SOURCE: Spirit Exploration, Inc.

November 05, 2007 16:28 ET

Spirit Exploration Announces $4.8 Million Joint Venture on Maria Olivia Gold Project

MACHALA, ECUADOR--(Marketwire - November 5, 2007) - Spirit Exploration, Inc. (PINKSHEETS: SPXP), through its wholly owned subsidiary, ECUADORGOLDCORP S.A., is pleased to announce it has signed a letter of intent with Franzosi S.A.to enter into a joint venture putting the Maria Olivia gold project into full production. Franzosi S.A., an exploration company based in Quito, Ecuador, can earn up to 50% of the project by spending approximately $4.8 million and issuing Spirit a million shares of its capital stock, representing 3% of Franzosi S.A. The Definitive Agreement shall be completed and executed on or before November 13, 2007. The Maria Olivia Project has an inferred resource of approximately 600,000 ounces of gold equivalent (43-101 compliant).

Peter Laipnieks, President of Spirit, stated, "This joint venture will accelerate our gold production plans in the Portovelo area of Ecuador. We are presently upgrading our production plant at Muluncay and are planning a major expansion there. By bringing in a joint venture partner to develop Maria Olivia, we will be adding to our gold production far faster than if we were to develop the project ourselves. Franzosi S.A. is a mining exploration company with several projects based in Ecuador and has tremendous local knowledge that should help both companies solidify and strengthen their presence in mineral rich Ecuador." Franzosi S.A. is an affiliated company of the Quri Resources group and Produelec S.A. (http://www.quriresources.com), a mining exploration company in Ecuador. Franzosi's management includes business and mining experts with vast knowledge of the local social and political environment in Ecuador.

Franzosi's President Jaime S. Gomez Moya states, "We are very happy with the relationship we are forming with Spirit Exploration; Ecuador is on the verge of unprecedented growth in the mining industry specifically in the exploration and development of precious metals, yet we are still well behind other countries in this region and forming this partnership allows us to contribute to the local economy and development of the country as a whole. We have committed our resources to the success of the Maria Olivia project and we project to invest over $5,000,000 on the joint exploration and development. We are estimating that we will increase the inferred gold resources at Maria Olivia to over 1,000,000 troy ounces. With the price of gold around $800, the return on our investment is expected to be substantial. Further, the surrounding villages acknowledge the expected influx of capital to the local economy and are eagerly anticipating this alliance between us and Spirit Exploration. We look forward to a very productive relationship."

Further information about Spirit is available on the company's website: www.spirit-exploration.com

Forward-Looking Statements: Certain information and statements included in this release are intended to constitute "forward-looking statements'' within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements.

Contact Information

  • Contact:
    Peter Laipnieks
    President
    1 250 384-2077