Beartooth Platinum Corporation

Beartooth Platinum Corporation

March 30, 2005 10:02 ET

Beartooth Enters Agreement to Sell Idaho Gold Project and Accelerates Exploration at its Stillwater Platinum/Paladium Complex


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BEARTOOTH PLATINUM CORPORATION

TSX VENTURE SYMBOL: BTP

MARCH 30, 2005 - 10:02 ET

Beartooth Enters Agreement to Sell Idaho Gold Project
and Accelerates Exploration at its Stillwater
Platinum/Paladium Complex

TORONTO, ONTARIO--(CCNMatthews - March 30, 2005) - Beartooth Platinum
Corporation (TSX VENTURE:BTP) has entered into an agreement with
Valencia Ventures Inc. (TSX VENTURE:VVI) ("Valencia") to sell the
Company's 100% interest in the Idaho Gold Project ("IGP") for one
million dollars in cash. The IGP consists of five separate gold
properties located near Elk City, central Idaho, in the western United
States, comprising 244 unpatented and 8 patented claims, as well as one
State of Idaho mineral lease for a total of 57 square kilometres. The
Company also plans to raise an additional one million dollars through a
private placement.

"The sale of Idaho and the private placement will bring an additional
two million dollars to Beartooth, which will be used to expand
exploration at the Stillwater Complex, one of the largest PGE
exploration targets in North America,", Mike Johnson, incoming President
and CEO, said. "We now have a strong management team and additional
capital to work at Stillwater this summer. We believe Stillwater is one
of the most exciting exploration land packages assembled that has been
underexplored over the last few years. Data compilation has been in
progress since the beginning of this year and geophysics will be
conducted in late Spring, before the drilling at the site begins"

In August 2004, Valencia Ventures Inc. had entered into an Option
Agreement with the Company to earn a 51% interest in the IGP (refer to
Press Release dated 24 August, 2004). The Purchase Agreement replaces
the existing Option Agreement. To purchase a 100% interest in the
property, subject to existing royalty agreements with third parties and
a 2% NSR retained by the Company, Valencia will pay Beartooth a total of
C$1,000,000 over nine months - C$250,000 payable in 14 business days;
C$250,000 payable in 90 days; C$250,000 payable in 180 days; and
C$250,000 payable in 270 days.

Valencia will have a 60 day due diligence period during which it may
withdraw from the purchase agreement and elect to convert the C$250,000
first payment to a private placement of Units of Beartooth. Such Units
would consist of one common share of the Company at the market price of
the common shares at the date of such election and one half of a
warrant, with each whole warrant exercisable at two times the market
price of the common shares at the date of such election shares for a
period of two years, subject to regulatory approval. Should Valencia
elect the above conversion, the current Option Agreement will continue.
Valencia may buy-back 1% of the NSR for C$2 Million at any time before
the fifth anniversary of the agreement. Mr. Stan Bharti, P.Eng., a
Director of both Beartooth Platinum Corporation and Valencia Ventures,
abstained from voting on this transaction.

In addition, the Company announces plans to raise up to C$1,000,000 by
way of a non-brokered private placement of 10,000,000 Units at a price
of C$0.10 per Unit. Each Unit will consist of one Common Share and
one-half of one Common Share purchase warrant ("Warrant"). Each whole
Warrant will entitle the holder to purchase one common share at a price
of C$0.12 for a period of 18 months from the closing date. The private
placement offering is subject to regulatory approval. The proceeds will
be used by Beartooth for exploration work, as well as for general
corporate purposes.

Beartooth's VP Exploration, Mr. Jean Lafleur, P.Geo., states "Beartooth
is set to become a pure Platinum Group Metals exploration company
focused on its highly prospective platinum-palladium property in the
Stillwater Complex. With the proceeds of the sale and financing, the
Company will now have the ability to aggressively explore a number of
priority targets, which according to the Management Team could
eventually translate into significant Mineral Resources."

About Beartooth Platinum Corporation

Beartooth controls 809 unpatented lode mineral claims over the exposed
50 kilometre strike length of the Stillwater Complex. The Complex hosts
the largest known resource of PGE's in North America, and includes two
operating mines of the Stillwater Mining Company (SMC), from the J-M
Reef (the Stillwater and East Boulder Mines). SMC reports proven and
probable reserves at the Stillwater Mine of 15.9 million tonnes grading
22.63 g/t of combined platinum-palladium, with a platinum to palladium
ratio of 3.4:1, and proven and probable reserves at the Boulder East
Mine of 20.6 million tonnes grading 18.17 g/t of combined
platinum-palladium, with a platinum to palladium ratio of 3.7:1 (source:
Stillwater Mining Company Website). Beartooth's mineral claims are
contiguous with the SMC Mine Properties.

Beartooth recently initiated a major exploration program (refer to the
Press Release dated January 26, 2005) to identify one or more zones with
higher grade PGE's. The work includes a compilation and synthesis of the
extensive historical database to prioritize the approximately 90 sectors
already permitted for exploration work and also to generate new targets.
A comprehensive geochemical sampling program will be implemented this
summer to determine the orientation and extent of existing and new PGE's
bearing horizons, as well as corroborating the projected trends from the
airborne magnetic-electromagnetic geophysical interpretation. This will
ultimately lead to diamond drilling in the third quarter 2005.

Previous work by Beartooth has defined a number of PGE's targets that
lie within its claim group, particularly within at least one "reef"
(Picket Pin) similar to the J-M Reef, and a 2 kilometre thick ultramafic
unit that hosts numerous chromite horizons and nickel-copper sulphide
mineralization (Camp zone), both of which carry PGE's. There are two
major chromite units enriched in PGE's on Beartooth's ground in the Iron
Mountain area. Historical drilling by Beartooth returned significant
values of 1.24 g/t platinum) and 2.75 g/t palladium over 2.8 metres, and
1.36 g/t platinum and 2.57 g/t palladium over 7.1 metres from chromite
units (refer to Press Release dated January 26, 2005). The main
mineralized sector at Iron Mountain is the nickel-copper Camp Zone,
containing anomalous PGE's. The Camp Zone hosts a historic mineral
inventory estimated by AMAX (prior to NI43-101 standards) at 5.45
million tonnes grading 0.43% nickel and 0.25% copper (refer to Beartooth
in press releases dated October 12, 2004 and November 19, 2004).

Additional information about the Company and its properties is available
on the Company's website at www.beartoothplatinum.com.

Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned that any
such statements are not guarantees of future performance and that actual
developments or results may vary materially from those in these
"forward-looking statements. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release."

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Beartooth Platinum Corporation
    Stan Bharti
    Chairman
    (416) 861-5876
    www.beartoothplatinum.com