TNR Gold Corp.
TSX VENTURE : TNR

TNR Gold Corp.

March 15, 2010 16:47 ET

TNR Gold/International Lithium Enters Into Option Agreement on the Company's Rare Metals Forgan Lake Project, ON

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2010) - TNR Gold Corp. (TSX VENTURE:TNR) ("TNR" or the "Company") and wholly-owned International Lithium Corp. ("ILC") are pleased to announce the Company has entered into a letter agreement dated March 11, 2010 (the "Agreement") with Cricket Capital Corp. ("Cricket"), a capital pool company ("CPC"), on the Company's 100% owned Forgan Lake property ("Property") located 125 km northeast of Thunder Bay, Ontario.

Transaction Key Point Summary:

  • Cricket can acquire an undivided 60% interest in the Property;
  • By incurring a total of $1,000,000 in exploration expenditures on the Property over four years;
  • By making cash payments to TNR totalling $300,000 by the third year anniversary; and
  • By providing share issuances to TNR totalling 600,000 shares by the third year anniversary.

Property Key Point Summary:

  • 6 pegmatite dikes identified through exploration carried out by Lun-Echo Gold Mines in the 1950s;
  • 4.23% Li2O over 7.5 m in channel sample reported by Lun-Echo at Pegmatite No. 1; and
  • 2.57 wt% Li2O over 4 m in channel sample reported by TNR at Pegmatite No. 1.

"The Forgan Lake property has the potential to develop into a stand-alone rare metals project based on observations from our 2009 field season in conjunction with historical work performed by Lun-Echo," states Gary Schellenberg, President and CEO of TNR Gold, and continues, "The entering into a joint venture arrangement with Cricket to further explore TNR's Forgan Lake property is a successful application of our core business model and we welcome them as a joint venture partner."

Proposed Joint Venture Transaction

Under the terms of the Agreement, Cricket can acquire an undivided 60% interest in the Property by incurring a total of $1,000,000 in exploration expenditures on the Property as follows: a minimum $250,000 in expenditures on the Property to be incurred by the first year following the date of execution of the Agreement, a minimum $250,000 in expenditures by the second year, a minimum $250,000 in expenditures by the third year, and a minimum $250,000 in expenditures by the fourth year. In addition, Cricket must make cash payments to TNR of $25,000 on the date of Exchange acceptance ("Exchange Acceptance") of the Agreement, $50,000 on the first year following the date of execution of the Agreement, $75,000 on the second year and $150,000 on the third year as well as issue to TNR 50,000 shares of Cricket on Exchange Acceptance, 100,000 shares by the first year following the date of execution of the Agreement, 150,000 shares by the second year following the date of execution of the Agreement and 300,000 shares by the third year following the date of execution of the Agreement.

The Property is subject to a 2% net smelter returns royalty ("NSR"), of which one-half of the NSR (1%) may be purchased for $1,000,000 by Cricket.

Completion of any and all transactions contemplated by the Agreement is subject to, among other things, acceptance by the Exchange and all other necessary regulatory approvals.

Forgan Lake Property

The Forgan Lake Property, which is comprised of a 256 hectare claim block (16 units), is located 125 km northeast of Thunder Bay, Ontario. The Property, which hosts six known rare-metal pegmatites, is part of the Georgia Lake pegmatite field, an area of considerable lithium and other rare-metals (e.g., tantalum, cesium, rubidium etc) exploration since its discovery in the mid-1950s.

Of the six-pegmatite dikes (1 through 6) on the Property, four (1-4) were part of a drilling campaign carried out in 1955 by Lun-Echo Gold Mines Limited ("Lun-Echo"). Of the 39 diamond drill holes drilled by Lun-Echo in the Forgan Lake area, 33 holes were bored on the Property.

The No. 1 Pegmatite dike has been traced on surface for about 274.3 m at an average width of 9.1 m. It contains 30% medium to coarse-grained spodumene (lithium mineral) and sporadic black tantalite-columbite crystals (tantalum-niobium minerals) up to 3.8 cm long. Historical channel sampling averaged 2.57% Li2O (lithium oxide) over 6.4 m, 4.23% Li2O over 7.5 m, and 1.98% Li2O over 7.6 m. A composite of channel sample taken across an old trench from this pegmatite during TNR's 2009 field program, returned 2.57 wt% Li2O over 4 metres in a range of 1.69 to 3.4 wt% Li2O supporting the values reported from the historical work (Company News Release – October 5th 2009).

The No. 2 Pegmatite, which is similar in composition to No. 1, has been traced in outcrop for 45.7 m with an exposed width of 13.7 m.

The No. 3 Pegmatite, located northwest of the No. 1 pegmatite, has been traced for 320.0 m with an averaged exposed width of 6.1 m. The No. 3 Pegmatite contains approximately 25% spodumene. Lun-Echo explored this pegmatite with 10 diamond holes, totaling 832.1 m, at intervals of 30.5 to 61.0 m. The best intersection averaged 1.78% Li2O over 1.52 metres.

The No. 4 Pegmatite has been traced on surface for approximately 243.8 m with an average surface width of 4.6 m. The pegmatite contains 10-15% fine to medium-grained spodumene.

Ike Osmani, P.Geo, is the Company's qualified person on the project as required under NI 43-101 and has reviewed the technical information contained in this press release. To help understand the technical aspects of Lithium and other Rare Metals please visit TNR's website at www.tnrgoldcorp.com.

ABOUT TNR GOLD / INTERNATIONAL LITHIUM CORP.

TNR and ILC are diversified metals exploration companies focused on exploring existing properties and identifying new prospective projects globally. TNR has a portfolio of 18 active projects, of which 9 will be included in the proposed spin-off of International Lithium Corp. For further details of the spin-off please refer to TNR's April 27, 2009 news release or visit http://www.internationallithium.com.

The recent acquisition of lithium, other rare metals and rare-earth elements projects in Argentina, Canada, USA and Ireland confirms the companies' commitments to generating projects, diversifying its markets, and building shareholder value.

On behalf of the board,

Gary Schellenberg, President

Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

CUSIP: #87260X 109

SEC 12g3-2(b): Exemption #82-4434

The TSX Venture Exchange does not nor does its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.

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