Black Bull Resources Inc.

Black Bull Resources Inc.

December 22, 2006 07:19 ET

Black Bull Resources Inc. Plans to Re-open

SHELBURNE, NOVA SCOTIA--(CCNMatthews - Dec. 22, 2006) - On October 16, 2006, Black Bull Resources Inc. (TSX VENTURE:BBS) announced a plan to conserve cash resources and focus expenditures on developing a new sales strategy, improving processing operations, and securing financing. A Sales Taskforce, led by two company directors working in association with the re-organized management team, has presented the Board of Directors with a sales strategy report. Based on the information received, the Board has decided to develop and implement a plan to re-open the processing operations at the White Rock Mine located in East Kemptville, Nova Scotia.

The Taskforce has met with many potential customers throughout North America, who have indicated an encouraging level of interest in purchasing Scotia White™ quartz from Black Bull. These many face-to-face meetings have confirmed a market for the uniquely white quartz from the White Rock Mine. Potential customers have committed both verbally and with written letters of intent, at prices which make re-opening economically viable. While many details remain to be resolved before recommencing operations, the Directors feel confident that re-opening is feasible, and the Company is fully committed to its prospective new customer base and dedicated to serving their needs.

The re-opening is tentatively scheduled for early in the second quarter of 2007 (the Company's third fiscal quarter). To that end, BBS is placing orders for additional equipment to improve quartz processing efficiency. During the first quarter of 2007, Black Bull will complete a maintenance program and re-staffing of the Company.

Black Bull maintains current cash and working capital of approximately $900,000; however, it will be necessary to raise funds immediately in order to re-open and resume operations. The Board has approved a private placement offering of up to $750,000 of secured convertible debentures. The debentures will bear interest at the rate of 12% per annum, mature in 12 months, and will be convertible into common shares of Black Bull at a conversion rate of $0.15. The proposed private placement of debentures is expected to take place in January 2007, subject to receipt of all required regulatory approvals. Directors and Officers have committed to more than 50% of the debenture offering. The Company anticipates requiring additional equity later in 2007 or 2008.

The Board of Directors is delighted to make this announcement, allowing Black Bull to remain a positive contributor to the local communities. Management looks forward to resuming business relations with new and existing customers, vendors, and personnel.

About Black Bull Resources Inc.

Black Bull Resources Inc. is a Canadian mining company based in Nova Scotia that operates the White Rock Mine near Shelburne. The Mine produces a bright-white, high-purity quartz, marketed under the Scotia White™ trademark which is used in a range of value-added, specialty products.

Further detailed information may be obtained from the Company's website or corporate filings at

FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Company's mining properties, development results or future plans, are forward looking statements that involve various 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. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed elsewhere in documents that are available to the public.


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