Vancouver, BC, June 29, 2011 - Cariboo Rose Resources Ltd. (TSX-V: CRB) and Fjordland Exploration Inc. (TSX-V: FEX), 40%-60% partners in the Woodjam Joint Venture (“WJV”), are pleased to announce that they have entered into a Letter of Intent to combine their respective interests in the Woodjam North and South copper-gold-molybdenum mineral properties (the “Properties”), and then spin-out their interest in the Properties to shareholders. The Woodjam Properties are located approximately 45 kilometres east of Williams Lake in British Columbia.
The purpose of the spin-out transaction is to preserve the interests of Cariboo Rose and Fjordland shareholders in the Woodjam properties by transferring them to a stand-alone corporate entity focused on the exploration and development of the Properties. This transaction will also facilitate the advancement and recognition of the other mineral exploration projects held by Cariboo Rose.
Pursuant to a statutory plan of arrangement, the interests of Cariboo Rose and Fjordland would be transferred into a newly incorporated company (“Newco”). Each company would receive shares of Newco (60% to Fjordland and 40% to Cariboo Rose) which would then be distributed to their respective shareholders, and the shares will be listed for trading on the TSX Venture Exchange. The transaction will be subject to shareholder and regulatory approvals.
Gold Fields Horsefly Exploration Corporation (“Gold Fields”), an exploration company owned and controlled by Gold Fields Limited (NYSE: GFI), is currently earning a 51% interest in the Woodjam North Property by completing exploration expenditures totaling C$7,000,000 during the option period (36 months), and a 51% interest in the Woodjam South Property by completing exploration expenditures totaling US$7,000,000 during the option period (42 months). Gold Fields is expected to be in a position to vest its 51% interest in both Properties by the end of 2011. The planned budget estimates for the Woodjam North and South Properties during 2011 are $1 million and $5 million, respectively.
Gold Fields may earn an additional 19% interest (for a total of 70%) by completing additional exploration expenditures of C$12,000,000 during the option period (48 months) for Woodjam North, and at least US$8,000,000 during the option period (48 months) for Woodjam South. In addition, under the Woodjam South option agreement, Gold Fields is required to provide the Woodjam Joint Venture with a Feasibility Study to earn its 70% interest.
G. Garratt, P.Geo., who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.
Glen Garratt, P.Geo, Director.
Cariboo Rose Resources Ltd.
Paul Way, Business Development Manager
Phone: (604) 681-7913, Toll Free: 888-656-6611; email: firstname.lastname@example.org
About Cariboo Rose Resources Limited
Cariboo Rose Resources Ltd. is a mineral exploration company with six gold, copper and molybdenum exploration projects in British Columbia and the Yukon. The Woodjam North and Woodjam South properties (totaling 56,150 ha) are part of the Woodjam Joint Venture between Cariboo Rose (40%) and Fjordland Exploration Inc. (60%). Both properties are under option to Gold Fields Horsefly Exploration Corporation. Other properties include the Canadian Creek copper-gold-molybdenum property located in the White Gold District of the Yukon optioned to Castillian Resources Corp. (TSX-V: CT); the Cowtrail gold property located in the Cariboo region adjacent to and north of the company’s Woodjam North property optioned to Dajin Resources Corp. (TSX-V: DJI); The Carruthers Pass copper-zinc-silver property in north-central British Columbia subject to a Letter of Intent to option the project to La Quinta Resources Corporation (TSX-V: LAQ); and the Pat gold-copper property in the Cariboo region of south-central British Columbia adjacent to the company’s Woodjam North property. Cariboo Rose trades on the TSX Venture exchange under the symbol “CRB”. For more information please visit the Company’s website at www.cariboorose.com.
About Gold Fields Limited
Gold Fields is one of the world’s largest unhedged producers of gold with attributable, annualized production of 3.6 million ounces per annum from eight operating mines in South Africa, Ghana, Australia and Peru. Gold Fields also has an extensive growth pipeline with both greenfield and near mine exploration projects at various stages of development. Gold Fields has total attributable Mineral Reserves of 77 million ounces and Mineral Resources of 225 million ounces. For more information visit the company’s website at www.goldfields.co.za.