UC Resources Ltd.

UC Resources Ltd.

October 26, 2009 11:22 ET

UC Resources Ltd. and Noront Resources Ltd. Enter Into Option Agreement in McFaulds Lake Area

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2009) - UC Resources Ltd. (TSX VENTURE:UC) ("UC") would like to announce that it has entered into an Option Agreement with Noront Resources Ltd. (TSX VENTURE:NOT) ("Noront"), whereby UC can earn up to a 50 percent interest in two claims (32 – 16 hectare units) contiguous to the McFauld's Eastern Property in the area known as the "Ring of Fire". The newly optioned claims from Noront fall within the "area of interest" with respect to the Option that UC has with Spider Resources Inc. (TSX VENTURE:SPQ) ("Spider") and KWG Resources Inc. (TSX VENTURE:KWG) ("KWG") and as such, are subject to conditions of the UC-Spider/KWG agreement. By entering into this new option agreement with Noront; UC has consolidated the Eastern Block of claims into one contiguous property, and by doing so has created a means to maintain mineral title across the entire intermediate to felsic volcanic assemblage (that abuts the series of ultramafic intrusions containing the chromite/PGM sills), which volcanics are thus far alone in the Sachigo Greenstone "Ring of Fire" to have been proven to host potentially economic VMS-style deposits.

Presently UC has the right to earn up to 55% interest in the McFaulds East and West properties currently held by Spider and KWG encompassing some 31,000 hectares. As previously announced on August 27, 2007, UC advised Spider and KWG that it had completed the third year spending commitment on the McFaulds Lake option agreement and delivered unaudited proof thereof to them. Spider and KWG are currently in the review period to confirm UC's earn in level to 40%. UC has recently delivered a technical report supporting its third year spending requirement. With this report in hand the project expenditures can now be verified against the work program.

The terms and conditions of the new option agreement with Noront, allow UC to earn a 50% interest in the Noront claims by incurring expenditures of $100,000 on the subject claims within the first year and an additional $100,000 expenditure on the subject claims during the second year. Failure of UC to expend $200,000 in aggregrate within two years on the subject claims, would result in the two claims reverting back to Noront, with no interest earned.

UC is presently conducting a drill program to drill test three near surface anomalies on the McFaulds West block, and is reviewing the recent results of the drilling completed on the McFaulds East block.

UC Resources is an active explorer of base metals and chromite in the McFaulds Lake area ("Ring of Fire") of the James Bay Lowlands, Ontario, as well as an explorer and a near term producer of precious metals in Mexico.

On behalf of the Board of Directors,

Jim Voisin, President & CEO

UC Resources Ltd.

We seek safe harbour.

Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

Contact Information

  • UC Resources Ltd.
    Damien Lowry
    Vancouver Head Office
    Toll Free: 1-800-366-8566 (Canada & USA) or (604) 681-7265
    (604) 608-6163 (FAX)