EDMONTON, Alberta - Committee Bay
Resources Ltd. (CBR: TSXV) ("Committee Bay" or the "Company") today
announces that it has entered into Exclusivity Agreement to negotiate the
terms of the proposed sale of Committee Bay's 50% interest in the
Redemption Joint Venture Project ("RJV") with its joint venture
partner, Focus Minerals Ltd. (FML: ASX) ("Focus Minerals").
In consideration for entering this agreement, Committee Bay will receive a
$1.0 million non-refundable cash payment from Focus Minerals which may be
deducted from any subsequent purchase price.
A key element of the Exclusivity Agreement is to
effectively suspend the Redemption Joint Venture between January 1st
2008 and March 31st 2008. During this period, Focus Minerals
accepts full responsibility for the Coolgardie Project. This will enable
development for the commencement of mining at Perseverance to continue,
unaffected by the negotiations that will occur with Committee Bay to purchase
the remaining 50% of the project. Both the Boards of Focus Minerals and
Committee Bay have met and approved the commencement of mining. If
subsequent commercial terms for the purchase of Committee Bay's 50% of the
RJV cannot be concluded, Committee Bay will resume its active role in the
management of the RJV and will reimburse Focus Minerals for 50% of
expenditures incurred on the Coolgardie Project between January 1st
2008 and March 31st 2008 (which is the date when the Exclusivity
Agreement expires), excluding any expenditures made in January, being part
of an earlier RJV cash call.
Consideration
for the proposed acquisition is likely to be a mixture of cash and equity,
resulting in Committee Bay joining the Focus Minerals' share register as a
significant shareholder. If the terms of the Proposed Acquisition are
finalized, Committee Bay will retain exposure to the future upside arising
from the Focus Minerals' transition to gold production and the broader
development of the Coolgardie Project.
Execution of
the Exclusivity Agreement and negotiations in respect of the Proposed
Acquisition reflect Committee Bay's decision to concentrate on its
portfolio of international mineral assets in Nunavut, Latin America and
elsewhere in Australia. Committee Bay remains strongly supportive of Focus
Minerals' development strategy for the Coolgardie asset.
Focus
Minerals is gearing up to commence initial gold production at Coolgardie in
April at the high-grade Perseverance Project (Indicated Resource of
92,066oz at an average grade of 6.4g/t Au) after completing a positive
Feasibility Study in December 2007. This Project is forecast to yield base
case production of 64,187 ounces over 21 months, with an upside of
producing more ounces and a higher gold price.
Committee
Bay will provide further details to the market regarding the acquisition
terms and funding arrangements as they are finalized.
On behalf of
the Board
Committee Bay Resources Ltd.
/s/"John Williamson"
John Williamson, P.Geol.
President
For further
information about Committee Bay Resources Ltd. or this news release, please
visit our website at www.committeebay.com
or contact:
Derek Iwanaka
Manager, Investor Relations
Email: info@committeebay.com
Dial 604-646-4524 or toll-free
1-888-331-2269
The TSX
Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release
Certain
disclosures in this release, including management's assessment of Committee
Bay's plans and projects, constitute forward-looking statements that are
subject to numerous risks, uncertainties and other factors relating to
Committee Bay's operation as a mineral exploration company that may cause
future results to differ materially from those expressed or implied in such
forward-looking statements. Readers are cautioned not to place undue
reliance on forward-looking statements. Committee Bay expressly disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise.