Twenty-Seven Capital Corp.
TSX VENTURE : TSC

Twenty-Seven Capital Corp.

January 25, 2007 14:50 ET

Twenty-Seven Provides Update on Proposed Merger and Exploration Highlights

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2007) - Twenty-Seven Capital Corp. (TSX VENTURE:TSC) is pleased to announce that the Information Circular pertaining to the proposed merger between Twenty-Seven Capital and Mega Uranium Ltd. (TSX:MGA) has been filed at www.sedar.com and mailed out to shareholders, and that the general meeting where the merger will be voted upon is scheduled for February 7, 2007. If the proposed merger proceeds, Twenty-Seven shareholders will receive one common share of Mega and one-half of one Mega common share purchase warrant for each three Twenty-Seven common shares. Management supports the merger and the largest shareholder (Strategic Metals Ltd.) has agreed to vote in favour of the merger.

Each whole Mega common share purchase warrant (a "Mega Warrant") will entitle the holder to acquire one Mega common share for a purchase price of $6.00 per share for a period of 5 years from the date of issuance. Mega has received conditional approval from the Toronto Stock Exchange to list the common shares and the Mega Warrants issuable under the acquisition. Subject to Mega fulfilling all of the requirements of the Toronto Stock Exchange, the Mega Warrants will trade under the symbol MGA.WT.

At the present time, Twenty-Seven holds interests in 29 mineral properties, with 23 in Yukon, four in British Columbia, one in the Northwest Territories and one in Mexico. All of the properties are prospective for uranium and/or iron-oxide copper-gold (IOCG) mineralization. The following paragraphs review agreements pertaining to the various properties, summarize exploration highlights and outline proposed work programs for 2007.

Yukon Uranium Project (YUP) and Yukon Uranium Joint Venture (YUJV)

Nineteen of Twenty-Seven's properties in Yukon are subject to terms of the YUP agreement with Cash Minerals Ltd. while two other properties belong to YUJV in which Twenty-Seven and Cash Minerals each hold a 50% interest.

At present, all YUP properties are owned 50% by Twenty-Seven and 50% by Cash Minerals. Cash Minerals has the optional right to earn up to a 75% interest in one or more of the YUP properties by paying Twenty-Seven $1 million for each property selected and subsequently producing a bankable feasibility study for that property by 2012. In December 2006, Cash Minerals elected to defer its decision concerning whether or not to earn a 75% interest in any of the properties until January 2008. By deferring its decision, Cash Minerals is obliged to fund at least $2 million in exploration on the YUP properties in 2007. Twenty-Seven will not suffer dilution if expenditures by Cash Minerals in 2007 exceed $2 million. Cash Minerals has announced that its 2007 exploration budget is $15 million and that it has contracted five diamond drills for the YUP properties.

On January 31, 2008, all YUP properties that Cash Minerals does not elect to earn a 75% interest in will automatically be subject to terms of YUJV. If Cash Minerals elects to earn a 75% interest in any property and makes the $1 million cash payment but fails to prepare a bankable feasibility study for that property, its interest will revert to 50% and the property interests will be transferred to YUJV. Two former YUP properties have already been transferred to YUJV (Pedlar and Hot Dog).

A letter agreement concerning the Hot Dog property grants Twenty-Seven the right to earn a 100% interest in that property, subject to an optional right that would allow Cash Minerals to earn back a 50% interest by making expenditures in 2007 that equal Twenty-Seven's 2006 expenditures. If Cash Minerals does not earn back its interest, it will retain a 1% net smelter return royalty in any production from the property.

Exploration highlights from YUP or YUJV properties are summarized below.

Lumina Property hosts structurally controlled uranium mineralization within Lower Proterozoic sedimentary rocks. A total of 2600 m of diamond drilling were done in 22 holes in 2006. The most significant drill intersections are tabulated below.



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Hole From (m) To (m) Interval (m) %U3O8
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L06-01 57.83 75.35 17.52 0.043
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L06-02 58.85 75.29 16.44 0.140
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incl. 60.85 63.84 2.99 0.324
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and 73.63 75.29 1.66 0.413
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L06-03 60.05 82.29 22.24 0.048
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L06-04 53.53 78.33 24.80 0.077
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incl. 53.53 55.75 2.22 0.533
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L06-05 56.22 64.37 8.15 0.030
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L06-06 16.68 19.70 3.02 0.015
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L06-06 66.45 68.45 2.00 0.078
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L06-07 23.47 37.07 13.60 0.037
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incl. 32.12 35.02 2.90 0.066
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L06-07 57.09 84.10 27.01 0.203
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incl. 61.09 78.13 17.04 0.290
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and 70.03 70.33 0.30 8.100
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L06-08 50.90 59.58 8.68 0.029
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L06-08 68.61 89.92 21.31 0.035
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incl. 71.62 76.74 5.12 0.090
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L06-09 44.81 47.85 3.04 0.021
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L06-09 74.91 96.62 21.71 0.030
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incl. 82.95 84.43 1.48 0.161
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L06-10 53.95 57.00 3.05 0.032
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L06-11 124.05 126.2 2.15 0.287
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L06-11 133.58 134.72 1.14 0.081
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Igor Property features uraniferous IOCG mineralization in a 1.6 billion year old discordant breccia body that shares many mineralogical and alteration characteristics with large IOCG deposits in Australia, including the giant Olympic Dam Deposit. Twenty-three diamond drill holes tested the breccia in 2006 and key results are tabulated below. None of the holes explored deep enough to test a recently identified gravity anomaly, which will be the main target of 2007 exploration at this property.



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Hole From (m) To (m) Interval (m) %U3O8 %Cu
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DDH-I-2006-03 45.08 68.00 22.92 0.016 0.20
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incl. 49.80 50.80 1.00 0.290 1.18
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DDH-I-2006-04 56.00 73.00 17.00 0.048 0.89
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incl. 58.50 68.90 10.40 0.049 1.12
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and 108.56 112.61 4.05 0.054 0.75
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DDH-I-2006-05 80.00 86.10 6.10 0.043 -
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incl. 84.78 86.10 1.32 0.121 -
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DDH-I-2006-10 15.47 18.06 2.59 0.326 0.01
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incl. 15.47 16.74 1.27 0.593 0.02
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and 73.96 86.00 12.04 - 1.39
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incl. 73.96 76.00 2.04 - 5.00
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and 80.00 83.75 3.75 - 1.60
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DDH-I-2006-12 80.80 93.78 12.98 0.064 0.81
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incl. 80.80 83.82 3.02 0.272 2.05
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and 88.79 91.00 2.21 - 1.22
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DDH-I-2006-18 50.30 51.36 1.06 0.031 0.40
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and 73.35 77.15 3.80 0.113 0.02
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incl. 73.35 74.68 1.33 0.189 -
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Bonnie Property covers recently discovered uranium mineralization hosted in fracture zones in sediments and breccias. Chip samples from outcrops assayed 0.939% U3O8 over 1 m and 0.18% U3O8 over 2 m while an interval in one of three diamond drill holes averaged 0.078% U3O8 over 4.92 m, including 0.383% U3O8 over 0.83 m.

Airborne geophysical surveys at various YUP properties identified numerous radiometric, magnetic and gravity anomalies that will require extensive follow up in 2007. Cash Minerals has contracted 5 diamond drills for the 2007 exploration season. Ground gravity surveys will begin in early February and drilling is scheduled to start in April.

Other Yukon Properties

The Murphy and Pike properties are both owned by Twenty-Seven and are under option to Signet Minerals Inc.

The Murphy Property covers intrusive hosted uranium occurrences that are marked by high radioactive and strongly anomalous geochemistry. Under terms of the option agreement, Signet has the optional right to purchase a 100% working interest in return for cash payments totalling $2,000,000 over an eight year period. If earn-in is completed, Signet's interest would be subject to a 2% net smelter return royalty payable to Twenty-Seven, 1% of which could be purchased for $1,000,000.

The Pike Property hosts two types of mineralization: IOCG within a large breccia body and high grade gold with pitchblende and brannerite in quartz veins peripheral to the breccia body. Under terms of the option agreement, Signet has the right to earn an initial 50% interest in the property by making work expenditures totalling $1,000,000 over three years and either paying $75,000 or issuing 300,000 of its common shares to Twenty-Seven. Upon earning its 50% interest, Signet will have the right to earn another 25% interest in the property to bring its total interest to 75%, by paying Twenty-Seven another $500,000 and preparing a bankable feasibility study.

Signet conducted geophysical surveys at both properties in 2006 and completed two diamond drill holes at the Murphy property. Reports describing the work have not yet been received but Signet has recently made cash payments required to keep the options in good standing.

British Columbia Properties

Twenty-Seven holds interests in four properties in British Columbia. Three of the properties in the Muskwa area of northeastern BC are subject to an optional sale agreement with Aries Resource Corp. and Action Minerals Inc. Under terms of that agreement, Aries and Action have the optional right to purchase a 100% interest in the Muskwa area properties. In order to earn the 100% interest, Aries and Action must: 1) pay Twenty-Seven a total of $750,000 in three installments within 270 days after receiving regulatory approval; 2) perform $5 million in work on the property or adjoining ground owned by Aries and Action within three years; and, 3) either issue Twenty-Seven a total of five million of their shares or pay Twenty-Seven $5 million, at Twenty-Seven's election. Upon Aries and Action earning their 100% interest, Twenty-Seven will retain a 1% net smelter return royalty interest in any production from the properties. Aries and Action have made the first $150,000 cash payment to keep this option in good standing.

The Finger Lake Property was optioned by Twenty-Seven from an independent prospector based in Kaslo, BC. It is located in central BC and hosts a road accessible IOCG prospect. Twenty-Seven can earn a 100% interest in the property by making cash payments totalling $80,000 and issuing 85,000 of its shares over a 5 year period. If a positive feasibility study is produced, another 50,000 of its shares must be issued to the prospector and he will be entitled to a 3% net smelter return royalty, 2% of which can be purchased for $2,000,000.

Northwest Territories Property

The Aristifats Property is an IOCG prospect associated with Proterozoic age diatreme breccias. It is owned 100% by Twenty-Seven. Diamond drilling by previous owners produced encouraging intersections, including 2.24% copper over 11.6 m and 1.52% copper over 20.7 m. Airborne magnetic and electromagnetic surveys that were flown in spring 2006 yielded anomalous results over the known showings and produced comparable results along strike in areas that are blanketed by glacial till. A gravity survey is planned for this winter and diamond drilling is scheduled to start in spring 2007.

Mexico Property

The La Cabota Property is one of a series of IOCG prospects located in northeastern Mexico. Twenty-Seven is earning a 100% interest in the property through an option agreement with an independent exploration syndicate. To earn its interest, Twenty-Seven must make cash payments totalling $60,000 (completed) and issue 350,000 of its shares (150,000 done) by April 11, 2008. Upon earn in, the property will be subject to a 1% net smelter return royalty of which 0.5% can be bought out for $600,000. Initial prospecting and soil sampling produced favourable results and discussions are underway concerning a possible option agreement with a major mining company.

Management is extremely pleased with exploration results and is working closely with Mega Uranium to complete the proposed merger and to plan future work programs.

TWENTY-SEVEN CAPITAL CORP.

Robert C. Carne, President
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