Renforth Resources Inc.

Renforth Resources Inc.

October 03, 2007 16:00 ET

Renforth Resources Inc. Press Release

TORONTO, ONTARIO--(Marketwire - Oct. 3, 2007) - Renforth Resources Inc. ("Renforth") is pleased to announce today that the parties to the Option Agreement (the "Option Agreement") made as of July 20, 2006 between Renforth, Spider Resources Inc. ("Spider") and KWG Resources Inc. ("KWG, and together with Spider, the "Optionors"), which was first announced by press release on July 26, 2006, have executed an amending letter (the "Amending Letter") dated as of September 27, 2007. The Option Agreement provided for Renforth obtaining a 55% interest in certain mining claims of the Optionors in the Kyle kimberlite properties located in the James Bay Lowlands area of Northern Ontario (the "Kyle Claims) in exchange for incurring $6 million in work costs, and the Optionors obtaining an interest in certain claims of Renforth (the "Renforth Claims").

Pursuant to the terms of the Amending Letter, the parties have agreed to the following changes to the Option Agreement, which are to be effective as of September 27, 2007 but which will be formally documented within 30 days by executing an amended and restated Option Agreement:

1. Renforth will issue to the Optionors 2 million of its common shares at
a deemed issue price of $0.50 per share in exchange for (i) making up
any real or perceived shortfalls in the first $2 million payment owed to
the Optionors pursuant to the terms of the Option Agreement, and
(ii) rescheduling the remaining work costs otherwise due pursuant to the
Option Agreement over a two year period beginning on the later of
June 30, 2009 and the day on which Renforth's common shares begin trading
on the TSX Venture Exchange.

2. Renforth will receive a fully vested 20% interest in the Kyle Claims
and subsequent 17.5% fully vested interests for each additional
$2 million in work costs which it incurs on the Kyle Claims, up to a
maximum 55% interest in the Kyle Claims. The Optionors will receive a
fully vested 9% interest (4.5% each) in the Renforth Claims and
subsequent 18% fully vested interests (9% each) at the time that
Renforth receives each additional 17.5% interest, up to a maximum
45% interest (22.5% each) in the Renforth Claims.

3. Neil Novak and Frank Smeenk or their appointees will be recommended to
Renforth's Governance Committee as candidates for directorships.

About Renforth

Renforth is a junior resource company focused on the exploration and development of properties for mining diamonds in Canada. Renforth has a large land holding in the Attawapiskat region of Ontario adjacent to the Victor diamond mine that is now under development by DeBeers. The property holdings include the five diamondiferous kimberlites known as the Kyle series that Renforth has drilled and a number of claim blocks that contain high potential geophysical anomalies on which follow-up ground geophysics was completed during the winter.

This press release includes certain forward-looking statements within the meaning of Canadian securities laws that are based on expectations, estimates and projections as of the date of this press release. There can be no assurance that such statements will prove accurate, and actual results and developments are likely to differ, in some case materially, from those expressed or implied by the forward-looking statements contained in this press release. Readers of this press release are cautioned not to place undue reliance on any such forward-looking statements.

Forward-looking statements contained in this press release are based on a number of assumptions that may prove to be incorrect, including, but not limited to: timely implementation of anticipated drilling and exploration programs; the successful completion of new development projects, planned expansions or other projects within the timelines anticipated and at anticipated production levels; the accuracy of reserve and resource estimates, grades, mine life and cash cost estimates; whether mineral resources can be developed; title to mineral properties; financing requirements; general economic conditions; and changes in laws, rules and regulations applicable to Renforth, Spider or KWG. In addition to being subject to a number of assumptions, forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to be materially different from those expressed or implied by such forward-looking statements. Renforth has no intention or obligation to update the forward-looking statements contained in this press release.

Neither the TSX Venture Exchange, nor any other securities regulatory authority has approved or disapproved of the contents of this news release.

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