Kria Resources Ltd.

Kria Resources Ltd.

December 21, 2009 08:15 ET

Kria Resources Closes Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2009) -


Kria Resources (TSX VENTURE:KIA) ("Kria" or the "Company") today announced the completion of its previously announced non-brokered private placement financing for aggregate gross proceeds of CAD$2,860,500.00. The financing involved the issuance of 10,000,000 flow-through common shares (the "Flow-Through Shares") and 4,302,500 common shares (the "Common Shares") at a price of $0.20 per Flow-Through Share and $0.20 per Common Share.

The gross proceeds from the sale of the Flow-Through shares will be used for Canadian exploration expenses that qualify as Canadian Exploration Expenses ("CEE"), as such term is defined in the Income Tax Act and will be renounced for the 2009 taxation year. The Company plans to use the net proceeds from the sale of the Common Shares to continue development of its key projects, namely the Halfmile Lake and Stratmat properties in New Brunswick, and for working capital purposes.

In connection with the financing, the Company has paid cash finder's fees in the amount of $171,630 and has issued 858,150 compensation warrants to acquire 858,150 Common Shares at an exercise price of $0.20 until December 18, 2011 to arm's length third party finders.

The Flow-Through Shares, Common Shares, and Compensation Warrants issued pursuant to the financing will be subject to a statutory hold period which will expire on April 19, 2010.

In addition, Kria announces that it has granted 1,997,500 stock options to various officers, directors and consultants of the Company. The options shall vest immediately, have an exercise price of $0.24 and shall expire 5 years from the date of the grant. The grant of options is subject to receipt of all regulatory approvals.

About Kria Resources
Kria Resources is a base metal exploration and development company focused on high-quality, advanced-stage base metal assets. Kria's primary asset is the Halfmile Lake and Stratmat properties near Bathurst, New Brunswick. The Halfmile Lake property has a NI 43-101 compliant Indicated mineral resource estimate of 6.26 million tonnes grading 8.13% zinc, 2.58% lead, 0.22% copper and 30.78 g/t silver using a 5.0% capped zinc equivalent cut-off grade and an Inferred resource estimate of 6.08 million tonnes grading 6.69% zinc, 1.83% lead, 0.14% copper and 20.51 g/t silver using a 5.0% capped zinc equivalent cut-off grade. A recently completed Preliminary Economic Assessment of the Halfmile Lake project (the "PEA") estimates a pre-tax NPV of C$587 million and IRR of over 16%. The PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the PEA will be realized. The Stratmat property has an Inferred Mineral Resource estimate of 5.52 million tonnes grading 6.11% zinc, 2.59% lead, 0.40% copper and 54.21 g/t silver using a 5.0% zinc equivalent cut-off grade.

Kria also has the Ruttan copper-zinc sulphide project near Leaf Rapids, Manitoba that has an NI 43-101 compliant mineral inferred resource estimate of 19.75 million tonnes grading 1.17% copper and 1.47% zinc using a 1.0% capped copper equivalent cut-off grade. Please refer to the Company's technical reports filed on SEDAR for details regarding the NI 43-101 compliant resource estimates on Halfmile, Stratmat and Ruttan.

Please visit our website at for additional information.

Quality Control
The technical contents of this press release have been supervised and reviewed by Steve Davies, P. Eng., Vice President Operations of Kria and Dayle Rusk, P. Geo., Vice President Exploration of Kria, both of whom are Qualified Persons as defined under NI 43-101 guidelines.

Cautionary Note Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to exploration prospects, the private placement financing, completion of the private placement financing, the use of proceeds, and interest of the investment community in the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Estimates regarding the projected economics of the projects are based on research, experience and analysis of the management of the Company and external advisors, which estimated are set out in detail in the PEA of the Halfmile Lake project that is available under the Company's profile on SEDAR. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


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