Frontline Gold Corporation
TSX VENTURE : FGC

Frontline Gold Corporation

August 26, 2010 14:51 ET

Frontline Gold Sells Jubilee Zinc Lead Project

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 26, 2010) - Walter Henry, President and CEO of Frontline Gold Corporation ("Frontline")(TSX VENTURE:FGC) announces that an agreement has been reached with Merrex Gold Inc. for the sale of its 50% interest in the Jubilee Zinc Lead Project.

Sale of Jubilee

Frontline has agreed to sell its 50% interest in the Jubilee zinc lead project and other Nova Scotia base-metal mineral claims to Merrex Gold Inc. ("Merrex") for $500,000 to be paid by the issuance of 1,000,000 common shares of Merrex at a deemed issue price of $0.50/share.

Frontline is related to Merrex by way of common directors; the transaction was approved by the independent directors. The transaction is subject to receipt of a fairness opinion satisfactory to Frontline, to shareholder approval in general meeting and TSX Venture Exchange acceptance. Frontline has engaged Stonecap Securities Inc. to provide a fairness opinion on the transaction.

Commentary

"My goal is to have Frontline positioned as a pure gold corporation" said President and CEO Walter Henry. "Frontline has the Niaouleni Gold Project in West Mali, the expanding Efemçukuru land position in Turkey, the Poly and Stewart gold properties in British Columbia, and the Red Lake gold prospects in Ontario. The Jubilee and other Nova Scotia base-metal prospects are not core to Frontline's future and it is more important that they be exchanged for liquid assets that can be converted to cash which can help finance Frontline's gold exploration activities."

Frontline is re-positioning itself as a pure-gold exploration company with experienced management, a solid exploration team and a promising portfolio of gold exploration projects offering investors an excellent opportunity.

Please visit our website at www.frontlinegold.com for the most recent presentation.

On Behalf of the Board

Walter Henry, CFA, ICD.D., President & CEO

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Frontline Gold Corporation
    1550 Bedford Highway, Suite 802, Sun Tower
    Bedford, NS B4A 1E6
    (902) 832-5555
    (902) 832-2223 (FAX)
    info@frontlinegold.com