jiulian to purchase Gunpoint’s Brassie Creek and Craigmont claims groups, as Gunpoint has decided to give up its interest in the Craigmont claims and Jiulian, based on a preliminary review, no longer wanted the option. Jiulian’s title to the Big Kidd and Little Fort claims will be subject to a net smelter return royalty in favour of Gunpoint and applicable Crown royalties. Gunpoint and Jiulian are at arm’s length to each other. Following the closing of the Acquisition, Dr. E. Max Baker will join the board of directors of Jiulian. Jiulian has commenced preparation of a technical report on the Big Kidd property.
The Acquisition is subject to TSX Venture Exchange (“TSXV”) approval.. Closing of the Acquisition is expected to occur within five days of TSXV approval. No finder’s fee is payable in connection with the Acquisition.
About the Big Kidd Property
The Big Kidd property comprises four contiguous mineral tenures totalling 4,055.77 hectares and is located 20 kilometres southeast of the city of Merritt, B.C. The property is centered upon latitude 49°57’ north and longitude 120°37’ west. The exploration target at the Big Kidd property is alkali porphyry type copper-gold deposit.
About the Little Fort Property
The Little Fort property consists of 12 mineral tenures for a total area of 8,654 hectares and is located approximately 25 kilometres to the northwest of the town of Little Fort, B.C. The property is centered upon latitude 51°29’33” north and longitude 120°23’42” west. The exploration target at the Little Fort property is skarn type copper-gold deposit.
The Craigmont Property
Gunpoint has decided to give up its interest in the Craigmont property located northwest of Merritt, B.C., which will revert back to the optionor from which Gunpoint acquired its interest. Gunpoint will focus on the exploration of its Talapoosa property located in Nevada. Prior to Gunpoint giving up its interest in the Craigmont property, Jiulian had decided it did not want the option on the Craigmont or Brassie Creek properties, based on preliminary due diligence.
About Gunpoint Exploration Ltd.
Gunpoint is a publicly traded mineral exploration company (TSXV: GUN). For a more complete business and financial profile of the Company, interested parties are encouraged to visit the Company’s website, www.gunpointexploration.com.
For additional information about Gunpoint please contact:
Dr. E. Max Baker, President and CEO, Ph. 604-408-8829
About Jiulian Resources Inc.
Jiulian is a TSXV Tier 2 issuer (TSXV JLR) with offices in Vancouver, British Columbia. The Company’s Board of Directors includes experienced and dedicated professional geologists, businessmen and accounting personnel. The Company is currently exploring its Hawk project, located in the prolific Cariboo region of British Columbia, for large tonnage porphyry style copper and gold mineralization.
For further information, please contact:
X. Charlie Cheng, Chief Executive Officer and Director of Jiulian at 604-639-4418 or by email: firstname.lastname@example.org.
ON BEHALF OF THE BOARD OF DIRECTORS
“X. Charlie Cheng”
X. Charlie Cheng, Chief Executive Officer, Director
ON BEHALF OF THE BOARD OF DIRECTORS OF GUNPOINT EXPLORATION LTD.
“E. Max Baker”
E. Max Baker, President, CEO and a director
Completion of the transactions above is subject to a number of conditions including, but not limited to, TSXV acceptance.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the potential extent of mineralization and reserves, exploration results and future plans and objectives of Jiulian. These risks and uncertainties include, but are not restricted to, the amount of geological data available, the uncertain reliability of drilling results and geophysical and geological data and the interpretation thereof, and the need for adequate financing for future exploration and development efforts. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.