Uragold Bay Resources Inc.
TSX VENTURE : UBR

Uragold Bay Resources Inc.

December 09, 2009 10:07 ET

Uragold Bay Closes the Acquisition of Ice Age Gold's Properties Based on the NI 43-101 Technical Report That Confirms the Historical Presence of Significant Gold Mineralization

MONTREAL, QUEBEC--(Marketwire - Dec. 9, 2009) - Uragold Bay Resources Inc. (TSX VENTURE:UBR) is pleased to inform its shareholders that it has closed the previously announced acquisition (May 26 and August 10 2009 press releases) of 100% interest in gold and other minerals exploration projects located in the "Eastern Townships" region of Quebec following the SEDAR deposit of a Technical report entitled "Final Report - Uragold Bay Resources Inc., NI 43-101 Reliant Qualification Report - Alluvial Gold Properties, Eastern Townships, QC NTS 21E04, 21E05, 21E06, 21E11, 21E12, 31H16".

As stated in our May 26 and August 10, 2009 press releases, the transaction with Ice Age Gold Corporation ("IAG") concerns the 100% acquisition of the "Saint-Francois and Dudswell Tertiary Gold concessions" the "Moe River Placer Gold Project" and the "Eaton North Placer Gold Project".

Of special interest is the fact that the technical report identified the Moe River Placer Gold Project as "High Priority Acquisition" based on the realization that extensive historical work was conducted and that historical mineral resources were delineated.

Extract of the report: "G. A. Blair worked in the Moe River area for about five years, after which he was able to define a resource based on the volume of gravels in the terraces along the river. He concluded that there were between 45 to 48 million cubic yards of material in all of the terraces containing a total of 400,000 ounces of gold. Prior to development however, Blair recommended additional test work in the form of test pits and drilling. (Blair, 1958, 1959, 1960, 1962)."

All information pertaining to mineral resources herewith presented are historical in nature and while relevant, the information was obtained before the implementation of National Instrument 43-101 and as such does not meet National Instrument 43-101 reporting standards. No historical estimate should be relied upon until it can be confirmed by the Company.

The salient point of the transaction is that UBR will be issuing to IAG 11,000,000 common shares of UBR and 5,500,000 common share purchase warrants exercisable at a price of $0.10 for each common share for a period of 2 years as of the closing date and will acquire 100% interest in all the IAG claims.

Furthermore, UBR and IAG also agreed that:

- In the event that work on the concession confirms the presence of 1,000,000 ounces of gold as inferred resources according to NI 43-101 requirements, IAG shall be entitled to receive from UBR 8,000,000 common shares of UBR, but based on the market price of such issued shares, the total value of the share issuance may not exceed a value amount of $2,500,000;

- In the event that work on the concession confirms the presence of over 2,000,000 ounces of gold as measured and indicated resources according to NI 43-101 requirements, IAG shall be entitled to receive from UBR, 6,000,000 common shares of UBR, but based on the market price of such issued shares, the total value of the share issuance may not exceed a value amount of $2,500,000;

- Furthermore, IAG agrees and engages itself to delay the exercise in part or in total of warrants issued as payment of the price as well as the demand and the receipt in part or in total of the shares to be issued by UBR upon confirmation of the presence of either 1,000,000 ounces of gold as inferred resources or 2,000,000 ounces of gold as measured and indicated resources, according to NI 43-101 requirements, as long as said warrants exercise or share issuance results in the holding by IAG of over 15% of outstanding shares of UBR or as long as such issuance of shares in excess of 15% is approved by UBR's shareholders, if not, the value of such shares in excess, based on the market price of UBR's shares, shall be paid in cash by UBR.

Note:

Mr. Vivian Stuart-Williams, (SACNASP), a Director of the Company and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the information in this news release.

Bernard Tourillon, UBR Chairman and CEO comments: "the deposit of the technical report, the closing of the Ice Age Gold acquisitions and the confirmation of significant gold mineralization are major milestones that the Corporation is happy to have finally reached. With this quiet period now behind us, we can now focus our energy on the development of the Corporation's uranium and gold properties." Furthermore, "with the closing of the acquisition, Mr. Levasseur becomes a significant shareholder in the Corporation, further entrenching his success with our shareholders."

About Uragold Bay Resources Inc.

Uragold Bay Resources Inc. is a Canadian based junior resource and exploration company trading under the symbol UBR on the TSX Venture Exchange. The Company has 94,894,367 shares outstanding. The Company holds 100% of the 314 km2 Uskawanis Uranium property located just south of the Opinaca reservoir, 100% of the Blue Lake Base Metal and Gold property situated close to Radisson in the James Bay region, 100% of the "Saint-Francois and Dudswell Tertiary Gold concessions", 100% of the "Moe River Placer Gold Project" and 100% of the "Eaton North Placer Gold Project". In addition the Corporation is also staking promising projects in the eastern regions of the Province of Quebec.

Neither 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. This press release contains certain "forward-looking statements," as identified in the Uragold Bay periodic fillings with Canadian Securities Regulators that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Contact Information

  • Uragold Bay Resources Inc.
    Bernard J. Tourillon
    Chairman and CEO
    or
    Uragold Bay Resources Inc.
    Patrick Levasseur
    President and COO
    514-846-3271
    Toll-free 1-888-666-3431
    www.uragold.com