Macusani Yellowcake Inc.

Macusani Yellowcake Inc.

November 02, 2007 15:42 ET

Macusani Yellowcake Announces Completion of Merger With Silver Net Equities Corp.

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2007) - Macusani Yellowcake Inc. ("Macusani") announced today that it has completed its previously announced merger with Silver Net Equities Corp. ("Silver Net"), a TSX Venture Exchange (the "Exchange") capital pool company which constituted Silver Net's qualifying transaction under Exchange policies. Pursuant to the merger transaction, following the continuance of Silver Net into the Province of Ontario, Macusani and Silver Net were amalgamated under the name "Macusani Yellowcake Inc." ("Amalco") with holders of Macusani receiving one common share of Amalco for each common share of Macusani held and shareholders of Silver Net receiving 0.55 common shares of Amalco for each Silver Net common share held. It is anticipated that the common shares of Amalco will be listed and posted for trading on the Exchange under the trading symbol "YEL" shortly following a review of final documentation by the Exchange. Raymond James Ltd. acted as sponsor for the qualifying transaction.

The merger transactions were approved by the shareholders of each of Macusani and Silver Net at respective meetings held on October 29, 2007. In connection with the meetings, shareholders were provided with a Joint Management Proxy and Information Circular containing information regarding the proposed transaction, Macusani, Silver Net and Amalco. A copy of the Joint Management Proxy and Information Circular has been filed and is available at www.sedar.com.

Macusani controls over 20,000 hectares (2,000 km2) of mineral properties in Peru--Macusani, Munani, Lagunillas and Rio Blanco, all regions in Puno in southeastern Peru, where it is exploring for large, open pitable uranium deposits. A 6,500 m diamond drilling program is underway on the Macusani Plateau along a 4km long radiometric anomaly; assay results for the first series of drill holes are expected to be released shortly. Macusani believes that its properties are underlain by uraniferous volcanic ignimbrite breccia rocks similar to those currently being drilled on nearby properties.

Following the completion of the merger, there are 24,186,285 Amalco common shares issued and outstanding as well as 5,327,974 warrants and 3,295,000 options to purchase common shares outstanding (32,809,259 common shares, fully-diluted). Alan Ferry of Toronto, Ontario, the Chairman of Amalco, directly and indirectly owns 3,481,000 common shares and 400,000 stock options representing approximately 15.8% of the issued and outstanding common shares of Amalco (on a partially diluted basis assuming the exercise of all options owned by Mr. Ferry). Mr. Ferry has advised Amalco that these securities have been acquired for investment purposes and he does not have any present intention to acquire additional securities of the Amalco other than upon the exercise of stock options he may hold, should he wish to do so.

A total of 10,757,000 Amalco common shares and 1,400,000 stock options were placed into escrow in connection with the transaction to be released over a period of 36 months. In addition, in accordance with Exchange policies, a further 5,093,779 Amalco common shares are subject to resale restrictions and are to be released over a period of 4 months.

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

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