February 24, 2010 09:00 ET

Les Mines J.A.G Ltd./Olitra Inc.: Quebec Oil and Natural Gas Exploration Update

MONTREAL, QUEBEC--(Marketwire - Feb. 24, 2010) - Les Mines J.A.G Ltd. («JAG») (TSX VENTURE:JML) announces that the process for the transfer to its subsidiary Olitra Inc. ("Olitra") of its oil and natural gas exploration permits in Quebec is in progress. As per the scenario described in the January 27, 2010, press release JAG received for this transfer 20,865,040 ordinary shares, representing 77.7% of Olitra's capital stock.

Two additional issuances of Olitra shares to JAG are planned. The second issuance will be completed upon filing of JAG's audited financial statements for the period ending December 31st, 2009 and will take into consideration the total exploration and acquisition costs committed by JAG during the last quarter of 2009. The third issuance will take place once JAG pays for work currently being executed by a team from Institut National de Recherche Scientifique led by Marc Richer-Lafleche, Ph.D. and P. Geo. Upon receipt of these three share issuances JAG will own approximately 31 million Olitra common shares.


Since March 2006, JAG has held 100% of oil and natural gas exploration rights on three property blocks in the Témiscouata, Lac St-Jean and Charlevoix regions of Quebec. These blocks cover some 332,790 hectares held under 16 oil and natural gas exploration licenses.

Until December 31, 2009, the Company continued its exploration of the petroleum generating potential of the sedimentary rock sequences of each property and completed several soil exploration surveys: geochemical litho-geochemical and geophysical surveys to better understand the characteristics of these sequences and to identify chemical alteration halos which could originate from hydrocarbon seeps.

JAG intends to continue its exploration activities in the areas of interest to be identified during the next work phase. The next phase will include seismic profile electric resistivity and magnetotelluric surveys to better understand the structural environment and stratigraphic anomalies as well as identify drillings sites which will validate their nature and potential.

Neither 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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