PRESS RELEASE
- CONQUEST AMENDS AGREEMENT WITH DETOUR GOLD CORPORATION ON CONQUEST?S
PROPERTIES ADJACENT TO DETOUR LAKE GOLD
PROJECT
Toronto, Ontario ? August 10, 2010 | Conquest Resources
Limited (TSX-V: ?CQR?) announces that it has amended a previously executed letter agreement
with Detour Gold Corporation (?Detour Gold?) pursuant to which Detour Gold will
purchase Conquest?s interest in the Aurora Property and will have an option to
acquire a 50% interest in Conquest?s Sunday Lake Property.
Conquest has now entered into a separate agreement with
NVI Mining Ltd. (?NVI?), an indirect wholly-owned subsidiary of Breakwater
Resources Ltd., to purchase the remaining 40% interest that it does not already
own in the Aurora and Sunday Lake properties located in the Detour Lake area, Ontario
and to purchase the 2% net smelter royalty interest therein held by NVI. The
consideration for the acquisition from NVI is $1.0 million to be satisfied
through the payment by Conquest of $500,000 in cash and the issuance, subject
to regulatory approval, of 3,125,000 shares of Conquest.
Under the amended agreement with Detour Gold, Conquest
will convey to Detour Gold, subject to regulatory and other approvals, a 100%
undivided interest in the Aurora Property free and clear of the 2% net smelter
royalty. The consideration has been amended to a cash consideration
of $2.0 million, rather than $1.0 million, to reflect that at the time of
Detour Gold?s acquisition from Conquest the Aurora Property and the Sunday Lake
Property will not be subject to the 2% net smelter royalty and that Detour Gold
will not be obligated to incur any exploration expenditures other than the
Sunday Lake Expenditures (as defined below). The consideration will still
include the issuance, subject to regulatory approval, of 100,000 shares of
Detour Gold to Conquest. In addition, Detour Gold will have an option to
acquire a 50% joint venture interest in the Sunday Lake Property by completing
$1.0 million in exploration expenditures on the Sunday Lake Property (the
?Sunday Lake Expenditures?) over the next two years with a minimum of $500,000
prior to August 31, 2011. The Aurora Property and the Sunday Lake
Property each remain subject to an interest held by Prism Resources Inc. equal
to 7.5% of the net profits from the properties.
The Sunday Lake
Property lies immediately east of Detour Gold?s Detour Lake Project, along the
eastern extension of the Sunday Lake Deformation Zone, in what is believed to
be a prospective area of this relatively under-explored part of the Abitibi
Greenstone Belt.
The Aurora Property lies south of Detour Gold?s Detour
Lake Project. Detour Gold is acquiring the Aurora Property to accommodate the
infrastructure requirements for the development of its Detour
Lake mine.
COMMENT
?We are very pleased to have reached an agreement with
Breakwater and a revised agreement with Detour Gold which will be beneficial
for all parties,?
said Terence McKillen, President and Chief Executive of Conquest. ?The
amended agreement will result in a transaction value to Conquest of approximately
$4 million of which $1 million will offset the acquisition by Conquest from
Breakwater of the 40% interest in the properties that it did not previously own
as well as the purchase of the outstanding royalty interest. In addition, as
part of the agreement, Detour Gold will expend a minimum of $1 million on the Sunday
Lake Property over a two
year period with a minimum of $500,000 per year. Detour Gold?s geological
knowledge and expertise in the area will be invaluable in the future
exploration on the Sunday
Lake
Property,? added Mr. McKillen.
ABOUT THE COMPANY
Conquest is exploring several gold projects in Ontario.
These include the Alexander Gold Project at Red Lake; the Aurora and Sunday
Lake properties at Detour Lake; the King Bay Gold Project at Sturgeon Lake (60%
interest); and the Smith Lake Gold Project at Missanabie.
There are 83,713,637 shares of Conquest issued and
outstanding.
This
news release may include certain "forward-looking statements". All
statements other than statements of historical fact, included in this release,
including, without limitation, statements regarding potential mineralization,
resources and reserves, exploration results, and future plans and objectives of
Conquest, are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause actual
results to differ materially from Conquest?s expectations are exploration risks
detailed herein and from time to time in the filings made by Conquest with
securities regulators.
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 the
accuracy of this release.
FOR
FURTHER INFORMATION, PLEASE CONTACT:
D. Brett
Whitelaw, Vice-President ? (604) 984 - 8633 - Vancouver
Rob
Kinloch, Director ? (306) 343- 5799 - Saskatoon
Terence
N. McKillen, President & CEO ? (647) 728- 4126 - Toronto
John F.
Kearney, Chairman ? (416) 362- 6686 - Toronto
info@conquestresources.net
www.conquestresources.net