Kalahari Resources Inc.

Kalahari Resources Inc.

November 10, 2009 09:27 ET

Kalahari Resources Receives Conditional Approval on Lamaque Gold Transaction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2009) - Kalahari Resources Inc. (TSX VENTURE:KLA) (the "Company") is pleased to announce it has received conditional approval from the TSX Venture Exchange to the proposed Lamaque transaction (announced October 30, 2009), subject to the receipt of shareholder approval from Golden Pond Resources Ltd. ("Golden Pond") and Tundra Gold Mines Limited ("Tundra") at extraordinary general meetings, scheduled to be held by each company on November 23, 2009. The transaction will give the Company a 100% interest in the portion of the Lamaque property currently joint ventured with either Golden Pond (2,768 acres) or Tundra (250 acres). Golden Pond and Tundra have been delisted since 1991 and 1992, respectively, and are unable to participate in ongoing exploration on the property.

"Conditional approval represents the last major hurdle, aside from shareholder approval, prior to the completion of the proposed transaction. Fragmented ownership of the Lamaque property has been a major impediment to exploration and upon completion we will be able to focus our efforts on advancing the project, starting with the drill program announced last week," comments Company Chairman, Richard Hughes.

The Company also announces that it has closed the private placement announced on September 23, 2009 which consisted of 425,000 flow-through units at a price of $0.04 per unit and 21,400,000 non flow-through units at a price of $0.025 for gross proceeds of $552,000. Each common share purchase warrant will entitle the holder to purchase one common share at a price of $0.05 per share for the first year and $0.10 per share for the remaining four years. Any shares issued will be subject to a four month hold period. In connection with the transaction, RedPlug Capital was paid a total cash commission of $43,000. Proceeds from the private placement will be used for exploration programs on its Lamaque property and for general working capital.

About the Lamaque Property

Kalahari has negotiated the right to 100% ownership of the 3,074 acre Lamaque property. The property is located in the Abitibi Greenstone Belt, one km north of the "Cadillac Break" and immediately south of the Lamaque and Sigma mines. The Sigma mine produced approximately 4.4 million ounces of gold and the Lamaque mine, on the northern boundary of the property, produced approximately 4.5 million ounces of gold over its lifetime primarily from the 'Main' plug, a geological feature similar to the No. 4 Plug located on the property. The No. 4 Plug and another zone known as the No. 10 Vein collectively have an inferred mineral resource of 1,365,000 tons grading 0.186 opt gold (cut) or 0.275 opt gold (uncut) as audited and reclassified by Watts, Griffis & McOuat's NI 43-101 Technical Report, dated September 2004 (see Sedar October 20, 2004 for details of report). Since the Company acquired the Lamaque property in 2003 over $4.5 million has been spent on exploration expenditures. There are a number of other priority gold targets that the Company plans to test during this program many of which have never been drilled.

The Company

In addition to the Lamaque Property, Kalahari Resources holds a 50% interest in diamond properties in the Chapleau-Wawa district of Ontario, with the balance held by partner Chalice Diamond Corp.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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