SOURCE: Brownstone Resources Inc.

December 03, 2007 08:00 ET

Brownstone's Arizona Gold Project Announces Signing Letter of Intent

TORONTO--(Marketwire - December 3, 2007) - Brownstone Resources Inc. (PINKSHEETS: BWNR) is pleased to announce that the company has signed a Letter of Intent (LOI) with a private mineral resource development company which will ultimately enable Brownstone the right to earn a 50% participating ownership interest in a select group of gold mining claims in northeastern Arizona. The claims are located approximately 70 miles outside of Flagstaff, Arizona.

Preliminary geophysical work undertaken by the founding company has been completed on the property to test the potential of the property to host gold mineralization.

Work performed to date, involving limited geophysical surveying to test, on surface, the potential of the known anomalies to host gold mineralization, and subsequent surface sampling and fire assaying of the samples have been undertaken and completed by the original claim owners. The results of both the geophysical surveying and the sample collection and assaying have yielded promising initial results, and was the basis for Brownstone entering into the LOI.

Brownstone will now proceed with a formal site visit to the property to verify the information provided to them, and complete all necessary due diligence. Once the visit and reconciliation of information is completed to management's satisfaction, Brownstone will, based on the original LOI, create the formal participation and JV agreement which both companies will enter into, going forward.

The company will make further announcements on the LOI and subsequent signing of a formal agreement.

Forward-Looking Statement

This news release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.

Contact Information

  • Contact:

    Investor Relations
    Brownstone Resources Inc.
    866-365-4724