United Reef Limited

United Reef Limited

January 04, 2005 12:05 ET

United Reef Limited: Nickel Offsets Option Exercised




JANUARY 4, 2005 - 12:05 ET

United Reef Limited: Nickel Offsets Option Exercised

TORONTO, ONTARIO--(CCNMatthews - Jan. 4, 2005) - United Reef Limited
(CNQ:URPL) is pleased to announce that it has received notice from
International CHS Resource Corporation (ICJ-TSXV) ("CHS"), that CHS is
exercising the option granted to CHS in August 2004 to earn an interest
in United Reef's wholly-owned Nickel Offsets property, 40 kilometres
northwest of Sudbury, Ontario. CHS has further advised United Reef that
CHS has closed a financing for gross proceeds of $750,000, which was a
condition of exercising the option. United Reef has granted CHS the
right to earn a 50% working interest in the Nickel Offsets property.

To earn their interest CHS has agreed to expend a total of $2.8 million
in staged exploration expenditures on the property over the next 4
years. In addition, during the option earn-in period, CHS will make
aggregate cash payments of $107,000 and issue 400,000 CHS common shares
to United Reef. United Reef will remain the operator of the project and
manage recommended exploration programs, to be funded by CHS, until such
time as CHS has earned their 50% interest in the project. Once CHS has
earned their interest they will become the operator of the project.

CHS will commit $350,000 of their financing to fund their first year's
exploration expenditure commitment on the property. A recommended
program is contained in a report by A.C.A. Howe International Limited
which is summarized in United Reef's press release of September 21,
2004. It is anticipated that the exploration program will commence
during January 2005. Further information on the Nickel Offsets project
can be found on United Reef's website at www.unitedreef.com.

United Reef also said it was pleased to report that 200,000 common share
purchase warrants were exercised by the holders to purchase 200,000
common shares at $0.15 per share prior to their expiry on December 13,
2004. The Company received gross proceeds of $30,000 on exercise of the
warrants. The remaining 100,000 warrants expiring on December 13th,
expired unexercised. United Reef now has 52,902,453 common shares issued
and outstanding.

United Reef's common shares are listed for trading on the Canadian
Trading and Quotation System Inc. ("CNQ") under the symbol "URPL".


Contact Information

    United Reef Limited
    Michael Coulter