Becker Gold Mines Ltd.

February 24, 2005 15:31 ET

Becker Gold Mines Ltd. Enters Into Option Agreement With Canadian Royalties Inc. Regarding the New Nickel-Copper Property Near Falconbridge's Montcalm Deposit.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BECKER GOLD MINES LTD.

TSX SYMBOL: BGD

FEBRUARY 24, 2005 - 15:31 ET

Becker Gold Mines Ltd. Enters Into Option Agreement
With Canadian Royalties Inc. Regarding the New
Nickel-Copper Property Near Falconbridge's Montcalm
Deposit.

TORONTO, ONTARIO--(CCNMatthews - Feb. 24, 2005) - Becker Gold Mines Ltd.
(TSX VENTURE:BGD) ("Becker") wishes to announce that by resolution of
the Board of Directors it has entered into an Option Agreement with
Canadian Royalties Inc. (the "Optionee") for an option to acquire of up
to an undivided 90% of Becker's interest in a nickel-copper prospect
property comprised of three claim groups (194 mining claims) covering an
area of 3,140 hectares located approximately 70 kilometers northwest of
Timmins, Ontario in Montcalm, Watson and Belford Townships, Porcupine
Mining Division, Ontario which Becker is the recorded and beneficial
owner, subject to an underlying 2% net smelter royalty return (half of
which can be purchased anytime for $1,000,000),(the "NSR") and upon
certain terms set forth in the Option Agreement and subject to
regulatory approvals.

Becker grants to the Optionee the exclusive right during the period (the
"Option Period") commencing on February 23, 2005 and ending on the date
that the Joint Venture is formed, to enter upon the Property, to conduct
mineral exploration and development activities and to have quiet
possession thereof. The Option shall vest and become exercisable as
follows:

(a) The Optionee shall vest in a 49% interest in the Property by: (i)
making certain incremental cash payments totaling $75,000; and (ii)
incurring $200,000 in exploration expenditures ($50,000 of which is
firm) prior to the second anniversary of the agreement;

(b) An additional 16% interest in the Property (resulting in an
aggregate 65% interest) shall be transferred to the Optionee making an
additional $25,000 cash payment, and incurring additional exploration
expenditures of at least $200,000 on or before the third anniversary;

(C) An additional 10% interest in the Property (resulting in a aggregate
75% interest) shall be transferred upon the Optionee making an
additional cash payment of $30,000, and by incurring additional
exploration expenditures of at least $300,000 (resulting in an aggregate
$700,000 in exploration expenditures) on or before the fourth
anniversary;

(d) In the event that the Optionee making the final (additional) cash
payment to Becker of $120,000, then it will acquire an additional 5%
interest (resulting in an aggregate 80% interest), at which time a joint
venture will be formed, whereby each of the Optionee and Becker will be
responsible for the exploration and production costs in respect of the
development of the Property on a pro-rata basis (the Optionee as to 80%
and Becker as to 20%).

(e) The Optionee will earn and vest in an additional 5% interest in the
Property (resulting in an aggregate 85% interest) when a Bankable
Feasibility Report ("BFR") is completed by the joint venture, and
subsequently, if the Optionee, as its sole discretion, elects to arrange
Becker's pro-rata share of the funding to bring the Property into
commercial production, then the Optionee will acquire and vest in an
additional 5% interest in the Property, resulting in an aggregate 90%
interest.

Becker's common shares are listed on the TSX Venture Exchange and trade
under the symbol "BGD". The number of issued and outstanding shares is
8,872,911.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Becker Gold Mines Ltd.
    Penny Roberts
    Secretary
    (416) 364 0042
    (416) 364 2630 (FAX)
    or
    Becker Gold Mines Ltd.
    Jeffrey J. Becker
    President
    jeffbecker@telus.net
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.