Brett Resources Inc.

Brett Resources Inc.

March 09, 2010 09:00 ET

Brett Signs Agreement in Principle for a Formal Impact and Benefits Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2010) - Brett Resources Inc. ("Brett" or the "Company") (TSX VENTURE:BBR) is pleased to announce that it has reached an agreement in principle (the "Agreement") for a formal impact and benefits agreement ("IBA") relating to the Company's Hammond Reef Project ("Project") in the province of Ontario with eight First Nations of Treaty #3. The First Nation signatories are the communities of Couchiching, Lac La Croix, Mitaanjigaming, Naicatchewenin, Nigigoonsiminikaaning, Rainy River, Seine River and Lac des Mille Lacs (the "First Nations Parties"). The Agreement recognizes Brett's rights and obligations with respect to the Project and, subject to the terms of the Agreement, the endorsement and support of the First Nations Parties for Brett's ongoing exploration and development, and Brett's role as operator, of the Project.

Key components of the Agreement provide that:

  1. employment opportunities during the construction, development and operation of the Project will be offered to qualified members from the First Nations Parties and the local community and the Company will assist in providing training;
  2. qualified contractors of the First Nation Parties and from the local community's businesses will be able to participate in the open bidding process for service and equipment contracts that will be awarded during the development, construction and operation of the Project; and
  3. funding consisting of $400,000 in the first year and $250,000 thereafter will be provided by Brett to the First Nations Parties for education and training.

Brett has also agreed, subject to regulatory approvals, to issue shares of the Company to the First Nations Parties as the following milestones are achieved:

  1. 350,000 shares on signing of the formal IBA;
  2. 350,000 shares on the earlier of the 1st anniversary of the signing of the IBA and the release of a new resource estimate for the Project by Brett;
  3. 650,000 shares on each of the following: (i) the public announcement by Brett of the results of a feasibility study for the Project; and (ii) the receipt by Brett of all government permits required to put the Project into production;
  4. one million shares on each of the following: (i) the receipt by Brett of the requisite financing for the construction of a mine on the Property; (ii) the completion of mine construction on the Property; and (iii) the commencement of commercial production from the Project.

The First Nations Parties will have a pre-emptive right to participate in subsequent public offerings by Brett to maintain their then-existing percentage equity interest in Brett.

"We are thrilled to have these First Nations partners with us to participate in the success of our Project", stated Patrick Soares, President and CEO of Brett. "We believe that the opportunities created by this Project will benefit all the communities in the area."

Brett and the First Nations Parties have also agreed to establish four committees in relation to the development of the Project: (i) Environmental; (ii) Training and Employment; (iii) Implementation; and (iv) Social, Cultural and Economic development, in a continuing effort to further the Company's development of the Project and ensure the interests of the First Nations Parties are addressed in an ongoing manner.

This Agreement and the IBA are subject to approval of the TSX Venture Exchange, all other required regulatory approvals and the execution of a formal IBA.

A formal signing of the Agreement, a significant document for Brett and the First Nations, will take place at the Prospectors and Developers Association of Canada Convention taking place in Toronto. The ceremony is expected to take place in the Metro Toronto Convention Centre (South Building) Room 717A on March 9, 2010 between 2:00 and 3:00 pm (Toronto time). The Ontario Minister of Mines and the Ontario Minster of Aboriginal Affairs are expected to be in attendance.

About Brett Resources Inc.
Brett Resources Inc. is a Canadian minerals exploration company whose primary mandate is the discovery, acquisition, and development of precious metals systems, with particular expertise in Canada and Latin America. Since 2006 Brett's primary focus has been the 100 percent owned Hammond Reef Gold Deposit in Ontario where a C.I.M. Inferred Resource of 6.70 million ounces of gold, 259.4 million tonnes at a grade of 0.8 grams per tonne utilizing a 0.3 gram per tonne gold cut-off has been outlined. The Company will continue to advance this flagship Project.

Patrick Soares, President & CEO

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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