Trelawney Mining and Exploration Inc.
TSX VENTURE : TRR

Trelawney Mining and Exploration Inc.

December 14, 2009 12:51 ET

Trelawney Enters Into Agreement to Acquire Property

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2009) - Trelawney Mining and Exploration Inc. (TSX VENTURE:TRR)(the "Company") and Treelawn Group Inc. ("Treelawn") have entered into a term sheet (the "Letter Agreement"), pursuant to which Treelawn has granted the Company the right to acquire up to a 92.5% interest in certain mining claims located in Chester Township, Ontario (the "Property").

Pursuant to the terms of the Letter Agreement the Company can acquire an initial 50% interest in the Property (the "First Option"), in exchange for:

- 3,000,000 common shares ("Common Shares") of the Company;

- on or before the end of every three month period following the signing of a definitive option agreement (the "Effective Date"), the Company shall pay Treelawn the amount of $18,000 for a period of three years, for a total consideration of $216,000;

- on or before the Effective Date the Company shall pay Treelawn the amount of $1,000,000;

- on or before the first anniversary of the Effective Date the Company shall pay Treelawn the amount of $1,000,000; and

- on or before the end of the 18th month anniversary following the Effective Date, the Company shall have made $500,000 in expenditures on the Property;

- on or before the end of the 18th month anniversary following the Effective Date, the Company shall issue an additional 4,000,000 Common Shares to Treelawn; and

- in the event the Company fails to exercise the First Option, the Company shall pay Treelawn the amount of $1,000,000.

After exercising the First Option the Company shall grant to Treelawn a 1.5% net smelter return royalty (the "Royalty") on the Property. During the 48 months following the grant of the Royalty the Company shall have the right to purchase 0.5% of the Royalty from Treelawn for sum of $1,000,000.

Twelve months following the exercise of the First Option and provided the Company has expended $500,000 on the Property, the Company can earn an additional 25% interest in the Property (the "Second Option") by issuing an additional 4,000,000 Common Shares to Treelawn.

The Company can acquire a final 17.5% interest in the Property on the date that is 12 months from the exercise of the Second Option and provided the Company has expended an additional $500,000 on the Property by issuing an additional 4,000,000 Common Shares to Treelawn.

Trelawney has agreed to pay a finder's fee to Mr. Sandy Air consisting of (i) $5,000; and (ii) 100,000 Common Shares of the Company.

The Company currently holds a 788.93 hectares of mineral claims in the Township of Chester, Ontario and following completion of the acquisition of 889.59 hectares of claims comprising the Property, the Company will hold an aggregate of 2,198.21 hectares of mineral properties in Chester.

The securities issued are subject to a four month hold period from the date of issuance. Completion of the transaction is subject to approval of the TSX Venture Exchange.

Shares Issued: 44,647,591

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither the 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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