G4G Resources Ltd.
TSX VENTURE : GXG

G4G Resources Ltd.

February 16, 2010 18:53 ET

G4G Resources to Acquire Geothermal Properties in Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2010) - G4G Resources Ltd. ("G4G" or the "Company") (TSX VENTURE:GXG), has entered into an exploration contract with option to purchase (the "Agreement") with Grupo Minero Aconcagua S.A. ("Aconcagua"), a private company registered in Argentina and Andean Geothermal Power Corporation ("Andean"), a private company registered in Texas, United States of America. Under the terms of the Agreement, G4G has the option to acquire properties in three separate geothermal areas in Argentina (the "Properties"). In addition, G4G is pleased to announce that it intends to change the name of the company to more effectively reflect the nature of the business with which it is involved. Subject to TSX Venture Exchange and Shareholder approval, G4G will become Americas Geothermal Inc., under the symbol TSX-V: GXG.

The Properties are located in the mining-friendly Provinces of Jujuy, Salta and San Juan, and collectively encompass 45,390 hectares. All properties are in close proximity to roads and/or power lines. A number of properties are also close to current mining operations using diesel generation and potential mining operations which will require power in the future.

"In addition to the acquisition of the rights to the Anetta geothermal property in Salta Province, the newly acquired rights to the Valle del Cura, Tuzgle and Tocomar geothermal properties will add a great deal of value to G4G shareholders," stated Basil Botha, President and CEO of G4G Resources Ltd. "The Valle del Cura property includes the Despoblados property, which is approximately 8 kilometres from Barrick Gold Corporation's Veladero Mine and 20 kilometres from the proposed Pasqua-Lama Mine. Another exciting aspect is that the Tuzgle property is in close proximity to the power grid. Tuzgle is also close to current and potential lithium operations, which require large amounts of power to process lithium and potash."

G4G will develop the Despoblados property under a joint venture with Energia Provincial Sociedad del Estado ("EPSE"), which is the state-owned electrical utility of the province of San Juan. Despoblados covers approximately 3,600 hectares, which is 18% of Valle del Cura, which totals 20,088 hectares. Under the joint venture agreement with EPSE, G4G will acquire 90% of the emerging rights of the Despoblados project and EPSE will retain 10%. The Agreement with Aconcagua and Andean assigns to G4G the rights to earn 100% of the remaining 82% of Valle del Cura, as well as 100% of Tuzgle and 100% of Tocomar.

Following receipt of approval from the TSX Venture Exchange and G4G Shareholders, the Company will make the payments described below and issue 10,000,000 common shares of the company. An additional 5,000,000 common shares of the company will be issued six months thereafter and an additional 5,000,000 common shares of the company six months thereafter. The acquisition includes the provision of a US$265,000 loan to be repaid by G4G to Viso Gero Global Inc. within thirty days following signature of the definitive agreement. G4G will also be required to fund the exploration of the Despoblados property in the amount of US$1,863,000 over two years. G4G intends to raise additional funds required for exploration via brokered and/or non-brokered financings. G4G will compensate the original vendors with a series of payments totaling US$10,150,000 by September 30, 2013 and a 3% royalty on production of electricity.

Following the receipt of the required regulatory approvals, the Company intends to immediately begin development work on the most prospective geothermal energy properties. Work will begin on the Valle del Cura property with a focus on the Despoblados geothermal occurrence and will include structural mapping, geochemistry, geophysics and drilling, with the goal of defining geothermal resources which will support the commercial generation of electricity.

Acquiring the rights to additional properties under the new definitive agreement follows G4G's announcement of December 18, 2009 that the Company has entered into an agreement to acquire 100% of the Anetta geothermal property located in the province of Salta. With these two agreements, G4G will have the potential to develop power projects in three provinces and four geothermal fields in Argentina. Additionally, G4G has made application for the geothermal rights to an additional 18,732 hectares adjacent to Anetta, which will increase the size of Anetta land package from 6,555 hectares to 25,287 hectares. G4G's total geothermal land package in Argentina will be 70,677 hectares.

Completion of the transaction is subject to a number of conditions, including Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurances that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular and/or Filing Statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of G4G Resources Ltd should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

About G4G Resources Ltd.

G4G Resources Ltd. is a Canadian-based mineral exploration and development company focused on a number of resource projects, including geothermal power, iron sands and alternative fuels.

Forward-Looking Statement

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to G4G Resources Ltd., please refer to the Company's 2008 Annual Report filed with SEDAR on April 23, 2009.

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.

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