Silver Sprute

Silver Sprute

April 04, 2007 05:00 ET

Azimut and Silver Spruce sign a Letter of Intent for the Hudson Bay Uranium Property, Northern Quebec

    Symbol: AZM.TSX Venture

    MONTREAL, April 4  - Azimut Exploration Inc. ("Azimut") and
Silver Spruce Resources Inc. ("Silver Spruce") announce the signing of a
binding Letter of Intent regarding the Hudson Bay uranium property. Silver
Spruce can acquire from Azimut a 50% interest in the project over a 5-year
period together with an additional 15% interest upon delivery of a bankable
feasibility study.
    The Hudson Bay property is located near the Hudson Bay coastline in
Northern Quebec, approximately 15 to 40 km from the village and airport of
Umiujaq. It consists of three claim blocks totalling 537 claims with a surface
area of 253 km2. This includes 8 recently staked claims for which confirmation
is pending from the Ministry of Natural Resources and Wildlife of Quebec.
    The Hudson Bay property covers a strong regional-scale uranium
lake-bottom sediment anomaly for uranium, including a peak value of 750 ppm U.
The property is located along the structural transition zone between the Minto
and the Bienville geological subprovinces. The area is characterized by
Archean intrusive rocks as well as mafic and ultramafic rocks. Approximately
20 km south of the project, in a comparable context, uranium values of up to
1.31% U 3O8 were previously reported in rock samples in an area where
exploration is now proscribed. At Hudson Bay, the target type is a large
intrusion-related uranium deposit amenable to open pit mining.

    Silver Spruce can acquire a 50% interest in the project under the
following conditions:- Cash payments of $50,000 on later of signing and $50,000 on the four
      subsequent anniversaries for a total of $250,000. Silver Spruce will
      also issue 200,000 common shares, and an additional 100,000 shares on
      the first anniversary; Silver Spruce may elect to substitute cash
      payments for up to 50% of the value of the shares to be issued.
    - Minimum work expenditures of $300,000 during the first year (firm
      commitment) and $400,000, $600,000, $600,000 and $700,000 during the
      subsequent years for an aggregate total of $2,600,000.

    Upon Silver Spruce acquiring a 50% interest, Azimut will retain a
2% Yellow Cake Royalty. Silver Spruce will have the option of earning an
additional 15% interest by delivering a bankable feasibility study under the
following conditions:

    - The issue of 100,000 Silver Spruce shares in a one-time grant, and cash
      payments of $30,000 per year for five years for a total of $150,000;
    - Minimum work expenditures of $200,000 per year during the 5-year
      period.If Silver Spruce decides not to exercise this additional option, Silver
Spruce will provide Azimut with $100,000 in cash as final payment. Silver
Spruce will be the operator.
    This Letter of Intent and resulting option agreement and joint venture
agreement remain subject to the approval of regulatory authorities and
completion of due diligence review of the project by Silver Spruce.
    Silver Spruce is a junior mining exploration company focused primarily on
uranium in the Central Mineral Belt of Labrador. With 5,649 claims totalling
more than 1,400 km2, Silver Spruce is a key exploration company in this
emerging uranium district.

    This press release was prepared by geologist Jean-Marc Lulin, the
company's Qualified Person as defined by NI 43-101. Azimut is a mineral
exploration company using cutting-edge targeting methodologies with the
objective of discovering major ore deposits.

    The TSX Venture Exchange (TSX Venture) does not accept responsibility for
    the adequacy or accuracy of this release.
    %SEDAR: 00003284EF

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