VAL-D'OR, QUEBEC-(March 16, 2010) - Hinterland Metals Inc. (TSX VENTURE:HMI) is pleased to announce that it has reached an arms-length agreement to acquire the 37-claim (2089 hectare) "Lac Fecteau" gold property located some 120km southwest of Chibougamau, Quebec. The property is located within the Barry-Urban Greenstone Belt approximately 20km east of Eagle Hill's Windfall Lake Project and 30km northeast of Metanor Resources' Barry open pit gold mine.
The property is underlain by felsic to mafic volcanic rocks and related porphyritic intrusive rocks. Two mineral showings have been identified on the property to date. The Lac Fecteau showing is a series of massive sulphide lenses. Drilling by Noranda in 1998 intersected up to 5% zinc and 0.5% copper over 1.0m. The Freeman-Buteux gold showing returned numerous gold-bearing intersections related to a sheared mafic volcanic zone cut by several holes drilled by Soquem in the late 1980's. The best intersection reported 3.5gpt Au over 1.1m from 73.5m within a zone grading 0.4gpt Au over 17.0m from 67.8m. Individual assays up to 8.0gpt Au over 0.5m were reported in the Soquem drill logs.
"In light of the drill results announced by Eagle Hill at Windfall, any old showings in the Barry-Urban belt must be re-evaluated for wider intervals with lower but more consistent gold grades," comments Mark Fekete, President and CEO of Hinterland.
Under the terms of the agreement Hinterland has the option to earn a 100% interest in the property for total consideration of $100,000 cash, 1,000,000 treasury shares and $1,000,000 exploration work scheduled over a three-year period subject to a two-part production royalty (the "Royalty") consisting of a 2.0% Net Smelter Returns royalty on smeltable materials and a 2.0% Gross Overriding Receipts royalty on diamonds. Hinterland will have the right to buy back the first 1.0% of the Royalty for $1,000,000 and will have the right of first refusal on the remaining 1.0%. The agreement is subject to approval by the Hinterland's Board of Directors and by regulatory authorities in compliance with applicable securities legislation.
The analytical results referred to in this release are historical in nature, have not been verified by Hinterland and should not be relied upon. Mark Fekete, P.Geo is the designated "qualified person" as defined in Section 1.2 in and for the purposes of National Instrument 43-101 responsible for the preparation of this release.
Investors are invited to visit the Hinterland IR Hub at www.agoracom.com/IR/Hinterland � � where they can post questions and receive answers or review messages already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to HMI@agoracom.com � where they can also request to be added to the investor e-mail list in order to receive all future press releases and updates in real time. Also note that Mark Fekete will be discussing Hinterland's gold projects in an interview posted on Agoracom this week.
This release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company's periodic reports including the annual report or in the filings made by the Company from time to time with securities regulators. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of an unanticipated event.
Shares Issued 64,959,233
Neither the 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.
For more information, please contact
Hinterland Metals Inc.
Mark Fekete
Toll Free 1-877-874-8182 Ext. 210
Or
Hinterland Metals Inc.
Rock Ouellette
Toll Free 1-877-874-8182 Ext. 250