Bonaparte Resources Inc.
TSX VENTURE : BON

Bonaparte Resources Inc.

December 14, 2010 16:01 ET

Bonaparte Announces Acquisition of Hopper Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Bonaparte Resources Inc. (TSX VENTURE:BON) ("Bonaparte" or the "Company") is pleased to announce that it has entered into a mineral property option agreement dated December 14, 2010 with Strategic Metals Ltd. (TSX-V: SMD) ("Strategic"), whereby Bonaparte can acquire up to 100% interest in and to 193 mineral claims (the "Hopper Property") located in the Whitehorse Mining District, Yukon Territory, Canada. The transaction is subject to approval by the TSX Venture Exchange.

The Hopper Property is located in southwestern Yukon and is directly accessible via a two-wheel drive road from the Alaska Highway. The Aishihik Hydroelectric Dam, one of the three main power generating hydroelectric stations in Yukon, is located 15 km south of the property along the same access road.

This 4000 hectare property hosts copper-gold porphyry targets and copper-gold-silver skarn showings. Historical diamond drilling (DDH) was performed in 1977, 1978 and 1989 while percussion drilling (PDH) was performed in 1980. This drilling focused on testing skarn mineralization. Highlights from historical drilling are shown in the following table.

Drill Type – Year – Hole   Interval width (m)*   Copper (%)   Gold (g/t)   Silver (g/t)
DDH-77-02   18.59   1.94   0.867   15.16
DDH-77-04   8.96   1.36   0.728   10.29
PDH-80-01   18.29   1.52   N.R.   N.R.
PDH-80-39   9.14   1.44   N.R.   N.R.
DDH-89-02   7.79   2.00   0.677   14.39
DDH-89-04   5.01   0.62   0.334   13.57
*Drill intercepts are reportedly between 80 and 90% of true width. Values for gold and silver were not reported (N.R.) for percussion drill holes.

The skarn zone is only partially tested by drilling. Mineralization has been identified in four horizons, and a recent VTEM survey outlined a 1300 m long conductor that coincides with the known mineralization and its projected extensions along strike. The porphyry target is outlined by widely spaced bulldozer trenches and soil geochemical results.

Transaction Highlights:

Pursuant to the terms of the option agreement, Bonaparte may acquire up to 100% interest in the Hopper Property subject to a 2% NSR royalty, by making cash payments and incurring exploration expenditures in three steps as follows:

1. By paying Strategic an aggregate amount of $1 million and incurring expenditures of $4 million by December 31, 2013 at which time Bonaparte will become a 50% joint venture owner in the Hopper Property.

2. By paying Strategic an aggregate amount of $2 million and incurring expenditures of $10 million by December 31, 2015 at which time Bonaparte shall have acquired an 80% interest in the Hopper Property.

3. By paying Strategic $5 million by March 31, 2016 at which time Bonaparte shall own 100% of the Hopper Property subject to the 2% NSR royalty.

Bonaparte will act as operator and plans to retain Archer, Cathro & Associates (1981) Limited of Vancouver, BC to carry-out all exploration activities. In addition, Bonaparte plans to have an independent National instrument 43-101 compliant report prepared on the exploration of the Hopper Property.

Technical information in this news release has been reviewed by Heather Smith, B.Sc., P.Geo., a qualified person for the purpose of National Instrument 43-101.

CAUTIONARY NOTE: FORWARD LOOKING STATEMENTS.

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events such as: (a) the closing of the option to acquire an interest in a mineral property and exchange approval of same; (b) the likelihood that the property has gold or copper; (c) the work program to be conducted by Bonaparte; and (d) the hiring of Archer, Cathro. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Bonaparte such as the willingness of the parties to close the transactions, the approval of the transaction by the Exchange, satisfactory results of the due diligence investigation on the Property, our ability to raise financing, geological information resulting in changed plans for exploration, our ability to contract equipment and labor, current economic conditions and the state of mineral exploration and mineral prices in general .Discoveries of minerals on other properties are not necessarily an indication of any commercial mineralization on our properties. These risks and uncertainties could cause actual results and Bonaparte's plans and objectives to differ materially from those expressed in the forward-looking information. Due to conditions precedent to closing, and the risk that these conditions precedent will not be satisfied, the Bonaparte can offer no assurance that it will close the Transaction. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, Bonaparte assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change. Please see the filings made by Bonaparte with Canadian securities regulators. Those filings can be found on the Internet at http://www.sedar.com.

For additional information concerning Bonaparte Resources Inc. please visit the Company's website at www.bonaparteresources.ca.

Neither the 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.

Contact Information