26 September 2012
NEWS RELEASE KEX2012-06
Kent Exploration Reports Annual General Meeting Results.
Kent Exploration Inc. (KEX: TSX.V), (the "Company" or "Kent") President and CEO, Graeme O'Neill, reports that during itsAnnual General and Special Meeting held in the offices of the Company on Tuesday, September 25, 2012, 21,111,654 common shares representing 23.36% of the Company's outstanding and issued common shares were voted on the resolutions presented in the Information Circular.
Company directors Graeme O'Neill, Clay Conway, Corey Klassen and John Cerenzia were re-elected as directors and Mr. Giuseppe Gallo was re-appointed as the Company's Chief Financial Officer. With the exception of the proposed stock option amendment resolution, that failed to receive shareholder approval, all other resolutions presented to the shareholders, including approval to consolidate the Company's shares on an up to one (1) new share for ten (10) old shares basis, as explained in the Information Circular, received over 97% shareholder approval.
The very weak market conditions this past year, along with the difficulty many junior exploration companies have experienced in raising necessary funds to advance their projects, has also affected the Company, and in order to create the conditions necessary to raise funds, the Company is moving to, subject to approval by the TSX Venture Exchange, ("TSX-V") expedite the approved share consolidation on the one (1) new share for ten (10) old shares basis. The Company has cancelled its previously announced non-brokered private placement and upon approval of the consolidation by the TSX-V, intends on conducting a new post consolidation non-brokered private placement in order to provide both working capital and exploration funds. The financing terms for this placement will be established post consolidation. In conjunction with the consolidation, the Company has negotiated a bridge loan of C$250,000 for six months in an arms length transaction. The funds are to be used for working capital purposes.
Subject to financing, the Company will focus on its New Zealand Gold Projects for the southern hemisphere exploration season, re-commencing exploration on its Lyell and Alexander River Gold Projects. This will include completing the sampling/assaying of the graphitic intersections identified during the 2011 Diamond drill program at Alexander River that reportedly contain a historic potential gold resource of 4,000,000 tonnes at 5+ g/t Au. In addition it will continue exploration on the high grade Red Queen prospect at Lyell ("Red Queen"), which had a reported average production grade of 43.54 g/t Au (1.4 oz/t Au) over approximately 0.5 meters. The highest historic gold grade reported at Red Queen was 175 g/t Au (5.51 oz/t Au) while in 2009 the Company sampled 69.4 g/t (2.231 oz/t Au) at Red Queen.
The Company advises that the grades reported are historic in nature, are not NI 43-101 compliant and should not be relied upon. A qualified person has not done sufficient work to classify historical estimates as a current mineral resource and the Company is not treating the historical estimates as a current mineral resource and any historical estimates should not be relied upon.
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Kent Exploration Inc. is a junior exploration company with a 100% interest in all its major projects, and is planning on building shareholder value through establishing cash flow from its Flagstaff Mountain, WA, barite mine, and then from its now wholly owned bentonite property in Nevada. Any positive cash flow is intended to reduce dilution and fund exploration on its three major gold prospects (Alexander River, Paparoa and Lyell), in the highly prolific West Coast South Island gold fields of New Zealand. Additional shareholder value has been established through its approximately 18% interest in Archean Star Resources Inc, ("Archean") which is listed on the TSX Venture Exchange under the symbol ASP.
The Company has an experienced management and technical team with extensive exploration expertise and offers investors the potential for a major gold discovery on its New Zealand gold projects.
This News Release has been prepared on behalf of the Kent Exploration Inc. Board of Directors, which accepts full responsibility for its contents. The contents of this news release has been reviewed and approved by Dr. Clay Conway, P. Geol., a Qualified Person as recognized by National Instrument NI-43-101 and a director of the Company.
ON BEHALF OF THE BOARD
"Graeme O'Neill"
Graeme O'Neill, President
Neither the TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), has reviewed, nor do they accept responsibility for, the adequacy or accuracy of this news release.