SOURCE: Lateegra Gold Corp.

December 21, 2007 17:01 ET

Lateegra Announces Picacho Property Agreement

VANCOUVER, BC--(Marketwire - December 21, 2007) - Lateegra Gold Corp. (the "Company") (TSX-V: LRG) (FRANKFURT: LTGA) is pleased to announce that negotiations regarding a "letter of intent" addressing an option agreement for the Picacho Mine in Sonora State, Mexico, with a third party, La Camera Mining Inc. ("La Camera"), and option vendor Tara Gold Corp. ("Tara"), has been successfully concluded. As compensation for assigning its interest in the Picacho project, the Company will receive CDN $250,000 cash and 2,000,000 shares of La Camera on or before May 1, 2008.

The La Camera / Tara agreement allows for La Camera to earn a 70% interest in three of Tara's properties which include the Picacho property, the Curcurpe property, and the Millonaria property. Under the terms of this agreement Tara will be issued 1,500,000 shares of La Camera and La Camera is committed to make the following expenditures and payments:

For the Picacho property, La Camera will spend $6 million over the next 3.5 years and make the underlying property payments. La Camera also intends to provide the capital and operating funds necessary to put Picacho back into full-scale production in 2008.

For the Curcurpe property, La Camera agrees to spend $3.75 million over the next 3.5 years and make all underlying property payments.

For the Millonaria property, La Camera agrees to spend $3.75 million over the next 3.5 years and make all underlying property payments.

The agreement between the three companies also provides that the Company will not have any claim against Tara nor will Tara have any claim against the Company. All past payments of cash and shares, made by the Company, will be retained by Tara.

The Company is pleased to have finally concluded this matter by obtaining a significant share position in a company backed by an accomplished group, with a strong project finance history, capable of advancing the newly acquired exploration projects.

ON BEHALF OF THE BOARD OF DIRECTORS

"Chris Verrico"
CEO and Director

THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Cautionary note: This report contains forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Contact Information

  • Contact:
    Lateegra Gold Corp.
    Suite 1128 - 789 West Pender St.
    Vancouver, B.C., Canada V6C 1H2
    Tel: 604-669-9330
    Fax: 604-669-9335
    Toll Free: 1-866-669-9377
    www.lateegra.com
    email: info@lateegra.com